US Airways, flying solo, may struggle
Airline likely will cut flights, add fees to offset fuel costs, analysts say
With no money-saving merger on the horizon, US Airways customers likely will see fewer flights and even more fees as high fuel costs continue to strain the carrier's finances.
After filing for bankruptcy protection twice this decade, Charlotte's dominant carrier should have enough cash to avoid the same fate this year, airline experts say.
US Airways, like other major airlines, has cash in reserve. The cushion has shrunk from $3.5 billion last summer to about $2 billion this spring, but it's enough to get the airline through this year, said Harlan Platt, a finance professor at the business school of Northeastern University in Boston, who follows the industry.
United is in a similar situation, Platt said, which could explain why the two airlines held off on a merger. "The sense of urgency is not there," he said.
"This is not the 39-year-old who says I'm going to marry the next person I go out with," Platt said. "These companies are now about 30. They know the clock is ticking, but they've got time."
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