the "L" word?

[JoeBoy26]

Over the weekend I listened to a person from the Transportation Research Board (trb.org) give a talk about the industry as a whole. They said that "unofficially" they expect one of the majors to liquidate within a year. Not talking about merging, consolidating, etc. They would not go into anymore specifics. I don't know how legit the person was and how/who/where they got their info from. Hearing them use the word liquidation was pretty chilling in all honesty :erm: Again, I just want to add this is NOTHING OFFICIAL! I don't know this individual personally so for all I know, it's just talk. Just wanted to see what some of the thoughts are?

 

[rudder]

In 24 hours 2 carriers have announced closure - Aloha and Champion. There will be more.

 

[Clyde]

"Caylon analyst Ray Neidl says U.S. airlines will lose over $1B in 2008 due to high fuel prices and fare cuts. Most, he says, can make it through the year, though he's worried about AirTran (AAI) and Frontier Airlines (FRNT). Delta Air Lines (DAL), Northwest Airlines (NWA) and Southwest Airlines (LUV) are in the best shape -- especially LUV because of its low leverage and fuel hedges."

"...AirTran's cash position will fall below 10% of revenue by year end"


Must be Airtran they are talking about.

 

[BoilerUP]

Folks were saying that about US Airways from 2001 through 2005...

 

[iaflyer]

Folks were saying that about US Airways from 2001 through 2005...

I remember delivering a package to an office at National Airport (DCA) in 1994. Outside the US Air crewroom was a company message saying "Contrary to rumors, we are NOT shutting down tomorrow - we have plenty of cash at the moment. Everyone is to report to work tomorrow."

Point is - US Air has been in trouble for a long, long time.

 

[PCL_128]

"Caylon analyst Ray Neidl says U.S. airlines will lose over $1B in 2008 due to high fuel prices and fare cuts. Most, he says, can make it through the year, though he's worried about AirTran (AAI) and Frontier Airlines (FRNT). Delta Air Lines (DAL), Northwest Airlines (NWA) and Southwest Airlines (LUV) are in the best shape -- especially LUV because of its low leverage and fuel hedges."

"...AirTran's cash position will fall below 10% of revenue by year end"


Must be Airtran they are talking about.

Most investment banks have actually been upgrading AAI's outlook over the past few weeks. I think we'll be fine.

 

[Aubie]

High oil prices will eat out - er, eat through cash pretty fast...

Now this is a solid thread. Some legitimate information and opinion interspersed with solid comedy (my contribution excluded). I'm gonna enjoy it until someone gets his panties in a wad and the mud-flinging starts.

 

[Longhorn]

Guys, Please do not post links to adult/porn sites.

Thanks

 

[RDG]

Guys, Please do not post links to adult/porn sites.

Thanks

That link sucked anyway. A link to links.

 

[Colonel Savage]

Guys, Please do not post links to adult/porn sites.

Thanks

I wondered where my post went.