I've seen Airline Chapter 11 Cases, up close and personal.
They tend to be very large, and they're fairly high-impact cases, because they're big employers in the areas around their hubs.
After a spate of airline cases, Congress tinkered with the Bankruptcy Code to make it easier for lenders to get their ways in those cases.
Which means that if people continue to get the lousy service, lousy food, lousy prices, lousy legroom, and the near-sex experience of a TSA "pat down" or the near-Japanese Reactor experience of a full-body x-ray, they just might opt to use Skype.com Video Conferencing instead of flying.
That doesn't sound like much in the way of economic importance, but if flying becomes adequately expensive and unpleasant, that means that hotels will get to file Chapter 11 Cases. And resorts. And restaurants. And retail shops that cater to tourists.
But wait!
Did I say Chapter 11?
Given the perfect storm of unpleasant flying, a depression, rising inflation, rising food prices, and rising gas prices, hotels and their friends may wind up in Chapter 7 Cases, instead.
And that would be very bad, indeed.
They tend to be very large, and they're fairly high-impact cases, because they're big employers in the areas around their hubs.
After a spate of airline cases, Congress tinkered with the Bankruptcy Code to make it easier for lenders to get their ways in those cases.
Which means that if people continue to get the lousy service, lousy food, lousy prices, lousy legroom, and the near-sex experience of a TSA "pat down" or the near-Japanese Reactor experience of a full-body x-ray, they just might opt to use Skype.com Video Conferencing instead of flying.
That doesn't sound like much in the way of economic importance, but if flying becomes adequately expensive and unpleasant, that means that hotels will get to file Chapter 11 Cases. And resorts. And restaurants. And retail shops that cater to tourists.
But wait!
Did I say Chapter 11?
Given the perfect storm of unpleasant flying, a depression, rising inflation, rising food prices, and rising gas prices, hotels and their friends may wind up in Chapter 7 Cases, instead.
And that would be very bad, indeed.
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