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U.S. airlines don’t need a bailout to stay in business
With flight bookings in free fall, U.S. airlines have gone to Washington with their hands out, asking for more than $50 billion in loans. Yet there is no danger that the airlines are about to disappear, leaving the flying public grounded after the coronavirus crisis passes. Without a bailout, the air carriers would renegotiate their terms of credit with their lenders outside court, or they would file for Chapter 11 bankruptcy protection. Either way, they would keep flying. (www.washingtonpost.com) More...Sort type: [Top] [Newest]
Loans are fine. It's when it's just money handed out that I have issues with it.
The airlines have been spending their money buying back their own stock so that they can inflate the price and their company's value. The American public needs the bailout, not the corporations. If the public has no money, they won't fly when this is all over.
I find it interesting that everyone clamors for the capitalist model, but at the first sign of trouble people want to socialize corporations like airlines and cruise lines and hotels. But socializing help to the people - who need it most - is called out as being anti American.
I find it interesting that everyone clamors for the capitalist model, but at the first sign of trouble people want to socialize corporations like airlines and cruise lines and hotels. But socializing help to the people - who need it most - is called out as being anti American.
Exactly, when the times were good they went drunk spending all the money on THEMSELVES instead of saving for the unavoidable bad time/downturn, and now they come crying to papa. If we are to lend them money, it has to come with strings attached.
I am a flight attendant for a major airline. Name is not as important as this is happening at all airlines. Just 3 days ago I was working a flight from Chicago(ORD) to Salt Lake City(SLC) with 8 total passengers on it. The return flight from SLC to ORD had a larger passenger count of "14" total. I want the author to know that I need my job and the airlines with no fault of their own (remember we have had at least 3-4 years of record profits) did not foresee this and need assistance now to be viable when this all passes.
Yes Harvey, I understand, but you said it yourself: "(remember we have had at least 3-4 years of record profits)" Soooo, where did all those profits go??? Also you say, the airlines "did not foresee this", yes, but when they did have lots of profits they decided it was very wise to buy back stock and give out all those bonuses to management instead of saving for a rainy day...
christos..you are 100% correct..the airlines raked up large profits in these past few years, and did exactly what you said..to Harvey.no,it was not your fault specifically as an airline employee,but yes,it was the fault of the "upper echelon" management of the airlines,like delta and united and American,who all have gone the "want to be bigger" merger route (some to avoid filing bankruptcy)who have done the stock buybacks..you are aware I am guessing that these ceo's as part of their salary,which is overblown to begin with,receive very large amounts of stock options in their own company...I worked for 2 airlines for a total of 30 years,and saw a lot of downtimes and a lot of people get "furloughed"..i do understand the bad side of this..