Topic Author
Posts: 3619
Joined: Wed May 24, 2000 2:50 am

Bankruptcy For Select US Airlines?

Sat Nov 24, 2001 11:24 pm

I read an interesting article in this week's Newsweek about the current, precarious condition of our nation's airline industry given the pre-existing downturn prior to September 11th and then the events of that day. The article seemed to suggest that if traffic and profits don't improve within a quarter, several major carriers could find themselves filing for Chapter 11, which would shield them from creditors and permit a more orderly reorganization.

America West, US Airways, United Airlines, and a host of smaller carriers (which the article did not name) seem to be the most vulnerable. Of those small carriers, Vanguard, Midwest Express, National Airlines, Sun Country, and ATA seem to be equally vulnerable, since none of them have the serious cash cushions that American, Delta, and others seem to have.


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RE: Bankruptcy For Select US Airlines?

Sat Nov 24, 2001 11:29 pm

I heard that after american's three crashes, people are turning to fly other airlines. And thus american is loosing costumers and could be other one filling for chapter 11. However, I don't think that any major airline
will be filling for chapter 11, because before that, further cash would be given by the gvernment for them, to mantain their structure.

Topic Author
Posts: 3619
Joined: Wed May 24, 2000 2:50 am

RE: Bankruptcy For Select US Airlines?

Sat Nov 24, 2001 11:38 pm

American, despite loosing 3 planes and the confidence of a number of fliers at the moment, has $2.5 billion in cash and access to multiple lines of credit, not to mention loan guarantees from the US government. The carrier is generally considered to be the one with the best fiscal management of the major US airlines. I don't think American will file for bankruptcy. United, on the other hand, had structural problems prior to September 11th and historically has had bitter labor-management relations. It has one of the highest compensation structures in the industry, spent millions and failed to acquire US Airways, and alienated passengers in 2000 and early 2001 because of on-going work stoppages, pilot shortages, and flight cancellations that exceeded the norm.

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RE: Bankruptcy For Select US Airlines?

Sun Nov 25, 2001 1:01 am

I do feel that Some major airlines like US and AWA will bite the dust along with some smaller airlines not turning a profit. I don't expect Midwest, AT or SC to go under.

On another note once the economy improves maybe we can see an airline named EASTERN.

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