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Tag Archives: airlines

It Starts: The Corporate Mega-Bailout Bonanza in Europe, Germany on Top

Airlines, automakers at the forefront. And it has only just begun. EU waives rules banning state aid. Ryanair, which doesn’t need a bailout, is furious. By Nick Corbishley, for WOLF STREET: Governments around Europe have rolled out a dizzying array of measures, including loan programs, tax payment deferrals, and furlough schemes, to help companies, large and small, withstand the fallout of the Covid-19 lockdowns. Large companies have also benefited from massive central bank purchases...

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US Air Passenger Traffic over Memorial Day Weekend Down 87%, Amid Signs of Slow Recovery

Airlines don’t expect a quick recovery back to “normal” either. Based on their decisions about aircraft in their fleets, they expect this to drag out for years. By Wolf Richter for WOLF STREET. This was the first big travel weekend of the Pandemic Era – meaning a holiday weekend when normally Americans like to go somewhere. So let’s see how it went for airlines. The worst for the economy may be over, meaning that the economy, which is in terrible shape, may not get worse from here on...

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It Gets Rough for US Airlines: Why Buffett Dumped His Airline Stocks Though There Was Blood on the Tarmac, Which Should Have Been a Buy Signal

Just can’t catch a break: Friday after hours, United disclosed it abandoned its junk-bond offering after investors balked. Shares fell. By Wolf Richter for WOLF STREET. Here’s what US airlines are going through: The TSA has been reporting the number of daily checkpoint screenings. This is the number of people in the US who got on a plane for at least the first leg of a trip. A connecting flight would not trigger another screening. This is a rough indication of passenger air traffic....

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Facing the Crisis Aftermath: Boeing and the Airlines

Then there’s Air France-KLM, with two governments squabbling over bailouts and acting like they want a divorce. By MC01, a frequent commenter on WOLF STREET: On April 25, Boeing announced that the deal under which it would have bought an 80% stake in Embraer’s commercial aircraft division is off. According to the press release, “Boeing exercised its rights to terminate after Embraer did not satisfy the necessary conditions.” Boeing will pay penalties worth approximately $75 million and...

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Munger: “Nobody Knows What’s Going to Happen.” And This Time, Berkshire Is Not Piling into Stocks & Companies

“I don’t think we’ll have a long-lasting Great Depression…. But we may have a different kind of a mess. All this money-printing may start bothering us.” By Wolf Richter for WOLF STREET. There is something refreshing during these insane times when a guy in his mid-90s who has seen it all and has been successful at navigating it, and who, during the last Financial Crisis, was buying stocks and entire companies hand over-fist, now says that he has never seen anything like this before, and...

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Preparing for the Aftermath: China’s Airlines Try to Exit Crisis, Alitalia is Nationalized, Qantas Plans 21-Hour Direct Flights

The situation is very fluid. By MC01, a frequent commenter on WOLF STREET: On April 2, the Civil Aviation Authority of China (CAAC) held a press conference in Beijing to update the press about the aftermath of the Covid-19 lockdown. Internal air traffic more than doubled since the depth of the crisis but still operates at only 42% of the capacity it had before the crisis. The main drivers of this recovery have so far been migrant workers returning from their home provinces to their...

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“Not All Airlines Will Go Bankrupt”: How Will Coronavirus Travel-Bans Impact Airbus, Suppliers, and Airlines?

All eyes are on China to see how air transport will change in the aftermath of the crisis. By MC01, a frequent commenter on WOLF STREET: Airbus CEO Guillaume Fleury and CFO Dominik Adam issued a joint statement on March 23, regarding the European aerospace giant’s plan to power through the Covid-19 crisis. These new provisions include a new €15 billion credit facility, cancelling the proposed €1.80 per share dividend, and “cutting operational costs where possible.” This gave Airbus €30...

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Airlines frequently go bankrupt

[Pierre Lemieux recently did a very good post on the airlines. But since I’d already been planning one myself, I’ll post it anyway.] Since 2000, dozens of airlines have gone bankrupt, including US Airways, United Airlines, Northwest Airlines, Delta Air Lines and American Airlines. Typically, airlines continue to fly even as they go through bankruptcy proceedings. The coronavirus epidemic will dramatically reduce the number of flights for an indeterminate period of...

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Let Decadent Airlines Go Bankrupt

Raymond Aron, the French liberal-conservative philosopher, wrote a book titled In Defense of Decadent Europe (Plaidoyer pour l’Europe décadente, Paris, 1977) where, if my memory serves, he took “decadent” as a badge of honor vis-à-vis the authoritarian and austere communist dictatorships of his time. Hic et nunc, we can take the word in its pejorative sense to describe the sort of decadent, crony quasi-capitalism that seems more and more to be replacing the free...

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After Blowing $4.5 Trillion on Share Buybacks, Airlines, Boeing, Many Other Culprits Want Taxpayer & Fed Bailouts of their Shareholders

Chapter 11 bankruptcy that wipes out shareholders is the correct solution for collapsing share-buyback queens. US airlines already know this from experience. It works. By Wolf Richter for WOLF STREET: The Trump administration is putting together a rumored $850-billion stimulus package that will include taxpayer funded bailouts of Corporate America, according to leaks cited widely by the media. Trump in the press conference today singled out $50 billion in bailout funds for US airlines...

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