Originally Posted by Noisecanceller

Exactly. There is next to nothing to sell. The price offered from Frontier was essentially the same as the liquidation price and the owners said no. The owners are also the main creditors so they get to make all the decisions now even out of ch11. They got the company that was the deal. They don’t need another CH11 to reorganize their own debt on the company they own.

They told Frontier no and then didn’t turn the lights off themselves. Why in the world keep operating at a loss? They could just close it up and sell what few assets there are. They might get about what Frontier offered which is why Frontier offered it. Instead they went and spent money adding new products and continue spending money on marketing and reconfiguring planes. Why? None of it makes sense.

Selling to Frontier cheap and getting ULCC stock or just selling all the assets themselves while closing the doors both seem like better deals than continuing to operate at a loss and then closing the doors anyway. They aren’t dumb enough to think that the new products will turn this place around. There must be another plan bc losing a bunch more money then liquidating isn’t better than just liquidating tomorrow.

They aren’t airline managers. They aren’t going to just plug along hoping it gets better. They are money people. Best ROI will win. They aren’t in the business of just throwing more money at a loser to make it a bigger loser.