They're probably looking at what's happening with Northwest and Delta and probably realizing they have to get their contract cost structure down as well.
More Quotes from Ray Neidl:
Happy days aren't here again, but this is a real surprise and shows that the industry is coming back a little bit stronger than we were suspecting.Ray Neidl
There's a powerful franchise there. If they can get the right cost structure, the model does not have to be tweaked too much. Hopefully they won't have to sell assets. If you start having to sell strategic assets, you have a slow liquidation the way Pan Am did.
Ray Neidl
I think every contract is different, but I'm hoping this will smooth the way for other contracts,
Ray Neidl
In worst case the company caves completely to the union,
Ray Neidl
If unions don't want to play ball, they could destroy your service levels and chase away customers, ... You're also not sure you'll get the changes in the contract from the judge. You're much better off if everyone could get it together.
Ray Neidl
There are no surprises. Basically what we're hearing from the airlines is that volume is not falling off. Business is getting weak as travelers are trying to get around higher pricing with discounts. There was some weakening in February into March, but it's not as bad as it sounds.
Ray Neidl
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