Originally Posted by
gojo
If they told you a bankruptcy was in the works what do you think that would do to the stocks? That is something that is never pre announced
Listen to the call. It was alluded that it may harm the holding company. Also, the benefit of bankruptcy protection would be the renegotiation of labor costs. But they admitted that the financial problems with xjt are with the CPAs, not really labor costs. In other words, it's a revenue problem more than anything else. Which is why, other than parking unprofitable aircraft, they are concentrating on operational incentives. They actually lose leverage of trying to renegotiate CPAs in bankruptcy because of the boiler plate bankruptcy clauses in the CPAs.