Chapter 11 confirmed for Independence
Nov 8, 2005, 6:51 am
#31
Join Date: Mar 1999
Location: SFO
Programs: United 1K
Posts: 2,264
This is tailor made for Jet Blue to take over their routes if Flyi liquidates.
Nov 8, 2005, 7:13 am
#32
Join Date: Jun 2001
Location: IAD
Programs: Chase Million Miler, SPG Gold, HHonors Gold, Hyatt Platinum
Posts: 2,729
Originally Posted by spampurse
Remember, this is not a Chapter 7 filing. This is still a chapter 11 filing, with an auction meant to attract investors.... (granted, if no investors are found it could very quickly turn into a chapter 7 type liquidation). If the board really thought that there were no interested investors they could have filed Chapter 7 long ago, but the fact is that any investor interested in DH would have probably been waiting for the Chapter 11 filing so that they didn't have to inherit the high cost structure that has been the killer for DH so far. There is a reason this was Chapter 11 and not 7. As it stands now, DH can dump most or all of their costly CRJs, trim or terminate costly labor agreements, and renegotiate their vendor contracts... if all that happens (which you can bet it is already in the works), DH just might find those investors they need to continue flying. Anyway, the bid for investment will all be wrapped up in 60 days, so by Jan 7 we should know one way or another.
DH *does not* have any costly labor agreements that will get shed in Ch 11. They already have a pay scale that is representative of a regional airline (IOW, the employees are already paid like crap) and the pilots have no pension. So, no savings there.
The *only* thing that I think will keep them flying (not "save" them, but keep them flying) is the fact that there is an excess of CRJ's in the market, and the lessors may figure it is best just to get what they can from DH as opposed to parking them or trying to put them on the open market. As long as DH pays their fuel bill and the lessors can't dump the planes elsewhere, they will still fly.
Nov 8, 2005, 7:16 am
#33
Join Date: Jun 2001
Location: IAD
Programs: Chase Million Miler, SPG Gold, HHonors Gold, Hyatt Platinum
Posts: 2,729
Originally Posted by jaguar
This is tailor made for Jet Blue to take over their routes if Flyi liquidates.
Nov 8, 2005, 7:47 am
#34
Suspended
Join Date: Apr 2005
Posts: 799
How is Independence Air going to be able to hold on to their staff when it appears likely that in 90 days (or less) they will all be out of work. Without much of a future at their current employer, I would expect many employees will quit, call in sick, stop trying, or delay or cancel flights without much fear.
What do you think?
What do you think?
Nov 8, 2005, 8:12 am
#35
Join Date: Sep 2005
Posts: 12
Originally Posted by greenery
How is Independence Air going to be able to hold on to their staff when it appears likely that in 90 days (or less) they will all be out of work. Without much of a future at their current employer, I would expect many employees will quit, call in sick, stop trying, or delay or cancel flights without much fear.
What do you think?
What do you think?
Nov 8, 2005, 8:13 am
#36
Join Date: May 2001
Location: IAD
Posts: 6,148
Everything I read blames fuel costs. Hello! DH would have lost money in Q2 if fuel were free.
Can someone get 12 A319s, an operating cert, a FF database, gates and employees cheaper from this 'auction' than after a liquidation?
DH's A319 engines don't match the ones on F9's Airbii. Maybe Ted will buy them. RAR!
Can someone get 12 A319s, an operating cert, a FF database, gates and employees cheaper from this 'auction' than after a liquidation?
DH's A319 engines don't match the ones on F9's Airbii. Maybe Ted will buy them. RAR!
Nov 8, 2005, 8:56 am
#37
Join Date: Aug 2005
Location: Washington DC
Posts: 243
Originally Posted by cedric
AC/Jazz could be a possibility. As part of their investment in US, they've already agreed that any additional US Express flights to Canada will be flown by Jazz. But if Jazz could start operating as US Exp in the States, I'm sure they'd much rather do that. This would be an easy way in - purchase a US operating certificate and have the CRJs all lined up and ready to go.
But Jazz/AC is a Foreign entity and can not control/fly soley within the US market. They can do all the trans boder flying they want but the can't go getween IAD and LGA for example. THAT WOULD BE CABATOGE. which is illegal.
And the "impending" changes in foreign ownership rules are not going to change in time, if at at all, for FlyI's benefit.
DC
Nov 8, 2005, 10:14 am
#38
Join Date: Jun 2004
Location: DEN and a barrier island near RSW
Programs: 1K (I know, my screen name is outdated), Marriott Plat, *Wood Plat, Five Star, Amex Plat
Posts: 1,360
Originally Posted by DH Employee
We won't go down without a fight!
What are you going to fight for? Are you going to put a gun to the head of some investor and say "you better put money into this company?" The business model isn't broken, it never was a viable business model to begin with!
Nov 8, 2005, 10:24 am
#39
Join Date: Aug 2004
Location: Fairfield County, CT
Programs: DL Gold Medallion
Posts: 213
Originally Posted by MileageAddict
I think you'll be fine for December but all bets are off for January. I hope you paid with a credit card.
Nov 8, 2005, 1:31 pm
#40
Join Date: Mar 2005
Location: DEN
Programs: UA1K
Posts: 4,044
that is a lot of gate slots being given up when DH goes under. personally, i would like to see UA take over A and get rid of the G concourse. could you see southwest coming into IAD? i mean, that's more than half the gates at the B concourse that would be freed up. interesting for sure.
Nov 8, 2005, 2:24 pm
#41
Join Date: Feb 2003
Location: Washington, DC, USA
Posts: 739
Originally Posted by haddon90
that is a lot of gate slots being given up when DH goes under. personally, i would like to see UA take over A and get rid of the G concourse. could you see southwest coming into IAD? i mean, that's more than half the gates at the B concourse that would be freed up. interesting for sure.
Nov 8, 2005, 2:35 pm
#42
FlyerTalk Evangelist
Join Date: Jan 2002
Location: Greater DC
Programs: UA plus
Posts: 12,943
Why would b6 want embraers? Are they using those somewhere else? I thought their plan had a single plane type
Nov 8, 2005, 3:43 pm
#43
Join Date: Sep 2005
Posts: 12
Originally Posted by DENPremEx
What are you going to fight for? Are you going to put a gun to the head of some investor and say "you better put money into this company?" The business model isn't broken, it never was a viable business model to begin with!
Nov 8, 2005, 3:48 pm
#44
FlyerTalk Evangelist
Join Date: May 2001
Location: LAX; AA EXP, MM; HH Gold
Posts: 31,789
Originally Posted by GoingAway
Why would b6 want embraers? Are they using those somewhere else? I thought their plan had a single plane type
Nov 8, 2005, 4:35 pm
#45
Join Date: Jun 2004
Location: DEN and a barrier island near RSW
Programs: 1K (I know, my screen name is outdated), Marriott Plat, *Wood Plat, Five Star, Amex Plat
Posts: 1,360
Originally Posted by DH Employee
What I meant by my statement of we won't go down without a fight is obvious we can't force somebody to invest in us, but I will continue to give 110% to my job and operate as businnes as usual! I'm going to trya and continue to produce a product that is attractive to our customers and hopefully to investors.
^ I admire your attitude. The world would be a better place if more people had that outlook. The airline industry, as a whole, would be in a lot better shape if more people had your outlook. I apologize if my initial post seemed aggressive, I am so used to airline emplyees fighting to hold on to salaries/benefits/work rules that, in some cases, are causing the problems to begin with.