Which airline will be next to go?
Three airlines went out of business in one week and Champion Air will call in quits at the end of May. Experts believe most major airlines will survive. According to a report by the Associated Press, experts fear that regional airlines could be in danger. “The risk really is in some of the second-tier carriers that have less financial means than the major airlines,” said Kevin Mitchell, chairman of the Business Travel Coalition. The article cites a dispute between Delta Air Lines and Mesa Air Group as evidence of the threat against regional airlines. Delta plans to cancel a contract-flying agreement with Mesa worth $20 million per month. Mesa is taking Delta to court over the matter. Sources also identified AirTran and Frontier Airlines as carriers that could be in danger of going bankrupt.
You may also be interested in these articles
Comments
Please share your thoughts...