Airlines Are No Longer Flying High
In April I wrote a blog about the airline industry and asked a question: Is the word airline synonymous with bankruptcy? At the time I intended for it to be a bit of a joke because four (4) different airlines had filed bankruptcy. Now, several months later, it could prove to be almost prophetic. Back then, Skybus, ATA, Aloha and Frontier had filed for bankruptcy protection. Delta recently emerged from bankruptcy protection and announced that it was planning a merger with Northwest, and Alitalia was on the brink of bankruptcy. All in all, things weren't looking so good for the airlines.
Since the writing of that blog, we have experienced a rise in gas prices that is sucking the money right out of our pockets. This rise in gas prices, when combined with the foreclosure crisis, credit crisis and recession has the whole country wondering what is happening to our own individual pocket books, or what I like to call hip pocket national bank. Imagine what happens when you pre-sell thousands of airline tickets on the hope that fuel prices will rise only marginally. I'm sure that many airlines are feeling the heat.
At the beginning or 2008, I wrote two blogs for the Bankruptcy Law Network titled Carmen Dellutri's 2008 Predictions Part I and Part II, and I will be the first to say that I did not see this coming. Now, we are hearing that things are not looking so good for the industry, especially for United Airlines, American Airlines, and U.S. Air.
This is definitely something to keep an eye on.
This post was written by Carmen Dellutri, Esq. of The Dellutri Law Group, P.A. Mr. Dellutri is a Board Certified Consumer Bankruptcy Attorney. Mr. Dellutri is one of the founding members of the Bankruptcy Law Network, Mortgage Law Network, Debt Law Network and Credit Law Network. He is also on the Board of Directors for The American Board of Certification.
