Fast Eddie
Member
- Joined
- Oct 22, 2002
- Posts
- 19
PB4uFLy
Having read through this lengthy discourse I can make numerous
points of contention in your argument for a "bailout loan".
Excerpted quotes:
Point number 1. "however we have not heard from the consumer/
corporate buyer"
Of course we have: they have voted in great numbers with their
purchasing choice in not selecting United's Product .thats called
free-market choice, thats why many of Uniteds business class is
unfilled.
Point#2."If united is forced to restructure inside bankrupcy
protection risks would increase exponentially for customers
the industry and national economy.
If united pulls out of markets .free market forces will serve
those markets at the most efficient capital use. If you think
swa, jet blue, ata, air tran are growing now, you a'int seen
nothing yet.
Point #3
"United never had a true business strategy for managing the
enterprise through the business cycle."
I dont think the american taxpayer should have to pay
for their lack of management and incompetence, Once again
the capital markets will punish any company that doesnt get
it right.
Point #4
"to be sure there are competitors to United who through their surrogates are working back channnels arguing that United should be denied the loan Guarantee because Bankruptcy for United would allow the firm to abrogate costly union contracts and rid itself of a dysfunctional governance structure wherein employee board of directors have veto power over decisions of strategic iimportance."
Why should the government reward inefficiency with tax payers
dollars why not give the money to the airlines that are growing and making profit.
Funny you should mention costly labor contracts and Dysfunctional
board governance. We should reward that with taxpayer loans?
Point#5
The risks of Bankrupcy: a United bankrupcy could force an
american bankrupcy:
So what! Market forces will self correct any excess in supply
demand. Cost structures will be modified to adjust to supply
demand curves. Capital markets will respond in kind.
Point #6
Ripple effect labor confrontations, more bankrupcy's
two or three super power airlines will get monopoly pricing
Ironically that is what we had most recently and we are now seeing the emergence of the supernationals breaking that
monopolistic hold. Consumers are experiencing better pricing
and availability and service with supernationals.
Theres nothing risky about that!
Conclusion:
Free market capitalistic forces will reshape the industry.
If congress wants to revisit deregulation and start subsidizing
airlines then they should do so on an equitable basis and let
evryone in on the act. No favorites, no sacred cows.
Lets loan money to swa, ata, airtran, jet blue, spirit, atlas air
etc.etc.
Having read through this lengthy discourse I can make numerous
points of contention in your argument for a "bailout loan".
Excerpted quotes:
Point number 1. "however we have not heard from the consumer/
corporate buyer"
Of course we have: they have voted in great numbers with their
purchasing choice in not selecting United's Product .thats called
free-market choice, thats why many of Uniteds business class is
unfilled.
Point#2."If united is forced to restructure inside bankrupcy
protection risks would increase exponentially for customers
the industry and national economy.
If united pulls out of markets .free market forces will serve
those markets at the most efficient capital use. If you think
swa, jet blue, ata, air tran are growing now, you a'int seen
nothing yet.
Point #3
"United never had a true business strategy for managing the
enterprise through the business cycle."
I dont think the american taxpayer should have to pay
for their lack of management and incompetence, Once again
the capital markets will punish any company that doesnt get
it right.
Point #4
"to be sure there are competitors to United who through their surrogates are working back channnels arguing that United should be denied the loan Guarantee because Bankruptcy for United would allow the firm to abrogate costly union contracts and rid itself of a dysfunctional governance structure wherein employee board of directors have veto power over decisions of strategic iimportance."
Why should the government reward inefficiency with tax payers
dollars why not give the money to the airlines that are growing and making profit.
Funny you should mention costly labor contracts and Dysfunctional
board governance. We should reward that with taxpayer loans?
Point#5
The risks of Bankrupcy: a United bankrupcy could force an
american bankrupcy:
So what! Market forces will self correct any excess in supply
demand. Cost structures will be modified to adjust to supply
demand curves. Capital markets will respond in kind.
Point #6
Ripple effect labor confrontations, more bankrupcy's
two or three super power airlines will get monopoly pricing
Ironically that is what we had most recently and we are now seeing the emergence of the supernationals breaking that
monopolistic hold. Consumers are experiencing better pricing
and availability and service with supernationals.
Theres nothing risky about that!
Conclusion:
Free market capitalistic forces will reshape the industry.
If congress wants to revisit deregulation and start subsidizing
airlines then they should do so on an equitable basis and let
evryone in on the act. No favorites, no sacred cows.
Lets loan money to swa, ata, airtran, jet blue, spirit, atlas air
etc.etc.
