[Mergers and liquidations are] going to happen, ... They're going to realize the industry has too much capacity, too many hubs, too many seats, too many airlines. |
[US Airways is] facing the same problem everybody else is, ... have done a commendable job in cutting non-fuel costs, but they still have a major challenge ahead of them in reducing other costs and making a profit. |
A bankruptcy filing will be a given if they don't get a concession from other unions. It's going to be one-on-one talks with each. It's a good sign these unions aren't supporting the mechanics, but it's by no means certain [the airline will] get what it needs. |
Air travel is usually one of the first big hits of a slowing economy, but these guys don't believe the economy is slowing. It's only going to be a good quarter. |
Airline stocks have been having a rally because they're expected to lose less money next year than they did in 2005. That's not a solid reason to buy on a long-term basis, but those who bought in September have done very well. |
Airlines can make money on international routes. |
Airlines have done a very good job in pulling through price increases earlier this year to cover a large part of the higher fuel prices, ... Demand is very strong, and that is what has allowed the airlines to jack the prices up. |
Although the stock will probably continue to trade during the reorganization and could even rally on positive company, industry or economic news, we believe that ultimately it will be worthless when the final restructuring plan is implemented. |
Any amount of savings at this point is desperately needed by the airlines. With the tremendous pressures on airlines, this is one of few areas where they can actually reduce costs. With online purchasing of tickets, more and more channels are becoming available for consumers. If travel agents go out of business, it'll make the system more efficient. It's a hard statement to make, but it's true. |
As predicted, we are seeing another attempt by the airlines to increase ticket prices. |
As they grow, it's obvious they'll be crossing each others' paths. |
At $1.50 a share, the stock is already trading at bankruptcy levels and will probably continue to trade in that area in the event of, and after, a Chapter 11 filing, |
At this point, I think it's a high hurdle. If it does happen, it's going to be en masse -- all or nothing. |
Atlas Air will be growing probably over 20 percent a year. |
Basically, you have to have airline consolidation. |