Jim Rogers calls bottom for the airlines sector

Jim Rogers calls bottom for the airlines sector
Mon Dec 15, 2008 12:40pm EST

LONDON, Dec 15 (Reuters) - Jim Rogers, one of the world's best known investors, has said the world's publicly listed airlines may have reached a bottom after a prolonged struggle against high oil prices and the economic downturn.

Launching a new airline stock index with Royal Bank of Scotland (RBS.L: Quote, Profile, Research, Stock Buzz), Rogers said the volume of airline bankruptcies, lower capacity and falling oil prices could see more prominent carriers prosper.

"The airline industry has been a nightmare for several years now, with dozens of airlines going bankrupt ... That is often the sign of a bottom," he said in a statement.

"Capacity is shrinking at some airlines, while there will always be demand for seats. Many managements have now learned the lessons of the past decades," he added.

The Rogers Airlines Index will be composed of 20 global airline stocks.

http://www.reuters.com/articlePrint?articleId=USLF27345620081215