$75 billion in Band-Aids won’t cure ailing airlines

“Sadly, as long as demand for air travel remains so deflated, there’s no way to avoid airlines restructuring and slimming down their payroll. Subsidies provided through the cover of payroll programs aren’t necessary to protect an industry that could restructure through bankruptcy. Airline bankruptcies aren’t the equivalent of an airline collapse. They can continue to fly safely during the process where a judge imposes a stay on creditors’ claims and gives the airlines breathing room until consumers are ready to come back.


Importantly, the bankruptcy process is fair. It shifts the cost of this crisis onto those airline investors who make good returns during good times and should shoulder the decreased value of their investments, instead of taxpayers. Without a bailout, airlines won’t just be flying the friendly sky, but the fairer sky—for all taxpayers”


https://www.avpress.com/opinion/75-billion-in-band-aids-won-t-cure-ailing-airlines/article_f8bf0590-0911-11eb-a4eb-833ce1ee2f71.html

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