727EMflyer
Topic Author
Posts: 538
Joined: Wed Mar 09, 2005 3:22 am

Failure Vs. Reorganization

Wed Oct 05, 2005 10:02 am

Oh aren't we enthusiasts all so contrary???? We love the planes and the liveries and the networks and the travel, but when one of our beloved airlines falls into dire financial straits we have a tendency cheer on its demise like bloodthirsty cannibals!

In the "AZ Doomed" thread someone suggested the various bankrupt or struggling airlines around the world should be led to their graves... Including the big four from the U.S. currently in ch. 11. Whereas I suggested the effort to reorganize is a healthy thing allowing the existing carriers to fix what is broken, all the while demonstrating the capital market's support of the carrier; others have, and likely will continue to, suggest they should indeed fail and let someone else grow to fill in the gaps.

So lets hash it out. Should the ailing airlines continue to reorganize or should they be put out of their misery? We're not talking any one line specifically here, but discussing the effects on and reaction of the industry in general when both scenarios have occurred in the past, and what is likely to happen in both scenarios as the market exists today. I welcome everyone's comments!