I think there is a disconnect dropping money on a jet, then ending up in Cancun.Quote:
Originally Posted by ExtraSlow
I think there is a disconnect dropping money on a jet, then ending up in Cancun.Quote:
Originally Posted by ExtraSlow
Im too low class to understand that.Quote:
Originally Posted by killramos
My bad, didn't even read the post. Just remember seeing aircanada and bailout in the thread title. But you should probably hand over your internet points anyway.Quote:
Originally Posted by Maxx Mazda
https://financialpost.com/news/canad...ment-funding-3
Attachment 98926
$700 million for Transat.
Trudeau and Freeland setting our money on fire.
Not even news anymore.
So by my math, WestJet will get an $89 million loan.
Your math doesn’t account for where WestJet is headquartered.Quote:
Originally Posted by ExtraSlow
Somehow WestJet will need to give some money to AC and Transat.
Fingers crossed!Quote:
Originally Posted by killramos
Sounds about right as there's no way Westjet will hand over shares to the Feds.Quote:
Originally Posted by ExtraSlow
I wish we could just let Air Canada go under. Just one time.
Unfortunately, thats not gonna happen!
You mean Onex?Quote:
Originally Posted by Xtrema
Correct, as Westjet went private and Onex is more than Westjet.Quote:
Originally Posted by suntan
Why?Quote:
Originally Posted by killramos
Because QC vs AB. We live and die by the market, everyone get bailed out in QC.Quote:
Originally Posted by Maxx Mazda
Because any business that can’t cut it on its own and relays on government protections and subsidies deserves to fail.Quote:
Originally Posted by Maxx Mazda
Why should we bail them out? Why should we bail anyone out?
Two main reasons
1) because it's based in the east.
2) because government support.
Those aren’t real reasons
Because the government caused the whole mess to begin with, that's why they agreed to bail out the airlines. The airlines were more than willing to do the song and dance in the name of "covid safety" IF they were allowed to continue operating unencumbered. The government had other ideas, forcing Canadian airlines to suspend service to American, Mexican, and carribean destinations. Meanwhile, allowing American carriers to carry Canadian passengers on the exact same routes. Hate to break it to you, but people didn't stop traveling. They just did so on American carriers. Meanwhile, for months previous, Canadian airlines were forced to spend tens of millions on covid safety measures, under the assumption that they'd be allowed to continue operating. Then, despite all of that, the current government decided to basically ground them anyway. It's akin to local restaurants spending $20,000-$30,000 on covid safety protocols, and then being forced to close anyways. That's why so many businesses have gone under, only in the airline world your costs are much, MUCH higher.Quote:
Originally Posted by killramos
The public liked to squawk when AC and WJ pulled out of the smaller communities out east, especially those in the atlantic bubble. They acted like the airlines had some sort of DUTY to serve those communities, when in reality they were continuing to fly nearly empty aircraft at a huge loss per flight. It's not sustainable, which is why they pulled out. Not just AC, but everyone. The beloved WestJet was even the first to do so by a few months. One of the conditions of the government aid package was that the airlines restore service to these communities. They basically told the government, they'll fly there, at a loss, but the tax payer is going to foot the bill for it. Now the exact same citizens who were crying foul over their buttfuck newfoundland town not receiving 6x daily service, gets a flight back, but also screams that the taxpayer shouldn't be paying for it... Well, which is it? Does the average Canadian schmo really believe a business should operate at a loss for some reason? Air travel is a privilege not a right.
So, to answer your question as to "why" they should be given assistance, it's because the government was the sole entity responsible for the airlines losing their own sustainability. We're not even talking about profitability here. Air travel and air service are essential in Canada. The land mass is far too large, and the population density too low to travel or transport many goods any other way.
Many people like to think that if an airline like AC were to go under, someone else would pop up in short order and fill the void, and probably offer cheaper service anyways, so what's the big deal, right? Wrong. Go price out a ticket somewhere and have a look at what the airline charges you. It may surprise you. On a $700 ticket, the airline likely keeps less than half. The rest go to fees, taxes, airport improvement fees, carbon levies, airport security taxes, etc. Just to give you a ballpark on the cost, in fuel alone, an airliner will burn somewhere between $18,000-$45,000 worth of fuel on a typical Toronto-Calgary flight. That's strictly fuel. The doesn't include wages of pilots, flight attendants, ground staff, gate agents, aircraft lease or maintenance. So you can see how flying an airplane with only 30 people on it, can quickly add up when the money stops flowing in.
Hope I was able to educate you a bit.
That’s a lot of words that could easily be summarized by blaming your lack of sustainable business model on literally everyone but yourself.
If airlines need a cash injection every 5-10 years to stave off bankruptcy, get shareholders or lenders to provide it. And stay the fuck away form my tax dollars.
What’s next? You want to bail out oil companies because of their entirely government caused demise? I didn’t think so.