Using The B Word

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Well, there it is for everyone to see on the front page of The Arizona
Republic - AmWest may declare bankruptcy next week if they don't get a loan
guarantee today or Monday from the Feds.  Why next week?  Apparently there's
a $75m lease payment due and they aint got the cash for it.  Will this be the
end of the world for Cactus...certainly not, as they have strong hubs in both
Phoenix and Las Vegas and have made money competing against Southwest.  A bk
filing would certainly get some of their costs under control as their poor
credit rating dictates high price leases.  And the word bankruptcy no longer
puts fear into the heart of the flying public as it once did (remember AmWest
filed before in '91).  At this time I don't see any other carrier interested
in bailing them out due to their own economic problems.  Plus their fleet of
A320s, B737s and B757s make sense for only one carrier and that airline is in
no position to give this a thought.  My gut (a lot more intuitive after being
engorged for the holidays) sez Cactus will get their money from the Feds.
With friends in high places (Senators John McCain and John Kyl) the squeaky
landing wheels usually get the oil!

RT Simpson
Phoenix

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