How would it have put the airilnes in a stronger position? Basic economics - less airlines, less competition, higher prices for the consumer. Chapter 11 is a way out for companies. -------------- Original message -------------- > The Euro's don't think so. They only know Chapt 7. My position is that the > elimination of a Chapter 11 in the airline industry would have put US carriers > in a much stronger position today. > > CO's protracted and abusive bankruptcies went a long way to developing much of > today's pricing irrationalities in the name of market share. > > damiross3@xxxxxxxxxxx wrote: > > 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. > > --------------------------------- > Do you Yahoo!? > New and Improved Yahoo! Mail - 100MB free storage!