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Old 03-25-2020, 12:09 AM
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Default Will Airlines be regulated?

If Airlines continue asking for the federal government to bail them out every 10-20 years, it's pretty inefficient and will do harm to this industry. Do you think Airlines getting regulated will solve these problems?
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Old 03-25-2020, 06:29 AM
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Originally Posted by Fatcat View Post
If Airlines continue asking for the federal government to bail them out every 10-20 years, it's pretty inefficient and will do harm to this industry. Do you think Airlines getting regulated will solve these problems?
not a chance
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Old 03-25-2020, 06:29 AM
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Airlines are regulated. Heavily.
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Old 03-25-2020, 06:36 AM
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Originally Posted by OOfff View Post
Airlines are regulated. Heavily.
They are but he's talking about regulation of their business models and practices, not their operations.

I anticipate *some* sort of rules to help mitigate the damage if/when this happens again. Won't be full regulation by any means but it might be liquidity rules... but in reality there is no practical way that airlines could save up and just sit on the vast piles of cash needed to get through an extended shutdown/near-shutdown. Maybe a few months worth of cash (which some airlines have today, but some don't).
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Old 03-25-2020, 06:44 AM
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Imagine all this never happened......xyz airlines has $50 billion in cash stashed in their safe, CEO goes on CNBC & says “we’re stockpiling it in case of a global pandemic...”

They’d lead him away in a straightjacket.
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Old 03-25-2020, 06:44 AM
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Originally Posted by OOfff View Post
Airlines are regulated. Heavily.

LOL. I'm sure you're too young to remember when airlines and routes were regulated. Here's a simple read on it and the Airline Deregulation Act of 1978

https://en.wikipedia.org/wiki/Airline_deregulation
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Old 03-25-2020, 06:51 AM
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Sure. And we'll bring back Prohibition, too.
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Old 03-25-2020, 06:57 AM
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Originally Posted by TommyDevito View Post
LOL. I'm sure you're too young to remember when airlines and routes were regulated. Here's a simple read on it and the Airline Deregulation Act of 1978

https://en.wikipedia.org/wiki/Airline_deregulation
I was being flippant.
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Old 03-25-2020, 07:20 AM
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Originally Posted by tailendcharlie View Post
Imagine all this never happened......xyz airlines has $50 billion in cash stashed in their safe, CEO goes on CNBC & says “we’re stockpiling it in case of a global pandemic...”

They’d lead him away in a straightjacket.
this! I think most airlines had enough cash to ride out a 2008 style crash but I dont think anyone saw this coming. i do see legislation coming about stock buybacks and when people holding officer level positions can sell their stock in relation to buybacks.

maybe
-you can only spend X% of FCF on stock buybacks
OR
-no one holding an officer level position can sell stocks of their company within X time of any buyback program.
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