ual777contrail
Posts: 2914
Joined: Sun Feb 17, 2002 11:33 am

Bailout Money

Tue Jul 23, 2002 9:39 am

i thought some airlines didnt put in for bailout money?
like southwest,delta,american.
i thought that the only majors were UNITED and of coarse america west.

here is what they got.
AMERICAN $656 MILLION
UNITED $724 MILLION
DELTA $594 MILLION
NORTHWEST $405 MILLION
CONTINENTAL $343 MILLION
US AIRWAYS $287 MILLION
SOUTHWEST $ 264 MILLION
AMERICA WEST $110 MILLION

I didnt think some of the airlines wanted the federal backed loans?



ual 777 contrail
 
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STT757
Posts: 13200
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RE: Bailout Money

Tue Jul 23, 2002 10:00 am

?

Your confusing the Federal compensation, that everyone received. And the loans which so far only HP has applied for and been approved, U has their application pending.

It was a $15 Billion deal, $5 Billion in compensation that all the airlines and cargo carriers recieved, then there's the $10 Billion loan gurantees.

A few have applied and been rejected like Vanguard, HP applied and was approved. U's application is pending, there's a board who decides which airlines get then loans, and the criteria is strict.

One of the criteria is to make the US Gov't a shareholder (thanks to Senator Corzine D-NJ) , which alot of Airlines are reluctant to do.
Eastern Air lines flt # 701, EWR-MCO Boeing 757
 
goingboeing
Posts: 4727
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RE: Bailout Money

Tue Jul 23, 2002 10:03 am

The funds in the article you read were compensation for the federally mandated shutdown of the air traffic system in the days following 9/11. As STT757 points out, every airline got them, regardless of their size. So far, only HP has recieved a loan although U, UAL, FRNT, and others have applied for the government backed loans.
 
B747-437B
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RE: Bailout Money

Tue Jul 23, 2002 10:03 am

U has their application pending

US Airways has already received conditional approval for their ATSB loan guarantee. UAL is the airline with the application pending.
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada
 
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RE: Bailout Money

Tue Jul 23, 2002 10:05 am

Meanwhile the following airlines received BAIL money:
-Tower Air
-ValuJet
 
B747-437B
Posts: 8777
Joined: Thu May 30, 2002 6:54 am

RE: Bailout Money

Tue Jul 23, 2002 10:07 am

Meanwhile the following airlines received BAIL money: -Tower Air

Isn't Morris Nachtomi hiding out in Israel since he's facing charges in the US for tax fraud?
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada
 
Guest

RE: Bailout Money

Tue Jul 23, 2002 10:12 am

Isn't Morris Nachtomi hiding out in Israel since he's facing charges in the US for tax fraud?

Well, the flights to Tel Aviv were the only ones that went out within 12 hours of departure time.
 
ual777contrail
Posts: 2914
Joined: Sun Feb 17, 2002 11:33 am

RE: Bailout Money

Tue Jul 23, 2002 11:29 pm

thanks a ton for clearing that up.





ual 777 contrail
 
srbmod
Posts: 15446
Joined: Tue Mar 20, 2001 1:32 pm

RE: Bailout Money

Wed Jul 24, 2002 3:12 am

I think that they whole concept of the Federally-backed loans is corporate welfare at its worst. I mean when they gave the airlines money because of the ground hold, some of those that got it really didn't deserve to get it. I mean Midway, they announce on Sept. 12th, that they were shutting down for good, and returned their aircraft to their lessors. But when they get their "free money" for the Feds, they decide to restart again. Midway should have used that money to pay off debts and other expenses, not restart operations. What they did would be the same as giving a junkie drugs or the money to get drugs. I think that the Federal government getting into the airline business is a very bad idea. It's bad enough that between the TSA and the whole Homeland Security (more like Homeland Insecurity if you ask me) thing, the airlines are suffering enough, but to have the government with shares in the airlines that take out the loans is the equivalent of putting the wolf in the field with the sheep. I think that the airlines should have put up physical assets (aircraft, GSE, properties) instead of stock as collateral, because if these airlines go belly up, the stock will essentially be toilet paper, while if they had physical assets, the government could sell those off to get back as much of the loan as they can. Could you imagine a government auction of aircraft? Lot #312411, one Airbus A321, low cycles, low hours, one owner. The bidding starts @ $15 million.....................

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