Capt Hunter: Ch 11 Doesn't Fix Broken Airlines

[FWAAA]

Interesting article in today's Dallas Morning news. Here's an excerpt:

American finds itself the last traditional network airline that hasn't yet sought Chapter 11 bankruptcy protection. Both Northwest Airlines Inc. and Delta Air Lines Inc. filed for protection earlier this month, joining United Airlines Inc., which has been reorganizing for nearly three years. US Airways emerged from its second filing in three years on Tuesday through a merger with America West Airlines.

"Where do we go from here?" Mr. Hunter said. "First, we must recognize that 'here' is not a place that we want to remain much longer."

The pilots were briefed Monday by American chief financial officer James Beer on the airline's financials.

Though parent company AMR Corp. has a cash hoard of more than $3 billion, enough to survive at least until next year by most analysts' thinking, high fuel prices are likely to persist and drain those reserves until a filing becomes inevitable.

"There is a growing chorus of individuals throughout the financial, governmental and airline communities who advocate that American Airlines should go ahead and declare bankruptcy to 'fix' their business model," Mr. Hunter said. "I find this refrain particularly frustrating because the overwhelming evidence clearly demonstrates that bankruptcy does not fix an airline."

http://www.dallasnews.com/sharedcontent/dw...2.129367c7.html

 

[boxer]

Seemed to work for Continental.

 

[TWU informer]

IF, and I mean IF, a Bankruptcy DOES help, then why didn't that take place instead of giving away the farm?

 

[FWAAA]

Seemed to work for Continental.

[post="306746"][/post]​

Well, it took two bankruptcies at CO, the last one filed almost 15 years ago. Dunno if what worked 15 years ago would work now.

 

[jimntx]

Also, remember that one of CO's bankruptcies was initiated by Frank Lorenzo for the sole purpose of abrogating the union contracts. Had very little to do with the company financials overall.

 

[TWU informer]

Also, remember that one of CO's bankruptcies was initiated by Frank Lorenzo for the sole purpose of abrogating the union contracts.  Had very little to do with the company financials overall.

[post="306753"][/post]​

That sounds like an oxy-moron.

Since when does the union contracts have very little to do with company financials?

 

[Bob Owens]

Bk doesnt fix airlines you say?

Well neither do paycuts. Especially in a service industry.