Vaughn Cordle Quotations

You have an entirely different industry with oil below $50 a barrel and with oil above $60.

Every other carrier that competed with them picked up the pace. They profoundly misunderstood the competitive response. They were doomed from day one.

They have a right to be upset, because what management is proposing is quite dramatic.

They don't want to go that deep. Hence the strike threat.

They had no choice. If they didn't agree to it, a bankruptcy judge would impose it. It's in management's best interest - and the pilots - to have everyone agree to the cuts so they don't have morale problems.

There's a strong business case to be made for consolidation though that's not to say it will actually happen.

It was always a bad concept and never made sense. None of the big carriers would give up seat capacity. They matched them on every route. Even with their own bankruptcy problems, all three major airlines had more financial resources than tiny Independence.

It's offsetting all the good progress American and the other airlines are making on their non-fuel costs, specifically in labor.

I've had pilots who've e-mailed me saying they're so fed up they're willing to fall on their swords. Now think about that for a second -- is that a silly thing to say, to take it to the point that they're willing to shut down the airline out of principle?

Not even Jack Welch, the greatest CEO of all time, could earn a normal profit in the airline industry, given today's condition.

High oil prices and continued losses will probably be a slow grind to liquidation for some airlines.

You watch. The first thing these airlines will do when they get on the other side of bankruptcy will be to announce exciting new growth opportunities. We'll be off to the races again and headed for another restructuring.

American will have a tough time in 2006, it all depends where the price of oil goes.