Originally Posted by
JulesWinfield
This doesn’t stabilize any market, though. It buys them a few more months of runway.
Exactly. This just uses tax dollars to federally subsidize a specific company that is hemorrhaging cash. The value market is stable, it’s just over saturated between the ULCC’s and the basic economy seats from the legacies flooding the market. There will still be too many seats in the market when they burn through this and nothing will change. The other value carriers aren’t making money either. I guess in a few years if they are in really big trouble they can just pony up to the trough and ask for their 500 mil. If the government can run on borrowed money with no ability to pay it back, I guess it makes sense that they provide individual companies with the same opportunity.