With spiraling fuel bills, falling bond ratings and backbreaking pension obligations, the airline industry's oldest carriers are notoriously troubled. But some global equity investors who are not afraid of flying have been finding good value lately. The American Stock Exchange airline index, comprising ten so-called legacy airlines (U.S. carriers that have been around for 20 to 30 years, such as American Airlines, US Airways and United Airlines), soared more than 43 percent from its September 2005 low through April 5, 2006, though it has eased some since. In contrast, the index lost two thirds of its value from the beginning of 2001 through last September as airlines struggled with deregulation and diminished travel in the wake of 9/11.
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