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suggestions to economically rescue airline-hotel-cruise companies in crisis

suggestions to economically rescue airline-hotel-cruise companies in crisis

Old Mar 27, 20, 10:51 am
Join Date: Jun 2013
Location: NYC
Programs: UA
Posts: 444
Originally Posted by TravelPhotographer
Can't an unlimited-limited pass contract include protections wrt bankruptcy?
That bankruptcy combined with continued service will NOT wipe out passes?
That bankruptcy filing will pre-trigger sliding scale refund based on how many
times pass was used, but in a way still very favorable to pass owner?
Etc Etc, there MUST be creative ways to resolve this issue.
How many hundreds of millions of $$ could an airline generate
if they offered, say, once-a-week busn class rt 20 yr pass for $500K
to those who have 2-yr history of flying on that airline of less than monthly...?
That kind of qualifier would protect airline from losing $$ from frequent spenders...?
Not an attorney but my understanding is that bankruptcy is quite complicated and there are laws on priority of secured and unsecured creditors. I went to a meeting with a bankruptcy lawyer about a possible chapter 7 for a business. The concern was whether the landlord would enforce the terms of the lease which would mean bankruptcy versus just shutting down. It was only one meeting as a different business assumed the lease so no need for bankruptcy.

Creativity is not really part of bankruptcy.

I do not think that there would be an easy way to offer such passes with all that protection given the various federal and state laws on bankruptcy.
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