FTB,
The bankruptcy rules have changed.
To know what is going to happen at American, watch the management staffing. Delta hired bankruptcy experts fives years (and some NINE years) before the actual filing. A lot of financial engineering went on between 2000 and 2005 to protect those who's paychecks and retirements the Board was willing to protect.
Since the value of the common stock will go to zero, the "club" of those enriched off of bankruptcy is exclusive and they follow a pattern. You could see the Delta and NWA bankruptcies follow a nearly identical pattern as United did.
Lots of McKensie consultants hanging around is a sure sign, even on other Continents:
Originally Posted by Last Year
NEW DELHI: Air India may be flying low these days, but the national carrier has a raft of consultants on a high as the airline management seeks expensive suggestions, which it often finds hard to implement.
This Friday, the national carrier's board will consider a proposal to appoint McKinsey & Co as advisor to suggest ways to recover. An airline official, requesting anonymity, said the consultancy was demanding Rs 14 crore as fee for its services, mostly aimed at improving operations and joining the global air synergy, the Star Alliance.
Originally Posted by Last Night
Civil Aviation Minister
Vayalar Ravi is fighting the battle of his life to save national carrier Air India from bankruptcy. But it's not an easy job.
In an exclusive interview to
Headlines Today, Ravi says he has to beg the Finance Ministry every month to pay salaries of
Air India employees.
"Every month end I go to Pranab Mukerjee's house at 12 o'clock in the night and so he asks me 'why have you come?' To which, I say I need Rs 200 crore. Arre Rs 200 crore in the night? Which means, I have to get the money from him for the salaries also. I need to be in a position, where I can depend on myself. That is my first step," Ravi told Headlines Today on Tuesday.
This is sorry tale of a man with perhaps the toughest job in government right now: turning around the troubled national carrier.
The minister claims he has already started working towards it.
"The various directors for important posts are missing. Prime Minister Manmohan Singh has told me to appoint members from the open market and most of them have been filled now: HR, finance, marketing and commercial and also certain propositions. So, the team has come. Now, we are looking at the process, by which we can help save the posts, save the money and the areas from where we can get more cash flow," says Ravi.
But the biggest problem at hand continues to be the delay in the payment of salaries of the AI employees.