NWA cuts capacity by 3.5-4.5 Percent
 

http://www.startribune.com/business/...lightModules:1

Is this previously known cuts or new? If new how do you think this will affect Pinnacle/Mesaba/Compass ?

pinnacle is going to take a little hit becuase we have a vacancy for october that had a decrease in 19 fo's for dtw and msp.
mesaba and compass fly the money makers right now

This is in addition to previous cuts. Net reduction by the end of 2008 will be 8-9% year-over-year.

Wonder if that Oct. vacancy was based on the earlier 4-5% reduction or if they factored in this newest reduction? It looks like the bulk of the reduction is coming from the -9s, which would probably actually benefit XJ and Compass. We'll probably lose some feed into those unprofitable routes being cut.

I'm keeping my non-aviation employment network nice and current in case worst comes to worst...I hate to say it but I'm listening to some economists on the tube right now and from what I'm hearing I'm really hoping it's time for a downturn in India & China...they've been hot way too long, and it's time for them to go through a correction due to their demand and inflation levels putting pressure on our inflation levels and energy costs.

I'm eager to hear what the upcoming Senate hearings on speculative trading in oil futures yields. Tighten the darned rules on that. And strengthen the dang dollar!!!

They can cut capacity all they want. They wont make any money until they raise ticket prices and charge more than greyhound/amtrack.

That's a fine theory when you run a business in a vacuum, unfortunately, that's not the environment the airlines are in. The airlines with a better cash position (which is funny in and of itself) are holding out to see who folds first. Knock a few of the big guys out and then things start to change.

That is spot on.

Then the airlines that fold first declare bankrupcy, renegotiate their contracts, squeeze labor out of rmore money, emerge "leaner" and "stronger" so the airlines with a better cash position to begin with have to go into bankrupcy and it goes on and on....

We've done that before. It doesn't work for us as employees and works very well for executives.

True, but DIP financing is going to be much harder to line up this time around.

Pullup is correct. The first big major (and any little majors) that file Ch.11 will probably liquidate. After that the fed will probably step in to "save" the industry.