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'Single biggest shock': Airlines, airports battle coronavirus cash crunch

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QANTAS CEO said:

 

"The Australian carrier announced plans to cut international capacity by 90% and domestic capacity by 60% until at least the end of May, grounding the equivalent of 150 planes in response to new travel restrictions."

 

Just wondering if there's a known specific reason why he says "until at least the end of May". Is there a published logical reason why things might improve by the end of May 2020.

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It is surprising that such large corporations are only a couple of weeks away from bankruptcy in the best of times. This all goes to show just how fragile they are and how they run their businesses in a seat-of-the-pants style with no financial war chest or resilience so they can feed their shareholders. If it goes south for a few weeks they have their hands out for a bailout from the taxpayer who they have been shamelessly milking for billions and doing their damnedest to avoid tax any way they can. Any bailout for these greedy megacorps should be in exchange for shares that can be resold in the future with the profits too ...like the UK government did with the RBS (Natwest), or let them fail. Businesses need to be reminded that there is risk and downsides to not getting it right and they should have prepared for a crisis.

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5 minutes ago, Brigand said:

It is surprising that such large corporations are only a couple of weeks away from bankruptcy in the best of times. This all goes to show just how fragile they are and how they run their businesses in a seat-of-the-pants style with no financial war chest or resilience so they can feed their shareholders.

Sound bites and slogans.

 

Do you know what airline margins are per passenger? Do lease payments cease when nobodys flying? How about payroll? Rent? Facilites maintenance?

 

At least Eur0pean airlines are subsidized LOL.

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15 minutes ago, Nyezhov said:

Sound bites and slogans.

 

Do you know what airline margins are per passenger? Do lease payments cease when nobodys flying? How about payroll? Rent? Facilites maintenance?

 

At least Eur0pean airlines are subsidized LOL.

Nice cherry-picking. The main point was if you want a bailout then pony up some shares in return.

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11 hours ago, thaibeachlovers said:

Goodness me. How did we all survive without air transport in the past?

Beach shack in PATTAYA? Have you ever been there?

And we all got along fine with the internet, too. That was then this is now. The components of the economy are different now. Welcome to the 21st century.

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9 hours ago, Crazy Alex said:

Thanks for that. I remember watching this after 9/11. I'm generally against bailouts. Let the weak die off and strong pick up the pieces. In this case, those left standing may not have enough capital. I'm struggling with my non-interventionist principles and the airlines being a pretty vital industry. More than that, the overhead involved is so high. From the US domestic view, we have Southwest, Fedex and UPS that are really solid. Other than those three, the rest can't last long. Obviously, Southwest can't take over the entire US passenger industry. So do we prop up these clowns like United, Delta and American who've already screwed the pooch? I don't like it. I also know I don't have all the answers.

The thing is, those US airlines used most of their cash for stock buybacks. To boost the price of the stock and allow corporate executives to collect bonuses in the form of cash and to redeem their stock options. And this is one of the reasons why the stock market is a not particularly intelligent way to judge the strength of the economy.

US airlines used up spare cash buying back shares

US President Donald Trump on Monday pledged to back the industry "100%".

But figures suggest major carriers spent almost all their spare cash in the last decade buying back their own shares...

Data revealed by Bloomberg show major airlines including United and American Airlines used up an average 96% of their spare cash buying back their own shares.

https://www.bbc.com/news/business-51903947

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7 minutes ago, Brigand said:

Nice cherry-picking.

Nice avoidance.

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Posted (edited)
26 minutes ago, Nyezhov said:

Sound bites and slogans.

 

Do you know what airline margins are per passenger? Do lease payments cease when nobodys flying? How about payroll? Rent? Facilites maintenance?

 

At least Eur0pean airlines are subsidized LOL.

As I pointed out above, airlines are in this mess because they blew 96% of  their cash on stock buybacks.

Edited by bristolboy

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7 minutes ago, bristolboy said:

As I pointed out above, airlines are in this mess because they blew 96% of  their cash on stock buybacks.

Interesting

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F the airlines and their greed in paying for carry on bags and seat selection charges.

 

They've nickeled and dimed the customers for too long now unchecked.

 

 

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12 hours ago, thaibeachlovers said:

The good news is that there probably won't be the massive expansion of air travel that had been planned. Hopefully countries will be building better rail systems instead.

pretty hard to catch a train from Perth to Bangkok

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13 hours ago, Don Mega said:

Give it a month or 2 and the airlines will be bankrupt.

and airports

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Off topic posts and the off topic replies about the Thai Auto industry have been removed. 

 

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Posted (edited)
50 minutes ago, bristolboy said:

The thing is, those US airlines used most of their cash for stock buybacks. To boost the price of the stock and allow corporate executives to collect bonuses in the form of cash and to redeem their stock options. And this is one of the reasons why the stock market is a not particularly intelligent way to judge the strength of the economy.

US airlines used up spare cash buying back shares

US President Donald Trump on Monday pledged to back the industry "100%".

But figures suggest major carriers spent almost all their spare cash in the last decade buying back their own shares...

Data revealed by Bloomberg show major airlines including United and American Airlines used up an average 96% of their spare cash buying back their own shares.

https://www.bbc.com/news/business-51903947

Let 'em liquidate. The strong shall survive. I'm sick and tired of incompetent corporations and their officers getting rewarded for malfeasance. Most of the US majors have already screwed their investors and employees at least once. I refuse to get sloppy thirds. 🙂

Edited by Crazy Alex
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27 minutes ago, JimmyTheMook said:

F the airlines and their greed in paying for carry on bags and seat selection charges.

 

They've nickeled and dimed the customers for too long now unchecked.

 

 

Oh please, are you sad everything isn't included anymore? I'm sure I can set up a web site for you where "everything" seems to be included in the base price. The tickets won't be the cheapest though. 

One reason these fares are all bare-bone, no-frills, everything-has-to-be-added is because of price comparisons online.

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