Very simple

Post #15,426 by ben_tilly 10/27/01 1:56:02 PM Reply	Very simple The airlines spent several years bleeding like crazy while fixated on the belief that which ever one of them survived with the biggest network would reap huge profits in the end. Then they lost 4 big expensive planes, saw insurance rates go through the roof, and saw the size of their market shrink drastically for the indefinite future while getting hit with needs for tightened security which will raise expenses. Lemme see, how does this work? You are already running at a loss. You take a direct hit to the pocket. You lose most of your business. You are going to have to run at more of a loss to encourage people to fly again. You aquire a ton of shiny new security-related expenses. Yes. The airlines have a pressing and immediate need for more money. A bunch are going to go under even with it. I don't think that the 15 billion just went to a few deep pockets. I don't see any dissonance between the request and the ongoing problems. I do think that it was given out stupidly though. Had I been in charge of the federal cash I would have paid for all 4 downed planes in full, told the insurance companies not to raise their rates, paid the airlines for shutting down service for 4 days, and offered the rest of the funds for offsetting newly required security measures. But I would have stopped the corporate welfare there. Sure, it would be nice if the government had the resources to bail out everyone who is in trouble. But it does not. (Loose fiscal policy in good times means you don't have it when you need it. Well, right now the US needs it, for instance to pay for a step-up in security and the military...) Of course had that happened you would all be complaining that the airlines got 5 billion or so and yet are closing their doors left, right, and center. But that is how capitalism works. It doesn't matter how noble your aspirations are, if you lose sight of the fact that it is your job to make a profit, you don't deserve to stay in business. And sometimes shit happens to the best of us. Cheers, Ben
Post #15,429 by bepatient 10/27/01 2:53:38 PM Reply	Distribution network For the 2 weeks following the disaster, travel agencies were operating at crisis levels with little or no revenue. That is a thin margin business to begin with. They need a share of that 15 billion. How >that< would get distributed is beyond me...there's so many of them. Most just want guaranteed short term loans to cover short term cash flow. I'll agree, though, there's alot of money going to places that it should not be going. Airlines needed the relief...but to think they were being well managed before the crisis is a mistake. They were spending alot of time and money bitching about airport capacity shortages..when they were running smaller planes more often on rotes that should have had bigger planes less frequently. Who in God's name needs 18 flights a day non stop Philly Chicago. All half full or less (except the rushhour morning and evening flights) I better stop before I get further into a rant about airline mismanagement. You were born...and so you're free...so Happy Birthday! _{Laurie Anderson} [link\|mailto:bepatient@aol.com\|BePatient]
Post #15,449 by boxley 10/27/01 8:45:36 PM Reply	The only problem with your distribution model is its reasonable. The govt picking up the costs of the planes and attendant lawsuits (they are inevitable) is a taxpayer function. Ground a taxi pay the day charter rates for all craft grounded, supply interest free loans to remodel the business plans. Repeal jetfuel taxes and gateage for 6 months. All of that makes too much sense. thanx, bill tshirt front "born to die before I get old" thshirt back "fscked another one didnja?"

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