Here was an excellent shitty use of your tax money. It appear that U.S. Airways, already a recipient of millions of dollars of our money in a federal bailout, is seeking protection from creditors again
Barring a last-minute change of heart by its recalcitrant unions, US Airways appears all but certain to seek bankruptcy protection on Sunday, people briefed on the situation said yesterday.In that event, the airline is considering a bankruptcy filing without debtor-in-possession financing, a standard feature of most Chapter 11 cases. Instead, it would rely on cash on hand to finance its operations and would explore whether it needed additional financing in the future, these people said.
Christopher L. Chiames, the airline's senior vice president for corporate affairs, declined to say yesterday whether a bankruptcy filing, which would be the airline's second in two years, was imminent. "All along in this process, we've acknowledged that a bankruptcy filing might be necessary, but no decisions have been made," he said.
The final say is up to the US Airways board, which has not met to discuss the issue, he said. But the board can meet by telephone and could do so on short notice.
The airline sought Chapter 11 protection in August 2002, a filing that also took place on a Sunday. It emerged in April 2003, backed by a $900 million package of federal loan guarantees, the largest awarded by the Air Transportation Stabilization Board.
Now, I am usually on the side of business. But in this case I say let them go out of business. It sounds harsh, but in a free market, if they can't compete and make money, why should I bail them out?
After the September 11th attacks, it was proper for the government to assist the airlines that suffered near catastrophic economic damages. But that being said, there are many airlines that are making money and doing well.
Jet Blue and Southwest come to mind. If they can make it, offering a great service at a reasonable price, and making money too, then they should be the new standard bearer. No one cried when Woolworth died away to make way for K Mart, K Mart is sliding away making room for Wal Mart, and no one will cry when Wal Mart goes away for the next big thing.
It's how the free market works.
Posted by psugrad98 at September 10, 2004 08:36 AM
