And the point?

What are you trying to tell us, that it did not turn out that way? Where have you been? It must be different in the EU, it’s just like the commercial in the US!

This is not how bankruptcy works in the US

If a company declares bankruptcy under chapter 11, the property of the company can not be seized by the creditors. Normally a company arranges bank financing just prior to declaring Chapter 11. Initially passengers see no difference. Any financial changes to the company must be approved by the courts. In the United States where you see problems is just prior to a bankruptcy declaration. Companies stop making deliveries or require cash (not check) payments because they know they may not get paid or get paid pennies on the dollar.

Other forms of bankruptcy include liquidation (which is what happened to Sabena and Swissair).

I am not sure about the EU, but in the US if you buy a plane ticket with a credit card, you do not have to worry about losing your money if an airline goes belly-up and liquidates. If you pay cash you become a creditor and get paid back, if you get paid back, pennies to the dollar way down the road.

Right now I would not buy a ticket on Varig except with a credit card and with the understanding that even with a credit card you will get your money back but may not travel.

Bkonner

I read about it in the New York Times today. BAD IDEA!!!!

Bkonner

Howdy,

As an American I am EMBARASSED how you were treated by US INS! I am just not sure why anyone would come here!

Bill

Howdy,

I find it offensive the huge pay-day management got or will get when UA exits chp 11. The shareholders (employees) were screwed! US business, you gotta love it!

bkonner

Howdy,

They started flying in June, 2004. They made is 16 months to Chapter 13 and 19 to Chapter 7. NOT BAD! Good Harvard Business Case Study in the works I bet in how not to run an airline! Very unfortunate!

Bkonner

Howdy,

Political considerations will take central stage when Aeroflot makes its decision on either the 787 or A350. Part of the equations is EU-Russian and US-Russian relations. The decision is not completely an economic one at all. In this area, the EU may have an edge. On the other hand, the recent 2004 elections in the Ukraine may have hurt Airbus in this area. Also, as a comparison, when Air France decides on an aircraft, the decision is almost entirely an economic decision. Certainly the EU and French governments may pressure the company, but the decision comes down to the bottom line and not national pride. Aeroflot is a different story entirely.

My personal opinion is that the A350 is an after thought for Airbus. The money and company’s focus is tied up with the A380. The A350 seems more of an A330 upgrade than a new concept. Boeing has spent a considerable amount of money and time developing the 787. Airbus has spent little time developing the A350. The perception by the carriers is that the 787 is the latest and greatest while the A350 is late 1980’s technology with an upgrade.

One big advantage Boeing has over Airbus with the A380 vs. 747 Advanced is that the mortgage on the 747 has already been paid. Development costs for upgrading the 747 are insignificant compared to what Airbus had to spend on the A380. Boeing will be able to sell the 747 Advanced for less because of this and this will hurt Airbus. While the A380 represents the latest in aircraft technology and the 747 does not, it will come down to the cost per seat mile and again the 747 has an advantage with the exception of flag carriers who show the national flag and give less thought to economic considerations (remember the 747 in the early 70’s? Every carrier had to have it even if the airplane did not make economic sense. Most US carriers got rid of the aircraft pretty quickly as it did not make economic sense. Several EU carriers like SAS did the same).

I would add that Boeing’s decision to heavily involve several Japanese companies in the development of the 787 may turn out to be a brilliant move on it’s part. Suprisingly there has been little interest by ANA and JAL in the A380. These are two companies that probably could use this aircraft.

Bkonner

Why is Ryan restricted to Dublin?

Howdy,

They are an EU carrier. Doesn’t the EU negotiate for all states in the EU. They certainly are for traffic between the EU and the US. Shouldn’t an EU carrier be able to fly from any EU airport to an international destination?

Bill