Phil Condit has said that he expects more airlines to file for bankruptcy protection before the end of the present crisis...
Some US airlines may yet need to seek bankruptcy protection following the September attacks, the Boeing Co. Chief Executive Officer Phil Condit has said.
The chairman of the biggest plane maker in the world declined in a lunch interview with reporters to comment on which carriers may be the most vulnerable. The extent of bankruptcies will depend on how fast travelers return and fares rise, he said. The major US carriers lost about $8 billion last year.
?Low-cost carriers have clearly recovered faster than the full-service guys,? Condit said in a speech, citing improvements at discounters Southwest Airlines and Amtran Inc.'s American Trans Air. AMR Corp.'s American Airlines and UAL Corp.'s United Airlines, the world's largest carriers, lost a combined $1.1 billion in the fourth quarter as travelers shunned flights.
Condit said that he expects two recent trends to continue: additional point-to-point flying by airlines instead of hub systems and more specialization, such as regional air services.