By: Jeffrey Kam
In today’s economic world, my companies are facing different kinds of financial issues. Either receiving money from the government or filing bankruptcy, 2009 is not going to be a good year for many companies in different industries. Airline industry companies have been in the economic crisis since 9/11, which made them re-structure they strategy to become more efficient. International Airport Association estimate that $4.7 billion loss in 2009 nearly doubles from the past. Due to sudden fuel spikes, America Airline companies estimates that their revenue will decline in 2009. Companies have tried to do everything such as lay off, reducing capacity, and lower prices in order to avoid bailout and more importantly bankruptcy.
Besides the airline industry, American auto industries (General Motors and Chrysler) are also facing a lot of financial trouble as declining sells increases. They have received a large amount of money from the government in order to avoid bankruptcy trouble. Besides bailing out, they also have laid off numerous workers to save labor cost. They also have remove many assets from the offices itself such as clocks and light bulbs and saved up to $470,000 on batteries and electricity.Although these companies are currently receiving bailout from the government, but debates have suggested that these bailouts maybe the pre-package of bankruptcy filing.
http://www.cbsnews.com/stories/2009/02/17/business/main4805606.shtml?source=RSSattr=HOME_4805606
http://www.americanfinasco.com/corporate-bankruptcy.php
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