Who's next to fold?



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Chucky,
ANOTHER RARE moment to Agree for you and Me.

IMHO, it will be a toss-up(as to who Dissapears for good) between Sun Country and Spirit.

Midwest is indirectly owned by NW, so that could make for a complicated prognostication.

Allegiant seems to be fine.

Branson's Got ZILLIONS for Virgin America(or what ever it's called)

Jet Blue has got LH $$$$ for a Rainy Day.

Now to the Legacy's.

Since a BK for them probably wouldn,t be an "11", unfortunately LCC woulg go first(stock at $1.91 today) LCC deserves anything that happens to them(in the Negative) because the friggin' Stockholders stay with those MORONS in Tempe.

The Cruelest Cut, would be for the GREAT USAir employees. IMHO, they ARE as good as Any people at AA/UA/DL/CO/NW/WN !!!!

One legacy to watch close is CO.
Though a WALL street darling, I KEEP hearing that THEY are NOT flush with Cash !!, and their stock is dropping like a rocket from uphigh(unlike AA's or DL's or NW's stock, that has been Low for some time)

But what CO DOES have, is(like AA) a FREE ride through BK-11) Unlike UA/DL/NW or US.

If all the above mentioned carriers fell, that would leave enough "food" for AA/UA and DL-NW.

Plus WN doing their own thing !
 
For airlines, second-quarter results is about cash


With everyone sharing the same pain, analysts this quarter have said they are more concerned about cash and liquidity than profit losses.

For the industry, Calyon Securities said it expects negative cash flow for the year and a half, with a loss of about $800 million in the second quarter and about $6.5 billion for the whole year. Though the liquidity for major carriers appears safe for 2008, next year is expected to shake out the weaker performers, and most eyes are on the six so-called legacy carriers.

It looks like the airlines better start gathering up their nuts for the long cold winter ahead :unsure:
 
Midwest is indirectly owned by NW, so that could make for a complicated prognostication.

Hardly. YX a the burr in the regulatory saddle for NW/DL. I'd be surprised if they make it to the end of the quarter.

Allegiant seems to be fine.

Yep. Although, with the drop in demand for LAS, it will be interesting to see how they respond. Most of the business they book is air/hotel packages with casinos. They get a nice kickback (legal, of course) from the casinos, which is one of the reason they can make money with Mad Dogs...

Branson's Got ZILLIONS for Virgin America(or what ever it's called)

Yes, but he can't give it to them. He has to find Americans willing to invest, and those are becoming quite rare...

Jet Blue has got LH $$$$ for a Rainy Day.

Same thing as with Virgin.....


Since a BK for them probably wouldn,t be an "11", unfortunately LCC woulg go first(stock at $1.91 today) LCC deserves anything that happens to them(in the Negative) because the friggin' Stockholders stay with those MORONS in Tempe.

They may file, but I don't think they'll disappear from the skies.


One legacy to watch close is CO.
Though a WALL street darling, I KEEP hearing that THEY are NOT flush with Cash !!, and their stock is dropping like a rocket from uphigh(unlike AA's or DL's or NW's stock, that has been Low for some time)

But what CO DOES have, is(like AA) a FREE ride through BK-11) Unlike UA/DL/NW or US.

Are you forgetting their previous two rides?...

If all the above mentioned carriers fell, that would leave enough "food" for AA/UA and DL-NW.

That's a pretty big "IF" there, Bears...



The Small Fry lineup as I see it:

1) Midwest. They've cut beyond bone and muscle at this point.
2) Frontier. Slowly being relegated to the third place carrier in their home market.
3) Spirit. Private investors don't like to lose money anymore than public shareholders do, and too much reliance on a customer base who seriously has to choose between food or their mortgage payments...

The legacies? I see filings on the immediate horizon, but they're mostly from carriers operating Airbus aircraft, and they've been known to prop up airlines just to avoid having the planes sit idle...