A bankrupt airline could be liquidated - it all depends on the type of bankruptcy declared. Chapter 11 allows a business to continue operating while it reorganizes. Chapter 7 is liquidation. Chapter 11 is a good idea - it gives the business a second chance to be profitable. David R -------------- Original message -------------- > CO could also be said to have abused the state of Chapter 11 to the extreme > detriment of the entire market. Operating for YEARS under cost in an attempt to > recoup market share totally pushes the envelope of what bankruptcy is supposed > to do. It is not supposed to reshape a market. > > Reminder to all observers that in Europe, when you become insolvent, your ticket > is immediately pulled. Consequently, Euro-carriers cannot plan to file > bankruptcy as a "what if" scenario in their marketing plans. Bankruptcy is the > end of the operation, and they do indeed behave very differently than US > carriers because of this restriction on a company living beyond it's means. > Just one reason why Euro-fares are inherently different and will remain so for a > long time to come. > > You wonder what US airfares would look like if carriers equated "bankruptcy" > with "liquidation." Methinks you'd see fewer irrational fares. > > Douglas Schnell wrote: > CO benefits mightily from cost savings imposed during its two trips to > bankruptcy in the early 90s. In that sense, they could be said to have > extreme foresight. > > They also have made a conscious decision to focus on business travelers as > their core market, another decision that seems to be paying dividends. > > -----Original Message----- > From: The Airline List [mailto:AIRLINE@xxxxxxxxxxxxxxxxx] On Behalf Of > Alireza Alivandivafa > Sent: Monday, September 27, 2004 11:51 AM > To: AIRLINE@xxxxxxxxxxxxxxxxx > Subject: Re: Industry Changes > > I think CO is a good example of a legacy carrier that is treating its > employees decently, offering good fares and keeping up service with things > like meals on longer (and I mean over 2 hours) flights and the like. They > have a seat-mile cost around that of WN according to recent measurements, > mostly because they do things in house. They do their own catering (decent > too) and keep their costs way down. A cool enough concept that I have > Onepass now and am considering going elite on them next year (as I fly a lot > more now). > > > find a way to do that, they are going to continue to have hard times. I > suspect that most people don't care that they don't get the bad airline food > anymore. I for one am not about to choose what airline I fly based on > whether or not they serve food. I think BAHA, you are the exception to the > rule here.>> > > > --------------------------------- > Do you Yahoo!? > Y! Messenger - Communicate in real time. Download now.