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

Nov 13, 2022

• https://www.mercatus.org/publications/spending-deficits-debt/2020-bailouts-left-airlines-economy-and-federal-budget-worse
• What happened with this bailout?
  • was the airlines bailout actually worth it?
  • doesn’t really seem like it, the airlines avoided bankruptcy