View Single Post
Old 05-27-2008 | 06:40 AM
  #103  
RJtrashPilot's Avatar
RJtrashPilot
I have shiny jet syndrome
 
Joined: Jan 2008
Posts: 984
Likes: 0
From: ELACS, FACs and SECs. Who doesn't love 'em?
Default

Originally Posted by DAL4EVER
No one. According to ALPA's EF&A department, SWA can be profitable to $150/barrel. All U.S. carriers lose above $120. DAL was able to maintain profitability to $120/barrel. The same report had AA losing money at $90-95 and UAL was lower than that I believe.

The only hope anyone has is that your airline has enough cash on hand to be the last player at the dance. Cutting free snacks, charging for the first checked bag is a moot point right now. I believe this is how cabotage will become our reality. The legacies will all go bankrupt, because there is no access to the liquidity markets this time around there will be no way to restructure. Faced with the liquidation of the entire industry, the government will find it suitable to allow Air France, Lufthansa and BA to come in and buy the carriers to preserve the U.S. transportation system.

Global carriers will be the reality and the once shining star of the world's airline network (U.S. airlines) will be erased.
Very interesting perspective. While I think it may be a bit radical and extreme, it is a very sobering way of viewing the industry as a whole. Very well put!
Reply