April 18, 2008 by Robert Tharp at 3:05:31 pm
Jet Fuel Prices Cause Turbulence for Struggling Airlines
Rising oil prices and corresponding increases in jet fuel are behind the shakeup affecting struggling air carriers, says airline bankruptcy expert STEVE
STAPLETON of Dallas' Cowles & Thompson. "While the legacy airlines have cash cushions and all carriers are hedging their fuel costs with some success, there will still be pressure, particularly on the low-cost carriers and the start-ups," he says. As in the recent case of Frontier, much of the pressure likely will come from vendors like credit card companies, travel agencies and others concerned with the unprecedented economic pressures facing the travel industry. "They will likely be flexing whatever muscle they have to ensure the carriers meet their continued obligations." To interview Mr. Stapleton about the airline industry, contact Rhonda Reddick at 800-559-4534 or rhonda@androvett.com.
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