Originally Posted by
MCDU2
The only thing that anyone can say for certain is that the bigger the airline/group the higher the likelihood of gaining attractive terms from its creditors. Smaller airlines will conversely be allowed to fail.
This is not necessarily the case. Creditors will lean towards those companies who can repay their debt and service it properly, irrespective of size. The exception ( and perhaps what you are alluding to) is where lenders are so heavily over-exposed that allowing the company to fail will immediately crystallize enormous losses.Here there is a willingness to kick the can down the road; keep it going with the hope it gets better or the tough descisions will at least fall on someone else's shoulders. Hence the rise of zombie companies who cannot realistically pay back their debt and can't make real profits because of their debt servicing. In our industry I would cite Thomas Cook Group, and currently Norwegian. Many many others are heading down the same path.