Wheels
AH ambassador
To that I would add that any airline that comes asking for public money better be prepared to treat the public like owners going forward, instead of like sheep.
When airlines make big profits (as they have recently), they pay out dividends, or buy back stock. In the last 6 years, American Airlines alone has spent $15 billion buying back its own stock (NY Times, March 16). That's on top of dividends they have paid to shareholders. Don't get me wrong - I believe in capitalism, and companies can do what they want with their profits. (American's CEO had this to say in 2017: “I don’t think we’re ever going to lose money again." Famous last words.) But when a company comes begging for help from us (and make no mistake - it's our money they want), that's not capitalism, and they need to explain why they are so needy, what they propose to do with it, and what they propose to give us for it. There is no question I have no desire to bail out the owners of airlines, nor should those to whom we entrust our tax dollars, without some real, tangible payback.
Business is business. You want a loan, go to a bank. Otherwise, better be prepared to offer something compelling.
Agree completely. My post regarding the airline industry from yesterday.
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US Airline industry wants $50B and have just spent $44B on stock buybacks. The Airline industry has always been cyclical with significant drawdowns. Cash has always been important. Think TWA, Pan-Am, Branif......... Unfortunately the US government will not let any of these companies fail. Since we will bail them out anyway, why don't we require that in exchange for the money, the top 10 executives at each company leave and forfeit their golden parachutes. For this equity infusion, the US government becomes 50% owner of the companies and the government will have to divest their equity to the market within ten years with the money being returned to the US treasury.
Instead, the top executives of these companies that have led them to this precipice will probably make hundreds of millions of dollars in bonuses over the next ten years.
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US airline industry seeks about $50 billion in federal help
https://edition.cnn.com/2020/03/16/business/us-airlines-federal-bailout/index.html
US Airlines have spent $44B on buybacks in last ten years.