FlyerTalk Forums - View Single Post - [Speculation] Risk of AS Bankruptcy and Liquidity for Ticket Refunds

Mar 24, 2020 | 9:34 am

#15

BearX220

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Join Date: Jul 1999

Location: ORD/MDW

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There is increasing talk in DC of a temporary total shutdown of domestic air traffic, which would shrink Alaska's fuel bills for awhile if no other costs.
Unless Congress + Trump come up with a liquidity infusion for the airline industry furloughs are inevitable.
The Alaska brand is unlikely to disappear as a result of all this but will come back as a smaller, more SEA/SFO-centric carrier with fewer stations and frequencies.
AA is more likely to go bankrupt, and most likely to be carved up as a sacrificial lamb to appease those looking to use this moment to punish the industry for years of anti-customer behavior. AA is the prime lightning rod for anti-airline hatred right now, with UA right behind.
If any airline ceases trading customers are last-in-line unsecured creditors and their typical sole recourse is to take matters up with their credit card issuers.

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