U.S airlines posting enormous losses
I had an arsehole transplant but the arsehole rejected me, which is why I write such rubbish
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Join Date: Jan 2001
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U.S airlines posting enormous losses
With just 2 airlines reporting for the 4th quarter of 2002 so far, the results are not good but better than after the 4th quarter in 2001 after the terrorist attacks.
Delta posted a loss of $363 million and Continental reported a loss of $109 million for the quarter. With UAL and USAir in bankruptcy, this doesn't improve the situation.
How can airlines survive...literally, when Delta for example is losing $4 million a day? Where do they get the money to continue flying?
In the very near future, I can foresee maybe 2 or 3 majors in the U.S which will be a combination of Delta, United, US Air, American, Northwest and Continental. At that point, the consumer will start to realize how good they have it today and then they will start paying through their noses for air travel.
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Andy
Delta posted a loss of $363 million and Continental reported a loss of $109 million for the quarter. With UAL and USAir in bankruptcy, this doesn't improve the situation.
How can airlines survive...literally, when Delta for example is losing $4 million a day? Where do they get the money to continue flying?
In the very near future, I can foresee maybe 2 or 3 majors in the U.S which will be a combination of Delta, United, US Air, American, Northwest and Continental. At that point, the consumer will start to realize how good they have it today and then they will start paying through their noses for air travel.
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Andy
Join Date: Aug 2002
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In other industries, a duopoly doesn't always (some do...) have high prices. There are good examples of duopolies which have price wars fighting like cats and dogs.
I think the bigger effect from mergers/consolidation will be further cost cuts and efficiency gains (or at least, attempts at them)
I think the bigger effect from mergers/consolidation will be further cost cuts and efficiency gains (or at least, attempts at them)
