Originally Posted by
Ollie Onion
Same as Qantas and Jetconnect or Jetstar and Jetstar NZ, technically both of these companies are crewing Companies that supply Pilots, Cabin Crew and RPT services to Qantas and Jetstar, Qantas and Jetstar ‘Lease’ the aircraft and trading facilities to these entities so that Jetconnect and Jetstar NZ use the AOC’s and Regulatory structure of the Clients. If Jetconnect or Jetstar NZ went bust then that operation would be wrapped up as a seperate entity and the ‘leasing’ ceases meaning that Qantas and Jetstar OZ have no liabilities from the bankruptcy.
Yes, but a deed of cross guarantee means the debts are assumed by everyone. If the jet operation goes down, the banks, lessors, airports etc who hold the guarantee would pursue all parties to the guarantee for recompense which would then trigger breaches on a whole lot of other contracts under Act of Bankruptcy provisions and the whole edifice will crumble down.