Helping Bankrupt Airlines

[Speedbird1]

I am curious why past airlines in dire straits never filed for bankruptcy protection, causing them to go-out-business. It is interesting that American, US Air, and several other current US airlines have filed for or are near bankruptcy and are still flying, while TWA, Pan Am, Eastern, as well as others, are gone. Why weren't the older airlines helped?

[T-Bird76]

All those airlines that went out of Business did file for Bankruptcy. Bankruptcy doesn't mean your going to make it, they were all to far-gone with poor business plans and to much debt to recover. Most of the out of business airlines were purchased by airlines today...

-TWA was purchased by AA
-PanAm's assets were purchased by Delta
-US was bought by America West

btw AA never filed for Chapter 11 Bankruptcy and won't have to.

[hiss srq]

Actaully US was not purchased by America West nor was America West obviously purchased by US. A holdings company was created that purchased both companies.

[T-Bird76]

Actaully US was not purchased by America West nor was America West obviously purchased by US. A holdings company was created that purchased both companies.

AWA ran the parent of the holding company allowing them to buy out most of US's assets. The old corporation and whatever reminded of U.S Airways went into Chapter 7 and was liquidated. Sorry bud but AWA bought out US.

[lijk604]

-PanAm's assets were purchased by Delta

...with the very notable exception of their Pacific route system. That was purchased by UAL along with a few B747-SP's, and yes folks, a few L-1011's.

[T-Bird76]

-PanAm's assets were purchased by Delta

...with the very notable exception of their Pacific route system. That was purchased by UAL along with a few B747-SP's, and yes folks, a few L-1011's.

Those were sold off before the shut down weren't they? Delta was giving PanAm money helping to keep them alfoat for sometime. It was when Delta decided to with hold a payment of 10 mil or so is when they decided to end it.

[lijk604]

[quote=T-Bird76]

-PanAm's assets were purchased by Delta

...with the very notable exception of their Pacific route system. That was purchased by UAL along with a few B747-SP's, and yes folks, a few L-1011's.

Those were sold off before the shut down weren't they? Delta was giving PanAm money helping to keep them alfoat for sometime. It was when Delta decided to with hold a payment of 10 mil or so is when they decided to end it.[/quote:3sy4id22]

Tommy, I think you're right, it was before the shutdown of PanAm, but they definitely were in bankruptcy at the time. I remember UA got those assets for a steal.