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Author Topic: Market and Bankruptcy  (Read 2202 times)


  • Former member
Market and Bankruptcy
« on: June 07, 2009, 12:41:11 PM »
Hi guys,

another question from a noob: I understand that when an airline value is negative, it must not necessarily reflect an instant threat to freeze operation. E.g. An airline has 500.000 cash but loans of 2 mio. etc. I wonder however, when an airline is forced to cease operations. I am located in Frankfurt and hence have only little freedom to operate for the big boys have taken most attractive routes. However, two airlines located there are in fact in the red and I wonder if there is any experience when it may make sense to enter into direct competition on a few routes with them, in order to accelerate their drowning and in order to grab the routes early in that process. Is there an announcement when  they are bankrupt or are the routes etc. simply deleted? Thanks for your help!


dG Airlines

Online Sami

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    • AirwaySim - Are you the next Richard Branson?
Re: Market and Bankruptcy
« Reply #1 on: June 07, 2009, 12:59:20 PM »
Basically you get into problems when you run out of cash. Banks will give you some credit/goodwill but more than -3/5mil, expect some suits from the bank at your door.. To give a short answer.

There are no airline news yet that cover these happenings.. but would be nice to have them.


  • Former member
Re: Market and Bankruptcy
« Reply #2 on: June 07, 2009, 01:22:45 PM »
Ok, thanks for your answer. So you're saying that I don't need to fear a sudden government bail-out...  ;D


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