Airline Industry.
Ryan Air had just announced that the company is planning to ground up to 20 aircrafts during the winter traveling season, citing rising operating costs. When I heard this news, I almost could not believe it because as far as I know, airline companies would rather fly an aircraft rather than let it sits idly on the apron. But I guess, the time has finally come that the rising fuel costs make it impossible for airlines to keep flying.
As in my previous post on Oasis Hong Kong, a lot of other airline companies have shared the same untimely death. And I cannot possibly imagine what other airlines would fall next. But I do know that at least the so-called national carriers will continue to run even if it makes no economical sense to do so (Alitalia comes to mind). Having said that, I do not think that any airline deserves to die, but since we all live in a free market, I guess sometimes the inevitable could happen. Take Malaysia Airlines for example, had the company not done anything about the bleeding cash flow problem few years back, I would not be flying with them this July.
Speaking about Oasis Hong Kong, I really pity a friend of mine who already paid 400 pounds for a round-trip to Hong Kong this summer. Now that Oasis had gone into liquidation, he might not even get his money back. The thing with liquidation is, the people who would get their money from it depends on your rank on the liquidator's (in this case, KPMG) list. And usually the first priority will go to the creditors (banks, financial institutions, suppliers), then the bond holders, then the preference shareholders, followed by ordinary shareholders, then the customers. And given the circumstances, when the customers' turn comes, there would be nothing much left to be liquidated.
This is asterix.
As in my previous post on Oasis Hong Kong, a lot of other airline companies have shared the same untimely death. And I cannot possibly imagine what other airlines would fall next. But I do know that at least the so-called national carriers will continue to run even if it makes no economical sense to do so (Alitalia comes to mind). Having said that, I do not think that any airline deserves to die, but since we all live in a free market, I guess sometimes the inevitable could happen. Take Malaysia Airlines for example, had the company not done anything about the bleeding cash flow problem few years back, I would not be flying with them this July.
Speaking about Oasis Hong Kong, I really pity a friend of mine who already paid 400 pounds for a round-trip to Hong Kong this summer. Now that Oasis had gone into liquidation, he might not even get his money back. The thing with liquidation is, the people who would get their money from it depends on your rank on the liquidator's (in this case, KPMG) list. And usually the first priority will go to the creditors (banks, financial institutions, suppliers), then the bond holders, then the preference shareholders, followed by ordinary shareholders, then the customers. And given the circumstances, when the customers' turn comes, there would be nothing much left to be liquidated.
This is asterix.
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