— Most likely, US Airways will not survive it, although it still has a small share

Standard & Poor's managing director for civil aviation, PHILIP BAGGELI, answered Kommersant's questions.
— How likely is it that US Airways will liquidate after the second bankruptcy? — Most likely, US Airways will not survive it, although it still has a small chance of successful reorganization. If it is forced to stop operations, it will happen in the next two to three months.
— Some analysts suggest that the distinction between low-cost and traditional carriers will gradually disappear. What do you think?
— I believe that low-cost airlines will continue to develop rapidly, and their share - at least in the US market - will continue to grow. Nevertheless, large airlines will retain a significant market share, because they almost completely control and will control international traffic. The differences between these two forms of business organization are gradually being erased, but will not be completely erased: large carriers still have significant differences in the organization of work: better integration of routes and transcontinental communications.
—Who will follow US Airways?
— Delta Air Lines is under threat of bankruptcy, but even if it happens, I would assume that it will be able to reorganize and safely emerge from bankruptcy. In the event of a major external shock, such as a major terrorist attack or several months of extremely high fuel prices, it is possible that United Airlines, currently protected by Section 11, could run out of funds and be forced to halt operations.
Interviewed by NATALIA Kommersant-SKORLYGINA

Newspaper "Kommersant" No. 174/P dated September 20, 2004, p. 17

Authors:

Natalya Skorlygina

"US Airways Is Unlikely to Survive a Second Bankruptcy"