101–110 of 178 posts
For the sake of argument.... What happens if no airline gets any bail-out money? Do we end up with worse air travel in a year or two?
>The company will take the money but the state won't get a say: this is a concise summary of what Lufthansa's Executive Board, headed by CEO Carsten Spohr, has been telling German politicians in the past few weeks. That's awesome. Create a crappy business, hire 130k employees, and get the state to pay for your failures. At this point, I would be happier that they would just give the money to Google and Facebook which…
> Create a crappy business, hire 130k employees, and get the state to pay for your failures. Uh ... You'd rather Germany sink 10 billion Euros into an American company with barely any German jobs? Over 60k of those 130k are in Germany. If your plan is to cripple the economy, then yeah, absolutely, let all these companies fail and put all these people out of work for a situation that is in no way their fault and there…
For the sake of argument.... What happens if no airline gets any bail-out money? Do we end up with worse air travel in a year or two?
Does it mean that every german will have to pay about $10B / 80m = 125 euros for that ? So it means that they'll have, for example, to wait a little longer to buy their next phone, or lunch ? (I ask the question here because that's the kind of reasoning I read in the press but I'd like to know if it's as simple as that)
Are you kidding. We citizen will earn money by that. Germany will borrow 10 billion with negative interest and invest in a solid company at a low point. Now you can argue, that the flight sector will never recover, which I agree too, but that will not change anything. Lufthansa is a very solid airline. There will be hundreds of small airlines leaving the market with the Lufthansa to pick the market shares up.
For the sake of argument.... What happens if no airline gets any bail-out money? Do we end up with worse air travel in a year or two?
And maybe we reduce the total amount of travel, which is crucial to reduce our carbon footprint. These airline bailouts are a huge missed opportunity.
I guess the money is flowing into banks' coffers, paying off airplanes? Or are there other costs they're currently making? What is free money going to do for the airline, pay employees that have no work to do anyway? Wouldn't it be more efficient to give them the money?
I don't care if Lufthansa goes bankrupt and someone else buys their planes for pennies on the dollar, gives them an inspection after covid-19, and life continues as usual. How are these 10e9 spent other than throwing it into a black hole?
There's probably more to it than I know, but I have yet to hear the reason we're keeping those businesses alive.
One thing that I think the business world has finally learned during the COVID-19 social distancing is that business travel isn't nearly so important as we had imagined. And attending conferences was always fun but it's been amazing to watch how fast conferences have switched to an on-line format (well ... the technical ones that I would attend). So it's my opinion that the airlines, hotels, conference centers and ta…
Surprised no one has said it so I will: conferences provide a business deductible way to have a nice vacation. Witness how many conferences are in Vegas/Hawaii etc.
Earlier quoted context omitted.
Many major national carriers have national importance. So, no, they won't go bankrupt. Be it Lufthansa, Air France, Air China, or whatever. Airlines like Ryanair and Wizz air might be different.
Never mind that several smaller airlines of national importance went bankrupt in recent years because of EU regulation against state aid. Now that the big ones need it, the regulation is out the window.
For the sake of argument.... What happens if no airline gets any bail-out money? Do we end up with worse air travel in a year or two?
Yeah, it's the same line of reasoning behind farm subsidies: running a farm is risky, and if it's so risky that nobody does it, none of us eats... so we all chip in (whether we want to or not) to farmers to offset their losses.
What about airlines? No passengers, airlines bankrupt, only very limited air travel possible, covid-19 ends, someone buys the airplanes from the asset auction, gives them an inspection, life continues as usual?
Solidarity is a whole other matter: if you can't work (because you're disabled or because you can't find work) you get money from the government. Doesn't matter if you're a farmer or airline employee, nor whether the company you worked for goes bankrupt. That's no reason to keep the companies alive, the people won't personally go bankrupt. (That might be different in developing countries, but those won't have 10B bailouts for nonessential businesses anyway.)
For the sake of argument.... What happens if no airline gets any bail-out money? Do we end up with worse air travel in a year or two?
You end up with thousands of lost jobs right now, not just Lufthansa going under but all the businesses that serve them. That's why governments bail out companies.
I appreciate that people expect help, and I would be fine with money for airline employees. I'm skeptical that a bail-out does that much for jobs though. The jobs will (or won't) return as flights do, unless the airlines aren't operating.
I'm open to being convinced, the above question was genuine. I don't really understand the alternative. What happens in a no bail-out situation?
>The company will take the money but the state won't get a say: this is a concise summary of what Lufthansa's Executive Board, headed by CEO Carsten Spohr, has been telling German politicians in the past few weeks. That's awesome. Create a crappy business, hire 130k employees, and get the state to pay for your failures. At this point, I would be happier that they would just give the money to Google and Facebook which…