Airlines in the US take a big hit
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Airlines in the US take a big hit
The reopening of the NYSE last night (our time) has created big losses in aircraft maker Boeing and aviation parts supplier United Technologies helping send the Dow down 684 points (7%). That loss, while severe, doesn't make the index's top 10 worst declines in percentage terms however.
Continental stocks fell $19.59 to $20.05, US Airways down $6.05 to $5.57, AMR down $11.70 to $18.00, the parent of American, and Delta Air Lines down $16.61 to $20.64. Weakness in airline stocks sent the Dow Jones transportation average 15 percent lower.
US Airways, America West and American Trans Air announced Monday that they plan to cut their workforces.
US Airways, America's sixth largest airline, said it plans to lay off about 11,000 employees, or about 24 percent of its current workforce of 46,500.
America West, the nation's No. 8 airline, said it will reduce its scheduled services by about 20 percent and lay off about 2,000 workers, or about 14 percent of its total work force of 14,000.
American Trans Air, America's 10th largest airline, is cutting its flight schedule by about 20 percent and laying off about 1,500 workers in response to slowing demand for air travel.
The airline said that it would also retire its entire fleet of 727-200 aircraft by next month.
Continental Airlines said it would lay off 12,000 workers and cut its service by about 20 percent to help stem huge losses.
What is all this going to mean for the Australian airline industry which is already in pretty bad shape following Ansetts demise?
Continental stocks fell $19.59 to $20.05, US Airways down $6.05 to $5.57, AMR down $11.70 to $18.00, the parent of American, and Delta Air Lines down $16.61 to $20.64. Weakness in airline stocks sent the Dow Jones transportation average 15 percent lower.
US Airways, America West and American Trans Air announced Monday that they plan to cut their workforces.
US Airways, America's sixth largest airline, said it plans to lay off about 11,000 employees, or about 24 percent of its current workforce of 46,500.
America West, the nation's No. 8 airline, said it will reduce its scheduled services by about 20 percent and lay off about 2,000 workers, or about 14 percent of its total work force of 14,000.
American Trans Air, America's 10th largest airline, is cutting its flight schedule by about 20 percent and laying off about 1,500 workers in response to slowing demand for air travel.
The airline said that it would also retire its entire fleet of 727-200 aircraft by next month.
Continental Airlines said it would lay off 12,000 workers and cut its service by about 20 percent to help stem huge losses.
What is all this going to mean for the Australian airline industry which is already in pretty bad shape following Ansetts demise?
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Only the US domestic airline market is hurt. Its intra-economic. Flow on will be Boeing, Scarebus, Marriott, shares. Could hasten the expected global recession due next year but the airline componant of the overall US economy is not as big as everyone makes out. The sooths will no doubt say otherwise.
The demise of AN means more pax for everyone else. Dont sweat it.
The demise of AN means more pax for everyone else. Dont sweat it.
