US airlines an utter failure, more bankruptcies, 17% fare increase expected – Hudson Securities
A 12% increase in fares in 2010, followed by a 5% increase in 2011, will be diluted as deferred aircraft deliveries come on line in 2012 and 2013, according to Hudson Securities analyst Dan McKenzie, who testified recently before the Senate Transportation Committee hearings on the United-Continental merger. But he reiterated that consolidation was not a threat to competition. Indeed, he predicted competition will result in at least one more bankruptcy in the next five years, largely because of promises made to labour.
