Why Ge Is Keeping Loser Airlines Aloft

[BoeingBoy]

BusinessWeek Online

Why GE Is Keeping Loser Airlines Aloft

Friday January 28, 3:59 pm ET

By Diane Brady in New York, with Brian Grow in Atlanta, Lorraine Woellert in Washington and Wendy Zellner in Dallas

General Electric Co.'s (NYSE:GE - News) aircraft engines may power the country's major airlines, but it's GE's money that is keeping many of them aloft. Since September 11, 2001, GE Commercial Finance and its aircraft leasing arm, GE Commercial Aviation Services, have sunk more than $8 billion into global airlines, with a big chunk of that going to money-losers such as Delta Air Lines Inc. (NYSE😀AL - News) and United Airlines Inc. (ualaq.ob.OB). GE has also allowed feeble airlines to defer payments on leased aircraft, thus helping them keep more planes in the air and continue a price war on the ground. But while extending lifelines may be good for GE, it may be bad for the airline industry.

My Webpage

Jim

 

[UseYourHead]

Thanks Jim,

Interesting read....

BusinessWeek Online

Why GE Is Keeping Loser Airlines Aloft

My Webpage

Jim

[post="243792"][/post]​

 

[delldude]

keeping losers aloft is about the only way they can get any useful return on their investments......nice boat to be in.......too many airlines and best thing is for several to go away but you can't afford to have that.....
catch 22???

 

[ClueByFour]

GE can't have a major airline go under all at once. That would hurt for a while.

But, they can slowly draw down the losers (eg, reclaiming, say 25 aircraft at a time)......