WSJ on airline bailouts
The speed of airline solvency issues is truly striking. The WSJ reports that US carriers are in talks to obtain as much as $50 billion in financial assistance.
"The exact form of the aid-and the amount-that carriers are seeking is under discussion, and could include government-backed loans, cash grants or other measures including relief from taxes and fees, some of the people said."
Cash grants are the truest of bailouts. I don't know how you can do that before wiping out dividends, if not wiping out shareholders altogether. But this is bailout nation and the money is going to flow.
I think a better bellwether is going to be the cruise ship industry. It's going to need a bailout fast but if that happens, you have to bail out everyone. Airlines are an essential industry, pleasure cruises aren't.
