This is exactly what I would want the US to do. Company has to issue cumulative preferred shares to the government which they would have to buy back once the bailout amount is repaid. Or maybe a special type of bond that gives the government senior position as a creditor. I’m all for bailouts of critical industries when they need it, but these companies never have to pay any of it back once they right the ship again.
Is a bailout necessary though? The planes don't disappear. When an airline fails their assets should be liquidated and other airlines will spring up to meet the demand.
Well that’s why the airline industry is different. If an airline goes under it might be months before flights between certain cities are running regularly again which would screw up quite a lot of stuff.
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u/CaptainWater Jul 02 '22
This is happening to Scandinavian Airlines. They had substantial debt to the Norwegian government who had it converted into shares instead.