How is it that the government hasn't taken that bailout example into consideration this time? Cite your sources. Read text p. 245 for more details on the airline bailout.
Tuesday, February 24, 2009
Government Policies Toward Competition
According to www.forbes.com, the federal government bailed out the airline industry to the tune of $15 billion dollars. There has been no follow up to that bailout package, nor have we seen any accountability reports. "For starters, the regulators could guarantee loans for troubled airlines That will probably go belly-up, wasting potentially billions of dollars."...Economists say it's questionable whether the bailout will even improve liquidity for such high-cost carriers such as US Air. The airlines need to sort their cost control, and improve return on capital.