So... Who is next?

[Michael Mak]

Originally Posted by Lukas Mahoney

Asian wise, I do wonder about Lion Air, Jetstar Asia, and mabye Tiger, Viva Macau were losing a lot of $$$ fast recently

AirAsia is the only strong one in the region

I doubt Jetstar Asia will collapse, they are owned by QF (49%).
Tiger likewise is owned by SQ (49%), both have strong financial support,

[Lukas M]

Yes, dont forget about the other 51% of investors. If they are not pulling in any cash soon, then they will just pull the plug No point digging deeper of investors pockets if they get nothing in return

JQ Asia,TT would be bad investments to get into, both have lost hundreds of Millions over the past 4 years. Anyway they could always impove, its just going to take a while thats all

[Marty H]

Originally Posted by Robert Zweck

Didn't some airline in the US called Champion Air go under the other day?

Yes they fell over about two weeks ago along with the last remaining B727 passenger services in the USA

[Michael Morrison]

Frontier have just filed fro Chapter 11 Bankruptcy protection.

[Grant Smith]

Originally Posted by Lukas Mahoney

JQ Asia,TT would be bad investments to get into, both have lost hundreds of Millions over the past 4 years. Anyway they could always impove, its just going to take a while thats all

Lukas,

Are you in the financial game? Or a numbers man?

Please provide said evidence to backup your claims that 3K and TR have lost "hundreds of millions" over the last four years...

I would be interested to know...

[Shameel Kumar]

Originally Posted by Michael Morrison

Frontier have just filed fro Chapter 11 Bankruptcy protection.

Waaaaat ?

This is starting to get out of hand. I guess when it rain.. it pours!!

Looks like all those fascinating and colourful Frontier tales may not be around for too much longer. What do you guys think of Virgin America's viability (or should that be survivability) over the coming months to a year?

[Kieran Wells]

From Jetphotos...

VRG suspends flights to international destinations

VRG Linhas Aéreas S/A (Rio de Janeiro) is suspending flights to several international destinations, including Mexico City, Paris and Madrid, over the next two months in order to focus on better adapting to market conditions, while increasing its presence in the domestic and South American markets and concentrating efforts on routes where it maintains competitive advantages. The Company’s focus will be to expand its route network in Brazil and South America by maintaining a lean cost structure and increasing revenues.
----

is this the start of another one to start heading under?? "lean cost structure" sounds interesting, however for an airline to pull several international routes, there has to be something going on....

[Marty H]

Originally Posted by Shameel Kumar

Waaaaat ?

This is starting to get out of hand. I guess when it rain.. it pours!!

Looks like all those fascinating and colourful Frontier tales may not be around for too much longer. What do you guys think of Virgin America's viability (or should that be survivability) over the coming months to a year?

I raised that point on another airline forum due to VA's itinal start up costs and the time it would take to turn a profit.................be interesting situation for VA at this time.

[Lukas M]

Originally Posted by Grant Smith

Lukas,

Are you in the financial game? Or a numbers man?

Please provide said evidence to backup your claims that 3K and TR have lost "hundreds of millions" over the last four years...

I would be interested to know...

Since Operation:
-Tiger Airways have lost:
$37.4m 2006 loss
$14.3 2007 loss
Tiger Airways is now due for a finance report(2007-2008 year)

-Jetstar Asia have lost:
$36 ValuAir Merger
$47.5m 2006 loss
$14m 2007 loss
$36m 2007 investors money

Jetstar Asia are swimming in debt, but not drowning. Looks like Tiger will report a small profit any day now, but still these airlines are in a grim situation

and Virgin America have lost so far:
$37m first quater


Souces:
http://www.straitstimes.com/Latest%2BNews/Money/STIStory_204193.html
http://www.channelnewsasia.com/stori...269667/1/.html
http://en.wikipedia.org/wiki/Jetstar...ys#cite_note-1
http://en.wikipedia.org/wiki/Tiger_Airways
http://www.sfgate.com/cgi-bin/articl.../BUNFU05OQ.DTL

[Shameel Kumar]

Originally Posted by Michael Morrison

Frontier have just filed fro Chapter 11 Bankruptcy protection.

Having a read of a thread of the same topic at A.net... one member has provided what seems to be a possible explanation for Frontier's decision to file for Ch. 11.

From Ikramerica:

From how I understand it, they had to enter Ch.11 ASAP so that the CC (Credit Card) company could not change the terms of their deal.

After reading up on "hold backs" and how they work, the CC Processor is within their right to change the terms if they see a fundamental change in the business they are working with. It's within the contract F9 (Frontier Airlines) has with them. They must be worried about F9's losses and that the mantra for ATA and AQ (Aloha Airlines) passengers has been "contact your credit card company" which is plastered all over the web as advice. I'm sure the credit card companies are ****ed they are being put in the middle, and the processors even more so (charge backs are expensive), and so are now increasing hold back on all "shaky" carriers to protect themselves. And from how I understand it, the processor could basically hold all F9s credit card transactions for a long period of time as security.

But by filing Ch.11, that freezes all contracts and terms as is for a set amount of time (60 days?). At least that's how I understand it. Then the BK judge can sort through it. But it means everything holds as is, the CC processor can't increase the hold back, and F9 stays liquid. Probably.

Link to thread

Sounds like a plausible explanation for Frontier's sudden announcement. Seems like they're trying to think more about long-term viability and don't want to get caught out by this sudden squeeze that creditors have placed upon struggling airlines.