To: fingolfen who wrote (143865 ) 9/20/2001 4:29:10 PM From: GVTucker Read Replies (2) | Respond to fingolfen, OT, RE: airlines, a couple more points and then I guess we'll have to just agree to disagree. Yes, a few select carriers will be able to weather the storm better than others, but part of the problem with the airlines and their (lack of) profitability has nothing to do with over capacity, it has to do with government regulation. Government regulations cover everything from airports, to airport security, to airline trade unions. I'm primarily concerned about cascade effects (not the Intel processor). Today we lose 100K out of the airline industry. That is yet another blow to an already weak economy. What then happens to the travel agencies? They cut. What then happens to the hotels. They cut. These people now are chasing bare necessities rather than producing and spending in the economy which further weakens the economy. What industry cuts next? In short, the government needs to put liquidity into the hands of the consumers. The only way to do that is to break the downward spiral of cutbacks, layoffs, and down-sizing. The main beneficiaries of any bailout would NOT be people who need it. It would be the shareholders of airline stocks and airline bonds. These people, many, many of whom are my industry peers, do not need nor deserve a handout. An airline bailout could be the first step. I agree, it's a band-aid. That's all it is. More fundamental changes are needed (lowering the capital gains tax or *gasp* eliminating it all together could also help).
