From the Skies to the Streets
We’ve seen this play out time and again. Remember when American Airlines filed for bankruptcy back in 2011? It was a mess, creaking under the weight of its own legacy costs. The restructuring allowed it to slash debt, modernise its fleet, and merge with US Airways. The airline that emerged was a far more formidable competitor, suddenly able to stand toe to toe with its rivals on cost. It wasn't magic, it was just painful, necessary business.
Then there was the big one, General Motors. The 2009 bankruptcy was a national soap opera. The "old" GM was a museum piece, saddled with pension and healthcare obligations that made it impossible to compete. The bankruptcy process created a "new" GM, one that left most of that baggage behind. It was smaller, yes, but it was also agile enough to start thinking about the future, like electric vehicles, instead of just servicing the past.