Newsstand - US stands ready to do another airline bailout

http://www.cnn.com/2003/TRAVEL/03/18/airlines.government.reut/index.html

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">WASHINGTON (Reuters) -- The U.S. government acknowledged on Tuesday that a war with Iraq could hurt the nation's airlines and said it was ready to move quickly with assistance measures if necessary.

"We will be ready to move very quickly if the need arises," Transportation Secretary Norman Mineta told the Federal Aviation Administration's annual forecast conference. </font>

and

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">On Capitol Hill, Congressman James Oberstar, a Minnesota Democrat, plans on Wednesday to introduce an airline aid bill that includes federal loan guarantees to cover rising fuel prices. </font>

What a great war! My son was telling me that the estimate is $80 billion cost. If that is accurate (it won't be of course), I explained that equaled $1200 for our family alone.

And I still don't understand why the USA is doing this war http://www.flyertalk.com/forum/rolleyes.gif

This could perpetuate these failing airlines. Remember they were failing prior to 9/11. Now, I love United as much as anyone, and I have a bunch of miles and live in their hub and love 'em to death, but that doesn't mean they deserve another bailout, does it?

As much as I am against more cash bailouts of the airline industry (since it will merely prolong the inevitable), the pragmatist in me says that giving it to hard-working airline employees (in inflated pay) probably beats the return on our investment in the over-budget TSA (Taxpayers Soaking Administration?)

We really need to work against this death spiral the politicians want to keep us in.

There's way too much supply and cost out on the market and giving out more and more and more money to keep too many airlines afloat is going to ensure that none of the majors can make a profit.

We've already given out more cash since 9/11 than the industry has earned in net profit since 1970.

d

More like the lobbyists doing their job.
post # 1:
http://www.citizen.org/congress/regulations/issue_areas/faa/articles.cfm?ID=6215

and the latest from the Boyd Group re the TSA:

http://www.aviationplanning.com/asrc11.htm

By the way, do you really think if the airlines get another handout they will really give it to their employees ??
What happenened to the first 5 Billion? They cut employee jobs while they were cashing the checks, but never missed a payment for management.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by mikesinla:

By the way, do you really think if the airlines get another handout they will really give it to their employees ??
What happenened to the first 5 Billion? They cut employee jobs while they were cashing the checks, but never missed a payment for management. </font>

Did I say "overpaid union members"?? Even overpaid management are employees, aren't they? http://www.flyertalk.com/forum/wink.gif

We can argue about exactly what they spent the first $5 billion on, but it looks to me like they blew it on their employees - their largest expense.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by FWAAA:
Did I say "overpaid union members"?? Even overpaid management are employees, aren't they? http://www.flyertalk.com/forum/wink.gif

We can argue about exactly what they spent the first $5 billion on, but it looks to me like they blew it on their employees - their largest expense.</font>

You got me! On a technicality! http://www.flyertalk.com/forum/smile.gif
But I wonder what a front line "employee" overpaid union or not would say about what they refer to management as...surely not employees! As far as which "employees they blew the first 5B on, which was given to preserve jobs. I guess they took it to mean -their own-. They laid all those people off, pilots, FA's, closed CTO's etc, 20 percent less flights, but let said employee in upper management go? Pay cut? No Stock option(moot now). I hardly think so. Fired their sales force too. I don't think they deserve it. But their lobbyists do. If you read that link and check out the PDF and go towards the bottom and see who is lobbying...they will get their handout.And this time it will be bigger. Can you imagine being paid to mismanage? Sorry TSA, redundant remark.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by richard:
And I still don't understand why the USA is doing this war http://www.flyertalk.com/forum/rolleyes.gif</font>

I'd be more than happy to explain that to you any day you are ready to listen!