US Carrier - Chapter 11 - Any Truth?

[bealine]

It is rumoured that a major US Carrier has filed for Chapter 11 Bankruptcy Protection.

I won't mention the carriers names that have been bandied about in case I falsely cause alarm to any employees of the two carriers mentioned.

Does anyone out there know the truth - or is it wishful thinking on the part of a major European Carrier?

:p

Cheers

Bealine - Home of the Pionair!

[Cris L]

Where have you been ?

US Airways has been talking about this for quite a few days now, as a way of lowering their costs.

In fact I think its a given - simply because they are insolvent, i.e. their Liabilities exceed their Assets, and under UK law they would have to declare Insolvency, and thus be unable to trade.

US law is different and so I do not know the applicable laws.

However if you had read todays news, you would have seen that they are currently holding talks with UA, CO & NW - although these are all supposed to be about codeshare only.

Who knows ?

It ain't over until the fat lady has sung !

[bealine]

Thanks for that!

That was one of the airlines rumoured - the other being United who have only stated that they have "a long way to go to achieve financial stability!" - but haven't yet filed for Chapter 11 protection.

[ernest t bass]

Highly unlikely that United will file for Chapter 11 protection. US Airways will seek federal loan guarantees and labor concessions. If they are successful in obtaining these federal loan guarantees, it will likely stall the filing of Chapter 11. If they are unsuccessful, Chapter 11 is a virtual certainty.