Monthly Archives

Monthly Archives for May 2020.

New Bill Would Require The Federal Government To Overpay For Hotel Rooms

May 27 2020

What Represenative Posey wants to do is require the federal government to overpay for lodging – not to reduce allowable hotel rates – even though market rates may be falling. The federal government spends billions on travel, and the hotel lobby shop AHLA thinks this will “allow hotels to be fairly compensated for the services they provide.”

In reality it’s a backdoor subsidyto hotel chains and owners. Although it wouldn’t work the way the hotel industry thinks.

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South American Mega-Carrier LATAM Files Bankruptcy

plane on tarmac
May 26 2020

South American mega-carrier LATAM, which recently left oneworld and entered a joint venture with Delta, has filed for Chapter 11 bankruptcy in the Southern District of New York. This follows a similar move by Avianca.

The bankruptcy filing includes LATAM Chile, Peru, Ecauador and Columbia but does not include Brazil, Argentina or Paraguay. Debtor-in-possession financing totaling $900 million is provided by existing owners the Amaro and Cueto families and by 10% owner Qatar Airways.

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U.S. Airlines Are Now Pawns In The President’s Re-Election Saber Rattling Against China

china memorial
May 25 2020

Delta and United are looking to restart flights to China. The SARS-CoV-2 virus is largely under control there. It is home to several important business markets. Delta owns a stake in China Eastern and has viewed Shanghai as a hub, while for United the country is their sixth largest international market. (For American, despite owning a stake in China Southern, the country has mostly been a place to light cash on fire.)

However they’re caught up in escalating tensions between the U.S. and China and the President’s re-election strategy.

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