Chapter 11 Bankruptcy Protection!
The companies calls it "restructure" but it means employees that stands to loose jobs, pensions, creditors who loose money, etc.
Here is one example on what happens and while the flying public do not feel any changes, a lot of employees and creditors are.
xxxxx is expected to trim about 2,100 jobs at its maintenance facility in xxxx under a bankruptcy reorganization plan released on Wednesday.
The xxxx Maintenance Base, where mechanics overhaul several types of aircrafts and jet engines, currently employs about 6,800 workers..
xxxx filed for Chapter 11 bankruptcy in November, and released a proposal Wednesday saying it planned to eliminate about 13,000 jobs, or 15 percent of its workforce. The cuts will mostly affect maintenance workers and baggage handlers, but also will include flight attendants, management employees and pilots. xxxx also is proposing an end to its traditional pension plans.
If you look at the announcements coming from Chapter 11 protected airlines, it looks like "Burn and Slash". Is this method of shedding debt and lower cost the correct way, or would it be better just to let them liquidate and wind down. Let the strong survive and the weak dissapear. What do you think?
Gravity always wins!