BA747 From Venezuela, joined Sep 2005, 107 posts, RR: 1 Posted (9 years 5 months 5 days 13 hours ago) and read 5252 times:
Hi, I don´t know if this topic has been discussed before. Since 3 airlines are currently under chapter 11 I was just wondering if in previous situations any airline has been able to survive the crisis.
DLKAPA From , joined Dec 1969, posts, RR:
Reply 9, posted (9 years 5 months 5 days 8 hours ago) and read 4983 times:
Continental had a foot in the grave before Lorenzo left. America West has also seen bankruptcy back in the early 90's, then the recent DL, UA, NW, and US filings, US emerged earlier today, and it's a pretty safe bet DL and NW will come through nice and lean.
Quoting Kanebear (Reply 7):
No. They're now the only legacy carrier never to have been in bankruptcy.
Tell that to Airtran and Jetblue. Because they both have revenue of over $1 billion, they are legacy carriers.
SCCutler From United States of America, joined Jan 2000, 5693 posts, RR: 27
Reply 10, posted (9 years 5 months 5 days 7 hours ago) and read 4948 times:
Quoting DLKAPA (Reply 9): Continental had a foot in the grave before Lorenzo left.
Of course, when Francisco Lorenzo and his scrappy lil' Texas International succeeded in buying CO, they found out that Continental had one foot and four toes in the grave. Lorenzo's (Texas Air's) acquisition is the sole reason CO survived.
...three miles from BRONS, clear for the ILS one five approach...
Ha763 From United States of America, joined Jan 2003, 3686 posts, RR: 5
Reply 11, posted (9 years 5 months 5 days 7 hours ago) and read 4932 times:
Quoting DLKAPA (Reply 9): Tell that to Airtran and Jetblue. Because they both have revenue of over $1 billion, they are legacy carriers.
They are not legacy carriers. They are still LCCs. Just like how Southwest is not considered a legacy carrier, but still a LCC. Legacy carrier mostly is in reference to the American carriers that have been around pre-degregulation and provide a "full service" product. The $1 billion revenue threshold allows them to be classified as a major carrier.
Basically, when the company can not borrow any more money, the money they have is gone, the creditors force a liquidation (that is what Ch. 7 is), the judge believes that the creditors will receive more by liquidating than as a going concern. There is no "set time limit" currently, that is changing with the new BK laws that go into effect on 10/17/05. Currently it is pretty much the judge and the creditors and whenever the judge decides that the concern is no longer going, than it is time to liquidate.