Maven: Missed Connections on Airlines

 

A Department of Transportation ruling is "back on track," the result of a perfunctory series of concessions by Virgin America. It might have to go through a few more motions. American airlines are not happy about Virgin's entry.

Only in the 11th paragraph, way down toward the end, do we see some sense made of the facts, and only in a convoluted way: "The ruling comes as the U.S. and Europe appear more likely than ever to approve a long-sought agreement to deregulate trans-Atlantic travel." That gets close to relating the two developments to get at the larger truth: It was a quid quo pro. The EU will pass "open skies," thanks to the bone thrown to Virgin, and presto: Air travel will be as transformed as it was by American deregulation in the 1970s.

The Financial Times added it up and got it right. Never mind paragraph 11; in an article headlined "European airlines soar on hope of open skies deal," the FT laid it all down and made the appropriate connection in the lead:

US authorities have dropped opposition to plans by American investors and Sir Richard Branson's Virgin Group to launch Virgin America, a domestic carrier. Yesterday's move may help to calm fears that the proposed US-EU 'open skies' deal to liberalise transatlantic air services still favours the former. European airline share prices rose sharply amid market speculation on the effect of an open skies deal, which is expected to be approved tomorrow by EU member states at a meeting of transport ministries.

Finally.

  • Loading Comments...
  •  
1 2 3
Next >

SHARE:

  • email
  • print
  • comment
  • digg
  • delicious
  • linkedin
At the time of publication, Fuchs had no positions in any of the stocks mentioned in this column.

A journalist with a background on Wall Street, Marek Fuchs has written the County Lines column for The New York Times for the past five years. He also contributes regular breaking news and feature stories to many of the paper's other sections, including Metro, National and Sports. Fuchs was the editor-in-chief of Fertilemind.net, a financial Web site twice named "Best of the Web" by Forbes Magazine. He was also a stockbroker with Shearson Lehman Brothers in Manhattan and a money manager. He is currently writing a chapter for a book coming out in early 2007 on a really embarrassing subject. He lives in a loud house with three children. Fuchs appreciates your feedback; click here to send him an email.

Recent Comments





Connect with TheStreet

Dow Jones S&P 500 NASDAQ 10-Year Note
10,309.92 1,091.49 2,138.44 32.31
Oil *
77.12
DOWN
154.48
DOWN
19.14
DOWN
37.61
DOWN
0.48
10 Yr
3.23%
SPDR Gold
115.06
-1.48%
-1.72%
-1.73%
-1.46%
Data delayed 20 minutes

Brokerage Partners

TheStreet Premium Services

All Services