http://biz.yahoo.com/rc/020507/airlines_loans_1.html

According to my sources on Capitol Hill, delegations from GA (DL), TX (AA and WN), MI (NW), and MN (NW) are working the other members to get the ATSB loan guarantee program quashed. The goal is to get the ATSB shut down before UA and US even have a chance to apply...

On the other hand, it would still have to go for the President's signature, and with the pain that would be inflicted on the key state of Pennsylvania, that's by no means assured.

Now what kind of "sources on Capitol Hill" could a 20 year old kid possibly have, Avek?

1. U canot be allowed to completely fail. However, it can undergo a BK buyout ala TWA. It could also be merged whole or broken up into pieces. So long as the jobs of most employees are maintained, the government will approve almost any deal at this point.

2. I have met and remained in contact with many people "in the loop" during my three consecutive internships on Capitol Hill, as well as the DNC and DCCC. The sources that I mentioned are actively working on this very issue in the House of Representatives, advising their bosses on the industry situation and recommending courses of action.

Let's be fair - regardless of people's questions on avek's sources, the ATSB loan guarantees were a dumb add-on to a dumb bail-out of the airline industry.

Few of us would disagree that the airlines were partly, if not mostly, responsible for what happened in September that led to the industry collapse. Instead of doing much of anything that would cause change internally to the industry, the government then turned around and "saved" them in the interests of national security or pride (take your pick) and effectively slapped them on the wrist.

Granting money to airlines that may have otherwise failed on their own (without the attacks) is a waste of taxpayer money. The whole idea of 'survival of the fittest' is a hallmark of capitalism. Why give money to America West? Not even EU member countries can do this anymore (state sponsored bailouts).

I didnt agree with bailing them out, and I didnt agree with guaranteeing their loans in exchange for government ownership. The experience with Chrysler - where the government mostly got lucky when they didnt collapse as expected - has apparently given folks in DC the idea that the government makes a great 'investor of last resort'. The government should not be in the private lending business - that's what our financial markets are for. If the markets wont lend to you - even at high interest rates - you should start packing your things, not go running to Uncle Sam.

All this said, hearing Congresspeople trying to kill the program makes me happy. The fact that they're from key competitor states doesn't make me any less happy - even if it means trouble for US (pun intended).

I'm starting to think/talk like deelmakur, uh oh.

[This message has been edited by hscottm (edited 05-08-2002).]

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by hscottm:
I'm starting to think/talk like deelmakur, uh oh....</font>


Prepare to be strip searched the next time you pass thru security. http://www.flyertalk.com/forum/tongue.gif