Large Q3 Loss in forcast, what’s next.
#21
Gets Weekends Off
Joined APC: Sep 2014
Posts: 510
Not exactly,
The company will propose an exit plan, the debtors need to PROVE liquidation would return more to their pockets.
Here’s where it gets interesting, operating cash and leased aircraft cannot be put into the liquidation formula.
So you see exactly what’s going on, assets are being put under lease and the cash is moved to the operating fund.
Operating cash can be used for the company’s exit plan.
Ted has put a few airlines into CH11, he’s a pro.
The company will propose an exit plan, the debtors need to PROVE liquidation would return more to their pockets.
Here’s where it gets interesting, operating cash and leased aircraft cannot be put into the liquidation formula.
So you see exactly what’s going on, assets are being put under lease and the cash is moved to the operating fund.
Operating cash can be used for the company’s exit plan.
Ted has put a few airlines into CH11, he’s a pro.
#25
#27
Airlines Confidential podcast had some industry analyst named Bill Swelbar state more bloodshed coming.
"If the airlines wont find capacity discipline, then the market will dictate capacity discipline by disciplining airlines that cant profitably deploy that."
"Chapter 11 is not the tool it was in the past. Are we gonna finally have someone say, "We cant meet the market rate for pilots, so we are gonna file and reduce our labor compensation". All of a sudden all of your labor leaves and goes to the competition. So chapter 11 is not the tool that it was before, I think Chapter 7 possibly could be for one or two, and it's not that chapter 7 is gonna take out all the capacity needed, but it will possibly redirect capacity to hopefully to some more profitable flying than what is happening today."
"If the airlines wont find capacity discipline, then the market will dictate capacity discipline by disciplining airlines that cant profitably deploy that."
"Chapter 11 is not the tool it was in the past. Are we gonna finally have someone say, "We cant meet the market rate for pilots, so we are gonna file and reduce our labor compensation". All of a sudden all of your labor leaves and goes to the competition. So chapter 11 is not the tool that it was before, I think Chapter 7 possibly could be for one or two, and it's not that chapter 7 is gonna take out all the capacity needed, but it will possibly redirect capacity to hopefully to some more profitable flying than what is happening today."
#28
That/It/Thang
Joined APC: Aug 2020
Posts: 2,951
Airlines Confidential podcast had some industry analyst named Bill Swelbar state more bloodshed coming.
"If the airlines wont find capacity discipline, then the market will dictate capacity discipline by disciplining airlines that cant profitably deploy that."
"Chapter 11 is not the tool it was in the past. Are we gonna finally have someone say, "We cant meet the market rate for pilots, so we are gonna file and reduce our labor compensation". All of a sudden all of your labor leaves and goes to the competition. So chapter 11 is not the tool that it was before, I think Chapter 7 possibly could be for one or two, and it's not that chapter 7 is gonna take out all the capacity needed, but it will possibly redirect capacity to hopefully to some more profitable flying than what is happening today."
"If the airlines wont find capacity discipline, then the market will dictate capacity discipline by disciplining airlines that cant profitably deploy that."
"Chapter 11 is not the tool it was in the past. Are we gonna finally have someone say, "We cant meet the market rate for pilots, so we are gonna file and reduce our labor compensation". All of a sudden all of your labor leaves and goes to the competition. So chapter 11 is not the tool that it was before, I think Chapter 7 possibly could be for one or two, and it's not that chapter 7 is gonna take out all the capacity needed, but it will possibly redirect capacity to hopefully to some more profitable flying than what is happening today."
Ted and Bendo would love to see pilots leave this seniority list, saving them the money of furloughs and downgrades/displacements. And where is everyone going to go once they file Ch11? Things have slowed in that department
The similarities between Spirit and the Michael Scott Paper company are amazing.
Also unfortunate to see Baldanza is leaving his podcast because of ALS. I feel a lot of the uphill fight NK is up against started under him and the “screw the customer, they will be back” mantra, but nonetheless, ALS sucks
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