U.S. Airlines Could Regret Taking Billions More In Government Bailouts
Photo Credit: Southwest Airlines tests a new cleaning process during the Coronavirus outbreak. Most U.S. airlines support a new round of bailouts. Southwest Airlines / Stephen M. Keller
Skift Take
The easy move is for U.S. airlines to take billions of dollars in new subsidies, if offered by the government. But there could be future repercussions.
Most U.S. airlines say they want, or at least are willing to take, tens of billions of dollars in new federal bailouts. But they may want to be careful about what they wish for.
Since deregulation, in the late 1970s, a sizable percentage of consumers have looked at airlines warily, with some accusing them of charging premium prices for service they could not deliver. They have complained as airlines reduced seat width and legroom, removed free meals, and invested in business and first class seats, at the expense of economy class. And some have been apoplectic as airlines have added, or increased, charges for ticket changes, luggage, and food and drink.
Most of these people were whiners. Yes, airlines indirectly receive federal government assistance — those runways don't build themselves — but they are independent, publicly traded corporations with a duty to extract maximum value for shareholders. Plus, consumers have undoubtedly benefited from deregulation, with airlines us
