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Six Reasons Airlines are Set to Crash

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LOOKS LIKE WE PICKED THE WRONG WEEK TO STOP SNIFFING GLUE
"Airlines have always been horrible businesses," writes Damien Hoffman. Here are six main reasons their businesses are about to get a lot worse:

6. Unions: "As the reasons below come into play, unions will not understand why workers will need to compromise. This will create unnecessary administrative costs to negotiate and prevent strikes. If workers don’t accept the waning health of their employers, ill-timed strikes could catalyze a negative feedback loop."

5. Debt: "Airlines are laden with more debt than the average American household. Continental Airlines (CAL) has twice as much debt than cash, while American Airlines (AMR) and United (UAUA) have almost three times more debt than cash. So long as ticket revenues are being siphoned to huge debt payments, airlines will always fall into dire straights when the economy recesses."

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