business

Virus-stricken airlines face bailout or bust

14 Comments
By Andrew BEATTY

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

© 2020 AFP

©2021 GPlusMedia Inc.


14 Comments
Login to comment

Phillipine Airlines has announced that ALL domestic flights will stop from 2359 on the 19th and the status of international flights will be determined soon as well, until April 12th.

If they arent flying, they arent making money, but they are helping to stop (potentially) the spread of the virus.

It's a double edged sword!

4 ( +4 / -0 )

the CEO of Delta Air Lines has seen his salary cut to zero,

NO! Cry me a river! Let's get it straight, his salary wasnt "cut" The CEO of Delta voluntarily chose to forego his salary for the next 6 months due to the problems his and the airline industry are facing.

Dude has a salary of 900,000 US per year, but compensation of $15 MILLION per year! I highly doubt he is going to suffer one bit!

https://www.bizjournals.com/atlanta/news/2020/03/13/delta-ceo-forgo-salary-coronavirus.html

13 ( +13 / -0 )

Fine, the airlines can get their bailouts (you know it's coming anyways), but since they are using everyone's (i.e. the government's) money, there has to be protections for all passengers attached- caps on bag and change fees, seat pitch and width requirements, strict rules for cancellations/refunds, as well as hard limits on future stock buybacks and executive compensation, requirements to keep cash reserves for future similar emergencies, etc. If they want to run their airlines the way they want, then they can survive on their own cash. If not, some changes need to be made.

Am I confident anything remotely like this will happen? No, not really, but it's a nice thought.

6 ( +6 / -0 )

A bailout but with very strict conditions - capped executive salaries and bans on share buy backs, measurable commitments on customer service levels, among other measures.

7 ( +8 / -1 )

Without intervention by their governments most major airlines will be bankrupt by the end of May. Richard Branson asking his airline people to take a 8 week leave of absence without pay.

Free market policies are failing and how need socialist style policies.

4 ( +6 / -2 )

All these grounded planes. A small consolation is the CO2 not being emitted.

2 ( +4 / -2 )

nationalize some airlines like the Italians are doing !!!!

no more free money!!!

3 ( +4 / -1 )

"The biggest U.S. airlines spent 96 percent of free cash flow over the last decade to buy back shares of their own stock in order to boost executive bonuses and please wealthy investors," complained former U.S. labor secretary Robert Reich. "Now, they expect taxpayers to bail them out to the tune of $50 billion. It's the same old story."

Indeed, it's the same old story. It irks me that my taxes go to bail out those who feather their nest, however, when these bailouts provide stability to the bread and butter working folk, I agree.

5 ( +5 / -0 )

Yubaru: "Phillipine Airlines has announced that ALL domestic flights will stop from 2359 "

That will give us plenty of time to prepare (339 years) :-)

3 ( +5 / -2 )

Let most of them fail for they have already failed the customer. Lehman Shock for airlines coming soon.

-1 ( +1 / -2 )

CEOs of these large companies pocket outrageous amounts every year and then want bailing out...?

Its happen before and it shouldn't happen again !

0 ( +1 / -1 )

Running anything is never easy. But airlines with such huge payouts going bankrupt, i am hearing not the same in japan, ana a japanese airline seems to be doing o.k.

-1 ( +0 / -1 )

TARA TAN KITAOKAToday  04:26 pm JST

Running anything is never easy. But airlines with such huge payouts going bankrupt, i am hearing not the same in japan, ana a japanese airline seems to be doing o.k.

Not really- No airline is going to do well for quite a while.

https://markets.businessinsider.com/stocks/ana_1-stock?op=1

1 ( +1 / -0 )

No airlines are doing well but they just want more profits. Pls take yr profits from the government.

0 ( +0 / -0 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites