Tuesday, March 20, 2012

Shaky and Grounded Airlines

The list keeps growing.

Today, Forbes. com is reporting that India's Kingfisher Airline is running out of money quickly. The situation has gotten so bad, with so many flights cancelled, that the government may not renew its flying license. Apparently, the airline, which flies international as well as domestic routes, now has more than $1 billion in debts. Read more here.

And the little airline the could, couldn't, it turns out. Direct Air, which had the seemingly-savvy business plan of linking secondary markets with popular tourist hubs, stranded thousands of passengers when it closed up shop last week. It has now filed for bankruptcy protection.  My guess is it won't come out of that.

So, friends, be careful with your travel outlays. The major carriers in the US are still stable, but do your due diligence when booking with an upstart carrier or a small one in a foreign country. Usually information on the financial viability of these companies is readily available...to those who think to look.

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