It sounds like the judge is growing impatient of UAL's endless extension requests.
This scenario is following the path of the Eastern bankruptcy and liquidation to a T. Except it is being drawn out much longer. When the courts start mentioning they will consider the ability to let other proposals come into play, it is a very significant message sent to current management.
Also take note what they are saying about DAL's new fare structure. The implications are serious for weaker cariers and their ability to obtain credit and financing. I believe what DAL did will force a shakeout in the industry much quicker than anyone had planned.
There is a real dichotomy. ALPA giving concessions which management uses to cut fares which puts other ALPA pilots on the street. I thought the reason for the concessions was to fix the cost structure, not subsidize weak revenues?
However, in the end, the move may make perfect sense from a strictly business point of view. Put a death nail in your competition. See who can hold out the longest financially, make it up on the rebound when the pricing power returns based on a failure and reduction in capacity.
http://www.nytimes.com/2005/01/10/business/10air.html
This scenario is following the path of the Eastern bankruptcy and liquidation to a T. Except it is being drawn out much longer. When the courts start mentioning they will consider the ability to let other proposals come into play, it is a very significant message sent to current management.
Also take note what they are saying about DAL's new fare structure. The implications are serious for weaker cariers and their ability to obtain credit and financing. I believe what DAL did will force a shakeout in the industry much quicker than anyone had planned.
There is a real dichotomy. ALPA giving concessions which management uses to cut fares which puts other ALPA pilots on the street. I thought the reason for the concessions was to fix the cost structure, not subsidize weak revenues?
However, in the end, the move may make perfect sense from a strictly business point of view. Put a death nail in your competition. See who can hold out the longest financially, make it up on the rebound when the pricing power returns based on a failure and reduction in capacity.
http://www.nytimes.com/2005/01/10/business/10air.html
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