Thank you for flying Desperate Airlines,flight attendants will come around with collection cups.....

[marmar]

..... so donate some change to keep us in business.



from Bloomberg:


American, US Airways Struggle for Credit as Rates Rise in Slump
By Mary Schlangenstein and Mary Jane Credeur


April 4 (Bloomberg) -- American Airlines, US Airways Group Inc. and U.S. carriers borrowing to refinance debt and buy jets may struggle to find lenders and have to pay rates at least double those of two years ago.

AMR Corp.’s American, the world’s second-biggest airline, has $1.1 billion in debt due in 2009, while US Airways is seeking funding for five planes and Continental Airlines Inc. is arranging credit to fund aircraft deliveries one or two at a time instead of in larger batches.

The convergence of urgent capital needs and collapsing travel demand is ratcheting up pressure on carriers already pinched by the global credit crunch. Without new loans to refinance debt or acquire jets, airlines would be forced to use cash they’re counting on to help weather the recession.

“You’re looking at possibly having to burn the furniture for heat until the credit markets loosen up,” Hunter Keay, an analyst at Stifel Nicolaus & Co. in Baltimore, said yesterday. “We’re not there yet, but it could get that serious.”

AMR is in early talks to raise money from credit-card partner Citigroup Inc. by selling frequent-flier miles, the Financial Times reported yesterday, citing unidentified sources. AMR would follow at least four other large U.S. airlines in using such an agreement.

Andy Backover, a spokesman for Fort Worth, Texas-based American, and Citigroup’s Sam Wong in New York declined to comment on the report. American’s AAdvantage is the world’s biggest frequent-flier plan, with more than 60 million members. ..........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=a3FLCwMwNLNI&refer=home

[midnight]

1. The collapsing travel demand could of been predicted when

a customer is treated like a potential terrorist threat before and during and directly after departing the airliners plane. Because let's be human about this. Who in their right mind wants to use public transportation when a list of names that may have mistakes on in. A famous example of this is when Senator Ted Kennedy was not able to board a flight to Washington to do some important work because he was placed on the list. Now that is how unpredictable these lists are. A situation of needing to get to a family event via being treated like a prisoner does cause the desire to board an airline to collapse.

The economic mess was predictable as well. You cannot finance homeland security demands on the airliners.

[radfringe]

2. yes, and coupled with

tiny seats, fee for pillow/blanket, fee for headphones, fee for drinks, fee for baggage and coming soon the Pay-to-Pee-Fee

wouldn't be surprised if there's a unboarding fee - where you have to pay to get off the plane

on edit: here's a thought - pee in the collection cup.. :evilgrin:

[KharmaTrain]

3. Who Can Afford To Travel Or Who Wants To?

AMR is yet another too big to fail corporation in an industry that deregulated itself into massive debts. Poor management along with short-sighted boardroom games turned a once vibrant airline industry into a clusterfuck. Many areas have lost service and getting from point A to point B can be a frustrating day of going to points C, D & E along with delays and long treks across massive airports. That is, if you can afford the ticket.

I used to travel several times a year and have seen the collapse of this industry...especially AMR. I refuse to fly them after numerous delays and other problems as well as the escalated price of tickets. AMR used the oil price rise last year to nearly double fares to many places (along with tacking on all sorts of hidden fees on your ticket) and when the price came down, ticket prices didn't follow. Flying is now beyond the means of many people who are the bread & butter of that industry. They gambled on the first class, business flyers and with the destruction of the consumer market, business travel has fallen as well. They created this monster and now I expect them to come running for their bail-out.