I’m not saying I agree with the bailout cycles but I don’t think they’d inherently weather this storm any better. On the plus side it’s more likely smaller localized capital would be able to get them back up again when things finally turn around.
I'm not sure any small carrier need go bankrupt. They park their planes, furlough their staff, and in a few months, open up with some summer promos. Not flying doesn't mean a trip through Chapter 11.
[1] https://torontosun.com/business/money-news/canadian-airlines...
I'm tired of this getting-more-frequent cycle where corporations come crying to the government for bailouts. You want balls-to-the-wall free market capitalism? Then live with the downsides, including that "changing market conditions might render your company insolvent on very short notice."
Otherwise, it's just corporate socialism; seemingly a dirty word only when people and healthcare is involved.
If corporations only get rewarded for maximizing profits, they'll never learn to store some for a rainy day (or weeks/months/quarter, etc.) Without heavy restrictions, who can say the money will be spent directly benefiting people?
So airlines (probably will) get bailout money... why? So they can keep operating and don't have to layoff employees? Well how about giving bailout money directly to those employees without filtering it through the corporation first which will skim a certain amount off the top?
If the goal is to keep the airline in business... why? Leisure travelers have dried up, leaving business passengers... how about jacking up the rates for business travel instead of essentially subsidizing it?
I thought corporate taxes were a waste of time because corporations would just increase their prices to make up for it. Well if that's true, how about skipping them in the bailout process, let them jack up their rates, and consumers can opt in/out of the services they offer at the going rate. Isn't that how the free market is supposed to work?
Bailout money should go to PEOPLE who need to eat. Corporations can renegotiate contracts, delay payments, raise prices afterwards, etc.
Maybe some good will come from this pandemic, namely a rethinking of the importance of a safety net for citizens, and a readjusted attitude that wall street's metrics shouldn't be the only goal of a corporation.
This x100. Let corporations fail and pay unemployment to the staff until new business can take it's place. You can't look me in the face and tell me if all the major US air carriers go under people in America will stop flying.
I'm pretty sure the workers employed by these companies need to eat, and they depend on the company existing to buy their food.
They don't need a bailout. Give the money to the people who actually need it.
