Sometimes one story can sum up an entire industry. Well, the New York Times published 3 stories today that not only sum up the fall of the American airline industry, but also showcase the rise of the Middle East. Thank you $150 oil.
Airport lounges are the latest casualty of the current crisis in the airline industry.
United Airlines announced this month that it was shutting four of its 38 Red Carpet clubs, after closing three others in the United States and overseas in the last few years.
Delta recently closed nine of its 47 Crown Rooms in the United States and abroad, while both American Airlines and US Airways are closing one club each.
David Barger, who took the helm at JetBlue last year after its founder, David Neeleman, stepped down, is to have his base salary cut to $250,000 from $500,000….
Last week, JetBlue reported a $7 million quarterly loss, as Mr. Barger said revenue gains were not keeping pace with rising jet fuel prices. The carrier has suspended growth plans and deferred deliveries of new planes as it prepares to cut capacity this winter to cut costs.
As carriers from American Airlines to Thai Airway International respond to high oil prices by shedding jobs, culling routes and grounding aircraft, Middle Eastern carriers are expanding as fast as they can in hopes of redefining their region as the aviation crossroads of the globe.
“There is no sign of a crisis there,” said Thomas O. Enders, the chief executive of Airbus, in an interview on Monday shortly before handing over a new A380 jet to the chairman of Emirates, Sheik Ahmed bin Saeed al-Maktoum. “These airlines are on a very impressive growth path and expansion course.”
Airline CEOs Blame Oil Speculators For Stock Collapse, Future Bankruptcies (DAL, AMR, CAL, LCC, UAUA)
US Airways (LCC) Cuts In-Flight Movies To Save Money, Seats Next (LCC)
Credit Suisse: We Were Wrong About Airlines–They’re Toast (DAL, NWA, LUV, AAI, JBLU, LCC)
Business Insider Emails & Alerts
Site highlights each day to your inbox.