RAH files for Chapter 11 bankruptcy
02-26-2016, 10:13 AM
#231
Covfefe
Joined APC: Jun 2015
Posts: 3,001
It doesn't necessarily work like that. That can be their request, but if Delta is a major harmed creditor they can push for your contract concessions, so that the savings can be directed to them to help make them whole. It's naive to believe the pain won't be shared by all, or a judge will just pick winners and losers.
02-26-2016, 10:14 AM
#232
Gets Weekends Off
Joined APC: Aug 2010
Posts: 547
With exception of about 6 hulls, AAG is the guarantor on all the AE branded aircraft. Think of it as RAH using AAG's credit to secure financing. As such, Parker has provisions that allow AAG to take those aircraft if Bedford defaults. I don't know if AAG would take them and reassign them to another carrier but legally they could. ( I realize that it would have to be approved by the court but their is no judge in the world that would tell a creditor that they won't let someone else take over the negotiated lease rates and force them to take RAH's deal )
02-26-2016, 10:27 AM
#233
Gets Weekends Off
Joined APC: Dec 2012
Posts: 610
I was simply pointing out Republic owns the majority of their aircraft rather than leasing. You assumed I meant they owned their aircraft out right, sorry if I mislead you. As far as I know, there are very few, if any US airlines that pay cash for brand new aircraft. I don't see a huge difference operationally between leasing and owning(financed) in the contract carrier business.
BK law has the power to terminate many signed legal documents, so the security of ownership can become negotiable. When you ask a court for protection to stiff your creditors, it comes with many strings, and some that may not be desirable, even for RAH mgnt.
02-26-2016, 10:37 AM
#234
Gets Weekends Off
Joined APC: Apr 2014
Posts: 338
I was simply pointing out Republic owns the majority of their aircraft rather than leasing. You assumed I meant they owned their aircraft out right, sorry if I mislead you. As far as I know, there are very few, if any US airlines that pay cash for brand new aircraft. I don't see a huge difference operationally between leasing and owning(financed) in the contract carrier business.
I am legit asking and not trying to say that is what is happening.
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02-26-2016, 10:38 AM
#235
Gets Weekends Off
Joined APC: Jul 2011
Posts: 894
I was referring to the regular employee's. Of course the thieves at the top get theirs at everyone elses expense. (AIG, Enron, even Horton at AA got paid 20 million for the privilege of being fired.) Pilots most definitely don't fall into their group.
02-26-2016, 10:41 AM
#236
Banned
Joined APC: Mar 2014
Posts: 787
With exception of about 6 hulls, AAG is the guarantor on all the AE branded aircraft. Think of it as RAH using AAG's credit to secure financing. As such, Parker has provisions that allow AAG to take those aircraft if Bedford defaults. I don't know if AAG would take them and reassign them to another carrier but legally they could. ( I realize that it would have to be approved by the court but their is no judge in the world that would tell a creditor that they won't let someone else take over the negotiated lease rates and force them to take RAH's deal )
The portion of the purchase financed by BNDES was co-signed by American Airlines with the stipulation that AA would take possession of the aircraft if Republic defaulted in any way. Bankruptcy is part of that clause, so it will be interesting to see how this plays out.
02-26-2016, 10:44 AM
#238
Gets Weekends Off
Joined APC: Jul 2011
Posts: 894
Not to mention everything airline management says to employee's is a lie anyway. They will say anything to keep the employee's under control.
Last edited by RyanP; 02-26-2016 at 11:04 AM.
02-26-2016, 11:06 AM
#239
Gets Weekends Off
Joined APC: Apr 2008
Posts: 1,808
The process is cruel.
In this case, if they site pilot shortage, then move to reject work rules and pay I wonder what effect that would have on recruitment and retention?
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