First quarter loss of $280 million before one-time special items
Apr 30, 2005, 2:57 pm
#17
Join Date: Apr 2005
Location: SAN
Programs: AA Platinum, Bonvoy Gold, DL Gold
Posts: 1,200
Originally Posted by FWAAA
Several articles in the mainstream press recently blaming GE for decimating the finances of remaining legacy airlines due to propping up UAL and USAir and keeping far too many domestic legacy seats in the air, drastically reducing yields at all legacy airlines.
I'm a fan of GE, but eventually someone's gonna question whether it's a good idea for one large company to accumulate that much power over the entire US legacy aviation market.
I'm a fan of GE, but eventually someone's gonna question whether it's a good idea for one large company to accumulate that much power over the entire US legacy aviation market.
GE has a vested interest in propping up US and UA because they also lease airplane engines. So if GE didn't keep the airlines afloat, they wouldn't have customers for their engine leases. It does sound a little corrupt, but I guess it's perfectly legal. The only problem is that it's really bad in the long run because the over-capacity of seats in the domestic market is just killing the carriers (along with high costs).
May 1, 2005, 2:01 am
#18
FlyerTalk Evangelist
Join Date: Dec 2004
Location: East Coast
Programs: AA CONCIERGE KEY & 1MM, HILTON DIAMOND
Posts: 11,970
Originally Posted by tdb27
GE has a vested interest in propping up US and UA because they also lease airplane engines. So if GE didn't keep the airlines afloat, they wouldn't have customers for their engine leases. It does sound a little corrupt, but I guess it's perfectly legal. The only problem is that it's really bad in the long run because the over-capacity of seats in the domestic market is just killing the carriers (along with high costs).
Yep, you are right. Your name is not Trevor Dean by any chance, is it?
May 1, 2005, 4:38 am
#19
Original Member
Join Date: May 1998
Location: CT (NYC Suburbs), Gulf Stream, FL
Programs: United Premier 1K, American AAdvantage Gold
Posts: 3,089
Since, as long as USAirways is operating, they don't necessarily have to take the hit to earnings they would if the place shut down, it would be interesting to know how much GE has reserved on its books to cover such an eventuality. The closer one looks, the more clearly they emerge as a very proactive player in this whole scenario, from continuing operations, to any eventual roll up of the airline into some new entiity.