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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Paul Senior who wrote (39835)10/30/2010 10:50:23 AM
From: Grantcw  Read Replies (2) | Respond to of 78486
 
Yes, Skywest hasn't made a run like RJET, but I think I'm going to hold out for a correction. :) Also, I liked RJET specifically given my familiarity with the airlines being combined.

That being said, three things are really working out for the airlines these days:

1) The mergers and combinations have taken so many large airlines out of the game, that the supply/demand ratio has improved tremendously.

2) I haven't seen a bunch of airlines being started to compete at low prices to undercut existing players. I'm assuming this is just related to a general risk-off mentality of corporations/investors these days in comparison to before the crash.

3) The low dollar would seem to encourage international flights to the U.S., some of which would be on U.S. Airlines.

I think as long as new airlines aren't financed and started, the existing airlines may have a good run, but I'm still shy of the industry. Maybe if RJET corrected quickly...

Thanks,

cwillyg