Airline Bankruptcy: The Abuse & Misuse of Bankruptcy Laws

Location

CSU 255

Start Date

25-4-2006 8:45 AM

End Date

25-4-2006 10:15 AM

Student's Major

College of Business

Student's College

Business

Mentor's Name

Georgia Holmes

Mentor's Department

College of Business

Mentor's College

Business

Description

Major airlines such as United Airlines and ATA Airlines that once filed for Chapter 11 bankruptcy are now in the clear, kind of. While it is a good thing that they have gotten out of the bankruptcy market, there are still major problems ahead for these companies. The loss of employees, pensions, & planes, a new set of rules will be set forth by United Airlines. Pay cuts are expected, and along with new rules for pensions, many will not be because of loopholes in the bankruptcy laws. Delta Airlines is a good example of using the "resource management tool" by cutting back on assets and still coming out of the "dog-fight" making money. There are major problems in this system, but the government has recognized this and is working to fix the issues.

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Apr 25th, 8:45 AM Apr 25th, 10:15 AM

Airline Bankruptcy: The Abuse & Misuse of Bankruptcy Laws

CSU 255

Major airlines such as United Airlines and ATA Airlines that once filed for Chapter 11 bankruptcy are now in the clear, kind of. While it is a good thing that they have gotten out of the bankruptcy market, there are still major problems ahead for these companies. The loss of employees, pensions, & planes, a new set of rules will be set forth by United Airlines. Pay cuts are expected, and along with new rules for pensions, many will not be because of loopholes in the bankruptcy laws. Delta Airlines is a good example of using the "resource management tool" by cutting back on assets and still coming out of the "dog-fight" making money. There are major problems in this system, but the government has recognized this and is working to fix the issues.

Recommended Citation

Menke, Dan. "Airline Bankruptcy: The Abuse & Misuse of Bankruptcy Laws." Undergraduate Research Symposium, Mankato, MN, April 25, 2006.
https://cornerstone.lib.mnsu.edu/urs/2006/oral-session-K/2