Virgins Branson Sees More US Airline Bankruptcies Ahead

By 2008-04-15 March 28th, 2018 Whole Enchilada

With American Airlines making a major customer service mistake that with this current airline environment could spell the end of the airline and with fuel costs a well run company like Virgin America can do very well in the USA.

When the economy for an industry is growing companies that are well run can stay in business, but when the economy gets hard a ton of companies will go out of business.  Well run companies will last, poorly run companies will go out of business.

The weak American economy will force more U.S. airlines, including a major carrier, into bankruptcy within 18 months, Virgin Atlantic Airways chief Richard Branson said Thursday.

Fuel costs, up 70% from last year, are likely to remain high, the British entrepreneur said in a meeting with reporters here. Facing a recession, airlines wont be able to charge enough for tickets to make up that expense, he said.

Branson declined to say which airlines he thinks are likely to wind up in Chapter 11.

In recent weeks, several small airlines, including Aloha Airlines Inc., ATA Airlines and Champion Air, a charter carrier, have abruptly stopped service.

Failing airlines will benefit competitors, Branson said. For example, it will be easier for Virgin to acquire new aircraft, which currently are in short supply.

Virgins Branson Sees More US Airline Bankruptcies Ahead