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Oct 26^th, 2004 at 10:13pm

jrpilot Offline
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On late Tuesday ATA filed for Chapter 11..just adding to the U.S. airlines crumbling Undecided

..whose next?

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Reply #1 - Oct 26^th, 2004 at 10:39pm

Nexus Offline
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The greater of two evils...

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Who's next?

try USair...if they haven't filed already....

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Reply #2 - Oct 27^th, 2004 at 6:28am

Craig. Offline
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ATA are going no where. Chpt 11 means bankruptcy protection, it gives the airline a chance to restructure its company into a profit making airline, without having to worry about the debt collectors for a while. ATA like most airlines will pull through it. United has been in Chapter 11 for god knows how long now, and hopefully will be out soon. USair, well i dont know about them, its sad but at least one, maybe 2 of the major carriers has to go. USair will prob be the first. Delta are next for chpt 11 but not for a while as they just secured cuts from the pilots and $1bil in funding.

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Reply #3 - Oct 27^th, 2004 at 6:34am

jrpilot Offline
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Seems as though the LCC airlines are the ones who are still making the profit...which makes sense..cheap tickets=more passengers...so I wonder why UAL and AA have not looked into doing this.

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Reply #4 - Oct 27^th, 2004 at 6:50am

Craig. Offline
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because they cant afford to. For instance, at roughly current fees delta needs an 86% load factor to break even

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Reply #5 - Oct 27^th, 2004 at 8:41am

Nexus Offline
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The greater of two evils...

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Junior, SAS tried to catch on with the LCC trend in Europe (Or Sweden I should say) with their subsidiary airline Snowflake.

But alas, it did not work, so SAS folded Snowflake along with millions of dollars wasted so SAS are very well aware that competing with the LCC's on the same conditions are pretty much useless.
The SAS organisation is just not designed to be a LCC.
Their crew earn too much, they have too many aircrafts, and they have far too many on the payroll that works on the ground. Not really a slim organisation eh Wink

They tried to be a low price company, but they were not a low cost company, so income and expenses did not really even up

And in the U.K, didn't Easyjet actually BUY the LCC Go!, that was founded by British Airways...

So the major players usually stays out of the LCC business. The competition there is just fierce and not many comes out of it alive

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Reply #6 - Oct 27^th, 2004 at 9:00am

Craig. Offline
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yes easyjet bought go

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Reply #7 - Oct 27^th, 2004 at 12:02pm

Pinchaser... Offline
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i heard America West was looking into buying ATA....probably won't happen though because America West often runs into financial problems Roll Eyes

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Reply #8 - Oct 27^th, 2004 at 5:20pm

OTTOL Offline
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Fintas, Kuwait (OKBK)

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i heard America West was looking into buying ATA....probably won't happen though because America West often runs into financial problems Roll Eyes

That's the up side to those of you who may become discouraged at this kind of news. This doesn't mean that the aviation buisness is falling into turmoil. It just means that the new players(or the old ones with new names ie:Valujet) are filling the same old holes.

.....so I loaded up the plane and moved to Middle-EEEE..........OIL..that is......

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Reply #9 - Oct 30^th, 2004 at 3:46pm

beefhole Offline
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Philadelphia

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I live in Philadelphia, where something like 75% of all commercial traffic flying into Philadelphia International is USAir. Thus, the service of other airlines sucks, and USAir has no incentive to up their standards either. A big airline going down is sometimes a good thing for the passenger, of course not for the pilots. It can also be good for the industry as a whole, when an airline is no longer dominating certain hubs competition goes up and you recieve better service becasue of it.

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