posted on May, 11 2005 @ 04:22 PM
(This might belong better in BTS - if a mod thinks so, please move it there)
UA has recently lost an appeal against investors reposessing aircraft being leased to United Airlines, which currently stands at 175 aircraft. With a
460 aircraft fleet, thats a pretty big chunk of the fleet which wont be protected under the Chapter 11 protection UA has against investors.
It seems that this probably wont be the last US airline to fall, as post 9/11 trends have shown that the only airline markets to increase and sustain
airlines with a positive operating margin is that of Europe and Asia, indeed only the most basic and cutthroat budget airlines in the US showed a
profit at all over the past 12 months (and even then, out of the 5 airlines named, they only totaled a profit of $0.8million together).
I find it interesting that the US and latin american markets have essentially collapsed while other markets have shown dramatic increases in traffic
(it was announced in October 2004 that European air traffic and passenger numbers had already exceeded pre 9/11 levels). If the future for air travel
lies in economy, rather than luxury, and with the recent approval of the first transatlantic 737 service, the next few years could be very interesting