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Bankruptcy: Bus Lines Can Do It, Too

Airlines have no monopoly on using bankruptcy to clean up their balance sheets: Coach America, the major bus operator, announced that it, too, would seek to shed debt and lower costs through Chapter 11.

Like American Airlines, it promises that as a traveler, “you won’t feel a thing.” Although you may not recognize the brand name “Coach America,” it operates public transit services, airport shuttles, casino and cruise shuttles, and sightseeing tours in some of the country’s major visitor destinations.

I see no reason to doubt the company’s promise of no adverse effects for ordinary travelers. Instead, the hurt will likely be confined to the usual suspects: stockholders, creditors and employees.

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