Chapter 11.

[flyinhigh]

While all the Canadian airlines have a healthy bank account, I feel (only due to my pure hatred of the liberals) that all companies should file Chapter 11. Could you imagine the shit show in YOW if AC, WS, TS, Sunwing and the likes say enough is enough we can't shed anymore, only way out is Chapter 11.

I feel the liberals want everyone to burn their rainy day funds into the red before anything happens, yet in 10 years when this occurs again we will be in a worse off position. So with that, everyone file. I mean 1.6 Billion lose and nothing out of YOW, COME ON......

[Inverted2]

I unfortunately think it’s going to happen on its own, very soon for some companies. Those who aren’t already struggling to keep the bills paid won’t be able to take any vacations this winter if you have to quarantine for 2 weeks without pay after your vacation. Airlines can’t rely on domestic travel alone.

[rudder]

While all the Canadian airlines have a healthy bank account, I feel (only due to my pure hatred of the liberals) that all companies should file Chapter 11. Could you imagine the shit show in YOW if AC, WS, TS, Sunwing and the likes say enough is enough we can't shed anymore, only way out is Chapter 11.

I feel the liberals want everyone to burn their rainy day funds into the red before anything happens, yet in 10 years when this occurs again we will be in a worse off position. So with that, everyone file. I mean 1.6 Billion lose and nothing out of YOW, COME ON......

Here in Canada, you mean CCAA.

I highly doubt that YOW could care less about shareholders being wiped out or aircraft leasing companies stuck with prematurely returned aircraft in any corporate restructuring while under court supervised protection from creditor claims.

My guess is the only eye opener would be a liquidation result vs a restructured result for one or more carriers. However, some might say that it is the best way to remove excess capacity.

[sunk]

Let them go broke, why should they be bailed out. Poor service offered by all airlines, to many flights to the same city, at roughly the same time. I’m tired of private companies getting free money. Let the weak go broke and the strong survive, or new one start up.

[mixturerich]

Let them go broke, why should they be bailed out. Poor service offered by all airlines, to many flights to the same city, at roughly the same time. I’m tired of private companies getting free money. Let the weak go broke and the strong survive, or new one start up.

Have you no compassion. A very large number of airline employees have little effect on the type or quality of service offered. These people would lose their jobs (and all of their seniority).

Go fly a kite.

[Dh8Classic]

Let them go broke, why should they be bailed out. Poor service offered by all airlines, to many flights to the same city, at roughly the same time. I’m tired of private companies getting free money. Let the weak go broke and the strong survive, or new one start up.

It is time for a major change in the entrenched industry. And the bottom line is, why should taxpayers money be used to keep something much bigger than it needs to be.

I see a new airline starting up right now. Good opportunity for those excluded by the mainline carriers.

[sunk]

People lose their jobs all the time, supply and demand. Should the government bail out every company that is going broke? Hell no.

[digits_]

Have you no compassion. A very large number of airline employees have little effect on the type or quality of service offered. These people would lose their jobs (and all of their seniority).

It could be a trigger to throw out the seniority principle and pay based on experience. If the worst happens (busted airlines), it could be a silver lining.

[iflyforpie]

I’m willing to bet the largest benefactors of airline seniority are the biggest whiners about taxes and handouts.

A profound irony.

[CaptainHaddock]

It’s very shortsighted to just say ‘let them go broke’, their previous size was built from demand for air travel by Canadians (which will return). The pandemic and associated restrictions are well outside the airlines (or any industries) radar or control. Saying a new airline will come up to meet the demand is also a bit short sighted. The ‘new Airline’ will only service profitable routes to start. It would take years (decade?) for smaller cities to get competitive regional service.
You might get your wish anyway, with travel restrictions in place domestically and internationally and large virus spikes in other countries. There won’t be any new airlines starting up in the current environment either. So you are hoping the current ones burn through all their current financial resources, go bankrupt and lay off the remaining 20-30000 employees-then the ‘New Airline’ comes in flush with financing and starts friendly ultra cheap service to Wabush.

[Woop_de_doo]

Hah

[goldeneagle]

I feel the liberals want everyone to burn their rainy day funds into the red before anything happens

That's what a rainy day fund is for......

[McKinley]

Just me personally, but I think this situation goes beyond what one could consider as a rainy day fund.

Air travel denuded by 90% and a pandemic with little information known about the virus, waves of the virus and a total global economic shutdown, and closed borders for the foreseeable future..... there’s recessions that are a part of the economy’s life cycle .. fine, yes, one should be prepared for that.. but this is on a whole different level....just my .02.

It would suck to see the airlines pull the bankruptcy card but I won’t be surprised if it goes down. JT bailed out big oil (highly hypocritical),the arts and everything in between but not the main mode of transportation in Canada. WTF?!!

[Eric Janson]

Hate to say it but it will come down to a simple Business case imho.

Keeping the company running will cost X.

Closing it down and starting again from zero will cost Y.

When Y becomes the cheaper option - it may very well happen.

There are pluses and minuses associated with each option.

There will be winners and losers no matter which way this goes.

[fish4life]

First of all companies can just declare CCAA, they have to prove in court why it’s required and open the books.

Second the best thing Canadian airlines could do is all stop operating the same day and if they are an “essential service” the. Government would be forced to do something.

[goldeneagle]

Second the best thing Canadian airlines could do is all stop operating the same day and if they are an “essential service” the. Government would be forced to do something.

The government has already facilitated a multi billion dollar interest free loan for the airlines in the form of 'no refunds'. This is a festering issue that wont really rear its head until flights get going again. But the example that's going to create a shit-storm. Joe bought a ticket to Kona for 349, then the flight was cancelled, Joe got a 'travel credit'. Wind the clock forward, now that same airline has put a price of 650 on the ticket to Kona, so the travel credit is rather worthless unless Joe wants to fork up another 300 bucks on top of what he already paid. It basically turns into a massive government approved bait and switch for billions of dollars.

How much more do you want ????

[Gilles Hudicourt]

Can you provide a specific example of a ticket that was sold at at price Which it now double ?
What i’ve heard these days are that prices are dirt cheap......

[Bede]

First of all companies can just declare CCAA, they have to prove in court why it’s required and open the books.

That is true, but my guess is that any Canadian airline would be granted creditor protection. If I recall, the CCAA sets the bar at owing more than $5M to creditors, which I'm sure that they all do. I've never heard of a company applying for creditor protection and being denied.

[flyinhigh]

Correct. However I do not believe it would be to hard for any airline to get protection when they show that at current cash flow rates there will be zero cash in 5-6 months.

First of all companies can just declare CCAA, they have to prove in court why it’s required and open the books.

[RRJetPilot]

https://youtu.be/C-m3RtoguAQ