US airlines prepare for shutdown of all domestic passenger flights

midian182

TechSpot Editor
Staff member

The news comes from a Wall Street Journal report that cites anonymous industry and federal officials. It states that government agencies are considering ordering a shutdown as cancelations increase due to the coronavirus. According to Flightstats, there have been almost 9,000 domestic flights canceled today, including 1,666 from Delta, 1,302 from American Airlines, and 1,097 from Southwest Airlines.

With around 80 million US citizens under lockdown, airline executives, pilot-union leaders, and federal transportation officials expect more cancelations and schedule reductions in the coming weeks.

The situation has been made worse by air traffic controllers and technicians who maintain their gear being infected with the virus, meaning they have to stay at home and the premises closing for a deep clean. Almost a dozen facilities have had to suspend operations after positive cases.

The Journal adds that major carriers, including American, Delta, and United, are preparing for a possible shutdown of all domestic flights. The vast majority of international flying has already been eliminated, and there are plans to cut domestic flights by up to 40 percent. The Transportation Security Administration reported an 80 percent drop in travelers Sunday compared to the same day last year.

For the airlines, a government order to shutdown would be the preferred option as it means they’re more likely to receive federal aid.

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QuantumPhysics

TS Evangelist
THANK YOU so much for this article Techspot.

I was planning to buy airline stocks since the government bailouts are inevitable and now I'm gonna wait till their price dips due to the impending possibility of a shutdown and then buy in later!
 
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Uncle Al

TS Evangelist
Just be careful, there will probably be more than a few mergers and in a merger transfer of shares is NOT guaranteed. Very rare that it doesn't happen but right now with all the turmoil I wouldn't put anything above some of these companies trying to keep it all for themselves .....
 

QuantumPhysics

TS Evangelist
Just be careful, there will probably be more than a few mergers and in a merger transfer of shares is NOT guaranteed. Very rare that it doesn't happen but right now with all the turmoil I wouldn't put anything above some of these companies trying to keep it all for themselves .....

Well, in the event of a merger, the safest bet is to buy the bigger, older, more capital stable airline..
 

GeforcerFX

TS Evangelist
You got in?

I'm planning for Delta, Jet Blue, American Airlines, Boeing and Airbus.
Yeah, Delta has the least debt , lots of capital, a good fleet age mix and has the most domestic routes out of the big 3 (that do international), Southwest would be having a much better time if the 737 Max wasn't in it's situation. I would grab Airbus but wouldn't touch Boeing, even with the bailout that's a solid 3-5 year investment to really make anything and there's a lot that can go wrong between then.
 

QuantumPhysics

TS Evangelist
Yeah, Delta has the least debt , lots of capital, a good fleet age mix and has the most domestic routes out of the big 3 (that do international), Southwest would be having a much better time if the 737 Max wasn't in it's situation. I would grab Airbus but wouldn't touch Boeing, even with the bailout that's a solid 3-5 year investment to really make anything and there's a lot that can go wrong between then.
Boeing will come back
 

mbrowne5061

TS Evangelist
Boeing will come back
Maybe if they get partially nationalized. The 737 Max isn't the only thing that the government is pissed at them for. Problems with Starliner, problems with Orion, problems with tool control on several different Air Force contracts. Now with them having money problems, they are going to be hard pressed to keep the government from taking a stake in the company (like Renault and Airbus - still private majority, but partially nationally owned)
 
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GeforcerFX

TS Evangelist
Maybe if they get partially nationalized. The 737 Max isn't the only thing that the government is pissed at them for. Problems with Starliner, problems with Orion, problems with tool control on several different Air Force contracts. Now with them having money problems, they are going to be hard pressed to keep the government from taking a stake in the company (like Renault and Airbus - still private majority, but partially nationally owned)
Orion is Lockheed and Airbus, SLS is Boeing (the rocket used to launch orion)
Boeing will come back
How long you willing to wait? They need 5 years to get back to there former value if not longer, they almost need an entire culture change at the company and that's going to take a long time.