Originally Posted by
Flycameron
It's more like Disneyland. They might not make money at Disneyland but do make money at disneyworld. They are a corporation and can cut the losses at one without affecting or closing the other.
Same with PepsiCo. They might loose money on Pizza Hut but Make money on Pepsi soda. Being corporate America they can cut their losses on the one product and leave the other intact.
If Disneyland is a money loser, they just shut it down. If they opt for bankruptcy, does that affect the credit rating of Skywest? What creditors are going to come after them. They do have a contract to provide lift for UAL, so BK could be the only way out of that, but that might severely affect their ability to borrow in the future. A wind-down allows them an orderly transfer of lift elsewhere. Now, it may be worthwhile to shrink XJT, THEN bankrupt it, as it will be near non-entity by that time.