Originally Posted by
rickair7777
Many other industries take money before delivery, or have ongoing obligations to customers (ex. automotive warranty).
Many or most companies that are in the position to file BK in the first place would be forced into immediate liquidation if they had to post bond for all customer obligations.
In cases similar to NK's, the credit card companies routinely increase the "holdback" money (a percentage of the price of a purchased ticket). This is held back money that (I believe) the credit card companies pay the airline once the purchased flight is completed. So in a sense, if the airline shuts down, a ticket purchased with a credit card can be refunded back to the affected passenger.
The "holdback" by the credit card companies cut both ways though; it places limits on a carriers cash flow at a time most needed.
Again, this is all from memory of a past experience. Truly wish the best for the NK employees.
S