Which Airlines Are Deemed To Be Most At Risk Of Going Bust?

mrposhman

tour operators are at far more risk than ordinary airlines due to when they receive their cashflow from their customers. Airlines tend to ask for payment up front and always with internet bookings whilst tour operators offer payment terms to a lot of customers.

ilurvfree

My failed XL flights for next year were rebooked immediately with flyglobespan on a credit card. Nothing to lose really, if my airline fails my credit card will have to refund me.

iwantitnow

whatusername wrote: »

A good article in my local paper (Daily Record) suggests Globespan are ready to post a profit for 2008 and are running at 94% capacity and potentially looking to pick up a few new planes over the winter. Granted this is based on a report from Tom Dalrymple their CE.

Downside Paddy Power has them at 6/4 which is doing nothing for customer confidence.

Insider information suggests that next week will make or break Globespan. They have provisionally leased most of their aircraft to unamed southern hemisphere carriers over the winter. This has alway been the plan. If the deals are not confirmed next week then it looks like bye bye Globespan.

The price of 6/4 is quite short maybe Michael O'Leary has been backing a few thousand on them just to move their market price ( a few thousand quid can change the odds considerably on a weak market) resulting in a sudden lack of customer confidence

whatusername

I was under the impression they had secured lease deals with the MOD over the winter for flights from the UK to the Falkland Islands. As always the noises are better from people inside the business than outside and for Tom Dalrymple to go public to aliviate fears would suggest he is worried about negative press also to try and get the public onside again.

I fear the betting sites haven't helped any of these airlines causes.

Warrington-Mike

FlyGlobespan also vertually have a monopoly on Scottish flying! and they are not cheap!

ilurvfree

Warrington-Mike wrote: »

FlyGlobespan also virtually have a monopoly on Scottish flying! and they are not cheap!

Correct! Flyglobespan charge roughly the same price for flight tickets from Edinburgh/Glasgow as the various flight companies charge at Manchester airport.
The main difference being, we in Scotland don't end up forking out hundreds of pounds extra:mad: for travel and accommodation to Manchester airport.

Personally I'm hoping that the $700 billion bailout goes through in America, and hopefully this filters through to international banking, allowing more required refinancing packages to be given from the banks to the many companies in difficulty.
This coupled with the price of oil dropping should certainly help all those compaines that are currently feeling the pinch.

whatusername

ilurvfree wrote: »

Correct! Flyglobespan charge roughly the same price for flight tickets from Edinburgh/Glasgow as the various flight companies charge at Manchester airport.
The main difference being, we in Scotland don't end up forking out hundreds of pounds extra:mad: for travel and accommodation to Manchester airport.

Yip i can take the same holiday from Manchester to Florida with Virgin £700 cheaper than i can with Virgin from Glasgow. It's shocking. No wonder Globespan pick the Scottish market up and long may they continue to.

paddypuma

Tom Dalrymple's recent open letter to the media:

http://www.flightglobal.com/articles/2008/09/30/316670/flyglobespan-defends-financial-position.html

Pretty much trying to put an end to the unfounded rumours and speculation about the company. Hopefully the public will see that this isn't just 'papering over the cracks' anymore and start putting their faith back in the airline.

Incidentally, Paddy Power have closed the betting on the next airline to go bust and have deleted the blog about it. Perhaps they (as well as the people who placed bets) now realise what a stupid mistake they made when they messed with peoples livelihoods?

flyingbug

I booked a flight direct with UNITED to USA for christmas2008
it was booked last April since then the flights have been changed 4 times
l know they have cancelled 100's of route's in USA
I hope UNITED are not at risk of going bust

codger

flyingbug wrote: »

I booked a flight direct with UNITED to USA for christmas2008
it was booked last April since then the flights have been changed 4 times
l know they have cancelled 100's of route's in USA
I hope UNITED are not at risk of going bust

United's largest stockholder is Bank of America.

Whether that's cause for joy or fear, I know not.