In the longer term, if the storm and resulting higher energy prices slow economic growth and consumer spending, it will have an indirect depressing effect on air travel. |
It was a very respectable showing. |
It won't take much of a switch to change the result, ... There's also the precedent of the other labor groups approving it, including the mechanics, who were thought to be toughest sell. I don't think even those who voted against it are eager to go into bankruptcy. |
It's almost certain losses will decline. American, Continental and possibly United could show a small profit this year. |
It's one thing to say that Northwest is managing through the strike impressively well. It's quite another to say they'll be able to get the concessions and other changes they need by mid-October. |
It's very much a gut feel, subject to change on a daily or hourly basis. |
Maintenance work is often outsourced, especially at the low-cost carriers, ... I think it weakens labor's hand generally, but I wouldn't extend this to all other types of labor negotiations. American found out a number of years ago they couldn't fly through a flight attendant strike. |
Maintenance work is often outsourced, especially at the low-cost carriers. I think it weakens labor's hand generally, but I wouldn't extend this to all other types of labor negotiations. American found out a number of years ago they couldn't fly through a flight attendant strike. |
Northwest has been losing a fair amount of money for a while now. I expect they feel they need to move forward quickly on these cost savings given where fuel prices are and going into the weak winter season. |
Northwest ran out of time. |
Northwest's hopes of negotiating concessionary labor contracts with its unions were overtaken by the surge in fuel prices, which deepened the airline's losses and cash outflow. |
Overall the storm will hurt, but it's certainly not the same as the impact of rising oil prices, ... a large effect. |
Probably not. Particularly with fuel prices where they are. But they have been narrowing their losses every year in bankruptcy. |
That is high, particularly for an investment-grade company. |
The added financial pressure may hasten an already likely bankruptcy filing, which will probably occur within weeks. |