From:
http://enplaned.********.com/2005/11...t-subsidy.html
Chapter 11 is Not a Government Subsidy
British Airways (BA) has finally come out
swinging against the tentative US-European Union open skies agreement. That's not much of surprise since there's little for BA to like about it (see
prior post for why).
But here's the annoying last line of the Dow Jones version of the story:
BA long has been critical of the U.S. government's policy of letting carriers in financial difficulty file for 'protective bankruptcy' under federal law, which they claim is an unfair subsidy that is undermining the 'real' aviation market.
Chapter 11 ("protective bankruptcy") is not a government subsidy. That's easy to see, because there's no government money involved. Look all you want, you won't find government money pumped into companies in Chapter 11. There's also no differential treatment of creditors according to nationality. Lenders who happen to be US are treated the same as lenders who happen to be non-US.
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