JC1120

+3. I hope that these employees are hired back soon when things start getting better, and that they got decent packages.

Bonehead

Perhaps I'm guilty of extrapolating based on one company (mine). Last year when oil prices were rising rapidly I suggested that CO had a built in "hedge" in that Houston's economy was humming, spurring travel demand (both business and leisure) there. Now the situation may be reversed to a degree.

worldwidedreamer

I suggested Ch 7 for LCC because it is probably the way to reallocate slots at LGA, DCA, etc. amongst everyone else. It would be bad for America to see a foreign country get control of the NRT and LHR slots controlled by UA. Any bankruptcy filing is complicated by the credit crisis making debtor in possession financing essentially unavailable. UA could buy a few extra weeks with a Ch 11 filing that would allow its assets to be more equitably distributed amongst the remaining carriers. (Maybe NRT to CO or AA, LHR to DL or CO) I could see ORD going to AA, DEN & SFO to CO and DL taking intl routes from LAX and IAD with everything else downsized.

Hartmann

I think for a number of the medium oil and gas companies in Houston the travel has been severely reduced. For the three majors in Houston, travel has definitely been reduced, especially on the exploration side of things. It's kind of comical really, because when oil prices were high, the plane ticket prices reflected that but oil companies still bought the seats. Now, the oil prices are low and the ticket prices are dirt cheap, but no one is flying.

ElkeNorEast

It's not just oil companies in Houston that are cutting the travel. I work for a med school and travel here has to be approved in advance (never was before); my hubby works for HP and they had a complete clampdown on any non-essential travel since December 2008 (even customer-facing was eliminated).

CALfly5

Historically, its been basically impossible for ANY carrier of any size - LCC or not - in the US to go Ch7 bankrupt. There have been a few very powerful interests who are REALLY vested in seeing that NOT happen: Boeing, Airbus, leasing firms (ILFC, for example) and the engine manufacturers (GE principally). In years past, the airframe or engine manufacturer would extend credit to the struggling airline - heck, they need somebody to sell to, so they couldn't have their customers going out of business. Now, with credit essentially unavailable everywhere, we might actually see airlines REQUIRED to make money, and that might actually drive some of the stupider ones out of business for good. (If only!)

Lets all hope this starts to happen.

Noted that even if it did, and even if the survivors had pricing power back in their favor and raised ticket prices to cover costs, it would still be essentially a price game for the remaining carriers. Nobody in the US domestic market innovates in any substantial way with respect to its product, so its just about how many humans can you stack into a metal tube. And the downward pricing spiral would eventually start anew, leading us back to where we are now: unhappy pax on crowded planes with no food or drink, shuffled along by unhappier flight crews who make less than entry-level librarians, and stuck on tarmacs around the country, courtesy of a Congress who won't give the resources the FAA needs to upgrade the airspace management system, nor hold it accountable for doing the same.

Nope. Flying is not so much fun anymore, and I see it getting worse rather than better.

(At least CO provides a high-quality atmosphere and experience in its BF cabins. I give high kudos and great marks for what CO does for its pax in its widebody BF cabins.)

zoegksf

If you call an iceburg salad and a BBQ Turkey dough blob a meal then yes bring on BOB.

I was looking forward to the "free meals" in Y but was sadly disappointed. Next time I'll just bring my own. Condolences to the CO employees losing their jobs. An unfortunate sign of the times

COEWRFA

I can only hope and wish your company goes bankrupt! By all means let me know who you are! I'll be sure to show you how well we treat people like yourself.....

qukslvr619

By all means I second that....although as someone who was let go this afternoon I in no way would wish this on anyone else.

Bonehead

Sorry to hear that, qukslvr619.

Renard

Be careful what you wish for....today it might be a carrier you don't particularly care for...the next day it might be one you like.

jpsboo

I hear you, qukslvr. My husband was laid off a couple months ago. It sucks.

ContinentalFan

Agreed; I too think that gates/slots are the important assets. If a chunk of capacity could be taken out of the system, it would be good for the industry--at least for a few years until they repeat their mistakes once again. One carrier needs to go into C7.

FLDave

How about Braniff 1 and 2, Pan Am 1 and 2, Eastern, Midway 1 and 2, et al?

dan3mike

Coach meals cost a little under $2 per meal to produce. Actually meals are made opposite of serving times, due to prep requirements. CO could reach back to the past and sell tray space to corporations. It was done in the early 1990's, hence the Subway sandwiches. Selling tray space is easier than selling food.