There also giving a lot of requirements, definitely not just handing out free money. I’d also imagine there will be lots of struggles in the US market, a lot of experts say optimistic outlook is this slows during the summer, seems like fall is the earliest things could be relatively normal from much of what I’m seeing, and the 5 or so billion the major airlines here in the US is getting definitely doesn’t get US airlines through the end of summer, period. There’s going to be a lot of collapses, and I suggest we get used to it because this is going to get ugly…
1 Like
Yes, although I think that it is great that the government is helping probably the most important industry in the economy, I do think all of the money being handed out will cause inflation.
1 Like
I’m not sure that aviation is the most important industry, but it’s definitely up there, and I don’t think the government bailouts will make a significant if any change to inflation. I am trying to read up on this, but the economy is complicated to say it simply, so if someone actually understands this stuff and wants to jump in by all means, but most of these are loans funded by taxpayers at the end of the day, essentially the government is taking money from the same pool as money for anything else the government may use money for, roads, bridges, schools, heck the White House lawn care comes from largely the same place, but these bailouts are (usually) expected to be payed back. I believe most of the ones in the US are low interest loans, so in theory the government actually gets more back than it put in, either that, or there stock buyouts, and same idea of cash now, more money for the government in the future if the business succeeds. Money is being put into the economy regularly, and so inflation is slowly ticking up, but this is money that is already circulating the economy coming from people to the government out to these companies, down to there employees, back to other companies, and some of it in taxes back to the government. Hope that makes sense…
2 Likes
Delta is in no financial position to support Virgin Atlantic. If VS goes into administration, Delta CEO Ed Bastian is confident they’ll re-emerge.
Huh
Ryanair CEO Michael O’Leary:
He added “Virgin Atlantic is ridiculous.” Before adding “this is Branson’s second go at trying to fleece the British taxpayer with state aid, you know, he tried it with FlyBe, which was owned by Delta, himself and a New York VC company. Now you have Virgin Atlantic, owned by Delta and a Carribbean Island based non-resident billionaire. Frankly, if he’s worried about Virgin, he should write the cheque himself!”
“It’s not like he is short of money, his Virgin Galactic investment is worth about 1.3 billion today. So sitting in the Virgin Islands as a tax exile, and asking the British Government to bail you out, when you have more than sufficient resources to bail out Virgin Atlantic yourself, is not something, I believe, that should be considered.”
This is honestly getting out of hand! Like if they collapse I will be super mad! LIKE REALLY! Every time I go to Orlando! I always see these!
No, Delta is not. It looks like they have basically fully drawn down that new short-term loan in preparation for some hard times along with accepting government aid according to their latest 10-Q. No point in injecting a couple hundred million especially when it will just get burned up right away.
1 Like
This topic was automatically closed 90 days after the last reply. New replies are no longer allowed.