Originally Posted by
afterburn81
EXACTLY!! Bankruptcy is announced upon filing. No business says, "we might be getting bankrupt. Pilots that think they understand business again.
Yes, and they said they have done their due diligence on this. And there are restructuring people in ATL as well. We went through this once before at xjt. They bring in a hired gun to restructure the company outside bankruptcy. In bankruptcy, management loses a lot of control. Nothing is a slam dunk case. Each stakeholder (vendors, lease holders, unions, etc) are vying for a piece of the Inc pie. The restructuring plan needs to be approved by the creditor'a committee and the judge. It's not solely up to Inc in what the restructuring plan is going to be. American Airlines (and even PNCL) are perfect examples of restructuring plans gone awry. AA ended up being forced into a merger with Airways and PNCL ended up being owned by DAL. This is a huge risk to take when your whole point of bankruptcy protection is to cut costs while having a perfectly viable entity into which to merge into.
Trust me, especially Inc, does NOT want to hand over ANY decisions over to a third party who does not solely have Inc's best interest. Which, coincidentally, is the same reason why they bought xjt when they did rather than to wait and possibly have to deal with a judge and creditors committee.
To me, this was made pretty clear on the call. And it makes sense. They are already restructuring by parking the money losing airplanes. And that's the biggest issue here, not all those costs. The costs are really not that out of line. It's the revenue side from crappy CPAs management signed off on.
Here is what CC said on the call:
"I think we've been very clear that the primary challenge at ExpressJet is not necessarily the cost side. Although there are those issues, but the contract side with some of our major partners, and that's what we're focused on today."
https://www.marketwatch.com/story/sk...ear-2014-08-06
"SkyWest Inc. expects to suffer a full-year loss, though a senior executive said Wednesday that it isn't considering a bankruptcy filing for the ExpressJet unit that has dogged the largest U.S. regional airline's performance for three years."