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Air Wisconsin went bankrupt also?

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Rank&File

Well-known member
Joined
Aug 30, 2002
Posts
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I was looking around at UAL Corp's bankruptcy website and noticed Air Wisconsin was listed as one of the debtors that was included in the Chapter 11 filing.

UAL Bankruptcy Website

Does that mean Air Wisconsin has the same liquidation risk as UAL? What about their contracts? Can the pilots be subject to Emergency Work Rules?
 
Last edited:
You probably read a couple different titles regarding Air Wisconsin in the list of companies declairing bankruptcy with UAL. Those are companies held by United left over from the days of the UAL buyout of Air Wisconsin. You did NOT see the name Air Wisconsin Airlines Corporation in the list of names needing CH 11 protection.

Nothing has changed for the company that flies as United Express and AirTran JetConnect.

S.
 
When a person or corporation files for bankruptcy protection they *must* list all assets and liabilities as part of the filing. Assets are those things which the person or corporation owns. Liabilities is a listing of all of the money that is owed to others, (persons or businesses). United undoubtedly owes money to Air Willy. They also undoubtedly owe money to ACA, Sky West, their employees, caterers, fuel suppliers, Boeing, GE Capital, etc., etc.

All liabilties are to be declared in the bankruptcy pleadings because the court will add up all of the outstanding debts and will pay each of the debtors a pro-rated portion of the money owed to them when the bankruptcy is resolved. This keeps the person or corporation who is filing bankruptcy from playing favorites and paying those debtor who they like, while stiffing those debtors who they may not like. Generally, everybody who is owed money from United will get only part of the money owed to them, but at least the payments will be proportionately even.

The only exception to the pro-rata payments is the government. They get any taxes owed to them, straight off the top, at 100% fo the amount owed. It's the golden rule. He who has all the gold makes the rules.
 

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