Criticism grows over 9- 11 airline bailout

[UpInArms]

http://www.dallasnews.com/sharedcontent/dws/bus/stories/051404dnbusbailout.84306.html

(free registration or try www.bugmenot.com )

WASHINGTON – In the days after Sept. 11, 2001, Congress raced to approve a $15 billion bailout program meant to ensure the survival of the devastated airline industry with grants and loan guarantees.

But the bailout program has not accomplished anything like that, according to a variety of experts.

Instead of tiding otherwise sound airlines over until depressed air traffic could pick up again, the program has been used in part as a life- support system for weak airlines that were struggling before Sept. 11 and that are still struggling.

<snip>

In the last two weeks, two major airlines – Delta Air Lines, which did not seek federal loan guarantees under the program, and US Airways, which received a $1 billion package – have warned that they may have to file for bankruptcy protection unless their employees agree to wage cuts and other concessions.

...more...

[w13rd0]

1. One of the many reasons why I've thought Tom Daschle...

...has not served us well. Say hi to your wife for us Tom.

[Kolesar]

2. Southwest Airlines was a better company &their competition got funded

That was quite unfair and anti-free market.

I got your point about Mrs Daschle, the airline lobbiest. Personally, I think the airline industry is doomed. What are they going to do in 40 years? Fuel the jets with biodiesel or $100/barrel crude?

[Jeff in Cincinnati]

3. Solar...

.

[UpInArms]

4. well, that image

of "solar flying" just gave me the heebees -

New training for pilots required:

Don't fly into the clouds!

[SpiralHawk]

5. "Don't fly into the clouds" unless...

A brilliant scientist somewhere in th world has finally designed batteries that can accept and easily hold massive reserves of solar energy.

I know it can be done. I think someone or some company will make it -- or something better -- happen. If only BushCo does not destroy the planet first in his oil-drunk Crusade.

[Nashyra]

7. Southwest is not neccessairly a better company

they found a nitch on the shorthall where they had only to use, service and purchase one aircraft. It was not a program for profit that a major carrier could use, for instance American could not use the same aircraft going from LAX to SFO as it uses going from NYC to London. Here in lies the advantage that these carriers had over the majors. Now I have no problem with a "free" market and am the first to agree that the airlines needed a shake out and some new business plans, however It would have been the "employees" of those airrlines that would have been the ones on the street not supporting the economy, please remeber that in comparing "airlines with sound business plans" that operate strictly here in the US, is like comparing apples and oranges in the case of airlines operating also overseas. I like to end this argument that I've had several times on this board with the question of "how do you get to London on Southwest and stay on a US carrier"? You can't. I call the low cost carriers the "Walmart's" of the airline industry. Anyway think your posts through before you are "overly" critical of the bailout. It's a double edge sword. And yes I am an airline employee, my husband is an airline employee and we are UNION. What happens in our industry or any heavily union industry effects union scale and benefit nationwide. On that note the leadership of those company's are the ones that need to have their asses put out to dry and the cost cutting needs to come from the corporated board room. American does not 51 vice presidents with their perks, this is something that Southwest does right.

[Voltaire99]

14. Ditto. This should be called the Daschle bail out. But...

While the Repugs were busy carving up the post-911 landscape for Halliburton, Dems like Daschle shamefully went after their share of the pie, too, in other areas.

To be charitable to Tom, his thoughtfulness has always impressed me. But he's something of an anachronism in this: it is not a thoughtful era, our pols are generally rich thugs, and the media conceives of the electorate as NASCAR droolers down on all fours howling for foreign blood and tax cuts. And for that matter, the Democratic Party's reinvention as GOP-lite has obliterated the role for statesman-like figures.

So to the extent that Daschle has been a wimp--utterly and tragically unable to oppose the fascism of the last two years, our Chamberlain bringing assurances from Rove-Hitler--we can perhaps forgive him in small measure. Individual talent is one thing; historical circumstance is another. Might I recommend that Tom retire and open a golf course somewhere with all that airplane dough his lobbyist wife has made?

[jus_the_facts]

6. I wish the 9/11Commission were askin' about the airline stock......

....there were a LOT of suspect activities of airline stock dumped which NEEDS to be investigated....WHO CASHED IN BEFORE THOSE PLANES WERE USED AS WMD! :grr:

[Wink]

12. Saudi's....obviously

And that is why we don't hear anything about those stock transactions. Just the smirking chimp covering up for his business partners.

[WLKjr]

8. Funny

how we bail out the airlines when they lose money anyways, but pretty much refuse to bail out Amtrak and other railroads. Correct me if im wrong.

[phantom power]

9. I believe that the railroads are also subsidized

but I don't have any specific figures

[shance]

11. Compared to the Airlines? Are you joking?

Not a relative comparison at all.

Our government or many in the government are doing all they can to shut mass transportation down and increase spending for private transportation.

[phantom power]

13. I didn't say it was equitable

I just said that railroads are subsidized.

[MaineDem]

10. I transferred money out of stocks in August of 2001...

primarily because the transportation sector was doing so poorly. I was screaming all over the place about the bailouts after 9/11. These companies were tanking before September of that year and the bailouts had NOTHING to do with the attacks. IMHO, of course.