Philip Baggaley Quotations

United shutting down doesn't necessarily fix the problem for other airlines, but it helps a lot. It does divert a fair amount of revenue to other airlines -- United carries about 17 percent of the nation's traffic.

The external environment is still very difficult, and we expect that they're likely to report a loss this year.

Maintenance work is often outsourced, especially at the low-cost carriers. I think it weakens labor's hand generally, but I wouldn't extend this to all other types of labor negotiations. American found out a number of years ago they couldn't fly through a flight attendant strike.

Maintenance work is often outsourced, especially at the low-cost carriers, ... I think it weakens labor's hand generally, but I wouldn't extend this to all other types of labor negotiations. American found out a number of years ago they couldn't fly through a flight attendant strike.

I wouldn't expect to see any major effects of these bankruptcy filings on passengers. I think both carriers will restructure successfully and continue flying.

I would expect, eventually, they will have to terminate the pension plan.

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.

Overall the storm will hurt, but it's certainly not the same as the impact of rising oil prices, ... a large effect.

Usually, one would see a ratio of less than 50 percent for industrial and transportation companies; however, that's the peak and from there, it should decline as they use free cash flow to pay down debt.

The pilots are the last major labor group to reach a preliminary agreement (except for striking mechanics who have been replaced) and the largest source of labor savings being sought by the airline.

We did that based on how much they need to accomplish in less than two months with their other labor groups. This strike stretches out the likely time frame with the others unions at least a bit.

The recent surge in fuel prices and Delta's disclosure that it will have to post 750 million dollars of cash collateral to extend its credit card processing agreement indicate that the airline's already slim chances of avoiding bankruptcy are dwindling rapidly.

Those three factors, pension, labor and fuel prices, will likely be the major consideration as they come up to Oct. 17.

Those three factors, pension, labor and fuel prices, likely were the major considerations.

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.

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.

These disclosures indicate that Northwest will very likely file for Chapter 11 shortly, probably on Sept. 14.

Probably not. Particularly with fuel prices where they are. But they have been narrowing their losses every year in bankruptcy.

Northwest's hopes of negotiating concessionary labor contracts with its unions were overtaken by the surge in fuel prices, which deepened the airline's losses and cash outflow.

Northwest has been losing a fair amount of money for a while now. I expect they feel they need to move forward quickly on these cost savings given where fuel prices are and going into the weak winter season.

A situation where you have United, Delta and Northwest all in bankruptcy does make it easier to think about further consolidation.

American Airlines is benefiting from much improved pricing and load factors, particularly in the U.S. domestic market, which are helping to offset very high fuel prices.

As we've seen, these airlines never seem to shake out.

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.

It's one thing to say that Northwest is managing through the strike impressively well. It's quite another to say they'll be able to get the concessions and other changes they need by mid-October.

It's almost certain losses will decline. American, Continental and possibly United could show a small profit this year.

That is high, particularly for an investment-grade company.

The added financial pressure may hasten an already likely bankruptcy filing, which will probably occur within weeks.

The airline's already slim chances of avoiding bankruptcy are dwindling rapidly.

It's very much a gut feel, subject to change on a daily or hourly basis.

It won't take much of a switch to change the result, ... There's also the precedent of the other labor groups approving it, including the mechanics, who were thought to be toughest sell. I don't think even those who voted against it are eager to go into bankruptcy.

The revenue picture has improved and this is a huge change. The big swing factor is the long-awaited improvement in pricing.

If you look at each one of these key requirements, in isolation, it appears to be a fairly good chance it will happen. But it only takes any one of them to fail, and it could drive American into bankruptcy.

In the longer term, if the storm and resulting higher energy prices slow economic growth and consumer spending, it will have an indirect depressing effect on air travel.

In addition, such an outcome would encourage other employee groups to join unions to improve their bargaining position in future contract talks.

Airline mergers are very difficult. They require a lot of cooperation from labor, management attention and financing. All those things are in short supply when you're just struggling to survive.

An airline doesn't wait till it's down to its last dollar to file. It'll be difficult to keep dragging it out. Without new financing, from a purely cash perspective, they are already in trouble to be assured they can reorganize in bankruptcy.

An airline doesn't wait till it's down to its last dollar to file, ... It'll be difficult to keep dragging it out. Without new financing, from a purely cash perspective, they are already in trouble to be assured they can reorganize in bankruptcy.

The main benefit will be to corporations and small businesses. It's a significant consumer benefit but not necessarily to your average person in the street who is planning on taking a vacation.