I was just catching up with the news after a great weekend with the family. Then, I was reading an article the the airlines might be the next candidate for Government money. So, the American taxpayers have bailed out the following:
- Insurance companies
- Automobile companies
- Wall Street
- Mortgage Lenders
The Government will not allow thousands of airline workers to be on the unemployment line while the numbers for the economy are starting to look better. It is estimated that the airlines may need between $3-5 billion to assist them through this rough period. Furthermore, we will see airlines merge into mega airlines. Wall Street bankers will obtain fees for putting the deal together. Who is really out of the money? Taxpayers? I would advise the Government to stay out of this battle. Airlines need real competition to see who really can survive on its own. Yes, it will be painful. However, it will be better for the American people in the long term with efficient airlines still in business without Government assistance.
Leonard holds the same view: "The longer you keep this excess capacity in the system, the longer you make it worse for everybody." That's the logical conclusion. cited: http://www.businessweek.com/lifestyle/travelers_check/archives/2009/07/will_us_airline.html
"We went through all these arguments with Detroit," Jenkins fumes. "I think people at a certain point just kind of bristle at this. We've spent so much money bailing so many people out and when does it stop?"
Finally, the Government will be creating a national frequent flyer mileage program for every tax dollar given to the Airlines. It was estimated that each American will obtain one free roundtrip tickets to Washington DC at your leisure. That is a great incentive for us to get involved in this bail out. Just a concerned American writing this post.