=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/05/03/f= inancial2231EDT0362.DTL --------------------------------------------------------------------- Monday, May 3, 2004 (AP) Airline executives predict some carriers will fail DAVID KOENIG, AP Business Writer (05-03) 19:31 PDT FORT WORTH, Texas (AP) -- Chief executives of three major airlines predicted Monday that some carriers will fail as the industry deals with a long slump that has caused billions in losses. The executives didn't name the likely losers or say when they might collapse. "There is no reason to have six hub and spoke carriers," said Gordon Bethune, CEO of Houston-based Continental Airlines, "but you have to have that kind of system to get from Lafayette, Louisiana to Sacramento, California." Bethune said even some low cost carriers, who have performed better recently than traditional airlines, could fail. Gerard Arpey, CEO of Fort Worth, Texas-based American Airlines, which nearly filed for bankruptcy last year, said airlines are squeezed by competition in the form of low fares and high costs. "There are going to be fewer carriers," Arpey said. James F. Parker, CEO of Southwest Airlines in Dallas, said that while so= me carriers may fail, they could be replaced by new entrants, leaving the skies as crowded as before. The three executives made their observations on the industry to the Society of American Business Editors and Writers, which is meeting at a Fort Worth hotel. On another subject, the executives defended the level of customer satisfaction. Arpey said customers want a lot of things but won't pay extra for some amenities, such as food. "If you are on time, if the bag is there in one piece, and you are courteous, if you get those three things right, every other score goes up," he said. The executives also repeated their frustration with high fuel costs. Parker said Southwest has remained profitable during the industry slump partly by making long-term deals to lock in lower prices for fuel. ---------------------------------------------------------------------- Copyright 2004 AP