Monday, July 13, 2009

Next Nationalized Industry: Airlines?

"The Wall Street Journal reported today that the recession, plunging travel demand, and a tough lending environment are battering U.S. airlines, raising the prospect of a liquidity squeeze that could lead to bankruptcy filings by winter if conditions don't improve. The five largest carriers are expected to report second-quarter losses."

"Some carriers may have no choice but to seek protection from creditors this winter, or as early as this fall, when cash flow typically dries up. United, American and US Airways are the most vulnerable among large carriers, according to credit-rating agencies and Wall Street investment houses." (Start using up your frequent flier miles now before it is too late!)

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