delimit wrote:JAMBOJET wrote:delimit wrote:2. Do you feel like VS and AM's performance is somehow relevant here? I'm not seeing what point you're trying to make by bringing them up.
Point is: Should companies that were, at best, struggling pre-pandemic be saved?
If a company can't make money in the best of times, why should the government bail it out when it stands to significantly benefit a foreign carrier's P&L (and obviously those locally employed as well)? As it pertains to Delta, if the government bails a local carrier out and dilutes Delta's ownership, should the company stay as closely aligned with Delta given a move toward negative earnings in that relationship. We can all argue whether it would've been worse for VS and/or AM profitability absent the Delta relationship, but the fact remains that in the most profitable flying period in a long time, AM and VS were losing money pre-pandemic and their profit/loss seemed to be a negative trajectory in the midst of that Delta relationship.
They were not, "at best, struggling". That's overly reductive. And that's up to their governments, because of my first point. In AM and KE's case; you would be chunking out a huge amount of each country's capacity. Do you think either country wants gaping holes in their air network?
Unprofitable in 2019 while Delta pays out a record $1.6B in profit sharing = "Struggling, at best".
And the second point made is the entire point of my post, what will those foreign governments do to preserve air service while not bailing out Delta's investment. A significant dilution/elimination (in the result of nationalization) of Delta's equity seems rather obvious/likely.