barabek

Companies will be allowed to fail. These are manufacturers that you mention, not service providers. The same way Boeing will most likely be saved. Airlines come and go, too many examples to list them all...

Mozam

GM was the only one in your example that was not allowed to fail . That is one out of 3 ( sound familiar)?

I do not think the current administration, would do the same .

senecacaptain

GM: Ch.11 in 2009. Filed after there request to merge with Ford was declined by Ford.

Chrysler: Ch.11 in 2009

Ford: almost filed but avoided it. some believe better management and a better product line (F150 pickups v PT Cruisers and Buick Lacrosses) helped them narrowly avoid Ch 11.

BobZ

Im dusting off memories but I think Ford also had fortunately practiced a contrasting debt and liquidity model prior to the crisis which helped when things went bad?

senecacaptain

Possibly so. Important to remember is the "financial crisis" was impacting everybody, both the economy, and the stock market. Today, the stock market is going thru the roof. The economy is hurting, yes.

Also, the above companies filed, or came close to filing, Ch.11 The bailout was approved by Bush in December 2008 via Executive Action, after the Senate shot it down. It required "drastic changes" internally at the companies as part of the package.

3-6 months later GM and Chrysler filed Ch.11

Excargodog

It JUST DOESN’T MATTER.

Southwest and the other single-type fleet airlines have a far superior model for this situation, much less dependent on business and international flying and much less affected by training churn if displacements and furloughs become necessary. And much less dependent on regional feed which will be hit badly next year by scope limitations based on this years reduced parent major blockhours.

Yes, a rising tide lifts all boats and an ebbing tide lowers them all too, but in this case the different models don’t allow that tide to affect them all EQUALLY.

You don’t have to wish ill on the employees of other carriers to acknowledge that some business models are going to do better than others in the new environment.

Or that it is in the nature of management - indeed, part of their due diligence to stockholders - to take advantage of opportunities to gain market share:



Airlines have been deregulated. They ain’t a public utility any more. And Capitalism is always a little cutthroat.



It’s gonna happen.

303flyboy

These words will very likely be proven true over time. Its not like any vacuum created by airlines who won’t make it won’t be gladly filled by those who will.

If history shows anything it is that absolutely everything flows and nothing stays the same.

Jaded N Cynical

You still live in a glass house. All the glee of potential demise of other airlines is premature, if not in not in bad taste. Carry on corn dog warriors.

p.s. I'll be the one slowing to final approach speed before the outer marker just to make you annoyed.

303flyboy

I hope that wasn’t for me. I hope and pray every last of our brothers and sisters keep their jobs. But I do think that you will see a lot of airlines having to rethink their business model going forward to survive and grow from there.

sMFer

Your name says it all. Slow all you want son. And nobody wants demise of other airlines as we all have friends at multiple carriers. I fully expect us to shrink and furlough come 2021. Don't be so naive and think talking our management's business strategy is hoping for demise elsewhere.

Sent from my Pixel 3a using Tapatalk