UAL CEO Says 100 RJ's Grounded, no Pilots
12-30-2021, 06:54 PM
#21
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Joined APC: Oct 2015
Posts: 749
Originally Posted by rickair7777
IMO the covid subsidies were a rare example of where the .gov SHOULD meddle in the economy... the long-term economic consequences of allowing the airlines to liquidate and/or shrink by 50% would have been frankly catastrophic. It would have taken several years to rebuild capacity and even then the gov would probably have had to help.
Fair to other sectors? No. But bartenders, baristas and small business are a lot easier and quicker to recover than airlines.
Fair to other sectors? No. But bartenders, baristas and small business are a lot easier and quicker to recover than airlines.
And bankruptcies are not all the same. You don’t sell the kitchen sink. You restructure.
Painful? Yes. But the market would be just fine. The airplanes aren’t burned to ashes. Another Indigo Partners would buy those planes for cheap and create a new competitor. Bad for our collective careers? Yes. Better for the consumer, American tax payer, and our industry ten years down the line? I think that is also a yes.
12-31-2021, 04:32 AM
#22
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Joined APC: May 2017
Posts: 2,012
Originally Posted by NotMrNiceGuy
This is a bit dramatic, isn’t it? 9/11 was horrible for the industry. Did SWA shrink 50% in size over the next 5 years? Players get shuffled around. That’s the price of the decisions the company makes.
And bankruptcies are not all the same. You don’t sell the kitchen sink. You restructure.
Painful? Yes. But the market would be just fine. The airplanes aren’t burned to ashes. Another Indigo Partners would buy those planes for cheap and create a new competitor. Bad for our collective careers? Yes. Better for the consumer, American tax payer, and our industry ten years down the line? I think that is also a yes.
And bankruptcies are not all the same. You don’t sell the kitchen sink. You restructure.
Painful? Yes. But the market would be just fine. The airplanes aren’t burned to ashes. Another Indigo Partners would buy those planes for cheap and create a new competitor. Bad for our collective careers? Yes. Better for the consumer, American tax payer, and our industry ten years down the line? I think that is also a yes.
Covid was a much bigger deal than 9/11.
very good chance American would have gone Chapter 7 without the bailout. Loads were down over 80% at one point. Delta and United could easily have picked up the slack.
no market system is going to pay for airlines to hedge that sort of risk. It’s like faulting Disney if a terrorist group nukes Orlando.
01-01-2022, 05:30 AM
#23
Gets Weekends Off
Joined APC: Jul 2021
Posts: 334
Originally Posted by NotMrNiceGuy
Painful? Yes. But the market would be just fine. The airplanes aren’t burned to ashes. Another Indigo Partners would buy those planes for cheap and create a new competitor. Bad for our collective careers? Yes. Better for the consumer, American tax payer, and our industry ten years down the line? I think that is also a yes.
The public doesn’t have confidence “The market will be just fine” nowadays. Panic by the public makes something recoverable unrecoverable.
I imagine a fire on a boat and everyone runs to one side and the boat flips over and everyone drowns.
There is a study published that fighting the fire results in 1-2% casualties, but it never happens, everyone simulation the boat flips over.
Last edited by OpieTaylor; 01-01-2022 at 06:15 AM.
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