Welcome to Flightinfo.com

  • Register now and join the discussion
  • Friendliest aviation Ccmmunity on the web
  • Modern site for PC's, Phones, Tablets - no 3rd party apps required
  • Ask questions, help others, promote aviation
  • Share the passion for aviation
  • Invite everyone to Flightinfo.com and let's have fun

Independence Air Ch 11?

Welcome to Flightinfo.com

  • Register now and join the discussion
  • Modern secure site, no 3rd party apps required
  • Invite your friends
  • Share the passion of aviation
  • Friendliest aviation community on the web
Chapter 11, or chapter 7?
 
I have been hearing that since Oct 14, 2004. I think IDE was supposed to be in BNK at least 7 months ago according to Boyd. None of the employees know more than anybody on the outside, the management has not told anybody anything at this point in time. They have been very quiet for so long that it would be unusual if any information had been passed down.

I highly doubt they will file tomorrow, I would guess one day they will just shut the doors with no warning at all. But what the hell do I know, I'm not management.

On a side note check out the volume of shares teading hands the last couple of trading days. Freaky.......
 
I would think that if they are going to file they will do it before the BK laws change in October. There's a chance that they don't see BK as a viable option. Bankruptcy works best for gigantic corporations that owe massive amounts of money and are leasing massive amounts of equipment that would be surplus outside of it's current operation. Independence Air may not have the critical mass to make it worthwhile for creditors and new investors to keep it alive. Another problem is that there are now 3 large majors reorganizing that will probably attract whatever money is available to keep failing air carriers afloat. I'm not sure that this company could survive a Chapter 11 filing so they may have to do what restructuring they can out of court and hope that fuel comes way down. If they don't file before the laws change I would say that means they don't view a Chapter 11 reorganization as a workable possibility.
 
Everybodies doing it (CHp11). It must be good. Look at UAL, they have been operating under this protection for 3 years. If u dont want to or cant pay your bills you better go under Ch11 b4 the new rulz. I think this industry needs to be regulated again.

Cya
 
AnimalTale said:
Everybodies doing it (CHp11). It must be good. Look at UAL, they have been operating under this protection for 3 years. If u dont want to or cant pay your bills you better go under Ch11 b4 the new rulz. I think this industry needs to be regulated again.

Cya

I respectfully disagree with re-regulation. Overcapacity and debt are the big reasons Ch. 11 is popular right now. The industry needs to thin out, either through mergers and/or some carriers ceasing to exist. Then, the remaining carriers must strengthen.

From that point, the airlines must turn a profit by increasing revenue and not by decreasing salaries. Yes, keeping your costs under control is important, but you can only do so much before you have to start raising ticket prices again.
 
Flyi's problem in Chapter 11 is you need DIP financing. I believe everything is already in hock at this point, so DIP financing will probably be out of the question. I can't see anyone throwing anymore money at a business model that will never work.
 

Latest resources

Back
Top