B752OS From United States of America, joined Dec 2005, 1322 posts, RR: 0
Reply 2, posted (7 years 1 week 4 days 6 hours ago) and read 2693 times:
I doubt that the airlines would see any money in the bailout. The auto industry is crawling on their knees to get some of that money. I personally don't think they should see any of it. Or if they do, it should come in the form of a loan with a high interest rate.
The U.S. auto industry needs to learn how to adapt to competition, make cars that people want to drive, look good and are dependable.
In any event, the airline industry in general is not as bad as the auto industry is in. If oil had hit $200 a barrel I would say they should get some.
When I first heard the auto industry wanted a bailout I yelled out "NO!" But an argument came up that the U.S. auto industry is a strategic industry of national security I had second thoughts. I still don't think it is a good idea to loan U.S. Taxpayer money to the auto industry.
As for the airlines... they know how to file bankruptcy and stay in business. If they liquidate, someone always fills in the vacuum left behind.
GothamSpotter From United States of America, joined Jan 2005, 586 posts, RR: 0
Reply 4, posted (7 years 1 week 4 days 5 hours ago) and read 2653 times:
Not going to happen, nor should it. I haven't heard any talk about the airlines wanting a piece, and the circumstances surrounding the airline industry vs. the auto industry and the banking sector are quite different.
For one thing, GM is on pace to lose more money this year than every airline in the world combined. With the exception of UA, the nation's largest airlines are in comparatively phenomenal shape.
For another, if a GM or a Ford is allowed to fail, many of their suppliers, which provide parts to multiple manufacturers, would also fail, causing other car builders like Toyota to slow down or stop manufacturing. If GM were to fold, one study estimated 3 million jobs would be lost directly and indirectly. If UA were to fold, other carriers would likely buy many of their aircraft and rehire many of their workers to pick up the slack.
DfwRevolution From United States of America, joined Jan 2010, 1084 posts, RR: 51
Reply 5, posted (7 years 1 week 4 days 5 hours ago) and read 2630 times:
Quoting BP1 (Thread starter): If the US government is going to bail out the auto industry why not get the money for the airline industry too?
Absolutely not, ban user for asking. The auto and financial sectors are in real crisis that could pull other sectors of the economy down with them. The airline industry is doing great in comparison to those industries. No major airline faces the prospect of insolvency by years end, which is what we are looking at with some of the automakers.
And even if we did, there's no single airline failure that would have the effect of one of the automakers failing. I don't know where the "bailout line" is drawn, but it's well short of the airlines. If they can't restructure in Ch. 11, they should liquidate.