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airlines bailout - 2020

Tags: articles, finance

  • https://www.instapaper.com/read/1296234054

  • Airlines spent 96% of free cash flow on stock buybacks

  • Airline bailout is not strict

    • For instance, some of the money is in cheap loans, and some in grants that will be forgiven if the carriers fly right
  • No minders

    • But in a less capital-serving bailout, another problem is who the minders would be. Remember AIG? The government appointed three trustees. There’s no evidence they did anything other than collect fees and confer a veneer of legitimacy.
  • Bailout doesn’t even work for all airlines, such as budget tourist ones like JetBlue

    • Very likely more bailouts are needed

https://www.nakedcapitalism.com/2020/12/congress-to-pass-17-billion-bailout-of-airlines-to-top-off-prior-bailout.html

  • followup bailout of 17 million with second stimulus package