Thread: Bankruptcy
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Old 01-16-2021 | 09:31 AM
  #169  
Hedley
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Originally Posted by sanicom3205
I would normally agree, except I think allowing mergers just creates another massive failure of an airline. If you believe that all airlines are in deep trouble if there isn’t a turn around relatively soon (as I do), then what does allowing mergers solve? AA may be in the worst shape, but if we are at the point where only a merger can save us, I believe everyone is doomed.

A merger would only solve the issue of a failed business model. I think the business model is sound, the state of the market is the issue. I believe the airline sector can only heal with the end of the pandemic.
You wouldn’t merge now, you’d merge what is left after the carnage is over, but I don’t really see bankruptcies or mergers. We don’t have to be at 2019 levels to stop the cash burn or even be slightly profitable. The airlines will get to a sustainable level as smaller companies, and then grow back according to their abilities.
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