Travel Shouldn’t Get A Government Bailout

man speaking on microphone
Mar 11 2020

President Trump said on Tuesday that the federal government would help the airline and cruise industries. Details, though, are limited. However economic stimulus proposals being batted around Washington are bigger in nominal dollars than 2008’s Troubled Asset Relief Program and the 2009 stimulus law.

When Congress starts talking big dollars, industries line up. After 9/11 Congressman Jim Moran said “It’s an open grab bag, so let’s grab.” And that’s what the travel industry seems to be starting to gear up for.

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Why We Aren’t Seeing More Travel Discounts Right Now

airplane cabin
Mar 11 2020

We keep hearing about doom and gloom in the travel industry – people aren’t flying, but mostly that forward bookings are down. Airlines are cutting flights and offering relaxed restrictions so that people are more comfortable buying travel. We’ve already seen Alaska Airlines come out with bonus elie qualifying miles for travel now.

But if things are so bad in the travel industry why aren’t we seeing more travel deals?

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Former FDA Chief: There’s 3 Things Airlines Should Do To Protect Passengers And Crew (But They Aren’t)

someone putting on rubber gloves
Mar 10 2020

Dr. Scott Gottlieb, FDA administrator from 2017-2019, has been a helpful source on coronavirus. He was one of the first people with a real microphone sounding the alarm about lack of testing in the United States.

He says airlines aren’t doing enough to prevent spread of the virus, focusing on three things he’s seen in his own travels.

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American Airlines Is Focused On Long-Term Growth, ‘Not Breaking Out The Distress Playbook’

Mar 10 2020

At an investor conference this morning, after first talking about coronavirus, American Airlines CEO Doug Parker pivoted to talk about the airline’s operational performance, and growth plans including from new gates coming online in Charlotte and upgauging regional jets next year at Washington National airport.

American just has a real difference in perspective. Parker said they are “not breaking out the distress playbook..that’s not where we are.” I hope he’s right of course. They talked about the effect of sales on bookings, their cash balance as a cushion, and the possible accelerated retirement of the Boeing 757.

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