State of the Airlines

Friday, January 14, 2005

NEWS: More Money for US Airways

As expected the Airline Transportation Stabilization Board (ATSB...don't make me type it again) has approved a plan that allows US Airways to continue to use their government provided cash to operate. And as I said previously this move only proves that the government is not going to be the one to put US Airways out of business. They don't want to be culpable. All it says is that the government believes that US Airways has enough collateral to cover the loan...for now.

It does not say anything about US Airways chances for survival which I say are somewhere between "as-if" and "not in a million years". Labor strife, fuel costs, increased competition in their own backyard, the need for further investments and the fact that the market really does not need their capacity should be enough to finish this.