bailout

Tag Archives for bailout.

Airports Are Asking For A Second Bailout, After We Lit The First $10 Billion On Fire

by Gary Leff on May 7, 2020

May 07 2020

The CEO of the American Association of Airport Executives told Congress that $10 billion is the minimum that airports want in a second bailout, and they aren’t even coming first offering to clean up corruption at airports including Atlanta, Detroit, and Washington Dulles and National and New York LaGuardia, JFK, and Newark.

The first $10 billion, which distributed funds to 3200 airports, became such a mess that some airports received 25 to 50 times their annual expenses.

The Airline Industry Begins To Talk To Congress About A Second Bailout

by Gary Leff on May 6, 2020

May 06 2020

U.S. airlines are telling Congress they ‘hope’ not to ‘have to’ come back for money subsidies. That means, of course, that they expect to seek more taxpayer money and they’re beginning to sow the ground now.

Is United Airlines President Scott Kirby Blackmailing The President?

by Gary Leff on May 6, 2020

May 06 2020

United has gotten a lot of attention for taking government money to save jobs while at the same time planning publicly to furlough workers and to terminate non-union employees without severance.

Is United’s Scott Kirby painting a picture of job losses one month before the election to leverage the President to support a second round of bailouts for the airline industry?

American Airlines CEO Calls Out United For Illegally Reducing Employee Pay

by Gary Leff on May 6, 2020

May 06 2020

The point of shoveling out billions of dollars of airlines was to get airlines through the worst of the depression in travel so that workers all still had jobs, and to keep workers whole until then. That’s not how United Airlines is using the money, and American Airlines CEO Doug Parker calls them out for it.

United is likely correct on the law, Parker correct on the intention behind it. The way the CARES Act was drafted was sloppy, allowing United to take billions in government grants while reducing employee pay, pocketing more money to protect shareholders than the law intended. If airline’s had made clear how they’d behave after getting the bailout, it would never have passed.

United Airlines Imposing Unpaid Time Off, Planning For Huge Layoffs With No Severance

by Gary Leff on May 4, 2020

May 04 2020

Despite getting billions in federal aid precisely to ensure that employees do not see layoffs or a reduction in pay, United Airlines is reducing pay for non-union staff, including administrative help, by enforcing unpaid vacation time. They’re also planning to lay off at least 30% of this group October 1, as soon as CARES Act restrictions lift – and they’ve adopted a new policy that says any of these employees laid off will receive zero severance.

Federal Aviation Bailout Is Making Bizarre Payments To Tiny Airports

by Gary Leff on May 1, 2020

May 01 2020

It’s not just airlines – and airline contractors – who got a big piece of the federal CARES Act. U.S. airports also had $10 billion in grants set aside for them. Payouts are based in part on passengers – but also debt and cash ratios, which created some strange payments to small airports like one in Maine that was awarded enough to operate for 25 years.

Delta’s Lawyers Tell The Government Air Travel Is Unsafe and Should Be Limited. Say What?

by Gary Leff on April 30, 2020

Apr 30 2020

Delta lawyers submitted a filing to the Department of Transportation in which they make the case that travel is unsafe and flights should be limited if at all possible.

That’s not the position Delta takes in public or emphasizes with employees. But it’s a convenient argument to make when they’re trying to reduce their service obligations under the federal airline bailout.

Air France No Longer Permitted To Sell Domestic Trips That Could Be Taken By Train

by Gary Leff on April 29, 2020

Apr 29 2020

The French government has placed several conditions on the 7.5 billion euro bailout it’s providing. The biggest one is that the airline will no longer be allowed to sell purely domestic trips between Paris and domestic cities that are within a 2.5 hour train ride of the capital.

Program Meant To Subsidize Flights To Small Communities Will Now Pay Airlines Not To Fly

by Gary Leff on April 29, 2020

hand holding hundreds of dollars in cash

Apr 29 2020

The Essential Air Service program pays airlines to fly routes that aren’t economically viable. Now the program will pay airlines to not fly those same routes.

There’s a Multi-Billion Dollar Airline Bailout You Haven’t Read About

by Gary Leff on April 29, 2020

Apr 29 2020

Airlines haven’t had difficulty borrowing billions of dollars against assets like planes, gates, hangars and parts. What’s not often pointed out, though, is that the liquidity Delta and other major companies are securing is itself part of another federal bailout program.

bailout

Airports Are Asking For A Second Bailout, After We Lit The First $10 Billion On Fire

The Airline Industry Begins To Talk To Congress About A Second Bailout

Is United Airlines President Scott Kirby Blackmailing The President?

American Airlines CEO Calls Out United For Illegally Reducing Employee Pay

United Airlines Imposing Unpaid Time Off, Planning For Huge Layoffs With No Severance

Federal Aviation Bailout Is Making Bizarre Payments To Tiny Airports

Delta’s Lawyers Tell The Government Air Travel Is Unsafe and Should Be Limited. Say What?

Air France No Longer Permitted To Sell Domestic Trips That Could Be Taken By Train

Program Meant To Subsidize Flights To Small Communities Will Now Pay Airlines Not To Fly

There’s a Multi-Billion Dollar Airline Bailout You Haven’t Read About

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