Policymakers around the world are grappling with the question of how to save their airline industries as travel grinds to a halt in the face of the novel coronavirus pandemic.
There are key differences between the automobile and airline industries, he said, which include their capital structure and the composition of the workforce. The performance of industry players is also far less inter-dependent than in the North American auto industry.
Meanwhile, the auto bailout ultimately did little to maintain the industry in Canada. General Motors has now closed what was at one time an economy-sustaining operation in Oshawa, Ont. One wild card industry watchers point to regarding WestJet is that the airline, which was initially launched as a low-cost alternative to Air Canada, was recently purchased by private equity firm Onex Corp. in a deal that just closed in December. Private equity purchases tend to be heavily leveraged, and one observer who spoke on condition he would not be identified because of work he does in the sector, said Onex might be tempted to step away from the airline at some point to cut its losses.
Air Canada’s decision to put some 5,000 employees on temporary layoff until at least April 30, a move publicized early Friday by their union, the Canadian Union of Public Employees , could also prompt political action, driven by the Liberals’ desire to protect working Canadians, he said. “It’s one of the better run airlines in the world,” Moore said, adding that it makes sense to “leave it to private sector rather than bring under the government remit.”Karl Moore, associate professor, Desautels/McGill If assistance comes to Canada’s airline industry, a rescue package can be expected to come with strings attached in whatever form it takes, at least for Air Canada.
Bail out an industry that has gouged travellers for billions in profits on luggage fees alone ... no one has any sympathy for that scumbag industry. cdnpoli
I cringe when I think that morneau and JT will go head to head with Calin. There'll be taxpayer blood all over the floor.. Once again!
NoBailouts
No bailout, let them go to the Capital markets for money, they can put all the shares they bought back on the market. They can borrow at record low interest rates
You mean the same airlines who are so flush with cash that they just finished doing record share buy-backs? Those fat cats?
And who’s gonna bail me out
No bail out for the airlines. They have made billions over the last several years with just about zero consideration towards their customers. Maybe they will learn something from this crisis.
No bailout without nationalization
No bailout! Let them fail and protect the average Canadian. Rebuild new companies away from these greedy corps.
They don't deserve a bailout As do none of the other large corporations Focus on the small businesses and stop shilling for corporations