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No bailout again for airline industry

By Noel Friedman - Merrimack | Mar 29, 2020

In the days following the 9/11 tragedy, Congress and the Bush administration made $15 billion available to our crippled airline industry in the form of grants and loan guarantees. As then-press secretary Ari Fleischer stated, “A safe, viable and effective commercial air travel system is important to America’s economy and to our way of life.”

Since then, a very appreciative industry thanked the American taxpayer for that bail out by:

• Reducing passenger seat space by adding extra rows. But to be fair the airlines did give us back some of that space for an additional, “nominal” fee.

• Eliminating free meals.

• Instituting change and cancellation fees (minus Southwest who somehow managed to remain profitable)

• Charging for checked luggage and even carry-ons.

And, of course, enhancing their loyalty programs with fees, blackouts and other onerous changes.

Indeed, in the May 7, 2018 issue of the LA Times, it was reported that “the good times for the nation’s airlines continued last year, with the country’s largest carriers reporting a combined profit of $15.5 billion, including $4.6 billion from baggage fees”.

One might consider that for years there has been a “continuous bailout” of the industry and that any further handout would not be necessary nor desired.

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