VirginA340 From United States of America, joined Jul 2005, 15 posts, RR: 0
Reply 1, posted (15 years 6 months 6 days 4 hours ago) and read 2712 times:
Tower Air going out of business? I feel sorry for a few of these unfortionate employees. I hope they can find employment with the major airlines and get good pay and benfits. I'm very glad that Tower Air is going out of business. I'm sick and tired of the other rude employees, their crusty, old, dirty, cury smelling 747-100 and 747-200. If you really hte Tower Airlines than I suggest you go to www.idemandloyalty.com. The site is made by a former mechanic of Tower Air and also hates the ceo. There are stories by unfortionate passengers who flew the airline. The site also has a counter in which it shows on how much the airline owes their pilots, flight attendents, mechanics and other employees in back pay. When then inspector general Mary Schaivo compared Tower with other airlines in mid 1996 it had an accident/incident rate six times worse than the old valujet, as well as the highest near-miss rate in the F.A.A study of low cost airlines. Don't forget the accident at J.F.K where a 747-200 lost control and the nose gear collapsed and the plane then struck a light pole ripping off the # 4 engine leaving the plane dameged and scores of passengers injured in December of 1995. (Including a few members of my family traveling on the Miami bound flight.) I'm suprised Tower didn't go out of business sooner.
Philly phlyer From United States of America, joined May 1999, 317 posts, RR: 1
Reply 3, posted (15 years 6 months 6 days 2 hours ago) and read 2694 times:
In bankruptcy, Chapter 11 does not mean going out of business or liquidation. Chapter 11 is a legal vehicle used to restructure debt load and payments. In the US Aviation industry, some airlines have used Chapter 11 to restructure their debt service and keep flying. Both Continental Airlines and TWA have been through Chapter 11 and still are flying. TWA still is struggling, but Continental has become one of the most fiscally healthy airlines.
Some airlines have filed Chapter 11 and still could not restructure their debt. As a result, they eventually were forced into liquidation and did go out of business. Examples include Braniff and Eastern.
As such, the jury on the long-term future of Tower Air still is up in the air (pun intended).