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.
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