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U.S. airlines don’t need a bailout to stay in business
With flight bookings in free fall, U.S. airlines have gone to Washington with their hands out, asking for more than $50 billion in loans. Yet there is no danger that the airlines are about to disappear, leaving the flying public grounded after the coronavirus crisis passes. Without a bailout, the air carriers would renegotiate their terms of credit with their lenders outside court, or they would file for Chapter 11 bankruptcy protection. Either way, they would keep flying. (www.washingtonpost.com) Más...Sort type: [Top] [Newest]
The author may be an expert in law but he absolutely failed economics 101! Without loans and grants the airlines WOULD have to lay off hundreds thousands of employees. With no passengers flying, the flights wont go and with no flights, employees will be fired..DA! The inertia will roll down hill to suppliers and of course fired employees will not spend money for years. This example is tantamount to the Great Recession that had 10-15% unemployment. If the government did not loan/grant money to the car manufacturers, we would have had 25% unemployment and a Depression! Instead, the loans were made and paid off early and the economy grew for the next 10 years!Airlines are a HUGE part of commerce. Fordham should fire this professor and then he will see how not being employed works in his ignorant, myopic life.
The real question is, though, 'How much do you give away', and 'to whom'.
How much money can the government give to industry, especially an industry guilty of irresponsible spending in the past. And an industry that claims there is no money left for employees and continues to shower management and investors with incredible amounts of money.
My fear is that in an election year, trump will give away far too much to far too many illogical choices and irrelevant industries, and this country will never survive from it.
Supporting the airline industry does make a certain amount of sens, if the majority of that support goes to the employees that will be most effected. Provide 6 months pay for the flight attendants, the ground crews, the reservation people, the airport support people. Do NOT shower the management teams and investors with money. Aside from what they think, they DID NOT make the airlines great. They made the airlines poor!
Supporting the oil gas and fracking companies shouldn't even be thought of. Fracking should have never been a thing in the first place, and oil shale is so backend loaded with destruction, it should be stopped as well.
Restaurant employees should be heavily supported, especially wait staff. The wages that far too many of the wait staff in this country are less than starvation wages, less than the minimum wage.Give them 6 months of full pay. Pay the cooks, dishwashers, janitors. Pay the grocery workers, stockers, drivers. Pay the people that REALLY move this country, and not the parasites that are bleeding it dry. (And make sure that the trump family doesn't get a penny of any of the money, EVER!!!
I knew someone who made 2+ million a year. That was gross pay on both levels. He had three homes, four airplanes, a collection of exotic sports cars, and one of the last times I ever saw him, was complaining about the economy. How 'hard' it was to live. He was flying down to Hilton Head that weekend to spend a week golfing and trolling for his next ex-wife. I just got nauseated by his total lack of comprehension of who 'the rest of us' lives. I heard he's gone through another 2 wives, and bought a new jet. The .01% will never get it, and they will continue to be parasites. I'm sure he got a massive tax cut recently too. He'll vote for trump. Just look at the return on investment. He's not given to a political candidate in decades according to opensecrets.org.
How much money can the government give to industry, especially an industry guilty of irresponsible spending in the past. And an industry that claims there is no money left for employees and continues to shower management and investors with incredible amounts of money.
My fear is that in an election year, trump will give away far too much to far too many illogical choices and irrelevant industries, and this country will never survive from it.
Supporting the airline industry does make a certain amount of sens, if the majority of that support goes to the employees that will be most effected. Provide 6 months pay for the flight attendants, the ground crews, the reservation people, the airport support people. Do NOT shower the management teams and investors with money. Aside from what they think, they DID NOT make the airlines great. They made the airlines poor!
Supporting the oil gas and fracking companies shouldn't even be thought of. Fracking should have never been a thing in the first place, and oil shale is so backend loaded with destruction, it should be stopped as well.
Restaurant employees should be heavily supported, especially wait staff. The wages that far too many of the wait staff in this country are less than starvation wages, less than the minimum wage.Give them 6 months of full pay. Pay the cooks, dishwashers, janitors. Pay the grocery workers, stockers, drivers. Pay the people that REALLY move this country, and not the parasites that are bleeding it dry. (And make sure that the trump family doesn't get a penny of any of the money, EVER!!!
I knew someone who made 2+ million a year. That was gross pay on both levels. He had three homes, four airplanes, a collection of exotic sports cars, and one of the last times I ever saw him, was complaining about the economy. How 'hard' it was to live. He was flying down to Hilton Head that weekend to spend a week golfing and trolling for his next ex-wife. I just got nauseated by his total lack of comprehension of who 'the rest of us' lives. I heard he's gone through another 2 wives, and bought a new jet. The .01% will never get it, and they will continue to be parasites. I'm sure he got a massive tax cut recently too. He'll vote for trump. Just look at the return on investment. He's not given to a political candidate in decades according to opensecrets.org.
Very few people are flying right now anyway. Shutdown operations for awhile, or reduce the schedule. Let the market decide who survives. Just a more laissez-faire way to look at it. The aerospace industry will eventually rebound on its own.
Of course this author wants them to file Chap 11 because he teaches bankruptcy law. He has no understanding of the trickle down effect on suppliers and their financials and employees and their retirement plans. If you go to Fordham, skip this guys class it is not real world.
The guy has no clue how the industry works. You are dead on about the suppliers suffering because any debt owed to them will be tied up in court. The airlines work with companies that are not huge companies and even a $20k invoice will greatly affect the company. He needs to focus on what the textbook he is teaching from says and let the professionals run the industry. Maybe he was the only one the Post could get to make those statements.
The airlines have been spending their money buying back their own stock so that they can inflate the price and their company's value. The American public needs the bailout, not the corporations. If the public has no money, they won't fly when this is all over.
I find it interesting that everyone clamors for the capitalist model, but at the first sign of trouble people want to socialize corporations like airlines and cruise lines and hotels. But socializing help to the people - who need it most - is called out as being anti American.
I find it interesting that everyone clamors for the capitalist model, but at the first sign of trouble people want to socialize corporations like airlines and cruise lines and hotels. But socializing help to the people - who need it most - is called out as being anti American.
Exactly, when the times were good they went drunk spending all the money on THEMSELVES instead of saving for the unavoidable bad time/downturn, and now they come crying to papa. If we are to lend them money, it has to come with strings attached.