Britain did this and ended up with almost no locally owned car industry. The British still make a lot of cars, but now more of the profits from this manufacturing goes overseas.
I don't want something like that to happen to the domestic airline industry.
I completely disagree with her, there are way too many people who are employed by these companies to not help them out, make them suspend dividends and buybacks until they get back on their feet, having all these companies go bankrupt doesn't help anyone.
Forced mergers would be almost as bad as bankruptcies. If the airline industry turns into a monopoly or duopoly or regional monopolies expect airfare to skyrocket.
The vast majority of airplanes airlines have are bought on credit or leased. Other than Southwest Airlines which is probably the only one that owns most of their planes. Every day these other airliners go with massive reductions in customers is money they're bleeding. I can't imagine any amount of consolidation or mergers will prevent their financial insolvency which will happen very soon at this rate.
If they don't get bailed out then it's going to force the nationalization of the entire industry. Would you rather the government bail them out or turn the airline industry into Federal Airlines?
Also, Boeing is the single biggest component of the Dow Jones average, and they are heavily reliant on airplane orders. If the airline industry folds, Boeing will take massive hits on top of the hits they've already taken, sinking the Dow Jones average with it. They could go bust too (they've already maxed out their lines of credit and are bleeding cash) and there goes a major producer of military equipment.
I think the answer is loans - with some interest - combined with direct payments to workers to bridge the gap. Loans rather than a gift of taxpayer money. The loans will be contingent on a bunch of rules including no stock buybacks until the loan is paid off, etc.
Someone has to be able to make airplanes with minimal effort and a few conversions.
Dude, you should see what it takes to get a PMA on a fucking lightbulb... getting a complete commercial passenger aircraft certified is insane on the barriers to entry scale.
Britain did this and ended up with almost no locally owned car industry. The British still make a lot of cars, but now more of the profits from this manufacturing goes overseas.
I don't want something like that to happen to the domestic airline industry.
Fuck the airlines! They are always being bailed out with tax payer money.
Assassinate the people responsible for this shit. Then give others a chance.
Correct, but that isn't going to stop the airline bailouts. The US/Fed cannot pass up an opportunity like this to devalue the currency even further.
I completely disagree with her, there are way too many people who are employed by these companies to not help them out, make them suspend dividends and buybacks until they get back on their feet, having all these companies go bankrupt doesn't help anyone.
Shes right 100%
How is the modern economy supposed to function if airliners go bankrupt? There's only so much that can go remote so fast.
As much as I'm not a fan of bailouts, it's hard to think of many other industries that are as vital as air travel.
I think they will have to come together and share resources, merge, or fold marginal carriers into larger ones for a period.
Forced mergers would be almost as bad as bankruptcies. If the airline industry turns into a monopoly or duopoly or regional monopolies expect airfare to skyrocket.
The vast majority of airplanes airlines have are bought on credit or leased. Other than Southwest Airlines which is probably the only one that owns most of their planes. Every day these other airliners go with massive reductions in customers is money they're bleeding. I can't imagine any amount of consolidation or mergers will prevent their financial insolvency which will happen very soon at this rate.
If they don't get bailed out then it's going to force the nationalization of the entire industry. Would you rather the government bail them out or turn the airline industry into Federal Airlines?
Also, Boeing is the single biggest component of the Dow Jones average, and they are heavily reliant on airplane orders. If the airline industry folds, Boeing will take massive hits on top of the hits they've already taken, sinking the Dow Jones average with it. They could go bust too (they've already maxed out their lines of credit and are bleeding cash) and there goes a major producer of military equipment.
I think the answer is loans - with some interest - combined with direct payments to workers to bridge the gap. Loans rather than a gift of taxpayer money. The loans will be contingent on a bunch of rules including no stock buybacks until the loan is paid off, etc.
Loans! No bailouts. They can get a low(er than they already get) loan to fund their necessary operations.
Dude, you should see what it takes to get a PMA on a fucking lightbulb... getting a complete commercial passenger aircraft certified is insane on the barriers to entry scale.