Word: northwester
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...first of the dead--26 bodies--arrived six days after Hurricane Katrina, in refrigerated trucks at a temporary mortuary set up in the tiny town of St. Gabriel, to the northwest of New Orleans. Fearing the worst, Nagin ordered 25,000 body bags. By then, most of the 1.3 million who lived in New Orleans and its suburbs had been bused or airlifted out. But a week after the levees broke, at least 10,000 were believed to be still in the city--some determined to stick it out, others inaccessible to rescuers. Health officials tested and found E. coli...
...fallout may be fast, especially as Katrina's effects kick in. Delta Air Lines--the nation's third largest airline and AirTran's most powerful rival--may soon declare bankruptcy and cut back flights. Meanwhile, the labor strike at Northwest Airlines, the country's fourth biggest carrier, could drive it over the financial edge too. That would put a total of 5 out of 12 major airlines in bankruptcy (United, US Airways and ATA are already there). The same fate may await Independence Air, a small Virginia-based start-up that has been instrumental in driving fares down over...
...that looks prophetic today: they ordered 100 fuel-efficient, long-range Boeing 737s. Fornaro says the airline is burning 25% less fuel than it was five years ago. AirTran reported net income of $11.4 million on $366.3 million in revenue in the second quarter. Delta lost $382 million, and Northwest lost $225 million...
...carriers struggle, Leonard is moving on their airspace. AirTran, which flies to 51 cities, will add flights to Detroit, Northwest's most important hub, starting in November. AirTran announced that it would start service there on the day it became clear a strike was likely at Northwest...
...airlines. "As a nation, we are subsidizing failure on a grand scale ... And it needs to end," says Leonard. "There should be firm limits to bankrupt carriers' being allowed an almost never ending process of not paying their bills." But even if the government steps back and Delta and Northwest become significantly weaker, at least one serious rival is already moving in to pick up some slack. New York--based JetBlue, just five years old and the most successful low-fare start-up in history, will begin in November flying the Embraer 190--smaller planes that will allow the company...