Stop Start - no, I'm not worried about share prices - I'm worried about my colleagues and friends on here who will probably lose their jobs as a result of any severe downturn affecting the air transport industry; and about those 'wannabes' that want to get into the business - and now will either have to give up their dreams entirely or postpone them for a very long time indeed.
Qantas have already said that they cannot now consider bailing out Ansett because in the current market environment post yesterday's terrible events they will not be able to raise the additional capital they require. So that's 15,000+
living people I'm worried about.
Midway Airlines in the US announced that they have closed the doors - it was in Chapter 11 and has now gone into liquidation (Chapter 7); and that's a further 1,700
living people and their families I'm concerned about.
Wednesday September 12, 12:08 pm Eastern Time
Press Release
SOURCE: Midway Airlines Corporation
Midway Announces Suspension of Flight Operations
RALEIGH-DURHAM, N.C., Sept. 12 /PRNewswire/ -- Midway Airlines announced today that effective immediately it has suspended all future flight operations. This action is being taken at this time in order to preserve the value available for Midway's interest holders and with the recognition that following the recent terrorist attacks demand for air transportation is expected to decline sharply.
Ticketholders
Holders of tickets for future travel on Midway will be entitled to refunds or recommendation on other air carriers. Midway will attempt to contact all such ticket holders to make appropriate arrangements.
Employees
Approximately 1,700 Midway employees will lose their jobs today as a result of this suspension of operations. Final pay will be made to these individuals on their next regularly scheduled payday.
Creditors
Effective immediately, Midway will begin returning aircraft to their lessors and will solicit purchasers for the various assets it own or controls. Midway anticipates paying all obligations incurred following its Chapter 11 filing and proposing a Plan of Reorganization to deal with all obligations which arose prior to the Chapter 11 filing.
A Midway spokesperson commented, "We are deeply troubled by the impact this action will have on our customers, employees, creditors and community. Unfortunately, we simply do not have the resources necessary to permit us to reorganize in this environment".
SOURCE: Midway Airlines Corporation
On top of that, both American and United are going to be hit with billions of dollars worth of lawsuits as the airlines in the US are responsible for security:
Asked about security breaches at the airport, Logan Aviation Director Thomas Kinton said that while MassPort runs the airport, the individual airlines are responsible for hiring security companies and personnel.
"There are a number of airline requirements in accordance with FAA regulations," Kinton said. "Security checkpoints are the responsibility of the air carrier ... we are [now] taking that extra step of going to the security checkpoints and looking at those issues going forward, as to whether [security workers] should be federal employees, or employees of law enforcement, or airline employees."
If they lose the lawsuits - which will be years down track; or they lose passenger confidence - which will be pretty much immediate - then those carriers could well fold. As the
Scotsman article sid, it was the loss of confidence in Pan Am that really was the final nail in its coffin. Without the lifeblood of cashflow flowing through its veins, an airline is as dead as the victims of yesterday's terrorist atrocities.
So it's the tens of thousands of
living people (and their dependents) employed at those companies that I'm concerned about.
I think it's
you that needs to get his priorities straight.