Moody's: Airline Outlook Remains Negative

[BoeingBoy]

Moody's Investors Service said on Thursday that its outlook for the global airline industry is negative, with profits likely to be hurt by falling demand and fuel prices that are still high by historic standards.

Article

Jim

 

[Dog Wonder]

"that headwind will limit airlines' ability to get the most out of their capacity-reduction programs,"


So it is the headwind.

 

[autofixer]

The article should read:

The inability to extort any more concessions from their employees, due to the fact that they have reached the bottom of the concession barrel, will limit airline's ability to get the most out of their capacity-reduction programs and further line management's pockets.

 

[freedom]

ah moodys , still predicting that moderate recession are we ?


As the unemployment rate begins to rise fewer people have the ABILITY to pay to fly ... and as fear stalks our society more and more people are going to pull back and spend less ... spending less means flying less ... reduced credit via credit card companies means few flights etc ....

their saying 1 in ten folk who have a mortgage are now late .. one in ten ..... :blink:


there are now so many cycles i can't even explain them all .. take consumer confidence ... thus far this year sales have been really really poor in retail , so they cut people , which puts more folk out of work and results in lower state revenues and increased state spending via unemployment pay which creates more headlines of "state budget in trouble !" .... the now unemployed people save every penny they have because there are no more jobs to be found ... the folk who are still working read the daily headlines and their fear increases , so they spend less ...so business let more workers go .. and the cycle continues ...


Mortgages ... even if people no longer feared for their jobs , the housing prices would continue to fall because now there are so many homes on the market that are upside down , people are just walking away .... and the more people who walk , the lower house prices go which in turn leads to more people walking , which results in more foreclosures and the cycle continues ...

the credit cycle ... the more people who default on their debt the less credit companies or banks lend , which in turn leads to more people defaulting ... and all of that leads to fewer car loans , and home loans , which result in fewer houses being sold which means prices for homes come down , and no cars or other goods being sold means fewer workers are needed ...

so on and so forth

ah moodys , you and your negative outlook

 

[Dog Wonder]

Everyone is not burdened equally.

Those with limited skills, experience, and education think everyone is with them in that boat drifting down Open Sewage Creek without a paddle.

Those who have been around some have the sense not to get on that boat.

 

[freedom]

Everyone is not burdened equally.

Those with limited skills, experience, and education think everyone is with them in that boat drifting down Open Sewage Creek without a paddle.

Those who have been around some have the sense not to get on that boat.

ah , but sadly unbeknown to you we're in the same boat .. and my fat ass is helping to weigh us down you see with a trillion dollar deficit and state taxes about to increase , even if your just sitting very still in the boat , your still going to get wet same as me when it goes down ... but hey , look at the bright side , at least will all go down together !

 

[Phoenix]

The article should read:

The inability to extort any more concessions from their employees, due to the fact that they have reached the bottom of the concession barrel, will limit airline's ability to get the most out of their capacity-reduction programs and further line management's pockets.

Ah.. nothing is new. It was Pharaoh who made the slaves manufacture twice as many bricks while at the same time he stopped supplying them with the materials.

Mush! Mush! You dogs! Mush!

 

[Dog Wonder]

ah , but sadly unbeknown to you we're in the same boat .. and my fat ass is helping to weigh us down you see with a trillion dollar deficit and state taxes about to increase , even if your just sitting very still in the boat , your still going to get wet same as me when it goes down ... but hey , look at the bright side , at least will all go down together !

Aye Aye Captain.

Sorry I missed your boat.

Enjoy the smells.

 

[USstew23]

Everyone is not burdened equally.

Those with limited skills, experience, and education think everyone is with them in that boat drifting down Open Sewage Creek without a paddle.

Those who have been around some have the sense not to get on that boat.

I think this time is a bit different from previous downturns. This downturn does not just apply to those with limited skills, experience, and education. It is clamping down on people at every level. Making comments like that does nothing but show extreme levels of ignorance which also falls into the category of "limited".

 

[Dog Wonder]

It is all a`matter of perspective.

If you think failure is inevitable, it is.

 

[freedom]

Aye Aye Captain.

Sorry I missed your boat.

Enjoy the smells.

from hence forth i shall refer to you as first mate wonder !


ahoy first mate wonder , make fast for sails! straight to midships for you sir !

 

[SpinDoc]

It is all a`matter of perspective.

If you think failure is inevitable, it is.

Dog:

It's not a "matter of perspective". The economy is rolling downhill, and will continue to do so until market liquidity is restored. I'm not sure if you have been following recent news about the market, but banks are not lending money or extending credit to anyone, not even between themselves, and that is causing most of the problems we're seeing in the housing market and in particular, auto sales ie. the Big Three.

As the economic engine comes to a grind due to lack of liquidity, businesses shut down because they can't meet their basic obligations, and layoffs occur. Laid off people do NOT have the money to buy airplane tickets. Companies without credit do not have the money to send their sales force to client meetings on airplanes.

Without ticket sales or credit, airlines are toast because they don't have enough cash on hand to meet their operational needs for more than 60 days. Things are going to get very interesting for all airlines by January unless something is done to increase market liquidity.
Henceforth, Moodys is absolutely correct in issuing warnings about the airline sector.

What needs to happen is for the Fed to put extreme pressure on banks and other lending institutions to extend credit and loans, particularly in the housing and auto markets. If this doesn't work, the U.S. Government needs to set up a federal loan program and take a large portion of the bailout fund and establish a National Bank to make loans and ensure there is liquidity in the markets.

 

[nycbusdriver]

If this doesn't work, the U.S. Government needs to set up a federal loan program and take a large portion of the bailout fund and establish a National Bank to make loans and ensure there is liquidity in the markets.

Bingo!

If a bill establishing a national bank gets before Congress, you'll see the commercial banks start loaning money in short order.

 

[Dog Wonder]

from hence forth i shall refer to you as first mate wonder !


ahoy first mate wonder , make fast for sails! straight to midships for you sir !

Have it your way. Don't forget to duck when that boom comes, BONK, around. Oops.

Captain Overboard. Try not to swallow in case you forgot what creek you are floating down.

Wait I found a life preserver. Catch.

Oops, that was the anchor. Nice catch though.

I found the paddle. Time to get off your Ship of Fools.

 

[freedom]

{so on and so forth }

What needs to happen is for the Fed to put extreme pressure on banks and other lending institutions to extend credit and loans, particularly in the housing and auto markets. If this doesn't work, the U.S. Government needs to set up a federal loan program and take a large portion of the bailout fund and establish a National Bank to make loans and ensure there is liquidity in the markets.

Spin doc , good to see you again ...


The new year will be interesting ...


As for you hypothesis on putting more pressure on banks to lend .... i don't see that happening nor do i think it would be the solution we're looking for ...

Right now the people who have good credit and who's income threshold is sufficient can still get loans ..so people like doug parker can still get a new car ... it's the vast majority of the American public however who can't , people like say oh anyone in the tourism industry , or aviation industry , or construction , or retail etc .. there are so many loan time bombs out there , it's just too risky to lend to anyone expect the most wealthy ...

you see , we're all going to default ... as the economy continues to tank , everyone's going to do what's best for themselves ... so after plumber joe's business collapses he's going to live off of his credit cards even though he will not have the ability to pay them off , and when visa comes calling he's going to tell them "tough luck " .... or lets say you bought a brand new BMW right before the crisis and you realize your job might not be secure ... you might just call up the bank and say "hey i don't want this car anymore take it back " boom , there goes your auto loan , and the only thing the bank can do is take the car back and ding your credit ...

you see continuing with the navy terminology , we're all going to ABANDON ship at some point or another .


ahoy first mate wonder , i think i'll just stay right here in the water .... seeing as the ship is on fire , i'd rather not get burned , but sooner or later you'll be right next to me here doing the doggie paddle