I have not been posting for a while due to health problems, but this thread just made me laugh. Just because you worked for a company that entered bankruptcy does not mean you know the laws and conditions in every bankruptcy. No one on this forum knows any details on this filing. But conclusions can be inferred. This is a strategic bankruptcy. The CEO voluntarily brought suit. It was not a forced filing (involuntary bankruptcy) That tells me he has the BOD in his pocket (most members of the BOD rep the largest stakeholders/creditors- including the big banks-I know of one that sits on a number of BODs so think "intertwined"). Bankruptcy is a very complicated business. There are so many variables that do not see the light of day. Bedford would not have played along with bankruptcy without knowing his plan was accepted by the BOD/stakeholders/creditors. The Judge will not act on his own if they (BOD) are behind the plan. That said, and as I noted above, it is complex. Could the stakeholders/creditors switch like what happened to Horton and American? Yes, not likely as no one but insiders know details. So if the BODs backs Bedford and his plan, no Judge will challenge him. BOD not happy with him, yes they could influence the Judge for a change. I suspect he knows his company will fail if he does not keep pilots. I do suspect there could be problems obtaining contracts for the big airlines if he burns them. Other side of that coin is the big guys need feed to fill big A/C and if Bedford can supply pilots will they forgive? So who knows what will happen. Throw your dice.......

 

I just think it's funny that some think that a CEO who did everything he could to **** off his pilot group, now all of a sudden doesn't want to do anything to upset them? This is a guy who told his pilots to save their coffee money so they didn't need a raise. Now he is going to be the one that goes to bat that they can't take a paycut??

I agree that any modification to the pilot contract will be the final nail in the coffin, but the fact is that BB waited too long to do the right thing. Their profit was inflated by getting cancel pay from their partners and keeping the money from their pilots. So now they dump the unprofitable flying and focus on the 175 contracts. Okay great. But BB has still shown that he is an inept CEO and even with only flying the 175, will find a way to line his pockets while preaching financial frugality to his minions. His lack of ethics will come around and I hope that the judge approves whatever plan to reorganize with the condition that he is not at the helm.

 

I assume you live in Indy, correct?

 

Outstanding post!

 

"Those that ignore history are doomed to repeat it".

Plenty of us on this forum have been through this BK process before at multiple different airlines. We all heard the same BS lines from management and we all paid the price, suffered stagnation, shrinkage, cuts, and "difficult decisions" that had to be made. You think RAH is somehow magically different and you are hearing things we haven't all heard before? Lol. This is why people keep warning you.

AAG had billions of dollars in the bank with their sham bankruptcy.

BTW- Of course they are telling you whatever you want to hear, they don't want a mass exodus of rats bailing off the ship all at once. Think about it.

 

So what in your opinion makes Repubic viable in the future? I would think that even if they leave the contract alone there will be little, if any, forward movement for a couple of years after exiting bankruptcy?

 

No, sdf. Louisville.

 

Also the first couple of weeks are the easy ones. One they start going into what will get renegotiated, is when the bad news start getting out.

 

RAH isn't different, but the times and the circumstances of the filling most certainly are.




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Why are the circumstances for filing different? To me it looks like every other airline bankruptcy in that they all shed unprofitable leases and restructure their contracts? Look at American for example. They filed with billions in capital. If by different circumstances you mean leaving the pilot contract untouched, that would be the only difference