dagger Posted March 30, 2020 Share Posted March 30, 2020 Interestingly, there is talk about regulating capacity in the US by route. For example, American handles a particular route for everyone, United another for everyone. It sounds like a dog's breakfast of an idea. You then have to regulate fares. Link to comment Share on other sites More sharing options...
rudder Posted March 30, 2020 Author Share Posted March 30, 2020 1 minute ago, dagger said: Interestingly, there is talk about regulating capacity in the US by route. For example, American handles a particular route for everyone, United another for everyone. It sounds like a dog's breakfast of an idea. You then have to regulate fares. Air travel itself may come to a halt (or a virtual halt). Not convinced that would be overly effective other than blocking inbound passengers from high risk jurisdictions. Lots of people still moving around using other modes of unmonitored transportation (i.e. cars/buses). Current passenger loads are almost non-existent. Not sure how much discretionary travel is still happening. Is it ALL essential travel? No. Seems some folks are still just trying to get home to hunker down. Link to comment Share on other sites More sharing options...
moeman Posted March 30, 2020 Share Posted March 30, 2020 1 hour ago, Rich Pulman said: The meaning of life. Obviously! The universe, and everything too. Link to comment Share on other sites More sharing options...
Seeker Posted March 30, 2020 Share Posted March 30, 2020 Wow, didn't realize there were so many fans among our aviation community. It's a little unsettling, TBH - it's like when you realize that your boss actually understands your Monty Python references or finding out he texts with emojis. Link to comment Share on other sites More sharing options...
boestar Posted March 30, 2020 Share Posted March 30, 2020 4 hours ago, rudder said: Air travel itself may come to a halt (or a virtual halt). Not convinced that would be overly effective other than blocking inbound passengers from high risk jurisdictions. Lots of people still moving around using other modes of unmonitored transportation (i.e. cars/buses). Current passenger loads are almost non-existent. Not sure how much discretionary travel is still happening. Is it ALL essential travel? No. Seems some folks are still just trying to get home to hunker down. My kid works security in YOW 3 passengers screened on here shift this morning. Link to comment Share on other sites More sharing options...
rudder Posted April 11, 2020 Author Share Posted April 11, 2020 Trump/Mnuchin want 30% of grant money paid back from large carriers. https://www.bloomberg.com/news/articles/2020-04-10/u-s-won-t-require-airlines-getting-100m-aid-to-give-stake Link to comment Share on other sites More sharing options...
mrlupin Posted April 11, 2020 Share Posted April 11, 2020 An article by Matt Taibbi... he mentions the airline stock buy backs in the past years... With all the money that was made by the airlines over the last years, it seem strange to give them money with no strings attached... https://taibbi.substack.com/p/the-sec-rule-that-destroyed-the-universe Quote Most all of the sectors receiving aid through the new CARES Act programs moved huge amounts to shareholders in recent years. The big four airlines – Delta, United, American, and Southwest – spent $43.7 billion on buybacks just since 2012. If that sum sounds familiar, it’s because it equals almost exactly the size of the $50 billion bailout airlines are being given as part of the CARES Act relief package. And via the Globe and Mail: https://www.theglobeandmail.com/business/commentary/article-an-air-canada-bailout-should-stick-in-the-craw-of-canadian-taxpayers/ Quote One reason Air Canada’s stock had outperformed the market had to do with the company’s share repurchase program. Since 2015, Air Canada has spent more than $800-million buying back its own shares. Last year alone, the airline spent $378-million on share buybacks, which had the effect of boosting a company’s stock price by reducing the number of shares in circulation. The company suspended its share buyback program on March 2. Link to comment Share on other sites More sharing options...
rudder Posted April 11, 2020 Author Share Posted April 11, 2020 Whether you agree or disagree with the US aid package, round 1 was intended to be grants with a ‘discretionary’ warrants provision for equity. Round 2 will be straight loans. Somehow, after the grant application window closed, Mnuchin modified discretionary warrants to a 30% repayable loan component with a warrant trigger. And while airlines should be held accountable for their current cash position (or lack thereof), you should not change the rules during the game. Airlines need transparency and predictability from the Feds so they can reasonably modify the business plan going forward. It may become more likely that one of the big 3 goes in to CH11 to shed debt, reject leases, and clobber labour. Watch AA. Once one goes in, they will all go in to level the cost playing field. None will proceed to CH7 (liquidation) but some smaller players may end up there. Having no lay-off language until the end of Q3 as a condition of the grants may end up causing more harm than good for their future. Current estimates are 10-30% reduction in US capacity for 2021. Link to comment Share on other sites More sharing options...
conehead Posted April 11, 2020 Share Posted April 11, 2020 Trump is an idiot.. https://www.msn.com/en-us/news/politics/trump-promises-us-will-do-whatever-is-necessary-to-help-boeing/ar-BB12seV7?li=BBnb7Kz Trump Promises U.S. Will Do 'Whatever is Necessary' to Help Boeing Andrew Feinberg 21 hrs ago President Trump said his administration would take action to help Boeing if company executives request assistance in coping with the financial downturn caused by the worldwide COVID-19 pandemic. Administration officials would meet with Boeing executives during an upcoming meeting with airline industry officials, he said Friday while responding to reporters' questions during the White House Coronavirus Task Force's daily briefing. "We're going to be meeting with Boeing, we're going to be meeting with a lot of companies that are great companies and were great companies a short while ago," Trump said. The president also said that the U.S. "can't let anything happen to Boeing." "It's, you know, got so much potential," he said. The Treasury Department set aside up to $17 billion in aid for Boeing as part of the airline industry rescue package lawmakers included in the CARES Act, the $2 trillion stimulus legislation that Trump recently signed into law. But the aerospace giant has not yet formally requested any of the aid available to it, and according to reports, is still considering laying off up to 10 percent of its workforce due to the downturn caused by the coronavirus-related recession. Trump sidestepped a question about whether the aerospace company could be penalized for laying off its workforce after receiving the aid. Instead, he said Friday that the company's planes are now allegedly so complex that a Massachusetts Institute of Technology degree is necessary to fly them, but nonetheless added the company was "probably the greatest company in the world" and vowed to help. "When they see us, making sure that Boeing is strong again is very very powerful and very important, and we'll do whatever is necessary to do," he added. Boeing became the United States' sole remaining manufacturer of civil airliners in 1997 when it acquired its main competitor, the McDonnell-Douglas corporation. Since then, the company's civilian airline division has been locked in cutthroat competition with its European counterpart, Airbus SE, with both companies frequently charging that the other illegally benefits from various forms of government contracts and subsidies. The Seattle-based aviation giant has also suffered a number of public embarrassments over the course of 2019. In December, the company's NASA-commissioned space capsule, the Boeing Starliner, failed to reach the International Space Station during a mandated test flight for the space agency's Commercial Crew Vehicle program. The embarrassing mishap was found to be the result of a software bug, and combined with the failure to gain approval for the company's 737 Max aircraft to return to flight after more than a year of redesigns following two fatal accidents, led to former CEO Dennis Muilenburg's ouster in January. Link to comment Share on other sites More sharing options...
mrlupin Posted April 13, 2020 Share Posted April 13, 2020 On the US Airline Aid... https://newrepublic.com/article/157275/airline-bailout-strings-attached-harp An Airline Bailout Should Have More Strings Attached Than a Harp Link to comment Share on other sites More sharing options...
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