A bankrupt airline is anxious not to lose customers, especially business travelers, and may be wary of cutting service below competitors' levels for fear of confirming passenger suspicions that the company is not long for this world.
More Quotes from Philip Baggaley:
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.Philip Baggaley
The external environment is still very difficult, and we expect that they're likely to report a loss this year.
Philip Baggaley
A situation where you have United, Delta and Northwest all in bankruptcy does make it easier to think about further consolidation.
Philip Baggaley
During the recent downturn, the legacy carriers have gradually used up their financial cushion of aircraft and other assets they can borrow against. If they are forced to face a new crisis, they may fail more quickly than they have in the past.
Philip Baggaley
I think it's entirely possible they'll use the grace period (on the bonds) if they haven't heard from the ATSB by Monday, ... However (the end of the grace period on) Dec. 16 may be more of a make or break deadline.
Philip Baggaley
As you shrink an airline, you also reduce your revenue- generating ability. Obviously, they'll try to shrink the unprofitable markets.
Philip Baggaley
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Based on Topics: World QuotesBased on Keywords: confirming
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