Frontier goes Chap 11...

[FmrFreightDog]

It sucks too that the only legacy still hiring is US Airways. They're only hiring because we all started jumping ship and getting the $%@! out of aviation. My first year pay in a job outside of flying is more than I made my last year flying after 15 #T%$%#@$%@^@#%&#! years in aviation.

Thought CAL was still hiring as well. No?

 

[Erndogg]

Mesa's next if stock price is any indication. It's become a penny stock. They are getting killed in Hawaii and just lost the DAL contract. Not to mention a lot of debt coming due. They actually are trying to issue NEW stock when the old is going for around 80 cents!

On the regionals page, there seems to be some speculation on a Chap 11 filing coming soon????

 

[Deadalus]

Thought CAL was still hiring as well. No?

Eight new hires for the rest of the year(2 classes of 4). That's as pathetic as Alaska's hiring.

 

[SLOTH]

Jesus, and the hits just keep on coming! At this rate there won't be an American airline operator by the end of next year.

 

[realmanofgenius]

isnt this scenario of the housing bubble much worse than the dotcom bubble of the nineties? seems like it will be. how high would the dollar have to rise to get oil back down in the 60's?

 

[bluefin]

Isn't it kinda of interesting that all these carriers are going tits up around the same Bush and one CEO (Tilton) are talking, "time to ease foriegn ownership rules" the US Airline industry is going the way of the shipping and cruise line. Not one ship is registered in the US or operated buy American crews.

 

[Andy]

Good luck, F9. I look forward to seeing you come out the other side as a stronger company.
Their credit card processor started withholding additional money which is what put F9 into chap 11. I would guess that the credit card processor agreement required that once F9's cash situation hit a certain level.

Daedalus, F9 must've found some DIP financing in order to go into chap 11. We'll see. At this point, every supplier will be working with them on a cash basis, so their cash levels must've gotten at the point where management felt that it was time to file for bankruptcy.

Becket, the new laws allow an 18 month period of exclusivity to file a POR (Plan of Reorganization). For a company the size of F9, this shouldn't be an issue. The 18 months is an issue for larger, more complex companies. Let's hope that AMR's cash situation doesn't get dinged too hard with these aircraft groundings - it'd be a huge issue for a company of that size.

Realmanofgenius, currency exchange is only one reason why oil prices are this high. There are a lot of other factors, including speculation.

 

[Eagle757shark]

I believe we will begin to see the start of airline consolidation next week! It will be the threat of bankruptcy that will be the justification. No one is immuned. Hang in there everyone. It's going to be a long summer!

 

[Andy]

I believe we will begin to see the start of airline consolidation next week! It will be the threat of bankruptcy that will be the justification. No one is immuned. Hang in there everyone. It's going to be a long summer!

Consolidation requires investment capital. USAirways got a $1.5 Billion capital infusion when they merged.
The traditional investment capital came from investment bankers. They're no longer putting up investment capital.
Golman Sachs just sold their Chrysler debt (from the Cerberus takeover) for 63 cents on the dollar. http://www.marketwatch.com/news/sto...x?guid={2DC4D0DC-3355-4F13-9A88-54B8F062E5E4}

I don't know where Delta and Northwest are planning on getting money - they should need at least 3 billion in new capital - to merge. Some talk about Air France; I haven't been able to find a good website to review their financials, but in today's environment, I can't see where they're getting that kind of money.

 

[BoilerUP]

I don't know where Delta and Northwest are planning on getting money - they should need at least 3 billion in new capital - to merge. Some talk about Air France; I haven't been able to find a good website to review their financials, but in today's environment, I can't see where they're getting that kind of money.

I'd say RJET but they are "in debt up to their eyeballs" already...perhaps they'd take on more to solidify their position with DAL and purchase the Compass 175 operation in a fashion similar to when they purchased MDA to provide LCC with more cash?

Also wouldn't be surprised if Skywest threw a wad of money at a combined entity; I think they have hundreds of millions on hand.

Who else does that leave who is currently operating with NWA or DAL who has a stake in the combined company's survival? PNCL?