US airlines go through Chapter 11 - bankruptcy/creditor protection - while some of the planes keep flying. During the last decade, only two airlines though emerged from the process in some OK shape or form:
Through the 90s and 00s, Delta, United and AA emerged OK after filing for Chapter 11:
The UK Scheme of Arrangement under the English law allows for similar cases, at least on paper it can work, to make sure operations continue as normal.
However, currently there is almost no business as people aren’t flying, so they can’t segregate the day-to-day ops from the balance sheet reorganisation.
So, when you’re stuck with a choice between investing/building and buying ventilators, supporting millions of people, and bailing out Virgin Atlantic which employs 10,000s, what do you do before May 2020?
In addition to airline workers, there’re already a bunch of coders getting laid off right now, not to mention blue collar workers.
What is staying open? Grocery stores, food banks, pharmacies, restaurants for takeout food and delivery only, veterinary services, pet-food stores, gas stations, auto repair shops, hardware and other home-supply stores and home repair services, banks and laundry services. Child-care facilities are allowed to remain open as long as rules limiting the size and composition of the groups are restricted. Residential care facilities for adults, children and seniors will remain open as will food banks and other non-profits that serve the needy. Delivery services that take food, goods or services directly to residences are allowed to operate.
We need coordinated global policy like this to help arrest the continued market dislocation, but I suspect the HMG announcement today will fall (far) short…
Yeah I bought some shares in Shell yesterday under £10. I don’t mind these dividend stocks going down a bit more as I’ll just buy and hold more of them
Buying less ETFs and more companies now, not my usual strategy but there are some lucrative entry points appearing. Just wish Freetrade would hurry up with the fractional shares already!
VIX now higher than during the GFC. Better strap in, ladies and gentlemen, it’s going to be a frikkin’ wild ride - especially when the bail out request start pouring in.
Laura Ashley is in administration. That’s 2700 jobs, 150 stores. Plus everything that goes with it, so rents, rates, goods, insurance, advertising etc etc.