<p>Ok, now that I have bought tickets for Parent’s weekend on Northwest, will they be honored in the event of a bankruptcy.</p>
<p>I have no experience in this regard, but I am sure that in the CC cumulative knowledge pool, someone has had to deal with this in the past.</p>
<p>Sure, but maybe only on NW airlines.</p>
<p>I’ve never been able to tell the difference, as a customer (I’m sure I could if I were a stockholder!) between any business (including an airline) in bankruptcy vs one not in bankruptcy…w/reorganization the standard, it looks & feels like “business as usual” from a customer’s point of view…e.g., United: they’re still in bankruptcy, but I’ve flown numerous UA flights since they went into it…you should be fine…</p>
<p>bankruptcy aint what it used to be…</p>
<p>Chapter 11 is now a business tool, one used to manage legacy obligations, be those legacy obligations leaseholds, loans or pensions. The goal of chapter 11 is to keep the ongoing business alive. </p>
<p>Chapter 7 is liquidation. That’s not what’s on the table.</p>
<p>The only note of warning is that there is some chance of increased labor unrest in a Ch. 11, so one can anticipate increased delays in the early days. But the passengers will be moved. Otherwise an 11 becomes a 7!</p>
<p>NWA has not filed for any kind of bankruptcy. Apparently, like every other airline, they’ve been hard hit by the aftermath of the hurricane.</p>
<p>I wouldn’t worry yet. The last few airlines to file for bankruptcy protection are all still flying. It seems to mainly be a move to get concessions from the unions.</p>
<p>NWA and Delta have both now filed.</p>
<p>So I wonder what they can expect now? Yes, it is a business tool but the other scenario is getting a 40% payout of what you were expecting to get for retirement…and the stock is in the crapper for sure…both of them.</p>