25 MAY 2020

YOUR WORDS


Readers are invited to add their comments to any story. Click on the article to see and add.

BTN DISTRIBUTION

BTN also goes out by email every Sunday night at midnight (UK time). To view this edition click here.

Index

Email this Page
Bookmark

The Business Travel News
PO Box 758
Edgware HA8 4QF
United Kingdom
+44 (0)20 8952 8383
info@btnews.co.uk
© 2020 Business Travel News Ltd.

Article from BTNews 25 MAY 2020

Hertz files for Chapter 11

Car rental giant Hertz has filed for Chapter 11 bankruptcy protection in the US after 102 years of trading.  This does NOT include its international operations, so any pre-paid bookings made for non-US locations should be safe – for now.

It is also important to remember that many smaller Hertz outlets, especially off-airport ones, are franchises.  These would not be impacted if the company did disappear for good.

In the past several major American airlines have taken the same route after financial problems including American, Delta and United, all (pre-Covid-19) now profitable airlines.

Hertz also owns Dollar, Thrifty and Firefly brands which are also affected by this filing.  Its fleet size was 1.7m last year

Chapter 11, of course, is NOT ‘receivership’ in the UK sense.  Chapter 11 is effectively a standstill arrangement, which gives Hertz breathing space to restructure its affairs without the risk of its assets being seized by creditors.

It is difficult to imagine any scenario in which the Hertz brand will disappear.  At the end of the day, the brand is the ONLY real asset that the company has.  It does not own any of its cars outright and the only ‘assets’ it has are its customer list and leases on prime airport pick-up locations.

www.hertz.com

Index/Home page
 

OUR READERS' FINEST WORDS (All times and dates are GMT)

All comments are filtered to exclude any excesses but the Editor does not have to agree with what is being said. 100 words maximum


No one has commented yet, why don't you start the ball rolling?


Add your comment

First Name
Surname
Email Address
Company (Not obligatory)
Country/City
Comment
- You must be a registered subscriber using the email address entered to submit a comment, or you will be sent a confirmation email before your comment will appear.
- Your comment will be checked before appearing, which may take several working hours.
www.btnews.co.uk