Better Numbers For USA Flags   

     

“Airlines are flying with a strong tailwind,” says Barron’s, the USA money paper October 2 issue, also advising:
     “Airline stocks historically have made money only for agile traders.
But as the carriers cut costs, shrink capacity and look forward to lower fuel prices, they may be flying friendlier skies for years to come.”
     Barron's surprisingly likes JetBlue less than Alaska Air or AirTran saying, “JetBlue has stumbled as it has expanded.”
     Barron’s really likes USAir as turnaround airline and also United as a main player in a possible Continental takeover.
     Delta/Northwest is also another heavily discussed possible future merger.
     But investing in Southwest appears to still be closest to a sure bet because the Texas carrier “has made money in good times and bad.”
     “Give AMR (American Airlines) credit,” Barron’s says.
     “It didn’t stiff creditors and obliterate stockholders with a bankruptcy.”
     Currently AMR shares at $24 are trading at just six times estimated 2007 profits of $4 per share.
     AMR still has about $18 billion in debt, down considerably from a few years ago and will end 2006 with about $4.7 billion in cash.
American is clearly the industry leader, tops in revenues with hubs strategically located in USA and a bountiful route network all over the hemisphere that is expanding around the world to India and China in particular.

   Bad Day At Toulouse … Airbus President and CEO Christian Streiff said yesterday that A380 launch customer Singapore Airlines will not receive its first by year end, but instead delivery is now slated for October 2007.
   Blockbuster announcement may redraw the market for the big plane now, more than 18 months behind the original delivery schedule and 10 months behind a schedule unveiled just four months ago in June.
   New schedule has one aircraft for SIA delivered next year with 13 more in 2008 (to SIA, Emirates and Qantas), 25 in 2009 and 45 in 2010.
   Emirates, with 45 firm orders, had expressed confidence in earlier delay announcements said it now takes the situation "extremely seriously," and is exploring "all options."
   Others may be unhappy, but continued EK support with more than a third of all A380’s set to go to the Dubai carrier is critical.
   The problem with A380 is in wiring up the big bird.
   "In June, the amount of work to be done to finalize the installation of the electrical harnesses into the forward and rear section of the fuselage had been underestimated," Airbus said.
   "Beyond the complexity of the cable installation, the root cause of the problem is the fact that the 3D Digital Mockup, which facilitates the design of the electrical harnesses installation, was implemented late and that the people working on it were in their learning curve."
   “The problem is now addressed at its root, although it will take time until these measures bear fruit."

     Not unaware of the heavily trafficked export market from Africa, and a host of other carriers—ready, willing and able to exploit it, Ethiopian Airlines Cargo ramps up new plans to increase cargo action.
     In addition to adding European routes and securing more all-cargo aircraft, Ethiopian Cargo is building an all new cargo transfer facility at gateway Addis Ababa.