A couple of points......note that another bankruptcy filing for US will create huge financial problems for the airline, it will be very difficult, if not impossible, for US to emerge from bankruptcy after another filing since financing and investors are going to be very hard, if not impossible, to find. IF
US files this weekend, or next week, they will file an 11 proceeding, hoping to reorganize, but the creditors and/ór the court may want to convert the petition to a Chapter 7 liquidation in order to recover and protect some of the monies that have been loaned to US and to protect whatever assets of US remain. One thing is for sure, this will be a very interesting and complicated legal proceeding.....this is far more than US trying to clean up its debt and re-structure as is typical of a Chapter 11....this proceeding may result in the liquidation of US or, if US can emerge, it will be a very different (and most likely a much smaller) airline that it is now. Lots of jobs will be lost, in any case.
Who is to blame for US's troubles - just about everyone, past and present management, unions, employees, LCCs, the American and the world economy, fuel prices, etc, etc. One group cannot be blamed....but it does seem that US has made many bad choices in the past years, starting with the ill-fated PSA takeover and ending with investing in far too many shiny new airplanes. Were all of those brand new A32X aircraft really necessary? For years, US benefited from operating primarily in the northeast, where high airfares ruled.....those days are over, and US seems unable to respond. Consumers are confused and unsure, first US closed hubs in BWI
and other cities, dropped all prior PSA routes, and slowly eliminated point to point flying to concentrate on the PIT
hubs, now PIT
is going and point to point flying is to come back, US seems to think that the Caribbean is the answer to its problems, and now US plans a focus city at FLL
to fly to Latin America and will take on AA
in its home turf.......all of this while Southwest is challenging US at PHL
. But lets not blame one group, US is simply living in the past.
One of the reasons that US may have to re-enter bankruptcy is that US, for various reasons, exited its previous bankruptcy far too quickly.....based on a faulty business plan, US did not really achieve the savings that they needed to make money again. I hate to say it, but now US is going to pay the price for its mistakes.
What will happen to US - I see the Shuttle being sold to American, much of US's operations and assets at BOS
going to other carriers, and US being a far smaller airline operating out of 2 hubs (PHL
, forget PIT
and I think the FLL
thing will be dropped if US goes into bankrupcty) with many Airbus aircraft being let go in favor of keeping the far cheaper older Boeings, and regional jets are not the answer either. And, that is my prediction if things go well, otherwise, we may see new tenant moving into US's gates at CLT