Only major airline with no bailout agreement?

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04-15-2020 | 12:55 PM

#31

RadarColor

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Quote:

Originally Posted by Mtnbikemike

They would have to burn through a lot of cash first and exhaust a lot of other avenues.

You obviously don't know how airline BKs work. They probably already have a contingency plan like most airlines. It's debts vs assets and I'm sure they have more of the former.

04-15-2020 | 01:02 PM

#32

SAABoroowski

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Quote:

Originally Posted by Mtnbikemike

They would have to burn through a lot of cash first and exhaust a lot of other avenues.

well, with parked airplanes, 10pax on the flights we are operating and no end in sight to the lockdown, I’d say we are probably burning through quite a bit of cash. Also, BK is expensive, you don’t wait until the bank account is empty when you file.....

04-15-2020 | 01:17 PM

#33

rickair7777

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From: Engines Turn or People Swim

Quote:

Originally Posted by RadarColor

You obviously don't know how airline BKs work. They probably already have a contingency plan like most airlines. It's debts vs assets and I'm sure they have more of the former.

He's right. Airline's have to maintain a certain liquidity cuz the FAA knows they cannot operate safely if checks are bouncing.

An airline can file BK if their glide slope will take them down to too little liquidity in the near future. They don't have to be flat broke, and in fact the FAA would pull their cert before they got there anyway.

04-15-2020 | 01:19 PM

#34

senecacaptain

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Ch.11 is "get our house in order" and restructure payments to creditors. It is done before the fuel tanks are bone dry. It is done to continue operating.

Ch.7 is "liquidation" aka sell the assets, chairs, popcorn machine, to pay off the creditors.

04-15-2020 | 01:30 PM

#35

Mtnbikemike

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Quote:

Originally Posted by RadarColor

You obviously don't know how airline BKs work. They probably already have a contingency plan like most airlines. It's debts vs assets and I'm sure they have more of the former.

Fortunately, never checked that box off. I have checked off the furlough, cease operations and strike though.
My point was I don’t think it’s imminent.

04-15-2020 | 01:58 PM

#36

Skypilotsv1984

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From: Citation, left seat

Quote:

Originally Posted by Mtnbikemike

Fortunately, never checked that box off. I have checked off the furlough, cease operations and strike though.
My point was I don’t think it’s imminent.

When you see Seabury consultants coming in and they start talking to Ford and Harrison it’s time to bend over.

04-15-2020 | 02:19 PM

#37

Mtnbikemike

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Quote:

Originally Posted by Skypilotsv1984

When you see Seabury consultants coming in and they start talking to Ford and Harrison it’s time to bend over.

😂😂, well, hopefully it’s not something Spirit will experience.

04-15-2020 | 02:35 PM

#38

Skypilotsv1984

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From: Citation, left seat

Quote:

Originally Posted by Mtnbikemike

😂😂, well, hopefully it’s not something Spirit will experience.

I hope not, chapter 11 and the 1113c process sucks. You thought section 6 negotiations were frustrating and the company was being unreasonable...just wait.