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Ray Neidl  Quotes
Delta in the past has expressed a lot of interest in Continental Airlines, and I’m sure that interest would be revived. The only thing is Continental has a tie-up agreement with Northwest and something would...

—Ray Neidl

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Interest
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Everything I’ve heard so far is that bookings have not been affected.

—Ray Neidl

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They are trying in bankruptcy to bring down their whole cost structure, so there won’t be a need for a low-cost unit.

—Ray Neidl

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Trying
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It’s a step. They were going to get the certificate someplace. That is just one less thing on the check list.

—Ray Neidl

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There is plenty of blame to go around,

—Ray Neidl

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Blame
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This is the real hidden cost that is going to the consumer.

—Ray Neidl

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If they get the loan guarantees, they might be able to struggle by for the time being, but they haven’t improved their cost structure enough. Most people think they didn’t get enough savings and they...

—Ray Neidl

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Struggle
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It looks like it’s a big deal for them (AMR and UAL) because they keep raising the ante, … Canada by itself is a very small market, but it does have a strategic geographic importance,...

—Ray Neidl

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Canada
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In the long term, we believe Republic will be one of the major players in the regional airline market. We think that Republic has the scale and financial capacity necessary to continue to aggressively expand.

—Ray Neidl

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Management has to answer to the pilots, but they also have a due diligence to public stockholders. The pilots sound like they’re being very aggressive in what they think they deserve, and I’m not sure...

—Ray Neidl

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Diligence
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They’re probably looking at what’s happening with Northwest and Delta and probably realizing they have to get their contract cost structure down as well.

—Ray Neidl

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I don’t know what the likelihood of [the deal] being done is, … I think it’s serious, I think something is going on — and many people were surprised, including myself, that American would even...

—Ray Neidl

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Once they get the labor savings in place, their troubles aren’t over, … They need to squeeze more out of secured creditors.

—Ray Neidl

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Labor
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The sharp rally in airline stock prices, which began in late September, seems to be over for the time being as reality sets in and the market re-evaluates the industry’s position, particularly with remaining uncertainty...

—Ray Neidl

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There will be more pressure on American to reduce its costs, because these guys will come out leaner and meaner.

—Ray Neidl

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The US Airways route system fits very nicely with the United Airlines system. If this deal goes through, it would turn the airline industry on its head.

—Ray Neidl

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I didn’t think there was an industry in worse shape than the airline industry — but I have finally found one.

—Ray Neidl

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They’re going to lose some of these customers. If they can solve their problems by September, the problem will be limited. If it goes past September, they’ll have trouble winning back the higher yielding customers.

—Ray Neidl

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Problems
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They’re cash-flow machines, which is unusual in the airline industry.

—Ray Neidl

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It’s going to reduce their cost structure and make it a more efficient airline.

—Ray Neidl

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I think it’s pretty risky what they’re doing. I’m a real fence sitter here — I’m real skeptical you can run a low cost carrier using regional jets.

—Ray Neidl

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Looking ahead, the revenue side is going to be decent. The cost side should be OK. The big question mark is fuel. It has to start coming down if we’re going to have a strong...

—Ray Neidl

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Although the stock will probably continue to trade during the reorganization and could even rally on positive company, industry or economic news, we believe that ultimately it will be worthless when the final restructuring plan...

—Ray Neidl

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Company
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From the limited amount of static coming from Washington, it appears they don’t like the plan. I’d have to say there’s a probability of a bankruptcy at this point. There’s too many hoops to jump...

—Ray Neidl

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I think the market was looking for an excuse to buy airlines and UAL was the excuse for it today, … In the first quarter, probably half the majors are going to lose money, but...

—Ray Neidl

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They’re wearing off, but anybody else would kill to have these fuel hedges.

—Ray Neidl

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I think that’s very important that United gets flexibility on regional jets.

—Ray Neidl

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Flexibility
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Airlines have done a very good job in pulling through price increases earlier this year to cover a large part of the higher fuel prices, … Demand is very strong, and that is what has...

—Ray Neidl

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It’s a big gain but it is not uncommon, especially with a low stock price that has been particularly hit hard recently.

—Ray Neidl

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We believe the whole airline industry will now have to move in this direction; this will likely hurt revenues in the short run but could be beneficial in the long run.

—Ray Neidl

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Direction
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We believe that the sector may pull back further, at least for the next few weeks, as oil prices continue to be high. However, we still expect a late-winter or spring rally, even with high...

—Ray Neidl

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The government has to rethink its anti-trust policy on airline mergers. Otherwise, future liquidations are inevitable.

—Ray Neidl

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Future
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It’s a logical fit and logical action to take.

—Ray Neidl

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Action
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As predicted, we are seeing another attempt by the airlines to increase ticket prices.

—Ray Neidl

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Airlines
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There are no surprises. Basically what we’re hearing from the airlines is that volume is not falling off. Business is getting weak as travelers are trying to get around higher pricing with discounts. There was...

—Ray Neidl

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Business
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Airline stocks have been having a rally because they’re expected to lose less money next year than they did in 2005. That’s not a solid reason to buy on a long-term basis, but those who...

—Ray Neidl

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Money
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I still think there are better things to come heading into the summer season. Airline stocks tend to trade ahead of the season.

—Ray Neidl

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Trade
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You want to keep assets in place for when you have a recovery. By the time you’re in a recession, you have to be making plans for the recovery. It’s not like a factory where...

—Ray Neidl

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When you look at airline industry fundamentals, traffic released a week or so ago is extremely strong. I think the airlines have learned to live, at least for the time being, with $30 a barrel...

—Ray Neidl

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I’m assuming changes are going to be made. If they don’t get changes, they can return to profitability at the up end of the cycle, but they will continue to lose money at the down...

—Ray Neidl

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There’s no reason other than covering a short position to buy shares. It’s either that or stupid money,

—Ray Neidl

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Money
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I’ve never heard of them, and I don’t give it much credibility, … I think you’re crazy paying anything for TWA.

—Ray Neidl

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Credibility
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If the recent spike in oil prices sticks, it could also impact demand for air travel through a decline in consumer buying power and confidence.

—Ray Neidl

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Right now, I still believe in the story of Alaska Airlines,

—Ray Neidl

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You could see the stock reverse itself if there’s a turn-down there, because there could be a strike there very quickly,

—Ray Neidl

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I’m looking for a 15 percent pull back sometime this fall. It’s not necessarily too late, but I might be a bit cautious getting in right now.

—Ray Neidl

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It’s going to speed up the reformation and the restructuring in the industry. Those who make the right decisions in those areas are going to be the survivors. Adapt or perish.

—Ray Neidl

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Cost is the name of the game and I’d like to see that a little bit lower.

—Ray Neidl

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[Mergers and liquidations are] going to happen, … They’re going to realize the industry has too much capacity, too many hubs, too many seats, too many airlines.

—Ray Neidl

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I think that’s what they’d want to do, and that’s why they’re all rushing.

—Ray Neidl

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