Re: Re: Airline bailout

[Eugene Coyle <eugenecoyle@xxxxxxx>]

At the end of August I reported that a flight I was on was remarkably empty.
There was a subsequent post from someone who flies frequently reporting that
flights were much less crowded and that upgrades to first class were much
easier than in the past.

    It has been frequently reported in the press over the past six months that
business travel -- i. e. the customers paying high fares -- was off very
sharply.

    There were really few passengers on the flights involved in the Trade
Center attack.

    Ergo, the airline industry was in VERY serious financial trouble before the
Trade Center attack.  Some were quick to slice 20% of their trips -- before
there was any actual data on how customers would react.

    A bailout, or some sort of accomodation with anti-trust would likely have
been requested just because of the downturn in the economy.

Gene Coyle

Tom Walker wrote:

> Bill Lear asked,
>
> >Has anyone analyzed the impending bailout of the airlines in the wake
> >of the massive firings?
>
> The U.S. industry is seeking $24 billion. Air Canada is asking for "$3-$4
> billion". I would say this is only the beginning.
>
> It would make most sense to let the airlines down slowly (the soft landing?)
> and put more money (a lot) into high speed rail for medium distance travel.
>
> Tom Walker
> Bowen Island, BC
> 604 947 2213