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US Airlines’ Request $50 Billion Bailout

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US Airlines’ Request $50 Billion Bailout

Old 03-16-2020, 02:13 PM
  #11  
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Originally Posted by highfarfast View Post
True this. And I'd like to add that government mandated bans are part of the cause of the current financial situation in the airline industry so government should have a hand in reparation.

I'm not sure it will happen though. From what I can tell on non-aviation centered commentary, the general public is sour on the idea of 'bailouts' and while we'll say this isn't the same thing, it's what THEY will see... along with their image of a rich, spoiled, entitled pilots who deserves no help.
the general public sees an industry that has made every decision to make travel more and more miserable. Seats too close. Charging for every single thing. Change fees, etc

they see billion dollar profit sharing checks.

then, after a week of crisis, already asking for $50B+ in aid.

it’s not hard to see why the public would be sour on this idea.

remember, perception is reality.
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Old 03-16-2020, 02:36 PM
  #12  
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Originally Posted by JTwift View Post
the general public sees an industry that has made every decision to make travel more and more miserable. Seats too close. Charging for every single thing. Change fees, etc

they see billion dollar profit sharing checks.

then, after a week of crisis, already asking for $50B+ in aid.

it’s not hard to see why the public would be sour on this idea.

remember, perception is reality.
Not gonna argue with you. It's more in line with what I'm seeing as well. It's almost like the public WANTS the airlines to fail.
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Old 03-16-2020, 03:00 PM
  #13  
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Originally Posted by Slaphappy View Post
You don't know what socialism then.

Either way this house of cards will fall one day, sooner rather than later. We'll be worse off than Greece, especially since we won't have some childless chancellor I'm Germany to bail us out.
what does the German chancellor’s childlessness have to do with anything?
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Old 03-16-2020, 03:33 PM
  #14  
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If the airlines weren’t spending all their money on avocado toast, maybe they’d have reserves for a rainy day.

https://www.bloomberg.com/news/artic...buybacks-chart
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Old 03-16-2020, 04:22 PM
  #15  
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Originally Posted by rickair7777 View Post
Better to ask early, manage expectations.

Airlines (like banks) are key infrastructure, economic aid is inevitable.

I don't use the term "bailout" because this is not like the situation with the banks, who set themselves up to fail and then got bailed out by the taxpayers. Airlines are strictly victims in this, no fault that I can see... most of them are pretty solvent in terms of normal economic cycles.
Except they’d have way more cash to weather the storm if they hadn’t wasted it buying back billions of dollars in stock.
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Old 03-16-2020, 04:37 PM
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As I said before, why SHOULDN'T we get this financial assistance when we are bound by the RLA?

Since we are deemed essential to the nations economy be being bound by that act, we sure as hell should get the benefits from it
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Old 03-16-2020, 04:50 PM
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Originally Posted by Bahamasflyer View Post
As I said before, why SHOULDN'T we get this financial assistance when we are bound by the RLA?

Since we are deemed essential to the nations economy be being bound by that act, we sure as hell should get the benefits from it
Yes we should, WE the employees
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Old 03-16-2020, 04:56 PM
  #18  
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Originally Posted by Slaphappy View Post
You don't know what socialism then.

Either way this house of cards will fall one day, sooner rather than later. We'll be worse off than Greece, especially since we won't have some childless chancellor I'm Germany to bail us out.
Maternity leave, basic healthcare or school lunches, socialism....50 billion for airlines, 2 trillion for banks...capitalism. Got it.
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Old 03-16-2020, 04:58 PM
  #19  
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Originally Posted by Bahamasflyer View Post
As I said before, why SHOULDN'T we get this financial assistance when we are bound by the RLA?

Since we are deemed essential to the nations economy be being bound by that act, we sure as hell should get the benefits from it
Because change comes through necessity. Why bail you out now, when it would be cheaper to let the the creditors form a plan in BK to consolidate and shrink supply.

Its clear to me they need to default on some of their loans, and increase their cost of borrowing in the future, which will increase the opportunity cost of stock buybacks.

Banks need to stop lending low interest money to airlines, higher interest will change their behavior and decisions.

Converting a loan to equity in your business, and then asking for a bailout does not change behavior. Would you payoff your kids credit card if he had no plans to change his behavior.
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Old 03-16-2020, 05:03 PM
  #20  
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Originally Posted by cezzna View Post
The FED suspended the rule that banks have 10% reserves, and the FED was the only buyer of the recent 30 year bond auction. The FED will bail everyone out, Smoke and mirrors now.
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Not everyone. Just the big boys.
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