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American Airlines Not Ready for Takeoff

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  • Description

    Airline Weekly’s Seth Kaplan breaks down the future of the faltering airline.

  • Duration 3:47
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American Airlines hoping to get service back to normal this week.

-- to lose seats grounded 48 of its Boeing 740 sevens the bankrupt -- and it is in bankruptcy.

Is dealing with this was in the middle of a labor dispute with its pilots that -- -- that has -- -- delayed the -- hundreds of flights.

Joining us now is Seth Kaplan he's with -- us weekly.

Seth let let's get the big picture festival.

I'm wondering whether American can keep going as a viable airline.

It's at war with its unions it's in bankruptcy.

It is not paid for the assessment profitable in years.

Can keep going.

I absolutely it has no question it's seen better days that's clear but it's getting its cost in line as we speak it has.

Taken on its unions in some cases gotten voluntary concessions and another take the not so voluntary but it's getting its costs down that was certainly what a big problems that had.

Uncompetitive cost and a very competitive industry and that's the revenue -- today that it will need to address but.

No question as a viable airline added that no we're here liquidation it has to do -- of its competitors that revival any.

Its current science.

Or does it have to trim trim trim trim trim and just reduce itself to get back to a -- and solid base.

Viable gases the other question is whether it's ideal I've stated that it whether -- he's edited slim down may be stopped doing a few of the things that don't work -- on the other hand.

Ball -- perhaps merged with US Airways which as everybody knows it is very interest data perhaps buying American those are two options that.

A lot of us think might -- position even better than it is right now.

One of the things that would -- if if I had a ticket on American Airlines and I'm worried about these seats coming -- on what about delays and cancellations while other things that would stop me from changing and I lines would be.

I pay a massive cancellation fee if I want to get out of that -- on -- go someplace else.

I mean I'm -- a law to an on time.

You're right -- -- -- -- I think it's important to separate in terms of you know should we trust American.

The short term vs the long term candidly if I -- to get somewhere this week on tied to an important meeting and I have another option I would probably try to pick that other option.

In the longer term we seeing these kinds of situations -- other airlines in the past and they don't typically lasts all that long look.

For perspective we ran a cover story just three weeks ago about how united.

With the least reliable airline parlux reliable -- point that Americans as does the job quickly things can change but but absolutely right now.

Age you know I would be looking for other options but they certainly in the next day or so American is less reliable than that it's.

Here you have by the way -- a mistake it's the 750 sevens that will ground and to maybe -- -- -- correct that some fifty sevens but all right I want it is the last question.

How many years before American make serious profits.

Oh well.

I think that emerges from bankruptcy with -- new cost structure right now.

It will be a profitable airline probably not be a leader in profitability you -- if we look at.

Delta for example of their revenue picture now they went through bankruptcy several years ago then merged with northwest they got their cost in line and they also did some things on the revenue side that American is now just starting to do.

The US airline industry at the moment is actually doing rather well the more profitable airlines are are producing margins that would make most industries -- but.

But again an airline like delta up near double digit profit margin that's pretty good.

-- if it birds today with its new cost structure and its revenue picture probably be in just a bit below that.

All right Seth -- we hear you.

I want sub recently flew Singapore Airlines now if you wanna fly now on you you try not wanna look at this our secretary and with who see again soon.

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