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Another Chapter in My Life
James Wysong · August 22, 2004

Is your favorite airline going broke?

It looks as if bankruptcy protection is a popular trend in the airline industry these days, and the light at the end of the tunnel gets farther and farther away.

Chapter 11, in case you were wondering, is when a company can no longer contain its losses and profitability seems a remote future hope. The carrier throws itself at the mercy of the bankruptcy court and asks permission to break its promises to lenders, clients, and employees, in order to survive.

In the process, many lives are turned upside down. Uncertainty, panic, and fear prevail as the future changes forever. I'm no stranger to Chapter 11, as my former airline went down and eventually out, on this very road.

The final three nails in Pan Am's coffin were bad management, the Lockerbie tragedy, and the Gulf War. Coincidently, many of the airlines today are suffering from bad management, the 9/11 tragedy, and yet another Gulf war. It's like a bad case of deja vu.

Every now and then, I pass a fellow Pan Am friend and all that needs to be said is, "Here we go again," smile, and then walk on.

Many people invest their lives, money, and thoughts in their company. They go through record earnings, healthy retirement accounts, well-funded pension plans, etc., only to turn the economic corner and find themselves and their company in the midst of financial ruins.

While no company "enjoys" Chapter 11, it does give the company the opportunity to destroy in minutes what took the unions years to accomplish. Fair work rules, adequate compensation, and basic common decency are but a few items that get slashed. Chapter 11 is not the real danger, as it is only the re-organization period - relief from all the creditors, if you will.

The real danger is Chapter 7 - liquidation of assets, the closing of doors. The death of the company.

When Pan Am closed the doors, it was swift, precise, and sudden. Even though it took 20 years to bring the once prestigious airline down, the final days happened so quickly that a friend of mine was on a layover in South America the last day of Pan Am. She woke up, turned on CNN, and learned about the cessation of all operations.

She received no phone call, message, or any communication from the company, which was strange because the crews' pick-up for the return flight was just one hour away. Sure enough, when the crew convened, Pan Am was no more, and what followed was a form of sky hitchhiking to get back home.

The other airlines felt pity and accommodated most down-line employees, but some crews took over a week to get back. Could you imagine worrying about getting home when you have no airline or career left to return to?

I heard of one person who was enormously in debt and had nothing or no one to return to, so he didn't. He just stayed in the country where he was when he discovered he no longer had a job.

One flight attendant whom I fly with has been through seven airlines. Seven times she has been furloughed, made redundant, or the airline shut down. She is 56 years old and well prepared to go to another airline. I have started over once, and I can tell you, never again. Most flight attendants said that with Pan Am, but I see many of them in the airports from time to time.

If, as a passenger, you fly on an airline currently in Chapter 11, it is best to pay with a credit card. This way you can get a full and quick refund if something happens.

As a courtesy, don't query the flight attendants about what will happen to your frequent flyer points should the airline cease operations. They are worried about more important things - their mortgage, kids, debts, etc.

Instead, call the customer service of the frequent flier program; they are well prepared for these types of queries. Also, try to be kind to the airline workers. Even when things go wrong, your statement of "No wonder you're going out of business" hurts more than you can imagine.

To all of the workers currently going through, or who have gone through, the turmoil of Chapter 11 or Chapter 7, I wish you the best. I am with you. I really mean it, I am with you. Hope for the best, but prepare for the worst. Get that back up plan ready no matter what airline you're with.

I try not to worry about it too much, as this would be merely another chapter in my life.

James Wysong has worked as a flight attendant with two major international carriers during the past fifteen years. He is the author of the "The Plane Truth: Shift Happens at 35,000 Feet" and "The Air Traveler's Survival Guide." For more information about Frank or his books, see his Web site or e-mail him.