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Maxim Group Senior Airline Analyst Ray Neidl on the airline industry, holiday traveling and investing in the major airlines.
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You're not getting what that's what -- idol is warning and he knows for decades he has covered the airline industry.
He's a senior airline and aviation analyst at the maxim group joining us now.
In a Fox Business exclusive this is sort of a forked discussion one time of the fork is as a traveler one is as an investor would start at the -- what do you mean I'm rocketing of flight if I wanna go.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Mean do just like you want which -- probably by and did they free them up if their empty on the last -- the -- that he had investment if it's indeed -- -- -- you get a bargain a case but I would wait for that.
And you don't wanna slip to the airport have to sit don't wait and see what's going on but.
-- is that I know that they've cut down on capacity because they're trying to Republican actual business right now but that at this become very tough for travelers.
We'll capacity has been cut back -- nationalized.
The older fuel in efficient airplanes have been grounded that's important when oil is that over hundred dollars a barrel.
That's what humans and human that there would of their old equipment and now -- -- -- is relatively modern and fuel efficient so that's very important for making money.
A but the thing is surprisingly despite the lackluster economy demand -- -- strong I don't know why but in this economy people still want to travel.
Maybe they just get used to the good times and knowing given up and at times.
-- the fact of life certainly you've got to get on a plane once in a blue moon or more than that if your business traveler has to help with the business travel segment.
-- right now it's holding up and the budget still appear to be strong going into next year so the airlines are not seeing any big falloff in demand which is why they continue raise prices and control there yields.
You know I -- -- heard that this one company was bought a bunch of magic jacks for people to.
Just make a bunch of phone calls now instead of actually getting on planes but it seems that there's a shake out now that the business traveler.
Is starting to go -- but it's that high priced ticket that matters right now.
As airlines upgrade their planes of as they put a lot of money into sort of fixing things up is it really only for that higher paying segment.
Well that's who pays the bills upfront full fare Coach -- near full fare Coach first class that pays your bills the other just fill the seats woodland will go for the -- -- -- back any -- tips for the last minute traveler.
-- -- -- She -- that fact is that -- away at a prayer let's get to the investment portion of this.
Looking at all the names out there we'll start with the big ones who stands to really lose here.
Well and -- has definitely many challenges -- beginning with the unions particularly their pilots.
Hello my second we've got some breaking news sorry -- let's get to Ashley Webster actually.
Yes certainly is just some more on the MF global full allows congressional panel apparently seeking to question Jon Corzine who oversaw a coast John who was -- -- IMF global -- filed for bankruptcy some three weeks ago.
We understand he is among the several MF global executive -- this panel would like to question about the downfall of this trading company and a close the 'cause some money.
That has gone missing so again Mann a congressional panel wants to question Jon Corzine who was a running MF global.
And -- not confirmed that he will testify Liz but he certainly being invited to sort continue to follow that.
Well little ways one of fled their own having been a senator needless to say -- be awfully interesting if it comes to pass thank you actually back to re see you were saying about AMR -- you look at what happened in October.
It sure what I on the floor and ultimately -- that day we ran over at the post it look like.
The bears were circling and trying to really smacked down AMR and certain day -- stock went to about a dollar sixty.
Three.
When -- stock is below two dollars a share the market's telling you there's a good chance of bankruptcy.
And if American doesn't get a cost efficient contract with the pilots.
In all likelihood -- will go into bankruptcy.
-- they do get a good contract with the pilots the -- of the challenges for the unions other cost and on the revenue side but they're facing a severe test right now.
Well market cap about 573.
Million it's -- it's really small at this point so they've got labor cost issues.
Who do you like right now -- what airlines capture your attention as a long time analysts.
Well basically they lackluster economy that we're in right now I kind of like some of the niche carriers because they're good -- -- -- can profitably grow.
These are runs like west airlines say OK.
-- dale GT or Hawaiian HA Hawaiian has a lot of growth opportunities.
Going east of the Asian countries Japan -- and eventually China.
So they've got a lot of opportunities along with Spirit Airlines which has its own unique niche Allegiant is.
Up -- but basically flat for the year -- the PE is twelve 22% of the float of this company is being -- kind notes that that makes me a little better positioning -- to.
But up -- on the fundamentals.
The growing 25 to 30% next year that should pop the stock Alaska Airlines ALK we're looking at Hawaiian at the moment Alaska up 60% over the past and then you've got spirit as you said that's -- -- that's sort of leisure travel.
-- company -- -- -- at nickel also -- other take a lot of people back to their home countries to visit their families in the Caribbean and Mexico and so forth and got a pretty good chart for spirit we -- that a ticker symbol SA vis a very busy.
As it as sorry SE VE at that just recently what publicly went public back to near bloke -- that's an -- okay.
-- creek to see you are you to do you ever travel Thanksgiving.
No I didn't hear what had a out of -- not to you.
-- didn't get.
