SIGforum
The Airlines want a $50 billion bailout. Trump says it's not the Airlines fault

This topic can be found at:
https://sigforum.com/eve/forums/a/tpc/f/320601935/m/6830046764

March 23, 2020, 10:14 AM
HRK
The Airlines want a $50 billion bailout. Trump says it's not the Airlines fault
In all my millions of miles travelled I never got sick from being on a plane.

Its possible we'll se a paradigm shift in corporate thinking about the necessity of travel vs electronic meetings for tech, sales,

As with WFH that shift is happening now, not the past where it was used by some, but everyone is looking at the tech.
March 23, 2020, 12:20 PM
jhe888
quote:
Originally posted by sns3guppy:
Buying or selling stocks won't alter the revenue loss on aircraft, wages, and overhead. That goes on regardless. A one hundred fifty million dollar airplane is either earning revenue to offset it's purchase or lease, or it's not. If it's not, the payments still get made.

Those costs are paid not by selling stocks, or changing the value of the stocks, but by revenue through some seven hundred million passenger movements annually, and a lot more cargo. The airlines employ about six hundred thirty thousand full time employees, plus about six hundred seventy thousand pilots. Beyond that, the airlines generate 1.7 trillion in us economic activity, and drive ten million jobs domestically. 7.3% of jobs in the US are connected to commercial aviation, and it accounts for 5.1% of the gross domestic product.

Right now the cargo airlines are stretched about as thin as they can go, trying to keep up with the demand for movement of emergency supplies, consumer demand, etc. With people in homes, more and more mail order is going on and more and more air freight is moving that is normally carried not only by all-cargo carriers, but by passenger airlines, using their cargo capacity.

The buy-back issue impacts the CEO, and stock holders, but doesn't do anything for the operational costs of the airline, which are what are being impacted right now by the loss of flying revenue.


You and your accounting and finance 101.

(And I am not saying they should get a bailout.)



The fish is mute, expressionless. The fish doesn't think because the fish knows everything.
March 23, 2020, 12:34 PM
1967Goat
The issue is they don't have adequate cash reserves to weather an economic downturn. Selling capital stock would definitely help them with their current operational challenges. Historically, had they not spent billions and billions of dollars on stock that is now worth less than what they paid for it they may have more options other than looking for a government handout.

It is like me going out and spending all of my discretionary income on hookers and blow rather than saving it. Then, I get laid off and complain that I don't have money to pay my mortgage, utilities, insurance, etc...
March 23, 2020, 03:46 PM
Hay2bale
quote:
Originally posted by 1967Goat:
{Snip}
It is like me going out and spending all of my discretionary income on hookers and blow rather than saving it. Then, I get laid off and complain that I don't have money to pay my mortgage, utilities, insurance, etc...


and then demand that your neighbors pay for your mortgage, utilities, insurance AND your hookers and blow.

Even though your neighbors have all been laid off, too.


----------------------------------------------------
Dances with Crabgrass
March 24, 2020, 04:22 AM
Hay2bale
Well the airlines wanted a bailout, and Nancy Pelosi has heard their lamentations. More proof that you must be careful what you ask for.

Increased fuel emission standards for airlines receiving funds and carbon offsetsFrown1) IN GENERAL. Not later than 90 days after the enactment of this Act, the Administrator of the Federal Aviation Administration shall require each air carrier receiving assistance under section 101, to fully offset the annual carbon emissions of such air carriers for domestic flights beginning in 2025.

https://www.breitbart.com/poli...l-stuffed-with-pork/

I don't think this is going to help.


----------------------------------------------------
Dances with Crabgrass
March 24, 2020, 07:09 AM
Hay2bale
Mitch McConnell is so mad at Nancy that his lips move when he talks.


----------------------------------------------------
Dances with Crabgrass
March 28, 2020, 08:04 PM
Jager
quote:
Originally posted by old rugged cross:
J, I would suggest to her it would be an excellent time to do online higher education with the idea to get a degree in a field she would wish to pursue for a career.


She just graduated from vocational school in January. Waiting on her certificate.