Daddy? If y’all didn’t marry a rich flight attendant(female in my situation)well, I’m sorry.😅

 

Our governor is on record saying that shutting down the state is the last option at this point. This doesn’t mean the academy won’t shut down though. Who knows what the future holds.

 

Know the reasons cases are increasing. It’s expected.

 

Cases going up, deaths going down.. media trying to scare the general public, yet again!

 

The bankruptcy laws changed in 2007, it's not now riskier and "less convenient" for managers to use BK as a financial tool. The last wave of airline bankruptcies appeared to be timed to get in under the wire before the rules changed (obviously there were economic problems too).

Under the old laws, it seemed like nobody wanted to miss out on the the opportunity to dump annoying obligations, restructure necessary obligations, and cut labor costs. Once one of them filed, the others did too or else they got concessions (esp. from labor) by threatening to file. That's generalities, each case will have it's own nuances of course.

Under the new law I don't think you'd see one BK filing trigger an automatic cascade from everybody else. But if one or two successfully restructure, that could obviously put competitive pressure on others which might ultimately push them over the brink too.

Creditors get a say, more so under the new laws. They do have an incentive to get some return on their investment, just depends on what the market might bear at the time. Worth noting that the court can simply erase obligations to labor and unsecured creditors. But secured creditors always have the option of taking their collateral back... judge can erase the obligation but he cannot force a secured creditor to leave his collateral in place. So the bank that owns the planes might make a deal, but it can also repo the planes if it prefers.

Also the fed is likely to intervene if liquidation looms in the near/mid-term. Although if there's sustained economic malaise that reduces demand longer-term it might be politically OK to let one or more airlines fail.

 

Thanks rickair. I appreciate it; many mentions of bankruptcy here and elsewhere but I don't believe most pilots know what it actually would mean for them or the airline. It is a nebulous, opaque, but generally bad thing. I think the perception is that at any given company the pilots jobs would be intact but maybe with a less favorable contract. Not many folks talking like they believe there's a strong possibility they'll end up on the street permanently.

 

Correct me if I'am wrong, but I believe I read that the Supreme Court ruled if a judge does in fact alter a RLA contract and impose terms, it doesn't strip the union from self help.
Most BK end with a joint negoation the judge signs off on, but if he were to impose, he'd be gambling scab labor would/could be available because the union could still pursue self help.

So a judge does have the authority to alter a RLA contract, but that authority does not restrict collective bargaining, or self help.

 

wonder if the name "American" dissolving would be prevented by people in whom the name evokes a symbolic meaning.

 

Is there a traditional percentage number of pilots who are "safe from furlough" that has been passed around for the past few years / decades? Do you think this year's will change that number when used in the future?

 

Not sure, but the men who have the power to furlough us say we’re 1600 fat for next summer, we’ll see what kind of deals can be made.


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