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Jul 9, 01, 12:57 pm
Wary U.S. airlines look South for future growth
With much of the Latin American airline industry struggling with hefty debts and fiscal problems, regional carriers from Sao Paulo to Mexico City are murmuring about saviors with deep pockets.
While the message is traveling across the Rio Grande loud and clear, U.S. airlines are not yet fueling up for a rescue mission.
Analysts say the U.S. airline industry's own financial woes coupled with South America's economic and industrial upheavals have made carriers here wary of exposure to the region's malaise.
But major U.S. carriers -- including AMR Corp.'s (NYSE:AMR - news) American Airlines, Continental Airlines (NYSE:CAL - news), Delta Air Lines (NYSE http://www.flyertalk.com/forum/biggrin.gifAL - news) and United Airlines (NYSE:UAL - news) -- are still keeping a sharp eye on South America's airline turmoil while steadily building a presence in a region that promises robust future growth.
``We believe strategically it's a market we should go after,'' said Jorge Fernandez, Delta's director for Latin America operations. ``But in the short term, we don't have any major expansions planned. I don't think you will see the U.S. airlines coming in as a white knight.''
http://biz.yahoo.com/rf/010709/n0960110.html
With much of the Latin American airline industry struggling with hefty debts and fiscal problems, regional carriers from Sao Paulo to Mexico City are murmuring about saviors with deep pockets.
While the message is traveling across the Rio Grande loud and clear, U.S. airlines are not yet fueling up for a rescue mission.
Analysts say the U.S. airline industry's own financial woes coupled with South America's economic and industrial upheavals have made carriers here wary of exposure to the region's malaise.
But major U.S. carriers -- including AMR Corp.'s (NYSE:AMR - news) American Airlines, Continental Airlines (NYSE:CAL - news), Delta Air Lines (NYSE http://www.flyertalk.com/forum/biggrin.gifAL - news) and United Airlines (NYSE:UAL - news) -- are still keeping a sharp eye on South America's airline turmoil while steadily building a presence in a region that promises robust future growth.
``We believe strategically it's a market we should go after,'' said Jorge Fernandez, Delta's director for Latin America operations. ``But in the short term, we don't have any major expansions planned. I don't think you will see the U.S. airlines coming in as a white knight.''
http://biz.yahoo.com/rf/010709/n0960110.html