If you're a major carrier, you have to look at the type of environment you create on the flight deck. It's not all that healthy to have crew members viewed as scabs or crossing a line.
The next several weeks will be critical for the U.S. airline industry.
We think the recent surge in fuel prices greatly increases the likelihood of a bankruptcy filing within the next two months.
The industry has been on sale every single day since the beginning of the year. At this point in time I think industry will make money, but those numbers are clearly at risk.
Our previous view ascribed a 50 percent to 60 percent probability to a Delta Chapter 11 filing. We now think it's 80 percent to 90 percent, primarily to the recent surge in oil prices north of $60 a barrel.
It's tough to call. I can say that in the long term, Atlantic Coast is a very interesting growth story, a lot of potential, but there are a lot of uncertainties since it is a high p/e (price to earnings ratio) stock.
We nonetheless would caution investors that even a modest disruption can have a material impact to the bottom line, especially if it persists.
One way or another, the labor issue will be resolved; this should pave the way for Northwest to reach its savings goals with the other union groups.
Given that the first half of December is a relatively quiet time for travel, Delta has been able to re-accommodate most of the passengers on other Delta flights.
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