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Maxim Group Analyst Ray Neidl on how investors can profit from adding airline stocks to their portfolios.
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Right now well David will be pleased that you haven't got -- -- price hikes possible bankruptcies.
For of this you wanna buy into the airline stocks will you need it not stomach to invest in the airlines we've got a top analyst who says don't be.
Friend -- joining us now Lorraine idol maxim group senior aerospace and an airlines analyst my goodness why should we even think about touching the airlines.
To make money.
Really because they don't cut it with a put -- that's that's misconception.
The airlines are making money is now.
Making money now and bankruptcies.
Wants American gets out bankruptcies are a thing of the past we.
Are expecting a ruling today on AMR and its labor contract and does it matter what happens there is an of course this one on the verge of the real tough times for American Airlines -- It does matter American needs a decision.
-- assume decision will be made -- -- favor and inspect some negotiating bored with the pilots.
And do they -- and -- with.
I think get a merger in the short term is less likely now.
Mr.
-- really mister Horton doesn't want to reorganize.
On his own.
Of course just look at all options with -- airlines mergers.
And present that to the unsecured.
Creditors.
But the thing is I think he thinks is more value.
For everyone if he organizes ozone could -- us Airways in the American policy disagree with that.
Will play in Yahoo! US Airways would like to be there alongside for enemy meant that that was the one talked about -- -- While bullish on many of the airlines there -- two in particular you feel are true opportunities.
Once -- like the so called niche carriers and what we call -- -- fiscal with the carriers this airlines like Alaska Air.
And spirits and allegiance there's smaller to more nimble to get lower costs in their growth vehicles up to 20%.
The big carriers like united and delta deal -- easterners direction shrinking little bit which is good the shrinking getting rid of marginal operations.
Who will -- more risk there but as I said before they've reform their cost to controlling capacity and that's what I think there is an attractive investment even in a weak economy.
Not good for the consumers though is it less flights limited capacity of -- being added on to everything including the air you breathe in the in the cabin itself.
The modeling lavatories well yes Ryan airlines -- -- famously wanted to -- -- What point.
Does that does the consumer the passenger say enough so enough.
By the consumers getting in massive deal.
The their fears are much much cheaper than they were before deregulation.
I think decoupling the product you know paying for the lady sitting next to use that are steamer trunk down there she's paying for herself.
If you want food and paying for that so in -- long when the consumer is better off by decoupling -- getting the cheapest ticket possible and then buying interest services.
Which airline are you least optimistic about right now.
Well its original world are pessimistic on the regional sector is starting to come back and it -- in bankruptcy of -- about their future.
When they get reorganized SkyWest enough.
Republic who -- to the big survivors.
SkyWest and republic good to see -- -- thank you enough to give too much rain -- of maxim group senior aerospace and airlines.
