It’s terribly ironic that the federal government’s (IMHO, correct) decision to deny United taxypayer backing for billion-dollar loan may have lead to the situation where the federal government is taking on an even larger liability for the airline’s pensions. Of course it’s possible that providing the loan would still leave the government in the position of picking up the pensions also. But United provides an interesting illustration of failed U.S. industrial policy. The airline has been operating under bankruptcy protection for two and a half years and continues to lose nine-figure sums each month. Despite cost-cutting and layoffs the airline has no path towards profitability, and labor relations are at a low point. The airline has been kept afloat by the government, by the courts which have kept aircraft lessors at bay (though a recent…
