Chapter 11 Protection

goingboeing

Veteran
Jan 30, 2004
584
1
USAir filed for chapter 11 protection today.This once again gives another carrier an operating cost advantage over AA and the other carriers not operating in chapter 11 protection.

This is not good news for AA employees as it will exert tremendous downward pressure on wages and benefits for all airline employees.

Chapter 11 BK laws are killing the airline industry by allowing the weak to operate with a cost advantage over the strong.Robert Crandall preached this for years when CAL was operating in chapter 11 protection.

Our politicians,for the most part,do not understand the real problems in the airline industry and if they do they do not have the spine to correct them.
It would cost them too many of the voters in their districts.
 
There are alot if IF's involved with the U bankruptcy. Last time around, U went in to BK with the highest cost in the industry. Exited BK and still had the highest operating costs in the industry.At this point we are not at a distinct disadvantage to any carrier in BK. Although that could change.
 

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