Airlines Next in Line for a Bailout

Wall Street Journal reports as we predicted that the governments around the world are rushing to give money to bailout investors from financial loss on natural disasters.  I don't know why the gov't has to insure investors for volcano losses but it is becoming apparent that the world is moving in that direction.

Note that they are only insuring big businesses and not small.  Any chance that the Airport taxi will get a bailout?  Also pay attention to the word precedent.  Once we open this can of worms a precedent creates a very slippery slope.  People are bantering about 9/11 as an excuse for the current bailout proposals.

As more carriers revealed the scale of losses that are running to the hundreds of millions of dollars, British Airways PLC Chief Executive Willie Walsh said European airlines have asked the EU and national governments for financial compensation for the closure of airspace. "There is a precedent for this to happen, as compensation was paid after the closure of U.S. airspace following the terrorist events of 9/11, and clearly the impact of the current situation is more considerable," he said.

Some EU officials said there could be grounds for giving airlines compensation, but there was no consensus as other officials said it was premature to talk about possible aid.

The International Air Transport Association, which represents most of the world's scheduled air carriers, estimates that airlines around the world are now losing about $250 million a day due to the disruptions. 

Right now, just the Europeans are talking about this, but given the exposure of American, Delta and United and Continental to international air travel, it is just a matter of time that the hat get's passed here too.  So in my opinion the biggest financial legacy of the Bush legacy is not the wars (which I'm not criticising, or Katrina).  Instead, it is the bailout precedent set that President Bush set and Obama can latch onto under the guise of bipartisan support.  


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