Allow airline mergers or give them a cash infusion???

[6SpeedTA95]

Well guys there's lots of talk in the media about the airlines merging. High fuel costs are driving up costs and competition is stiff enough that those who can't compete are having major problems remaining profitable even after a few bankruptcies and reorganizations.

Continental and United are in talks right now. Delta and Northwest are also in talks about a possible merger....in the meantime Delta's CEO had 11.3 million in compensation for four months of 2007.


All four of these companies are struggling with profitability amid high energy prices. However, other airlines are profitible...should the government provide more cash to these businesses? Should they allow mergers to take place or should the government simply allow them to file bankruptcy?



Personally I am against another cash infusion especially with some companies making money and others not. Also those that aren't tend to suck at managing their routes. For example, friend of mine just flew from Tulsa to Chicago on a large plane. There were 32 people onboard the plane.

Not a chance in hell they made money on that flight and its a perfect example of poor route management.

[Scrum]

Let them merge or let them die.

They don't need even more federal funds if they can't find a way to stay profitable.

[thewise1]

Unprofitable business should fail.

[A_C_E]

Originally Posted by Scrum

Let them merge or let them die.

They don't need even more federal funds if they can't find a way to stay profitable.

.

[A_C_E]

Once they decided to de-regulate, there is only one option: let them merge so we go back to a small number of airlines total, or let them go out of business.

[motivez]

Lets say hypothetically they deny the mergers, and all of the companies go bankrupt and cease flights.. what happens to our economy?

[thewise1]

Originally Posted by motivez

Lets say hypothetically they deny the mergers, and all of the companies go bankrupt and cease flights.. what happens to our economy?

Maybe I won't be stuck in hotlanta doing 20 hour workdays like this past week anymore

edit: still at work right now too

[6SpeedTA95]

Originally Posted by motivez

Lets say hypothetically they deny the mergers, and all of the companies go bankrupt and cease flights.. what happens to our economy?

Well they wouldn't all go bellly up at the same time. Most would just file for reorganization. Those that actually went under would have their assets and routes bought up by other airlines.

But lets just say everything did happen at the same time...well then we'd be in a world of shit for 60 or 90 days and trains/highways would have far more business travelers.

[thewise1]

Originally Posted by 6SpeedTA95

Well they wouldn't all go bellly up at the same time. Most would just file for reorganization. Those that actually went under would have their assets and routes bought up by other airlines.

But lets just say everything did happen at the same time...well then we'd be in a world of shit for 60 or 90 days and trains/highways would have far more business travelers.

the silver lining is that we wouldn't have air traffic control problems anymore

[kinggovernor]

Originally Posted by Scrum

Let them merge or let them die.

They don't need even more federal funds if they can't find a way to stay profitable.

[motivez]

Originally Posted by 6SpeedTA95

Well they wouldn't all go bellly up at the same time. Most would just file for reorganization. Those that actually went under would have their assets and routes bought up by other airlines.

But lets just say everything did happen at the same time...well then we'd be in a world of shit for 60 or 90 days and trains/highways would have far more business travelers.

I guess the question is whether the government has a responsibility to step in and attempt to prevent things that could cause major problems for our economy..

Granted, people could still drive or take a train or a bus, but it seems like the markets would take a huge nose dive

I personally don't feel like they should give them a cash infusion, especially while there's other options available, like mergers and business reorganizations.. I also think there's a market for no frills, low cost flights (ala Skybus).. but maybe it's not feasible to reorganize while we're in the middle of an economic slowdown combined with rising fuel prices..

[kombayn]

In a Free Market, they would merge or they would cease business. I say let them suffer if they don't want to merge. I get free flight benefits from my Dad because he works for U.S. Airways, so hopefully... They do merge and that means I can travel to places all over the world for free on stand-by!

[6SpeedTA95]

Originally Posted by motivez

I guess the question is whether the government has a responsibility to step in and attempt to prevent things that could cause major problems for our economy..

Granted, people could still drive or take a train or a bus, but it seems like the markets would take a huge nose dive

I personally don't feel like they should give them a cash infusion, especially while there's other options available, like mergers and business reorganizations.. I also think there's a market for no frills, low cost flights (ala Skybus).. but maybe it's not feasible to reorganize while we're in the middle of an economic slowdown combined with rising fuel prices..

Yeah and thats a relevant question. It's why the government went the cash infusion route the first time. Unfortunately many of these carriers are inefficient and can't run routes.

Today I printed out my boarding pass for my flight tomorrow morning from Tulsa to Houston. If I didn't misread the seat map the plane was about 35% full...or maybe only 35% of the seats had been fixed/chosen?

Either way I'll let you know tomorrow if its another 35% full flight or if its a flight thats at capacity.