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Old 05-16-2020, 12:30 PM
  #8  
Gooselives
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Joined APC: Oct 2017
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Originally Posted by Dumpy View Post
Hard to believe that the creditors will think owning a pile of airplanes and routes will be worth anything in the short-term, or that the government is ready for only 2 major international airlines. UAL is in a bad place with heavy Asia exposure also. Sooo, Delta is going to absorb all of Europe, Africa, Asia, South America, and Middle East? Unless Southwest or Spirit suddenly start buying widebodies, chapter 7 for either UAL or AAL seems unlikely.

In the past when major airlines have gone belly-up, another airline inevitably buys up all the resources. No one can do that here, and even if they could the feds wouldn't allow it on anti-trust grounds. Creditors are going to be better off with newly issued stock to replace some of the debt, especially in an environment where demand is going to rapidly increase (once a vaccine is out, demand will return - not to late 2019 levels, but enough so that everyone can return to profitability).

Stay strong. The next few months are going to be bad...
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