Latest news with #airlinebankruptcy
Travel Weekly
02-07-2025
- Business
- Travel Weekly
100 years of airline survival
The terror attacks of 9/11 were the first salvo in what would end up being a wave of U.S. legacy airline bankruptcies and consolidation over the next 15 years. High fuel prices, especially after Hurricane Katrina, were another major noose on an industry still working its way through the post-deregulation readjustment. And the success of Southwest, coupled with emerging low-cost carriers like Spirit, was placing pressure on higher-cost operators. TWA, which filed for bankruptcy prior to 9/11, was the first legacy brand to disappear in the new millennium, merging into American in late 2001. Bankruptcies would follow at United, Delta and eventually American, along with Northwest, US Airways, Continental and several smaller carriers. Out of the wreckage, the Northwest brand folded into Delta, flying its last branded flight in 2010. Continental merged into United, flying its last flight in 2012. And US Airways last took to the sky in 2015, merging with American. Brand power was a key factor in which airline names survived these 21st century mergers of legacy carriers. In the case of Delta/Northwest, it was the Delta management team that took control. But in the cases of United and American, the names survived, while the management teams didn't. Oakley said that United's reputation was among the worst in the industry at the time of its merger with the more respected Continental, leading to widespread consternation among Continental employees. But, noted Van der Linden, the United brand name took the day even as the Continental leadership took control. After all, United had for most of the previous several decades been the largest U.S. airline. 'In marketing, a lot more people were familiar with United than they were with Continental,' he said. American used its merger with US Airways to navigate out of Chapter 11, which it had entered into in 2011. Out of the merger, control was turned over to the US Airways management team — the same team that several years earlier had graduated to US Airways from America West, also through a merger. But the US Airways brand gave way to more prominent American. 'American is an iconic brand and is our flag carrier for the country,' Caroline Clayton, the airline's chief marketing officer, said in a recent interview. 'When you have a brand with that kind of power, that loyalty, that affinity and dedication from team members and customers, you use that.' With Delta having reached 100, and American and United set to follow soon, Van der Linden said the three remaining U.S. legacy airlines can expect to be around for a while to come. 'We're back, in a way, to before 1978 with an oligopoly,' he said, referencing the date of deregulation. 'It has taken 40-plus years for the dust to settle, but the industry has settled down.'
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Travel + Leisure
12-06-2025
- Business
- Travel + Leisure
This Airline Abruptly Shut Down Leaving Caribbean-bound Travelers Completely Stranded—What to Know
Travelers visiting the Caribbean should carefully review their upcoming travel plans. Regional airline Silver Airways, which operated local flights through the region, has abruptly shut down all operations. 'We regret to inform you that we are ceasing operations as of today, June 11, 2025,' the airline shared in an Instagram post directed to customers. For passengers who have a scheduled Silver Airways flight, the airline says they should not go to the airport, and credit card refunds will be processed directly to travel agencies and individual credit card holders. Silver Airways announced on Dec. 30, 2024 that it had "voluntarily filed for Chapter 11" bankruptcy protection, and said that all tickets would remain valid. During that process, the airline says it tried finding a buyer, but ultimately had to close. 'Silver entered into a transaction to sell its assets to another airline holding company, who unfortunately has determined to not continue Silver's flight operations in Florida, the Bahamas and the Caribbean,' the airline added in its post to customers. Travelers shared frustration, sharing they were unaware that Silver Airways was facing financial difficulties, and booked a ticket for an upcoming trip, even checking in for the flight successfully the evening before the shutdown. 'No email. No text,' the traveler shared in the social media thread on Reddit. 'I was very much one of those people who showed up at the airport and waited by the gate and realized that no one was there. Insane.' Other travelers shared previous frustration with the airline, saying they were stranded in the Bahamas. "Sad day," one traveler shared in a comment on the social media thread about the closure. "I feel bad for all the employees." The airline operated an extensive route network connecting Florida, Puerto Rico, the Bahamas, and other Caribbean islands. Frequent visitors to the area may be familiar with Seaborne Airlines, which Silver Airways acquired in 2018. For travelers facing a rebooking situation, many airlines service the route network that Silver maintained. For example, for travelers visiting St. Thomas, U.S. Virgin Islands (STT), American Airlines, Cape Air, JetBlue, Spirit, and United Airlines provide flights to the island.
