Standard and Poor's Ratings Services downgraded the debt ratings for Southwest Airlines, citing a financial situation that's not as good as it used to be. S&P knocked Southwest's long-term corporate credit rating, which had been rated A-, to BBB+, the second downgrade in 14 months.
Standard & Poor's credit analyst Betsy Snyder, who focuses on airlines, had this to say:
The downgrade is based on a moderate weakening in the company's still-strong financial profile that began in late 2007 and continued into 2008.
While we expect Southwest's earnings to improve in 2009, reflecting continuing benefits from the company's fuel-hedging program and potential market share gains as its competitors reduce capacity in many of its markets, we don't expect its credit metrics to return to the peak levels reached in 2007.
Friday, October 10, 2008
Emergency Landing of American Airlines MD-80
An American Airlines MD-80 landed safely Thursday at San Diego International Airport after the pilot declared an emergency because a warning light indicated a problem with one of its two engines, airline and safety officials said.
American Flight 1802 had just taken off from San Diego, bound for Dallas-Fort Worth International Airport, when the warning light turned on, said airline spokesman Tim Smith. The pilot returned to San Diego to land the aircraft.
The pilot powered back one of the engines during the landing, but did not turn it off as was previously reported by San Diego fire officials. There were no injuries reported to the 140 passengers and five crew members on board, he said.
Smith said the aircraft was being inspected because it landed with a heavy load of fuel. The aircraft, which was scheduled to make the trip to Dallas later in the day, was also awaiting parts to fix the problem indicated by the light.
He said some passengers were accommodated on other flights and others were waiting to take the delayed flight.
American Flight 1802 had just taken off from San Diego, bound for Dallas-Fort Worth International Airport, when the warning light turned on, said airline spokesman Tim Smith. The pilot returned to San Diego to land the aircraft.
The pilot powered back one of the engines during the landing, but did not turn it off as was previously reported by San Diego fire officials. There were no injuries reported to the 140 passengers and five crew members on board, he said.
Smith said the aircraft was being inspected because it landed with a heavy load of fuel. The aircraft, which was scheduled to make the trip to Dallas later in the day, was also awaiting parts to fix the problem indicated by the light.
He said some passengers were accommodated on other flights and others were waiting to take the delayed flight.
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