Earlier this year I wrote an article discussing the pathetic state of the airline industry in the U.S. due to consolidation of carriers. For travelers it has become a nightmare flying from Point A to Point B. Equity investors have treated most airline stocks like rotten fish that are best avoided at all costs. A …
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“Competition is a sin.” – John D. Rockefeller, American industrialist and philanthropist In January 2012, I posted an article on the monopoly madness in the U.S. railroad industry where a handful of Class I carriers dominate the industry today. Last week two of the large U.S. airlines, American Airlines and US Airways announced to merge their operations to …
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The Asian airline industry has experienced tremendous growth in the past few years in tandem with strong economic growth. Rising middle class with higher disposable income and eager to explore air travel has been the major driver of growth.Countries such as Indonesia, China, India, etc. with large populations have invested heavily in airport and related infrastructure upgrades in recent years. Catering to …
Many investors tend to avoid airline stocks since the industry suffers from low earnings due to various factors such as regulations, fluctuations in fuel prices, labor issues, business disruptions due to weather like snow, volcano eruptions, flawed business models, incompetent management, etc. This is especially true in the U.S. where the industry is highly concentrated …
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On December 29, 2009 The Wall Street Journal carried an article titled “Brazilian Airline TAM Banks on Growth From New Fliers” that discussed the growth potential of TAM and the airline industry in Brazil. TAM SA, the leading Brazilian airline expects the domestic market to grow by 12% next year due to the continued growth …
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