TOP 100 TRANSPORTATION AND LOGISTICS SITES
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| Will These Airlines Face Bankruptcy in 2009? James West submits:Deepening economic strife is starting to erode financial viability in many industries. Foremost among them is the airline industry, according to Giovanni Bisignani, CEO of the International Air Transport Association. He indicated that 2009 was shaping up to be worse for airlines than the period immediately following the attack on the World Trade Center in 2001.Most major airlines are reporting rapidly diminishing travellers, and have resorted to fare cuts and flight suspensions to counter the effect of the lost revenue, a situation that can only worsen the plight of the companies in the long term. The question is, which airlines are likely to fall first?Complete Story » seekingalpha.com |
'Speculators' Are Starting to Avoid Companies with Legacy Costs David Enke submits: In another example of "unintended consequences," some bond holders are beginning to avoid companies such as General Motors (GM), after the recent moves by the Obama administration to short-change its creditors (see Bloomberg article).Companies with strong unions or extensive medical and pension legacy cost, similar to those at GM, may find it difficult in the future to obtain the funding they need from those labeled by the administration as "speculators". Even those that are still willing to lend will now do so only on their financing terms, which will most likely involve higher rates to compensate for the added credit risk each investor is now taking for the possibility of being "leapfrogged in a bankruptcy," according to those at Schultze Asset Management. In addition to the other automakers, including Chrysler and Ford Motor (F), companies such as AMR (AMR) are also being shunned.Complete Story » seekingalpha.com |
GM’s Chevy Volt: A Work in Progress Greentech Media submits: By Jeff St. JohnFresh out of bankruptcy, General Motors promises its plug-in hybrid, the Chevy Volt, will go on sale in late 2010. What else does GM want to tell the world about it?Complete Story » seekingalpha.com |
August Auto Sales Up as Expected Tom Lindmark submits: As expected C4C goosed auto industry sales in August. Sales in that month equate to a seasonally adjusted rate of around 14 million. That actually is at the lower end of the boost that was expected. Some have raised their expectations of full-year sales from a shade below 10 million units to 10 million or a bit above.Complete Story » seekingalpha.com |
Markets Seem to Like British Airways-Iberia Merger Jessica Johnson submits:Iberia's (IBRLF.PK) merger with British Airways [BAY] is now confirmed, with Iberia taking 45% of the combined entity. Both airlines are likely to keep their own branding and livery. Iberia reported results Friday; the short base is 0.9% and has been dropping. The British Airways (BAIRY.PK) short position is over 16%. The market seems to have taken the news as being positive for both companies, with scope for major synergies. There are likely to be knock on effects for other airlines, as the merger is expected to impact the landscape for routes, slots and even airfares. However, the deal is conditional on agreement between British Airways and the BA pension fund trustees.Complete Story » seekingalpha.com |