How does Chapter 11 work?

[katallo]

I'm curious. If we have a trip scheduled on Air Tran and they file for bankrupcy will all flights be cancelled or will they cease to sell new tickets? I guess I'm asking if tickets are purchased will we be ok to fly. Thanks

 

[mgilmer]

A Chapter 11 can work as either a reorganization which allows the company to try to get its house in order to stay in business or it can also be a liquidation where the business says it cannot continue to do business and asks the court to liquidate its assets and pay off its debts as best as possible. You cannot tell which way it will go until it is filed.

 

[bavaria]

I flew UA on the day they entered chapter 11 and the day they exited chapter 11, and hundreds of days in between. Nothing was different except for the employees who were of course in more fear for their jobs than usual.

But I see United and I as partners; I need them as much as they need me. The employees appreciated a kind word or empathy for their position.

The cockpit crew on both days did make a brief announcement; the first to reassure and the second to celebrate. Both were appropriate to the situation.

 

[CarolA]

If they file Chapter 11 they will more then likely keep right on flying and you or I would not notice.

Now, there might be more schedule reductions etc, but my crystal ball cracked a few years ago so I don't really know.

I flew Delta thoroughout thier Chapter 11 and never had any issues!

Frontier is up and flying right now in Chapter 11.

 

[ExPirateShopGirl]

If they file Chapter 11 they will more then likely keep right on flying and you or I would not notice.

Now, there might be more schedule reductions etc, but my crystal ball cracked a few years ago so I don't really know.

I flew Delta thoroughout thier Chapter 11 and never had any issues!

Frontier is up and flying right now in Chapter 11.

Frontier is also drawing on their letters of credit