B767Driver
New Member
There was an article in the Cincinnati paper this morning that said Comair almost shutdown the day after Delta filed for bankruptcy because 5/3 Bank froze $40 million in their accounts, even though prior arrangements had been made prior to the filing for access to the money.
They could not buy fuel or make good on payroll checks...(this was Sept 15 and payday).
It also stated that the normal $20 million deposit made by Delta to Comair was not made available for withdrawal. It highlights some interesting items...if there is any doubt that the connection carriers are propped up by their parent...this article should be eye opening.
It shows how cash dependant an airline is and how the mailine carriers prop up the connection partners.
Comair cancelled the 5/3 accounts and moved to a new bank. The article said that Comair even told them to come and remove the 5/3 ATM machine that apparently occupied space at CMR HQ.
They could not buy fuel or make good on payroll checks...(this was Sept 15 and payday).
It also stated that the normal $20 million deposit made by Delta to Comair was not made available for withdrawal. It highlights some interesting items...if there is any doubt that the connection carriers are propped up by their parent...this article should be eye opening.
It shows how cash dependant an airline is and how the mailine carriers prop up the connection partners.
Comair cancelled the 5/3 accounts and moved to a new bank. The article said that Comair even told them to come and remove the 5/3 ATM machine that apparently occupied space at CMR HQ.