Joined: May 18, 2006 Posts: 4329 Location: Minneapolis, MN
Posted: Tue Apr 01, 2008 7:31 am Post subject: Airline Bankruptcy/Merger/Layoffs Thread
Quote:
Old airplanes and high fuel costs are grounding Champion Air. The charter airline lost customers and failed to attract new investors.
"Our business model is no longer viable in a world of $110 oil, a struggling economy and rapidly changing demand for services," Lee Steele, Champion's CEO, said Monday in a statement.
Champion's financial problems surfaced long before oil blasted above $100 a barrel. On Oct. 4, when oil was about $81 a barrel, Steele wrote to federal mediators to implore them to place pilot contract talks on hold. In a candid letter, Steele said that Champion needed investors to support a "renewed business plan with a modern fleet" or Champion risked ending operations in August.
Posted: Tue Apr 01, 2008 9:05 am Post subject: Re: Champion Air to go out of business in May
I flew Champion round-trip from DFW to Cozumel a few years back. It was an old jet aircraft, a 727 (I think). I can see where they would hurt in the event of any pullback in the economy. Now that the Spring Break season is over, it was just a matter of time. _________________ "It's called the American Dream because you'd have to be asleep to believe it."
Joined: Sep 16, 2004 Posts: 4411 Location: Southwest WI
Posted: Tue Apr 01, 2008 9:06 am Post subject: Re: Champion Air to go out of business in May
My brother has flown on their 727's a few times. 2 years back they were on the last flight of the year (Cozumel) and they had to fly down empty... My brother asked them if they made good time without anyone on board. They told him they had to fly really slow and conserve fuel! I think Worry Free Travel uses them? _________________ "Oil is going up because we use too much oil, and the capacity to replace reserves is dwindling"
-President Bush 11/07/07
Joined: Sep 16, 2004 Posts: 4411 Location: Southwest WI
Posted: Tue Apr 01, 2008 9:10 am Post subject: Re: Champion Air to go out of business in May
I could have went all inclusive at a nice resort in Cozumel including airfare from the cities for under $2K this winter (including airfare with Sun Country--they use 737's). I had several chances, but a little baby stepped in my way. With the dollar worthless and fuel sky high, along with food, i'm trying to figure who is making money. I've noticed a lot of the hotels down in Cancun are Spanish owned, so i'm guessing their the ones taking the hit.
Cancun/Cozumel will at some point become once again a resort destination for the rich. _________________ "Oil is going up because we use too much oil, and the capacity to replace reserves is dwindling"
-President Bush 11/07/07
Posted: Tue Apr 01, 2008 9:17 am Post subject: Re: Champion Air to go out of business in May
frankthetank wrote:
Cancun/Cozumel will at some point become once again a resort destination for the rich.
...to say nothing of the workers of those resorts. Talking to a few, I gathered they made twice as much money in Cozumel as they could in the Yucatan interior. That won't last if occupancy drops significantly. _________________ "It's called the American Dream because you'd have to be asleep to believe it."
Two airlines are making their final descents on high fuel prices and intense competition.
On Sunday, Honolulu-based Aloha Airlines said it would halt all passenger service after Monday, shuttering a business that's been running since 1946.
"We simply ran out of time to find a qualified buyer or secure continued financing for our passenger business," said Aloha President David Banmiller. "We had no choice but to take this action."
Hawaii's second-largest carrier has operated a fleet of 26 Boeing 737s to serve five airports in Hawaii and six destinations in the continental United States.
Posted: Tue Apr 01, 2008 9:32 am Post subject: Re: PO strikes down two airlines
I read that Mesa Air's interisland economy carrier, Go! Airlines, was loss leading on their flights and triggered Aloha's demise. Mesa Air has never been good at making money, so we'll see how long these "bargains" last. _________________ "It's called the American Dream because you'd have to be asleep to believe it."
Joined: Apr 08, 2007 Posts: 480 Location: Cleburne, TX, USA
Posted: Tue Apr 01, 2008 9:35 am Post subject: Re: PO strikes down two airlines
emersonbiggins wrote:
I read that Mesa Air's interisland economy carrier, Go! Airlines, was loss leading on their flights and triggered Aloha's demise. Mesa Air has never been good at making money, so we'll see how long these "bargains" last.
Hey, EB, I noticed after I made the OP that there was already a post about Champion Air. I had done a search for Aloha - but not Champion. Please feel free to merge threads.
Posted: Tue Apr 01, 2008 9:37 am Post subject: Re: PO strikes down two airlines
From the article:
(emphasis mine)
Quote:
In January, go! reported a $20 million operating loss for its first 16 months of operations. Meanwhile, Aloha and Hawaiian Airlines (amex: HA - news - people )--the other major inter-island carrier--reported combined losses of nearly $65 million, since go! had begun operating. Hawaiian Airlines shares rose 14.9%, or 78 cents, Monday to close at $6.00.
Mesa/go! must have some amazingly wealthy benefactors. I can't wait until Wal-Mart starts operating a low-cost airline! _________________ "It's called the American Dream because you'd have to be asleep to believe it."
Posted: Tue Apr 01, 2008 9:37 am Post subject: Re: PO strikes down two airlines
PeakingAroundtheCorner said:
Quote:
Expect alot more of this in the coming months.
A year ago I made a prediction, that within 3 years, the majority of commercial airlines in the US would be out of business. Of course, at the party I was at, I was boo-ed and criticized. However, it looks like we are right on schedule.
I’ve been waiting for something to happen which will say to the undaunted optimists of the world, the everything is fine people, “WE ARE HERE”. Perhaps the grounding of most of the nation’s airline fleet will do it.
Posted: Tue Apr 01, 2008 9:37 am Post subject: Re: PO strikes down two airlines
PeakingAroundtheCorner wrote:
emersonbiggins wrote:
I read that Mesa Air's interisland economy carrier, Go! Airlines, was loss leading on their flights and triggered Aloha's demise. Mesa Air has never been good at making money, so we'll see how long these "bargains" last.
Hey, EB, I noticed after I made the OP that there was already a post about Champion Air. I had done a search for Aloha - but not Champion. Please feel free to merge threads.
Cool, yeah, I'd better do that. _________________ "It's called the American Dream because you'd have to be asleep to believe it."
Posted: Tue Apr 01, 2008 9:45 am Post subject: Re: PO strikes down two airlines
shortonoil wrote:
PeakingAroundtheCorner said:
Quote:
Expect alot more of this in the coming months.
A year ago I made a prediction, that within 3 years, the majority of commercial airlines in the US would be out of business. Of course, at the party I was at, I was boo-ed and criticized. However, it looks like we are right on schedule.
Hold that thought. Champion and Aloha amount to little more than a rounding error of the capacity of mainland carriers. Once Delta, Southwest or American goes out (or even Frontier, America West, US Air, et. al.), I'll be right there with you.
It's all an inevitability within 5-10 years, I would say. _________________ "It's called the American Dream because you'd have to be asleep to believe it."
Joined: Oct 12, 2004 Posts: 1008 Location: In the suburban sea of strangers
Posted: Tue Apr 01, 2008 11:31 am Post subject: Re: PO strikes down 2 airlines - Champion, Aloha
The airline industry depends on people with lots of money and little spare time. The intercity bus business depends on people with little money and lots of spare time. The economic decline of peak oil will create a scarcity of the former and an abundance of the latter.
The difference in fuel consuption per passenger mile between airliners and busses is huge. As the price of fuel skyrockets so must airfares. Bus fares, not so much. Unless and until passenger rail gets going again, the future is the bus. Goodbye Southwest, Hello Greyhound. _________________ The battle to preserve our lifestyle has already been lost. The battle to preserve our lives is just beginning.
Joined: Jun 05, 2005 Posts: 357 Location: Portland Oregon, USA
Posted: Tue Apr 01, 2008 1:41 pm Post subject: Re: PO strikes down 2 airlines - Champion, Aloha
Good point about busses vs airplanes. If air travel's cost is prohibitive, we can expect more busses .
Just think of all the perks you could load onto a bus that you can't do on a plane anymore! Like food, beverages, even private sleeping compartments (uh, like trains I guess). Not to mention it would be easy to do Wi-Fi, movies and all that.
Even doomers can relish the thought of blazing gun battles with biker hordes like the closing action sequence of Mad Max! Yay, I can hardly wait!
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