Ten Business Predictions for 2005: "7. Oil will stay high, forcing every airline company out of business save JetBlue and Southwest.
Sound far-fetched? United, Delta, AMR Corp., US Airways, and even Continental can't handle a big uptick in oil with their crummy balance sheets. If oil stays high, they could, and should, all fold. JetBlue and Southwest will then divide the gates and become extremely profitable ventures. The employees at the failed airlines will get bupkes from the government and sue, but they'll draw a newly appointed conservative judge who will rule that it's time for capitalism to show its ugly face and let losers lose. President Bush, while 'unhappy' with the decision, will applaud its decisiveness, and the message will be clear: This is the Bush version of Reagan's smashing the air-traffic controllers union. "
Interesting article via talkingpointsmemo.com
Sound far-fetched? United, Delta, AMR Corp., US Airways, and even Continental can't handle a big uptick in oil with their crummy balance sheets. If oil stays high, they could, and should, all fold. JetBlue and Southwest will then divide the gates and become extremely profitable ventures. The employees at the failed airlines will get bupkes from the government and sue, but they'll draw a newly appointed conservative judge who will rule that it's time for capitalism to show its ugly face and let losers lose. President Bush, while 'unhappy' with the decision, will applaud its decisiveness, and the message will be clear: This is the Bush version of Reagan's smashing the air-traffic controllers union. "
Interesting article via talkingpointsmemo.com
