In a move that should be imitated by large US carriers like AMR (AMR), Delta (DAL), and Northwest (NWA), British Airways will ground part of its fleet to save money because of the rising cost of fuel.
According to The Times. “The airline would park its oldest, least fuel-efficient aircraft.”
Analysts are concerned that BA may loss money for the next two years. By taking some aircraft out of service the carrier could ameliorate some of that.
Wall St. may watch to see if big American companies have the sense to do the same thing. Most have debt loads large enough to move them toward Chapter 11, if fuel costs stay high and a rough economy hurts passenger traffic.
Douglas A. McIntyre