Bailout Letter from Airlines

[MrFedEx]

Really not a problem if the airlines pay back the bail out money. did corps do that after the 2008 mess? I really don't know. will have to google that. of course they make the avg american pay in the end.

I do know that Iacoca and his car company did back in another time.

Ford didn't take bailout money. The other car companies paid it back with interest and went on to have record profit years. I don't know with the airlines. They cut pensions and furloughed or laid-off large numbers of people. TARP actually was repaid, and the taxpayers made a profit off the loans.

Iacocca also paid back the bailout money given to Chrysler in the 1980's.

What's scary here is the multiplier effect. If the airlines go under it has a massive ripple effect on associated industries like tourism, Boeing etc. Same with Boeing. Hundreds of suppliers, large and small, have thousands of jobs directly tied to aircraft manufacturing. It was the same with the car companies.

If you don't bail them out, it actually makes things worse. That said, they shouldn't be able to direct so much cash flow to stock buybacks.

 

[59 Dano]

Really not a problem if the airlines pay back the bail out money. did corps do that after the 2008 mess? I really don't know. will have to google that. of course they make the avg american pay in the end.

They loaned the banks money. They made just about all of them take the loans whether they needed them or not. The fear was that the public would gravitate toward the banks that were healthy enough not to take the loans and away from the others and that the latter would fail.

 

[bacha29]

When was the last time we had to bail out that industry?



ROTFLMAO

In 2001 the federal government had to hoark up a 15 billion dollar hair ball to save the airlines. In addition according to Bloomberg the airlines have spent 96% of their free cash on stock buy backs over the past 10 years.
It's time the industry is held accountable for such ill advised behavior and is required to maintain a minimum level of cash reserves.

 

[olroadbeech]

They loaned the banks money. They made just about all of them take the loans whether they needed them or not. The fear was that the public would gravitate toward the banks that were healthy enough not to take the loans and away from the others and that the latter would fail.

just a little bit of homework answered part of my questions.

the banks paid back the bailout money in 2008

the car companies not so much. GM left us taxpayers holding the bag for about 10B and Ford 5B. why can't Uncle Sam make these people pay?

what about previous bailouts of the airlines?

 

[MrFedEx]

just a little bit of homework answered part of my questions.

the banks paid back the bailout money in 2008

the car companies not so much. GM left us taxpayers holding the bag for about 10B and Ford 5B. why can't Uncle Sam make these people pay?

what about previous bailouts of the airlines?

Car companies repaid, and Ford did not take a bailout. Where are you getting that information?

 

[olroadbeech]

Car companies repaid, and Ford did not take a bailout. Where are you getting that information?

can not link but it was from googled article. i'll check again.

 

[olroadbeech]

Car companies repaid, and Ford did not take a bailout. Where are you getting that information?

Ford borrowed $5.9 billion from the government in 2009. it'a all over google articles.

 

[It will be fine]

Ford borrowed $5.9 billion from the government in 2009. it'a all over google articles.

I think Ford took some even though they didn’t need it to make it appear more universal.

 

[MrFedEx]

can not link but it was from googled article. i'll check again.

I stand corrected. Ford didn't take the initial bailout but took the loan amount you stated. Good catch. My bad.

 

[MrFedEx]

I think Ford took some even though they didn’t need it to make it appear more universal.

Yep. I stand corrected.

 

[59 Dano]

In 2001 the federal government had to hoark up a 15 billion dollar hair ball to save the airlines.

You said this was the 2nd time in a decade. 2001 to 2020 is nearly 2 decades.

 

[TUT]

So they're only asking for $29 billion. Boeing alone is asking for $60 billion. Wonder how long it will take them to pay it back. One thing's for certain the people at the top won't suffer.

Sometimes I wonder if this is a Boeing made disease. On top of what they really need, I can't help shake that they are trying to get money here to buyout their 737 Max friend'up, just terrible if so.

 

[MrFedEx]

Sometimes I wonder if this is a Boeing made disease. On top of what they really need, I can't help shake that they are trying to get money here to buyout their 737 Max friend'up, just terrible if so.

Boeing won't abandon the 737 MAX. I read an opinion from WA State Senator Cantwell stating she thought Boeing might not take the bailout because there are so many strings attached.

The Covid-19 pandemic has reduced air travel to almost zero, An aviation blog run by an AA pilot (Juan Browne @blancolirio/YouTube) was stating that planes are basically flying empty. Seat/mile economics demand that an aircraft fly substantially full in order to make a profit, and nobody is going to continue to fly grossly unprofitable routes or flights.