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Braniff Vs Airlines Today  
User currently offlineWDBRR From United States of America, joined Jan 2005, 611 posts, RR: 0
Posted (9 years 7 months 3 days 19 hours ago) and read 2700 times:

I always wonder how airlines today can lose hundreds of millions of dollars and still keep flying and Braniff (original) shut down in 1982. What was the difference? How could Braniff averted a shutdown. Thanks.

8 replies: All unread, jump to last
 
User currently offlineFLY2LIM From United States of America, joined May 2004, 1185 posts, RR: 10
Reply 1, posted (9 years 7 months 3 days 18 hours ago) and read 2660 times:

I'm no financial genius, but with the internet, international trade, etc. in the last few decades, there wasn't then the large sums of finance capital that there is today. It was different times, I believe. In those days, you paid your debt or else. I know I'm being simplistic but I am not so sure that BN had the same options then that it would have today.
Any financial wizards are asked for their opinions on that one.
FLY2LIM



Faucett. La primera linea aerea del Peru.
User currently offlineSunking737 From United States of America, joined Feb 2005, 2050 posts, RR: 8
Reply 2, posted (9 years 7 months 3 days 18 hours ago) and read 2652 times:

Braniff ran out of cash. Waited too long to file chap 11.


Just an MSPAVGEEK
User currently offlineN867bx From United States of America, joined Nov 2004, 339 posts, RR: 0
Reply 3, posted (9 years 7 months 3 days 16 hours ago) and read 2611 times:

Too much cheap money floating around these days.

User currently offlineAirFrnt From United States of America, joined Jul 2004, 2826 posts, RR: 42
Reply 4, posted (9 years 7 months 3 days 16 hours ago) and read 2609 times:

Quoting FLY2LIM (reply 1):
I'm no financial genius, but with the internet, international trade, etc. in the last few decades, there wasn't then the large sums of finance capital that there is today. It was different times, I believe. In those days, you paid your debt or else. I know I'm being simplistic but I am not so sure that BN had the same options then that it would have today.
Any financial wizards are asked for their opinions on that one.


The airlines love hate relationship with Chapter 11 started because of out of line union costs. Lorenzo noticed that he could use Ch11 to break "bad" deals with unions. So he deliberatly took a company into Chapter 11 to force the issue. Braniff was a more traditional shutdown.


User currently offlineRyanAFAMSP From United States of America, joined Nov 2004, 155 posts, RR: 0
Reply 5, posted (9 years 7 months 3 days 14 hours ago) and read 2546 times:

If you are interested in this topic, go into a libarary database, and look up topics such as '"the New Right" or "the Business Roundtable" or "Neoconservatism". there is quite a bit written on increasing usage of the legal system to increase the flexibility and financial prowess of certain elements of the business elite. Though AirFrnt seems to think that it is "union costs" that were new, labor costs were relatively stable throughout the regulated era, with Eastern's labor costs certainly being in line with BN's. The bottom line is that as time passed, there was more dialogue in elite financial communties about how to use the legal and financial system to bolster the hand of those who owned the airlines. Also look up "junk bond" or "Drexel-Burnham-Lambert" to understand how the airline industry was chopped up to make money for a few billionaires at the expense of everyone who travelled on these airlines or worked there. Braniff filed for chapter 11 before these new trends in US political and economic history.

User currently offlineAirFrnt From United States of America, joined Jul 2004, 2826 posts, RR: 42
Reply 6, posted (9 years 7 months 3 days 2 hours ago) and read 2428 times:

Or, you can read Hard Landing: http://www.amazon.com/exec/obidos/tg...-1082515?v=glance&s=books&n=507846 Which is not as political and very well researched.

(Neoconservitism? Give me a break)


User currently offlineSunking737 From United States of America, joined Feb 2005, 2050 posts, RR: 8
Reply 7, posted (9 years 6 months 3 weeks 6 days 8 hours ago) and read 2223 times:

If it was not for Braniff going belly up, my airline would not be here today.

SUN COUNTRY was started by former BN employees living in MSP.



Just an MSPAVGEEK
User currently offlineDAYflyer From United States of America, joined Sep 2004, 3807 posts, RR: 3
Reply 8, posted (9 years 6 months 3 weeks 6 days 7 hours ago) and read 2196 times:



Quoting AirFrnt (Reply 6):
Or, you can read Hard Landing: http://www.amazon.com/exec/obidos/tg...-1082515?v=glance&s=books&n=507846 Which is not as political and very well researched.

(Neoconservitism? Give me a break)

Well said indeed. Of course, it is the vast right-wing conspiracy that keeps us all down.



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