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Leaner Northwest Airlines set for bankruptcy exit
Reuters ^
| May 31, 2007
Posted on 05/31/2007 10:19:32 AM PDT by Zakeet
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1
posted on
05/31/2007 10:19:33 AM PDT
by
Zakeet
To: Zakeet
Am I the only one who has problems with companies using bankruptcy for financial maneuvers? Dump some contracts, screw over some vendors and then go on like nothing happened while leaving your competitors who didn't go bankrupt at a competitive disadvantage. Maybe corporate bankruptcy should only be used as a method of liquidating and fairly dividing the assets of the bankrupt company.
2
posted on
05/31/2007 10:24:28 AM PDT
by
KarlInOhio
(Parker v. DC: the best court decision of the year.)
To: KarlInOhio
Northwest is a sad example of big business self-dealing itself into bankruptcy. Al Checci & Co looted this company and if it hadn’t been for the state of Minnesota, they wouldn’t have lasted long enough to enter bankruptcy court.
To: KarlInOhio
Am I the only one who has problems with companies using bankruptcy for financial maneuvers? Dump some contracts, screw over some vendors and then go on like nothing happened while leaving your competitors who didn't go bankrupt at a competitive disadvantage. Chapter 11 bankruptcy is a rather drastic measure - sort of like taking out your own appendix with a bottle of Scotch and a razor blade.
The company's old management is almost always sacked; the business is run by a trustee under the direct supervision of a federal judge. Collection actions are placed on hold along with nonessential cash payments while the court rewrites contracts and the business is streamlined. The idea is to try and salvage something for somebody where otherwise there would be almost nothing for anybody.
As with just about any other legal action, about the only persons certain to come out ahead at the conclusion of litigation are the lawyers.
4
posted on
05/31/2007 10:41:31 AM PDT
by
Zakeet
(Be thankful we don't get all the government we pay for)
To: Zakeet
For years, Northwest has avoided total financial collapse by treating the passengers like cattle. What is its plan to get out of bankruptcy - execute the passengers?
To: Zakeet
Ya gotta love it, management puts the company into chapter 11 then cuts everyones pay and gives themselves a raise to get out of it...
6
posted on
05/31/2007 11:00:44 AM PDT
by
N3WBI3
(Light travels faster than sound. This is why some people appear bright until you hear them speak....)
To: Zakeet
I flew NWA last week - they oversold the flight - I made it onto the plane, but several of their other flights out of detroit were being cancelled. I really dislike the old oversold seats thing...I would’ve been pissed had I not gotten aboard.
7
posted on
05/31/2007 11:20:42 AM PDT
by
mallardx
To: Zakeet
Are NWA flight attendants still going to be cranky?
To: Zakeet
I have flown to Asia on both Northwest flights and on Cathay Pacific flights. I highly recommend Cathay Pacific, even if you are just flying economy.
9
posted on
05/31/2007 11:39:10 AM PDT
by
ikka
To: KarlInOhio
All the problems after 9/11 made more than one airline insolvent. NW has sucked for a long time, but this was more than just a financial maneuver.
Maybe corporate bankruptcy should only be used as a method of liquidating and fairly dividing the assets of the bankrupt company.
Many companies that come out of bankruptcy are very successful. Look up the stock charts of NIHD or SHLD. Giving people and corporations a fresh start has been part of the American way since our beginning.
10
posted on
05/31/2007 12:00:32 PM PDT
by
Moonman62
(The issue of whether cheap labor makes America great should have been settled by the Civil War.)
To: N3WBI3
Ya gotta love it, management puts the company into chapter 11 then cuts everyones pay and gives themselves a raise to get out of it... The other option is for the workers to have no job at all. Plus they can always quit and work for someone else. And finding mangement for these companies and retaining them isn't easy.
11
posted on
05/31/2007 12:08:31 PM PDT
by
Moonman62
(The issue of whether cheap labor makes America great should have been settled by the Civil War.)
To: Moonman62
I don’t think it would be too hard to find a quality management team who manages to drive you into bankruptcy...
12
posted on
05/31/2007 12:10:03 PM PDT
by
N3WBI3
(Light travels faster than sound. This is why some people appear bright until you hear them speak....)
To: N3WBI3
Those guys are usually given the boot. It’s finding a replacement team that is difficult.
13
posted on
05/31/2007 12:11:39 PM PDT
by
Moonman62
(The issue of whether cheap labor makes America great should have been settled by the Civil War.)
To: KarlInOhio
Dump some contracts, screw over some vendors and then go on like nothing happened while leaving your competitors who didn't go bankrupt at a competitive disadvantage. While at the same time management rakes in huge bonuses for doing such a bang up job? Yep.
14
posted on
05/31/2007 12:13:47 PM PDT
by
Non-Sequitur
(Save Fredericksburg. Support CVBT.)
To: RowdyYates
Are NWA flight attendants still going to be cranky? Short staffed, salaries cut, benefits slashed. If they are cranky can you blame them?
15
posted on
05/31/2007 12:15:53 PM PDT
by
Non-Sequitur
(Save Fredericksburg. Support CVBT.)
To: Moonman62
And finding mangement for these companies and retaining them isn't easy. So what? The option for management is to have no job at all. And if they don't like the compensation they get at Northwest then they can always quit and go work for someone else.
16
posted on
05/31/2007 12:18:29 PM PDT
by
Non-Sequitur
(Save Fredericksburg. Support CVBT.)
To: Moonman62
Those guys are usually given the boot. Its finding a replacement team that is difficult. Heck, it must have been impossible for Northwest. Here's a link to the bios of Northwest's senior management. Look at the backgrounds. They're just about all long term Northwest employees. In other words, the same people who were on the management team that ran it into the ground in the first place are raking in big bucks at the cost of lenders, suppliers, and the rank and file.
17
posted on
05/31/2007 12:25:57 PM PDT
by
Non-Sequitur
(Save Fredericksburg. Support CVBT.)
To: Non-Sequitur
In this case it was industry conditions that put them into bankruptcy. They aren’t the only airline that’s been in bankruptcy since 9/11. If the creditors wanted to replace them they could have.
18
posted on
05/31/2007 12:28:23 PM PDT
by
Moonman62
(The issue of whether cheap labor makes America great should have been settled by the Civil War.)
To: Non-Sequitur
Short staffed, salaries cut, benefits slashed. If they are cranky can you blame them? Every other airline has experienced the same and NWA is by far the worst of the bunch.
To: RowdyYates
Every other airline has experienced the same and NWA is by far the worst of the bunch. I fly pretty frequently for work on Delta, NWA, United, TWA, and Frontier and it's been my experience that just about every airline is staffed with cranky employees these days. They're all stretched thin and trying to do more with fewer people, and paying those they do have less money.
20
posted on
05/31/2007 1:48:30 PM PDT
by
Non-Sequitur
(Save Fredericksburg. Support CVBT.)
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