44 ordspråk av Philip Baggaley
Philip Baggaley
The airline's already slim chances of avoiding bankruptcy are dwindling rapidly.
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The external environment is still very difficult, and we expect that they're likely to report a loss this year.
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The main benefit will be to corporations and small businesses. It's a significant consumer benefit but not necessarily to your average person in the street who is planning on taking a vacation.
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The pilots are the last major labor group to reach a preliminary agreement (except for striking mechanics who have been replaced) and the largest source of labor savings being sought by the airline.
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The recent surge in fuel prices and Delta's disclosure that it will have to post 750 million dollars of cash collateral to extend its credit card processing agreement indicate that the airline's already slim chances of avoiding bankruptcy are dwindling rapidly.
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The revenue picture has improved and this is a huge change. The big swing factor is the long-awaited improvement in pricing.
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These disclosures indicate that Northwest will very likely file for Chapter 11 shortly, probably on Sept. 14.
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They are another example of a company that started out in a relatively stronger financial position than their peers, and they felt they were in better position to survive a shakeout, ... They didn't pursue cost-cutting as aggressively as they would have if they were heading toward bankruptcy early in the (industry's) downturn.
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They are another example of a company that started out in a relatively stronger financial position than their peers, and they felt they were in better position to survive a shakeout. They didn't pursue cost-cutting as aggressively as they would have if they were heading toward bankruptcy early in the (industry's) downturn.
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Those three factors, pension, labor and fuel prices, likely were the major considerations.
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Those three factors, pension, labor and fuel prices, will likely be the major consideration as they come up to Oct. 17.
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United shutting down doesn't necessarily fix the problem for other airlines, but it helps a lot. It does divert a fair amount of revenue to other airlines -- United carries about 17 percent of the nation's traffic.
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Usually, one would see a ratio of less than 50 percent for industrial and transportation companies; however, that's the peak and from there, it should decline as they use free cash flow to pay down debt.
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We did that based on how much they need to accomplish in less than two months with their other labor groups. This strike stretches out the likely time frame with the others unions at least a bit.
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