Airlines and Bankruptcies
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Airlines and Bankruptcies
Does anyone else feel the anxiety about booking your upcoming trip to Europe on any of the several US airlines already in bankruptcy, or those considering bankruptcy in the near future? Watching the news, we are starting to consider other airlines as options since it is becoming increasingly difficult to plan more than a few weeks ahead of time when you don't know if your favorite airline will be around after the first of the year. It seems that all of the major carriers are now in financial trouble and that even goes for some of the major European carriers. It would be nice to be able to use one of the smaller companies that are still financially viable like Jet Blue, but they don't provide direct service to any European destination.
Maybe it's time for the federal government to consider re-regulating the airline industry since it is a vital part of our economy and has been out of control for years. All of the cutbacks do nothing to boost my confidence that any of them will survive for very long. Which one will be the first to join Pan Am and TWA in their slide into oblivion?
Maybe it's time for the federal government to consider re-regulating the airline industry since it is a vital part of our economy and has been out of control for years. All of the cutbacks do nothing to boost my confidence that any of them will survive for very long. Which one will be the first to join Pan Am and TWA in their slide into oblivion?
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It is my understanding that your tickets are protected against bankruptcy if you purchase them with a credit card. But still, I'm sure it'd be a big hassle to rebook your flights, especially if it's so close to your departure date (or worse, while you're on vacation!).
#3
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Stop being so melodramatic, the Enron scandal is far more serious and damaging than losing a flight which in most cases can be claimed for from travel insurance.
Here in the UK, Equitable Life, an extremely long established company has serious question marks over whether they will be able to fulfil commitments to their thousands of policyholders. Airlines are small-fry in comparison to issues such as this.
As for lots of posters' neuroticism over Alitalia, they are currently in the midst of a big advertising campaign here in the UK, if they offered the service i wanted, I'd have not the slightest hesitation in using them.
Here in the UK, Equitable Life, an extremely long established company has serious question marks over whether they will be able to fulfil commitments to their thousands of policyholders. Airlines are small-fry in comparison to issues such as this.
As for lots of posters' neuroticism over Alitalia, they are currently in the midst of a big advertising campaign here in the UK, if they offered the service i wanted, I'd have not the slightest hesitation in using them.
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They are not going to fold up in an instant. They are just filing for protection from their creditors. How many US airlines have done this already? I've flown UAL just February and flew American Airlines in July. Plus we book tickets way in advance like 6 months in advance. It's never bothered me. If you feel that int'l. airlines are safer that's fine but they are having problems also.
It's true about Alitalia's ad campaigns lately. Also the domestic airlines that are having financial problems are advertising just as much as ever.
It's true about Alitalia's ad campaigns lately. Also the domestic airlines that are having financial problems are advertising just as much as ever.
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Just be aware, as I posted in another thread a few days ago, that the US law protecting passengers if their airline goes out of business is expiring Nov. 16 and probably won't be renewed this year.
This means that if your ticket is no good because your airline goes belly-up, other airlines are no longer required to honor your ticket on one of their flights. They MAY do so as a matter of their own policy, but it's entirely up to the airline.
This means that if your ticket is no good because your airline goes belly-up, other airlines are no longer required to honor your ticket on one of their flights. They MAY do so as a matter of their own policy, but it's entirely up to the airline.
#6
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You are protected only so far when it comes to airline tickets. If the one your using folds just before your scheduled departure, you loose regardless of who picks up your ticket if that airline is not serving the same routes as the one that went bankrupt. And if there are no seats available on your travel dates, what are you going to do? What about the hotel at your intended destination? Regarding travel insurance. It doesn't kick in until you actually leave your home country. Besides, no travel insurance company will cover you on an airline that is already in bankruptcy.
There have been two major airlines that have folded in recent years disrupting a number of travelers. When TWA went under not all of there routes where picked up and some airports lost major jet service. Some airlines could fold in an instant if the board of directors decide to liquidate their holdings. It could happen overnight. The debt load on several airlines makes it hard for them to find financing in order to emerge from bankruptcy. No, this is not Enron, it is far more since it will have major impacts on all of our public transportation systems, at home a abroad.
Advertising means very little in any business. You can advertise specials and tempting discounts right up to the moment when you close your doors leaving the buyer holding an empty bag. It's not a matter of trusting international airlines over domestic, it's a matter of getting a handle on the problem with all airlines today. Too high of a debt load, too little income and an unregulated public transportation system necessary to the health of the economy.
There have been two major airlines that have folded in recent years disrupting a number of travelers. When TWA went under not all of there routes where picked up and some airports lost major jet service. Some airlines could fold in an instant if the board of directors decide to liquidate their holdings. It could happen overnight. The debt load on several airlines makes it hard for them to find financing in order to emerge from bankruptcy. No, this is not Enron, it is far more since it will have major impacts on all of our public transportation systems, at home a abroad.
Advertising means very little in any business. You can advertise specials and tempting discounts right up to the moment when you close your doors leaving the buyer holding an empty bag. It's not a matter of trusting international airlines over domestic, it's a matter of getting a handle on the problem with all airlines today. Too high of a debt load, too little income and an unregulated public transportation system necessary to the health of the economy.
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Many companies reorganize under bankruptcy without ever going out of business. Remember Chrysler? I wouldn't worry overly much about it at this point. If you feel better booking on an overseas carrier then that is what you should probably do. I for one am going to continue booking in advance just as I have always done and will book with the airline that offers the best fair, the best route to the location I want to go to. If they go belly up between now and my departure date I will simply have to find another means of getting to my destination. It would certainly be inconvenient but not the end of the world. To many really important things to worry about in life and not enough time to sweat the small stuff. Take Care Jackie
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LLindaC
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Oct 18th, 2005 12:21 PM