September 21, 1998 |
Philippine President Joseph Estrada during the weekend appealed to the labor unions of Philippine Airlines Inc., Asia's oldest national carrier, to reconsider their position in hopes of averting its closure. Citing enormous losses and protracted labor conflicts, the 57-year-old airline announced Thursday it will suspend operations at midnight Wednesday. PAL would be one of the biggest companies fold because of Asia's ongoing financial turbulence.
July 31, 1998 |
Short air trips are substantially more expensive than before airline deregulation in cases where the airline doesn't have competition from a low-fare competitor, according to a government analysis released Thursday. While 20 years of deregulation had been positive overall, not all regions benefited, and by some measures, competition has declined recently, the Department of Transportation study said.
January 8, 1997 |
The future is cloudy for troubled commuter airline Air 21, analysts said Tuesday upon learning that the Fresno-based carrier has filed for Chapter 11 bankruptcy protection. Only 5% of all airlines successfully reorganize under Chapter 11, said Michael Lowry, president of Aviation Forecasting & Economics Inc. of Lake Oswego, Ore., adding, "When you don't have a lot of money to begin with, it's a formula for disaster."
November 29, 1996 |
It may be a banner year for the major airlines, but two start-up carriers that serve California--Western Pacific and Vanguard--are grappling with heavy turbulence. Their financial problems already have forced one, Vanguard, to trim its service to the state, and more setbacks could further jeopardize local travelers' ability to use the pair's low-fare service to selected cities in the Rockies and further east. Western Pacific is based in Colorado Springs, Colo.
August 8, 1996 |
ValuJet Inc. said Wednesday that it expects to resume operations in three weeks and fly only five routes, a small fraction of the 31 cities served before federal regulators grounded the low-fare carrier. It also reported a 41% drop in second-quarter profit before a $19.6-million charge tied to the deadly crash in May of one of its jets and the subsequent shutdown by the Federal Aviation Administration. With the charge, the Atlanta-based airline had a bottom-line loss of $9.
July 19, 1996 |
Wednesday night's explosion and crash of a Trans World Airlines jumbo jet off Long Island, N.Y., sparked fears among travelers that spilled over onto Wall Street on Thursday. Despite a broad rally in the rest of the stock market, shares of TWA and other major U.S. airlines slumped badly as investors figured that the disaster would hurt ticket sales. TWA's stock lost 9% of its value, dropping $1 to $10.25 in trading on the American Stock Exchange.
July 18, 1996 |
The explosion and crash of a Trans World Airlines jumbo jet Wednesday night came amid a strong effort by the pioneering airline to emerge from a painful era of huge financial losses and corporate strife. The crash, in fact, overshadowed what was supposed to have been a triumphant day for the St. Louis-based airline. Earlier Wednesday, TWA announced that its second-quarter profit had risen sharply from a year earlier. The increase in earnings was only the latest chapter in TWA's comeback.
June 20, 1996 |
With two aging DC-9 jetliners and a dead aim on becoming the WalMart of the airline industry, ValuJet took the nation by storm in 1993 and soon gained recognition as the fastest-growing, most profitable airline in the history of deregulation. ValuJet handed passengers peanuts rather than Salisbury steak and a plastic-coated number tag instead of a ticket--all part of a low-cost strategy in which even its chief executive worked at a $100 desk purchased at Home Depot.
December 11, 1994 |
How rapid is change in business today? A reported comment questioning whether the airlines--one of the leading industries of the 20th Century--could ever really be a good, substantial business caused airline stocks to sink last week. Noted investor Warren Buffett later denied he made such a comment, but the point is that Wall Street didn't need to check. Professional investors agreed with the sentiment that the airlines had become a low-profit, commodity industry.