Just curious about what everyone thinks...if the airlines got a bail out would that be good or bad???

 

Good if yours is the carrier that's bailed out. Bad if you you work somewhere else.

 

I'm sure the CEO's would find a way to give themselves a huge bonus from it. Look at AIG they got caught taking their executives for a weekend get away worth $500,000, claiming they needed it because of all the stress they were under.

 

I would venture to guess that by the time we are in that deep, the Feds will be too broke to do anything about it, except foreign ownership.

 

The airlines already got a federal bailout circa 2001-2002...not for it. All bailout have to be paid for eventually. It's a matter of whether you like the quick rip off of the band aid (no bailout) vs a slow gradual pulling of the band aid until it's off (bailout).

 

They did this twice and as for bailing co.s out I posted a poll not too long ago and the majority in here who voted said NO.
Its a slippery slope and just creates more dependance in the long run and its either sink or swim time for those who did a bad job running the co.they are working at.

 

Good deal if its your carrier and saves you from being unemployed - bad if you work for someone else are are any one of the X amount of taxpayers that has to pay for it. Remember this - BOTH sides of government wanted this recent bailout package and its unbelievable how much of a failure it already is. They don't even know what they are fixing or how to do it - they just figure if we through lots of money at the problem it should go away (typical govt. philosophy) rather than fix the underlying problems and also realize where that money is coming from (the taxpayers who need to keep it!)

/end rant.

That said I don't see enough money coming around for the airlines. Banking and auto industries will come first - airlines last.

 

If the airlines just stick to the plans they made for high oil- cut 10 to 15 percent minimum- they should be able to keep the prices high enough to make money with oil going down and shouldn't need a bailout. If they don't do this pretty much across the board as planned there will be too many seats to keep the prices up and there will be pain. In this case the weak should be allowed to die to make the rest stronger without another freakin' bailout. Management has raped enough employees and investors and deserves jail a heck of a lot more than a bail out.

 

Bad, it was a bad idea to bail out wall street, look how Paulson now has changed his mind, Bad for the car companies, they continue to make bad decisions trying to please everyone not keeping an eye on the bottom line.

It is time to have managers manage and stop pushing paper around.

 

The problem with your theory is that there are enough LLC's out there that will flood the market. The name of the game is to make sure that you maintain market share, and let the LLC's falter on their current route system.
Many see what NWA and TPG did with MEH as a mistake that cost 100's of millions of dollars. Actually, it was money well spent, if...
It kept AAI out of MKE and forced them to deal with DAL in ATL. They have been hurt because they could not refocus assets like they wanted to. Now DAL could decide to leave the MKE market and AAI would get to do what they wanted to for free, but I would venture to guess that DAL will not allow this. If they do it is a horrible mistake.
Yes, capacity cuts can help, but not with Virgin, SWA, LLC, and AAI out there looking for anyway in to another market. Keep the planes and the lift and it lessens their chances of doing so. MSP is a gamble for LUV. They are betting on a pull down from DAL. It probably will not be like that, and we will see what LUV does in one to two years.