Plan_B
April 9, 2008, 10:16pm
1
I’m posting this here rather than IMHO. Hoping that there’s some factual information out there which will be helpful in making travel plans.
Well, at least one of the money wonks doesn’t sound too worried. For what that’s worth.
*Still, in respect to its balance sheet, the cancelled flights were little more than a bit of a tempest in a teapot, mostly brought on by a slow news day.
It’s time for a reality check. Ray Neidl of Calyon Securities said American Airlines (nyse: AMR - news - people ) told him that the inspections themselves take about 20 minutes, and the problem, if there even is one, will take 2-to-4 hours to fix. He added that the airliner will probably be able to retain most of its traffic.
“It seems like it’s more of a public relations problem than a financial problem,” Neidl said. With that in mind, American Airlines was smart to announce it was hiring an outside company to review its process for compliance of government-ordered inspections. “It’s smart in a situation like this for PR purposes to hire someone outside,” Neidl said. “That’s normal procedure in my opinion.”
Neidl noted that AMR’s 10.8%, or $1.12, drop to $9.20, in late-afternoon trading had more to do with rising oil prices rather than the flight cancellation.*
Wouldn’t it be likely that another airline would take it over or merge rather than just have it go out of business?
The flight cancellations and passenger unrest are a customer relations nightmare. On the other hand, American has reported 23 landing gear problems in recent months and the pilots are a bit more than upset. American’s current issues would pale by comparison if the airline started suffering accidents.
Current FAA inspections are the result of these problems. Then again, the stepped up FAA inspection program, when it appears the FAA has done little for several years, might just be a face-saving catchup program. But that might make it a “political” issue, which we don’t address in GQ.
Plan_B
April 10, 2008, 3:28am
5
Thanks, that’s the kind of info I was looking for. Sounds like we should just buy whatever tickets we want and not worry about it.
Any always buy your tickets with a credit card.
Plan_B
April 10, 2008, 4:43am
7
Is there any other way to do it?
Rick
April 10, 2008, 5:01am
8
Duckster:
The flight cancellations and passenger unrest are a customer relations nightmare. On the other hand, American has reported 23 landing gear problems in recent months and the pilots are a bit more than upset. American’s current issues would pale by comparison if the airline started suffering accidents.
Current FAA inspections are the result of these problems. Then again, the stepped up FAA inspection program, when it appears the FAA has done little for several years, might just be a face-saving catchup program. But that might make it a “political” issue, which we don’t address in GQ.
IMHO American has had mechanical repair issues for years. They are the one airline I will not fly.
Me either! I always fly ATA!
Well, I did .
