Quote:
Originally posted by Scott
I would implore the rational DAC'er to seperate tales of shoddy service, predatory marketing and convoluted fare structures from the critical issues necessary to regain stability. None of you need lectures as to how crucial air transportation is to tourism, commerce, industry, and yes, defense. More on that later.
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Minimal and clearly targeted credits and loan guarantees to individual airlines. I don't trust management anymore than you do!
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Well said, Scott. I do think that some sort of temporary governmental assistance will be necessary to prevent further economic exacerbation which I'm afraid will push us more toward a general economic recession. Whatever relief provided to the airlines should be oriented towards preventing employee furloughs and perhaps loan guarantees to help with the equipment trust certificates many airlines use for financing. As I understand the airline industry, much of an airline's debt is tied up in these equipment trust certificates. Should an airline fail to make payment and default, the equipment (typically aircraft) goes to the creditor.
Subsidies are out of the question, I don't think we should be giving the airlines a blank check. But I do think some sort of financial assistance is necessary in at least the short term. Airlines' market capitalizations are being wiped out wholesale in the market today and I worry that that is only the tip of the iceberg. There are things that can be done without giving management a chance to have their hands in the cookie jar of the American Taxpayer.