Author Topic: The Day After COVID19 -Airlines  (Read 8589 times)

Offline YesThatsMe

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The Day After COVID19 -Airlines
« on: March 15, 2020, 10:23:31 AM »
So how does this play out? The big carriers will def survive, flag carriers will most likely be bailed out by their governments (think Auto in 08). But I can imagine the costs of travel shooting up in order to please regulators and build liquidity reserves, and this can be the nail in the coffin for points...

Offline yuneeq

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Re: The Day After COVID19 -Airlines
« Reply #1 on: March 15, 2020, 10:31:57 AM »
If anyone gets bailed out it better be packaged with contingencies that help consumers in the long run.
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Offline CountValentine

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Re: The Day After COVID19 -Airlines
« Reply #2 on: March 15, 2020, 10:33:48 AM »
If anyone gets bailed out it better be packaged with contingencies that help consumers in the long run.
That is not likely.
Only on DDF does 24/6 mean 24/5/half/half

Offline S209

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Re: The Day After COVID19 -Airlines
« Reply #3 on: March 15, 2020, 10:35:27 AM »
If anyone gets bailed out it better be packaged with contingencies that help consumers in the long run.
Low cost carriers being bailed out helps consumers in the long run because there will be low cost carriers
Quote from: YitzyS
Quotes in a signature is annoying, as it comes across as an independent post.

Offline CountValentine

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Re: The Day After COVID19 -Airlines
« Reply #4 on: March 15, 2020, 10:37:14 AM »
Low cost carriers being bailed out helps consumers in the long run because there will be low cost carriers
I think consumers are done waiting for trickle down economics.
Only on DDF does 24/6 mean 24/5/half/half

Offline RewardsAddict

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Re: The Day After COVID19 -Airlines
« Reply #5 on: March 15, 2020, 10:38:03 AM »
So how does this play out? The big carriers will def survive, flag carriers will most likely be bailed out by their governments (think Auto in 08). But I can imagine the costs of travel shooting up in order to please regulators and build liquidity reserves, and this can be the nail in the coffin for points...
It also all depends on how long this takes. Think 1 month vs 6...

Offline yuneeq

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Re: The Day After COVID19 -Airlines
« Reply #6 on: March 15, 2020, 10:38:31 AM »
That is not likely.

Then they shouldn't be bailed out if they have nothing to offer in return for our help.
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Offline YesThatsMe

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Re: The Day After COVID19 -Airlines
« Reply #7 on: March 15, 2020, 10:43:20 AM »
Then they shouldn't be bailed out if they have nothing to offer in return for our help.

Do you understand the vital importance of air travel to the economy? If United Delta & American come to Washington for help Congress will drool to add as many 0's as necessary to that check.

Offline ExGingi

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Re: The Day After COVID19 -Airlines
« Reply #8 on: March 15, 2020, 10:48:55 AM »
Do you understand the vital importance of air travel to the economy? If United Delta & American come to Washington for help Congress will drool to add as many 0's as necessary to that check.

Let them start by outlawing bogus "fuel surcharges" that are just a way to circumvent certain restrictions (and taxes) they have. Also make sure the "contract of carriage" actually obligates them to something in return for fare paid.
I've been waiting over 5 years with bated breath for someone to say that!
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Offline yuneeq

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Re: The Day After COVID19 -Airlines
« Reply #9 on: March 15, 2020, 10:56:24 AM »
Do you understand the vital importance of air travel to the economy? If United Delta & American come to Washington for help Congress will drool to add as many 0's as necessary to that check.

Not everyone got bailed out in 2008.
We are holding the purse strings. You want help? Here are the terms.

We have $100b to offer, but first come first serve :)
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Offline dealfinder11

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Re: The Day After COVID19 -Airlines
« Reply #10 on: March 15, 2020, 11:50:06 AM »
these airlines aren't even profitable when operating without a virus.

Offline YesThatsMe

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Re: The Day After COVID19 -Airlines
« Reply #11 on: March 15, 2020, 11:57:25 AM »
Not everyone got bailed out in 2008.
We are holding the purse strings. You want help? Here are the terms.

We have $100b to offer, but first come first serve :)

You wouldn't group Ford Chrysler GM in the same category as United Delta American?

@Dan can you please way in on this topic?

Offline Dan

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Re: The Day After COVID19 -Airlines
« Reply #12 on: March 15, 2020, 12:17:16 PM »
The US big 4 will get bailed out.
Other airlines may get bought at fire sale.
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Offline neveryou

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Re: The Day After COVID19 -Airlines
« Reply #13 on: March 15, 2020, 01:07:04 PM »
these airlines aren't even profitable when operating without a virus.
They make plenty of money in regular times, they make billions off the branded credit cards

Offline neveryou

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Re: The Day After COVID19 -Airlines
« Reply #14 on: March 15, 2020, 01:10:47 PM »
Do you understand the vital importance of air travel to the economy? If United Delta & American come to Washington for help Congress will drool to add as many 0's as necessary to that check.
Free market will let someone else come and open up or someone will buy them out

If they are bailed out, its crony capitalism like when banks are bailed out

Why should they get bailed out and not other people

If they get bailed out, then there should be lots of rules that favor the consumer and less payments to the people in charge who make millions

Offline dealfinder11

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Re: The Day After COVID19 -Airlines
« Reply #15 on: March 15, 2020, 01:12:11 PM »
They make plenty of money in regular times, they make billions off the branded credit cards

so how come they trade at a 3 multiple while the street average is a 20?

Offline YesThatsMe

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Re: The Day After COVID19 -Airlines
« Reply #16 on: March 15, 2020, 05:58:59 PM »
Free market will let someone else come and open up or someone will buy them out

If they are bailed out, its crony capitalism like when banks are bailed out

Why should they get bailed out and not other people

If they get bailed out, then there should be lots of rules that favor the consumer and less payments to the people in charge who make millions


All true, but they are so vital to the American economy. We don’t have other transportation options in this very big country with no trains.

Offline ExGingi

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Re: The Day After COVID19 -Airlines
« Reply #17 on: March 15, 2020, 06:04:27 PM »

All true, but they are so vital to the American economy. We don’t have other transportation options in this very big country with no trains.

Maybe that's where economic stimulus should be focused. Infrastructure upgrade. Create good nationwide passenger rail. Bullet trains, etc. Or maybe even to satisfy @Dan and some Clevelanders - gasp - hyperloop.
I've been waiting over 5 years with bated breath for someone to say that!
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Offline CountValentine

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Re: The Day After COVID19 -Airlines
« Reply #18 on: March 15, 2020, 06:19:48 PM »
Free market will let someone else come and open up or someone will buy them out

If they are bailed out, its crony capitalism like when banks are bailed out

Why should they get bailed out and not other people

If they get bailed out, then there should be lots of rules that favor the consumer and less payments to the people in charge who make millions
Was Chrysler bailout a mistake?
Only on DDF does 24/6 mean 24/5/half/half

Offline neveryou

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Re: The Day After COVID19 -Airlines
« Reply #19 on: March 15, 2020, 06:27:38 PM »
Was Chrysler bailout a mistake?
The Obama administration lost 10 billion on the auto bailout, YOUR money was used to bailout a company that you got nothing out of

They wanted to save jobs, that's why they bailed them out

If they wouldn't of been bailed out, they probably would've sold there property, intellectual property .....