View Full Version : Bankruptcy, has there ever been ...
I read that Mexicana is going to rise from the ashes ... Mexicana reveals plan; hopes to resume operations in December. Mexicana Airlines, which ceased operations in August under severe financial distress, said the Mexican firm Capital PC has agreed to invest more than $150 million to allow the carrier to restart operations next month. It said tentative approval of the restructuring plan has been given by relevant Mexican authorities, but its labor unions and creditors must still approve the deal. The company filed for creditors protection in both Mexico and the US in August, and had planned to continue operating while it restructured, but was unable to meet basic fiscal obligations or reach concessionary agreements with its workers.
Dow Jones reported that MX plans to return to the skies operating around 30 Airbus A320 family aircraft, which would be less than half the size of its mainline fleet at the end of 2009 which included 57 A320 family aircraft as well as other types. Subsidiaries Link and Click reportedly would remain grounded. (Source: Air Transport World)
Has there ever been a successful phoenix? i.e. an airline that has ceased operations (not just Chapter 11) returning to business and is now operating? I think of all the restructuring failures; Braniff; Pan Am; etc. but can't think of any successes.
Colonel White
16th Nov 2010, 19:07
Delta certainly did. Continental managed it twice
Colonel - thanks, but neither ceased operations. Chapter 11 is a funny animal but isn't really bankruptcy - it's a process that avoids that. If we include Chapter 11 I think all the US majors, except AA, would be on the list.
Bankruptcy laws differ in each country.
In Latin America, I am afraid it is standard practice from time to time. Mexicana itself failed financially in 1968, reorganised and recovered, failed again in 1995, this time they were nationalised, got returned to the private sector in 2005 - and here we are today.
Aeromexico, the other Mexican major, has a similar history, bankrupt in 1988, recovered, and had to be renationalised in 1995, now private again.
getonittt
22nd Nov 2010, 15:22
Has there ever been a successful phoenix? i.e. an airline that has ceased operations (not just Chapter 11) returning to business and is now operating? I think of all the restructuring failures; Braniff; Pan Am; etc. but can't think of any successes.
Swiss airlines i suppose , albeit rising from Crossair , similar to SN brussels airlines is a phoenix of Sabena/DAT. I'll agree with you that i'm hard pressed to think of any others. I know TMA of lebanon is now flying again but not sure if the original were bankrupt or they just suspended operations after the 707's were withdrawn. I also hear that yet another attempt to fly the Pan Am name is being planned again......:rolleyes:
davidjohnson6
22nd Nov 2010, 23:25
Does buzz (former UK-centric LCC) count ? Bought by Ryanair, shut down temporarily, and then restarted flying but under FR's name
I don't think Buzz counts, they didn't go bankrupt.
Both Swiss and Brussels Airlines (they've dropped the SN! now) were existing airlines (Crossair and DAT) who 'obtained' valuable operating rights, etc. after their countries former national airline went out of business.
I'm looking for a company that ceased all operations and their previous name and livery came back into existence (one way or another) somehow.
Should Swiss adopt the name SWISSAIR, they would qualify.
As I described above, look to Latin America.
Aerolineas Argentinas went for bankruptcy (protection from creditors) in 2001, shut down ops at the start of 2002, then got going again.
Aeromexico, bankrupt 1988, closed down for three months, then recovered.
In both cases they slowly brought much of their former fleet back into operation again.
Thank you WHBM, that makes two. Wonder if anyone is planning a return for Viasa, or Lloyd?
davidjohnson6
24th Nov 2010, 23:14
I would be extremely surprised if (for example) Swiss renamed themselves as Swissair - mainly because in many jurisdictions it makes it much harder to claim that the new airline is not simply the successor company of the old airline, and thus liable to pay the debts of the old bankrupt company
Phileas Fogg
24th Nov 2010, 23:41
How about Eastern Airways (UK)?
Eastern Airways (a.k.a. Lease Air) were going in late 70's, early 80's, merged (took over) Genair, went tits-up, then circa 20 years later another Eastern Airways based in Humberside as the old Eastern Airways were based!
I believe LX obtained the rights to Swissair from their executors but have not (yet) decided to use them, perhaps for the reasons you state.
However I've noted that many people here use Swiss Air, when referring to LX. It's easier to say than Swiss International and is less confusing that just saying Swiss.
When they were created they used the name for the country in all four national languages plus English. Now we only see the English version. (But this is a bit of a thread drift)
The SSK
25th Nov 2010, 12:08
Two recipients of ‘one time, last time’ state aid bailouts in the 1990s went on to become comfortably profitable – Iberia and Air France. Iberia has slipped back a bit, Air France is doing pretty well these days.
And Alitalia has just had a nicely profitable third quarter, although they won’t break even for the year. If they carry on the way they are going, they will have their second ever annual profit next year. Turkish Airlines has probably needed cartloads of government money in the past, it’s making a mint nowadays.