Route licenses for Crossair / Sabena regional

[bluecrane]

An airline is worth nothing without its route licenses, that means to operate scheduled flights from A to B internationally.
Now, if an airline goes bankrupt, like Swissair or Sabena, why doesn't the government involved offer the route licenses to the highest bidder or any interested party/airline? It seems very strange to me that these route licenses go to Crossair or Sabena's regional without any discussion or bidding process. Any inputs on this?
This would also be a very strong incentive for management of existing airlines, to avoid filing for bankruptcy since all routes might be lost and go to a competitor or new entrant.

[FL310]

Things you call route licenses are simply a property of the owner, assets they can trade or give away as they like.
That is what happens at present...

[The Guvnor]

FL310 - I think you'll find that, like AOCs, they are the property of the government and are non transferrable (certainly in Europe - US rules are different viz the sale of European rights by Pan Am to Delta and Pacific routes to United). It's possible - I don't know one way or another but I'll check with the ERG tomorrow - that you can transfer them within a corporate group. Otherwise, you just have to apply for them, like everyone else!

In the case of flag carriers, the specific airline is usually designated in the bilateral.

Incidentally, something else that isn't the property of the airline is its IATA designator and accounting code - that remains very firmly IATA's property!

[sabenapilot]

Traffic rights are indeed not transferable, but the point is that when you split a company which owns traffic rights, there are no rules as to which part should have what rights; there is no rule that says each part must have an equal share of the traffic richts. in short, you can split your company (SN/DAT) in 2 parts, one (DAT) having all the good things like the lots, traffic rights, etc. etc. and one(SN)having only the depts.
It is not easy, but it is not impossible eighter.

Besides should you encounter some legal problems,
who gives the traffic rights: the government,
and who owns Sabena: the government,
and who owns DAT: the government,
you see how easy things can be?
Remember, for flights outside the EU we are still talking about bilateral contracts between 2 states each appointing their designated carrier(s).