why doesn’t Europe not have a similar protection kind of scheme like the USA…?
For example, if BA or another major European carrier was to go bust (heaven forbid!), would the relevant Government/s come to its rescue, or would it be left to fight its own problems…
And another question to pose…how much would someone be expected to pay to buy a bankrupt airline in order to reform it and make it better. I have been thinking that it would be quite a good idea to see a failing airline be turned around and become something new and improved be introduced…?
Any answers/thoughts, please feel free to share!
By: David Kerr - 13th December 2005 at 18:56
The name I would like to ressurect would be EUJet 😮
I felt that that airline had real potential, and also proved that there was a market from Kent International (Manston, MSE).
I severely doubt that they proved the market exists from MSE – they appeared to be struggling to half-fill the 100 seat Fk100 on a lot of their routes so the economics of having no more than 50 to 60 passengers on an aircraft with 180 seats to fill only means that they would have folded quite quickly!
One remembers the times when an unheard of airline called EUJet applied for slots out of MAN a few years ago….now if they had been successful in getting the slots, they would have stood a better chance of making a go out of their operations as there would have been little lo-cost competition at MAN and only easyJet out of LPL.
By: cloud_9 - 13th December 2005 at 13:58
…or you may be able to purchase the name and start again.
How much would a past name cost though, are we talking £000’s or millions…?
The name I would like to ressurect would be EUJet 😮
I felt that that airline had real potential, and also proved that there was a market from Kent International (Manston, MSE)…
If I was able to buy the name and re-brand it, I would use an Airbus A320-200, instead of the Fokker’s that were used before they went bust!
Apologies to James (Manston_Airport) as I know how much you love the Fokker’s…! 😉
By: chornedsnorkack - 13th December 2005 at 13:53
Chapter 11?
One comment about Chapter 11:
The money to bail out businesses in Chapter 11 is taken from creditors. That includes a lot of pensions and health insurance.
Effectively, the US government is giving the businesses “bankruptcy protection” so that the creditors cannot shut the business before it burns the rest of their money.
Whereas in Europe, there have been a fair number of bailouts where the government has spent their own (taxpayers´) money.
Also, I understand that in most of Europe, pensions come from state anyway, so they are not so much affected by bankruptcy.
By: paulc - 13th December 2005 at 13:28
Several european countries airlines already have a bankruptcy protection scheme – its called the EU 🙂 who seem to be allowed to bail them out despite it being against its own rules.
A failing airline can try a merger but that does not always work i.e. Swissair & Sabena and in this case did result in both failing or you may be able to purchase the name and start again. How many incarnations of Pan Am and/or Braniff have there been over the years – at least 3 or each but none remain today.
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December 13, 2005 at 1:08 pm