AMR is next...

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On 2/27/2003 1:34:23 PM luv2fly wrote:

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On 2/27/2003 8:54:05 AM DELLDUDE wrote:

to keep the playing field level all the other majors will have to go bk......or else.
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And I suppose that when all the majors declare bk, WN,JB, and Airtran will have to declare bk to compete with the majors, and then the majors will have to cut costs again in order to ........
Idiotic line of thought.
The market should have been allowed to correct itself. There is too much capacity for the demand. Instead, in a futile attempt to save one or two airlines in the form of the ATSB, the government has created an industry that rewards poorly run airlines with government loans. Flame away, but US should have been allowed to fail, but it wasn't so now US will drag all other carriers down with it. I guess misery really does love company.
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Hmm...US Airways doesn't have any the loan money from the ATSB guaranteed/backed loan - please get the idea out of your head that the fed is giving cash to U.

Just wait for the first time WN finally posts a loss. Imagine the surge in champagne sales in DC, Chicago, Dallas, Atlanta, St. Paul, and Houston.
 
luv2fly said:

And I suppose that when all the majors declare bk, WN,JB, and Airtran will have to declare bk to compete with the majors, and then the majors will have to cut costs again in order to ........
Idiotic line of thought.
The market should have been allowed to correct itself. There is too much capacity for the demand. Instead, in a futile attempt to save one or two airlines in the form of the ATSB, the government has created an industry that rewards poorly run airlines with government loans. Flame away, but US should have been allowed to fail, but it wasn't so now US will drag all other carriers down with it. I guess misery really does love company.

DCAflyer replies:

No, the industry should have stayed fully regulated or completely unregulated... one or the other... rather than this haphazzard mishmash of rules, regulations and taxes. But then if that had happened, you wouldn't be luv'n life, would you? Be gone!
 
luv2fly just doesn't get it and said:

US's planned emergence from BK is contingent on obtaining the government loan isn't it?

DCAflyer says it's not a government loan, it's a guarantee of a loan from a private source. In exchange, the government is getting a percentage of ownership of U.
 
The loans do come from a private backer. However, should U default and fail to pay the loans, then the taxpayer will get to pay the bill.

I agree that the ATSB was a bad idea and largely unnecessary. Instead of stabilizing the industry, it has actually helped destabilize the industry by giving failing companies the ability to access capital markets.
 
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On 2/27/2003 1:34:23 PM luv2fly wrote:

[blockquote]
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On 2/27/2003 8:54:05 AM DELLDUDE wrote:

to keep the playing field level all the other majors will have to go bk......or else.
----------------
[/blockquote]
And I suppose that when all the majors declare bk, WN,JB, and Airtran will have to declare bk to compete with the majors, and then the majors will have to cut costs again in order to ........
Idiotic line of thought.
The market should have been allowed to correct itself. There is too much capacity for the demand. Instead, in a futile attempt to save one or two airlines in the form of the ATSB, the government has created an industry that rewards poorly run airlines with government loans. Flame away, but US should have been allowed to fail, but it wasn't so now US will drag all other carriers down with it. I guess misery really does love company.
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LUV,

I agree with all your former comments, but not the latter. Airtran, JB, and SW, do not have to go into BK. They are already considered "low cost". Exception being SW,as they are a "low fare" airline with a very unique business model that can sustain relatively any economic condition.

The Majors may not all go into BK, but they will threaten...and I mean using it all with the big "L" word as well.

I'll move off this subject now.
 
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On 2/27/2003 3:42:23 PM DLFlyer31 wrote:


Instead of stabilizing the industry, it has actually helped destabilize the industry by giving failing companies the ability to access capital markets.
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Bingo!
 
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On 2/27/2003 2:43:35 PM DCAflyer wrote:

DCAflyer says it's not a government loan, it's a guarantee of a loan from a private source. In exchange, the government is getting a percentage of ownership of U.
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Ok. A private loan, or ATSB loan, call it what you will. Now, who created the ATSB?
 
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On 2/27/2003 4:27:14 PM PITbull wrote:

The Majors may not all go into BK, but they will threaten...and I mean using it all with the big "L" word as well.
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You are exactly right PIT. Wall Street loves to point fingers at labor, and it is far to easy for poor management to hide behind such an excuse.
 
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