Nationalization of U.S airlines.....

I wish they concealed profits, it would mean they actually made a profit!

Delta "lost" how many billions in the first quarter? Was it an actual loss, or was it simply a loss on paper b/c their stock wasn't valued at what they expected it to be? That's what Matt's trying to get at. There's too many government bail-outs and other hand outs available if you lose money. It's like the musical "The Producers." You make more money with a flop than you do with a hit b/c there's all these loop holes to cover your "losses." Don't make too much of a profit since you might not qualify. Sorta like Pell Grants and college. "Sorry, kid. We know you're inner city and your parents are dirt poor and can't afford to pay for you to go to college. But they still make too much for you to get a Pell Grant." Whereas if the parents were able to "hide" income better or show they actually lost money....bingo. Insta-college money.
 
I remember reading an interview with a CEO of JetBlue (former or current, I don't remember) where he said in reference to the multiple airline bankruptcies and subsequent government bailouts in the last 6 years (paraphrase), "In most other industries, when you beat your competitor, they go away. In our industry, they come back stronger."

I'm sure folks will take issue with that statement in some way (or many ways), but I was struck by the simple truth and logic of those words.

This, I hate to say, holds some serious water in the grand scheme of things.

I'm not sure that nationalized (or state run, for that matter) air service is the answer, but, when the government already throws money into the industry, while doing nothing to ensure where the money goes, I'd much rather see taxpayer dollars in the form of subsidies of known quantity keep the industry alive (assuming it needs them to function, which I'm not sure I agree with) in a STABILIZED manner.

The current situation is akin to the parents of a spoiled brat saying to their daughter, "what, you already spent the $5000 we gave you last week? Sigh. OK, well here's $2000 more, will that last until the end of the week?"
 
Delta "lost" how many billions in the first quarter? Was it an actual loss, or was it simply a loss on paper b/c their stock wasn't valued at what they expected it to be?

I understand what he is getting at, the fact remains that the airlines cash levels are going down, which = loss.

After the last 7 years I don't know how anyone can sit there and say the losses are only on paper. I really, really wish they were. They have churned through billions upon billions of cash (the cold hard kind).

The fact that you think taking a "paper loss" allows a great profit is ironic...it's like people saying they will "just write it [object]" off come tax time...it's not free, you only get cents on the dollar back.

I can asure you the airlines would rather post $1 billion in clear profit than $100 million in actual cash losses and a "paper loss" of $1 billion.
 
You can't be serious! We'd have to make two dozen connections to travel from California to Florida!!!

(it's fares btw, not "fairs")

Perfect, thus ensuring that every state gets its cut.:sarcasm:

oops, spell check worked, not grammar check!

Maybe I need to have more sarcasm tags, of course I'm not serious, although something needs to be done.
 
I can asure you the airlines would rather post $1 billion in clear profit than $100 million in actual cash losses and a "paper loss" of $1 billion.


That depends. With a paper loss, you can have your cake and eat it, too. You've got the cash on hand, but since you lost over a billion on paper, it wasn't a profit. Wasn't too long ago that Delta reported a loss, but in fact would have turned a PROFIT in the quarter if it weren't for it's little stock de-value trick. Sounds to me like they really made money but lost money on paper.....
 
Nationalization is a bad idea. Re-regulation is a good one.

Airlines worked just fine for decades before Jimmy Carter listened to Khan and deregulated the airlines.

Bring back the CAB and it will be good.
 
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