WDBRR
Topic Author
Posts: 599
Joined: Tue Jan 25, 2005 11:28 am

Braniff Vs Airlines Today

Fri Mar 04, 2005 12:22 pm

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.
 
FLY2LIM
Posts: 1095
Joined: Thu May 06, 2004 6:01 am

RE: Braniff Vs Airlines Today

Fri Mar 04, 2005 1:09 pm

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.
 
sunking737
Posts: 1117
Joined: Tue Feb 22, 2005 10:33 pm

RE: Braniff Vs Airlines Today

Fri Mar 04, 2005 1:13 pm

Braniff ran out of cash. Waited too long to file chap 11.
Just an MSPAVGEEK
 
N867BX
Posts: 295
Joined: Thu Nov 25, 2004 10:19 am

RE: Braniff Vs Airlines Today

Fri Mar 04, 2005 2:29 pm

Too much cheap money floating around these days.
 
airfrnt
Posts: 2002
Joined: Fri Jul 02, 2004 2:05 am

RE: Braniff Vs Airlines Today

Fri Mar 04, 2005 2:34 pm

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.
 
RyanAFAMSP
Posts: 144
Joined: Mon Nov 08, 2004 4:24 pm

RE: Braniff Vs Airlines Today

Fri Mar 04, 2005 5:20 pm

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.
 
airfrnt
Posts: 2002
Joined: Fri Jul 02, 2004 2:05 am

RE: Braniff Vs Airlines Today

Sat Mar 05, 2005 4:50 am

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)
 
sunking737
Posts: 1117
Joined: Tue Feb 22, 2005 10:33 pm

RE: Braniff Vs Airlines Today

Thu Mar 10, 2005 11:24 pm

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
 
DAYflyer
Posts: 3546
Joined: Wed Sep 08, 2004 9:35 pm

RE: Braniff Vs Airlines Today

Thu Mar 10, 2005 11:57 pm



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.
One Nation Under God