Air Transport World

When no news is good news.(Waypoints)

As airline CEOs deal with the pain of staff, network and fleet reductions to help mitigate the soaring cost of fuel, spare a thought for Brisbane-based Virgin Blue, which also has had to deal with dire headlines touting its imminent bankruptcy. Indeed, there is nothing more self-fulfilling than a prediction that an airline will not survive, because it sends panic through prospective travelers who naturally avoid the carrier.

The instigator in this case was a comprehensive report in June by the JP Morgan investment bank that outlined three possible scenarios for Blue, including a so-called "doomsday scenario" in which it was forced to shut down in the face of continued record energy prices, no increase in fares or other revenue and no meaningful reduction in costs. …

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