Posted by andreas from p3EE3C329.dip.t-dialin.net (188.8.131.52) on Saturday, September 28, 2002 at 12:20PM :
In Reply to: The Chickenhawk of Tkhuma posted by andreas from p3EE3C329.dip.t-dialin.net (184.108.40.206) on Saturday, September 28, 2002 at 11:53AM :
To pick up only 1 point for now :
Y. Kanna's assertion
"As for the price tag mentioned by some U.S. opponents to such action, Kanna said, "The cost is estimated to be $200 billion. But if you don't attack, you could lose $100,000 billion or more. Three airlines declared bankruptcy since Sept. 11; just think of what would happen with more (terrorist) attacks. "
Kanna's ignorance of the general impact an Iraq War will have on airlines is frightening.
In addition an Iraq war will surely spark new waves of terrorism.
If Kanna (or Mr Cannot?) is holding a similiar loose grip on reality in other matters concerning Assyrians that's going to be a major desaster.
That guy deserves an intense check out.
To protect Assyrian interests from any compromising incompetence.
AMR chief warns on Iraq war
Conflict would be like 'anvil' on airlines, he says
By Associated Press, 9/26/2002
EW YORK - The chief executive of American Airlines said yesterday that a war in Iraq would be a devastating blow to the distressed industry, warning that more bankruptcies were likely without additional financial assistance from the government.
Don Carty, speaking to analysts and reporters, said a war would be like having an ''economic anvil dropped on the industry.''
Talk of war with Iraq has caused airline stock prices to plummet in recent weeks on fears that demand for international travel would suffer and that rising oil costs would keep jet fuel costs high.
Analysts, who expect the industry to report some $7 billion in losses by the end of the year, have become increasingly worried that United Airlines might have to file for bankruptcy, a move already made by US Airways.
''The whole industry in Chapter 11 isn't something the country would tolerate,'' said Carty, who addressed the Wall Street community one day after he and other airline executives lobbied Congress for a wide range of assistance.
Carty emphasized that the Fort Worth, Texas-based carrier would do whatever was necessary to avoid bankruptcy, which he said would drain management's time and weaken the airline.
Separately, American announced that it had raised $617 million by selling bonds and that it would begin making Web fares - airline tickets heavily discounted for the Internet - available for sale by traditional travel agents.
While analysts viewed the new financing as a positive sign, they were less impressed with the Web fare initiative, which is aimed at reducing the carrier's distribution costs.
''I don't believe that any of American's highly visible changes really attack the underlying industry crisis,'' said Jamie Baker, airline analyst at J.P. Morgan.
''So far no major airline has successfully tackled the challenge of getting more people to fly and pay more,'' Baker said. ''Rather the focus has been at chipping away at the cost structure.''
The goal of the Web fare program is to encourage travel agents to book trips directly through American, instead of through third parties that charge a fee. Agents who want to sell these popular and inexpensive Web fares first have to agree to pay a portion of the cost when purchasing traditional tickets through electronic reservation companies such as Sabre Inc.
Carty said the initiative was part of a strategy to reduce expenses by $1.1 billion this year and could eventually halve American's distribution costs, which were $400 million in 2001. Carty has said American is striving to permanently reduce its cost structure by $3 billion annually.
The trouble at major airlines began more than a year ago when corporations slashed travel budgets amid an economic downturn. The Sept. 11 attacks further reduced the demand for air travel, while increasing carriers' expenses for security and insurance.
Only by offering cheaper fares have airlines been able to stimulate traffic, which has remained about 10 percent below year-ago levels for months.
Airlines have aggressively cut capacity in the past year and Carty said AMR Corp., the carrier's parent company, would be forced to make further cutbacks in the event of a war, particularly in its trans-Atlantic flight schedule.
Carty said the severity of the war-related cutbacks depended on the duration of any military operation in Iraq and just how much further travel demand might fall.
International travel declined by 20 percent for about two months during the Gulf War a decade ago and then gradually came back, Carty said, but because demand is already so weak the decline this time could be less sharp.
''The question is how do we get through those couple of months,'' he said.
Carty said lawmakers were receptive to several of the industry's pleas on Tuesday, including financial assistance for terrorism insurance, the ability to carry packages again for the US Postal Service (a privilege taken away after Sept. 11), and the extension of a $10 billion loan guarantee program in the event of a war.
Airline executives also asked the House aviation subcommittee to consider fuel tax relief and reimbursement for airport security costs.
Shares of AMR rose 60 cents to $4.20 yesterday on the New York Stock Exchange. United's stock was up 9 cents to $2.21, while shares of Delta climbed 49 cents to $10.55.
This story ran on page E2 of the Boston Globe on 9/26/2002.
© Copyright 2002 Globe Newspaper Company.
Short Selection for Further reading:
Iraq War Concerns American Airlines
Seattle Post Intelligencer, WA - 25 Sep 2002
... Samuel Buttrick, an airline analyst at UBS Warburg, said half-jokingly Wednesday
that "the market has taken the view that we are going to war with Iraq and ...
AMR chief warns on Iraq war - Boston Globe
Investors doubt Iraq war would end market gloom
Reuters, UK - 25 Sep 2002
... A lengthy war disrupting travel would also hit tourism, hotel and airline stocks,
strategists said ... American Airlines said earlier this week a war on Iraq ...
Iraq War Would Sink Some Airlines-AMR CEO
ABC News - 24 Sep 2002
... Carty said the prospect of going to war in Iraq was "financially chilling" for the
airline industry even if the conflict is short, as the 1991 Gulf War was. ...
Airline Stocks Spiral Down as Fears Mount
ABC News - 24 Sep 2002
... The index is down 63 percent this year. Buttrick said investors were pricing in
the likelihood of multiple airline bankruptcies should war in Iraq occur. ...
An Iraq war's economic toll
Christian Science Monitor - 25 Sep 2002
... An Iraq war would be a disaster for ... That may be why the airline industry is lobbying
Congress for aid, tax breaks, or some form of terrorism insurance. ...
Airbus, Boeing expect delayed recovery if Iraq war occurs
Business Times, Singapore - 25 Sep 2002
... France) Airbus SAS and Boeing Co said on Tuesday a war against Iraq ... were already
lowering their expectations because of the continuing slump in airline ...
Jet makers fear effects of Iraq war - Seattle Times
Boeing, Airbus also brace for war - Seattle Post Intelligencer
Talk of war worries planemakers - Wichita Eagle
Iraq war 'threatens' Ansett sale
Melbourne Herald Sun, Australia - 24 Sep 2002
... airline administrators Mark Mentha and Mark Korda already were finding it difficult
to dispose of Ansett's remaining aircraft. "If there's a war against Iraq ...
Fed Opposition critical of 'war tax' proposal
ABC Online, Australia - 10 hours ago
... refusing to rule out the possibility of a levy to fund any war against Iraq ... have already
been subject to enough taxes for agriculture and the failed airline ...
House prepares airline relief bill
Washington Times, DC - 10 hours ago
... If the United States goes to war with Iraq ... The provisions that shift airline costs
to the government and reduce inconveniences for passengers could save the ...
Alien nation: Interfaith visitors say Americans are friendly but ...
Worldwide Faith News - 18 hours ago
... noted that he and Kamau visited cities "from one ocean to the other," making 11
airline ... We are very upset about the possibility of a new war against Iraq ...
Airlines on course to lose $8 billion this year
USA Today - 22 hours ago
NEW YORK (AP) — The Air Transport Association, a trade group, is predicting that
the airline ... The economy remains fragile and talk of war with Iraq has ...
Airline financial woes deepen - Jackson Clarion Ledger
Airlines on course to lose $8 billion this year - San Francisco Chronicle
Airlines Expect to Lose $8 Billion - Seattle Post Intelligencer
Newsday - Austin American Statesman - and more »
Stocks end week with a big thud
Miami Herald, FL - 8 hours ago
... fresh news of economic weakness, and the ever-present talk of war with Iraq in ... Airline
stocks fell broadly after Delta Air Lines forecast a bigger-than ...
Asian airline stocks soar as Iraq war fears recede
Business Times, Singapore - 18 Sep 2002
... they're going to be extremely volatile, driven by war ... $28.28 a barrel after the United
Nations announced that Iraq ... for about 15 to 20 per cent of an airline's ...
Bombardier bombshell: 1980 jobs cut; 915 in Montreal, 365 in ...
Canada.com, Canada - 18 hours ago
... attacks - is a prudent move to deal with uncertainties like a looming war with Iraq ... An
airline analyst from Connecticut who asked not to be named said his ...
1980 laid off in fight against slump - Montreal Gazette
Bombardier cuts jobs, scales back production - Toronto Star
Earnings News Once Again Sends Dow Sharply Lower
New York Times - 11 hours ago
... investors is the continued debate over a possible war in Iraq ... I had been thinking
that the war ... Delta, the nation's third-largest airline, also announced that it ...
Dow Closes Down 3.7% - The Gay Financial Network
Earnings Worries Push Stocks Toward 5th Weekly Decline - New York Times
Share dive spoils Qantas issue
Sydney Morning Herald, Australia - 27 Sep 2002
... Qantas Airways's $200 million share offer as soaring jet fuel prices and fears of
a war with Iraq ... The airline has fuel hedging in place to June next year. ...
Qantas raising helped off the ground - The Age
Talk of Iraq war hurts already-struggling airlines
USA Today - 18 Sep 2002
Rumblings of possible war with Iraq are inflicting pain ... And the price of security-related
and war-risk ... Meanwhile, most airline stocks, down since last year's ...
Airlines could get additional financial help from Congress
USA Today - 25 Sep 2002
Congress seems poised to help the airline industry again, providing war-risk ... reopening
the controversial loan guarantee program in the event of an Iraq war ...
House drafting bill for airlines - CNN
Daschle: Iraq War Would Hurt Economy
Yankton Daily Press, SD - 20 Sep 2002
... I think the war in Iraq will have a very significant negative effect on the economy.
The airline industry has warned that war may require that all of them ...
Stocks near worst quarter since '87
Seattle Post Intelligencer, WA - 10 hours ago
... on investors is the continued debate over a possible war in Iraq ... I had been thinking
that the war ... Airline stocks fell broadly after Delta Air Lines forecast a ...
Reuters World News Digest at 2200 GMT, Sep 26
Reuters, UK - 26 Sep 2002
... BAGHDAD - Iraq said on Thursday US warplanes had damaged the ... because the money already
pledged for rebuilding the war ... on Thursday and both they and the airline ...
Qantas ready for war
ABC Online, Australia - 26 Sep 2002
... as the world prepares for a potential war with Iraq ... off in crude oil prices as the
United States contemplates war on Saddam Hussein has weighed on airline ...
9/11 doesn't excuse airlines' bad business decisions
USA Today - 26 Sep 2002
... With airline losses expected to total $7 billion this year, the industry's deep ... The
industry's request for loan guarantees in the event of a war with Iraq ...
KAKE, KS - 26 Sep 2002
Some experts believe a war with Iraq could affect Wichita by further
delaying a recovery in Boeing's commercial airline business. ...
Reuters World News Digest at 1300 GMT, Sep 27
Reuters, UK - 27 Sep 2002
... set to gather on Friday under the shadow of war ... by saying they were undercover security
agents, an airline ... could set off a political earthquake far beyond Iraq ...
Anti-Kyoto alliance has tough sell ahead
National Post, Canada - 7 hours ago
... US$30 a barrel this week, and could spike higher if there's a war with Iraq. ... Why
aren't the Eastern-based auto, bank or airline chiefs talking about Kyoto ...
Airlines Plead for Aid
Washington Post, DC - 25 Sep 2002
... Airline executives also told House lawmakers they were worried that
any war with Iraq could cause their jet-fuel prices to soar. ...
Airlines want tax, cash, insurance aid - Taipei Times
American offers East Coast shuttles - International Herald Tribune
Airlines Plead for Aid - Salt Lake Tribune
Airline industry can't afford price war: Qantas chief
Toronto Star, Canada - 25 Sep 2002
... that domestic airlines could not afford a fare war ... Moreover, there was also the threat
of another airline ... amid market concern about military conflict with Iraq ...
Airlines Fear Collapse Without More Help
Reuters, UK - 24 Sep 2002
... In the event of an Iraq war, Mica said might review the feasibility of reopening
a federal airline loan guarantee program that expired in June. ...
-- signature .
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