RE: Delta Bankruptcy - Mediator
posted on
Oct 07, 2005 06:38PM
In any company, there is an approval authority system. In fact, such a system must be in use to be compliant with ISO (the international quality standard). Any time you want to do anything different, you must gain approvals to institute the change. The change can be anything - changes to management hierarchy, changes to ensure compliance with applicable regulations (in which case a change has to be made, but it still must survive the approval authority process), expenditure of internal funding (for R&D, new products, etc.). Virtually every prospective change to ``as is`` operations must gain approval at some level, and the bigger the impact on the company, typically the more people have to be involved in the process.
Of course this process applies to pursuing a new product offering. The proposed action is judged on its merits.
And what happens in a bankruptcy situation (especially for a very large company)? Unless it is determined that total liquidation is the best option, usually a bankruptcy judge or panel is appointed to guide actions until the company pulls itself out of bankruptcy.
So what essentially to you wind up with (with regard to a proposal for a new product - which is what the digE would basically be)? Just another person(s) added to the approval authority process.
So if Delta felt they needed new tech IFE to attract customers to their remaining flights (to maximize return on those flights), noted that the cost of digEs was within reason, noted that they would get an immediate return on investment, noted that there is significant fuel savings to result, and recognizing that they will probably be downsizing their fleet (so acquiring installed IFE to attract customers would be stupid), the portable digE just might be the ticket. Would the bankruptcy judge/panel dismiss the prospect? Remember, their duty is to attempt to turn things around, in all areas, and over a long period of time (years).
So, to my thinking, the bankruptcy thing may not be as big an issue as one would think at first blush. In fact, I`d think that the process and new, authoritative eyes would be much more practical in their thinking, which might actually be a plus considering the practical merits of the digEplayer (or modular digEsystem).
Just food for thought. And BTW, Hawaiian Airlines was in bankruptcy when they adopted the digE (and probably others, and Alaska was on the brink).
JMHO,
SGE