Re: Thanks for Nothing

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Actually,
I don't think that US Government is paying the airlines , but they
are providing "loan guarantees". With this those airlines that get
the approval are able to go to the market and issue some debt medium
to keep the things rolling.

If this was not the case they wouldn't be able to borrow any more.
Imagine being UAL with $10bil. debt and losing money. Nobody in their
right mind would give their money to a company like that..

As far as I understand this is what's different between the loan
guarantees and the cash injection they received after 9/11.

My $0.02.

BAHA
Fan of UA, US and all the airlines recovering and hiring again.

-----Original Message-----
From: The Airline List [mailto:AIRLINE@LISTSERV.CUNY.EDU]On Behalf Of
Addison Schonland
Sent: Monday, August 19, 2002 9:31 AM
To: AIRLINE@LISTSERV.CUNY.EDU
Subject: Thanks for Nothing


Now that US Airways is bankrupt and United Airlines is following its vapor
trail into the abyss of insolvency, here's a question worth asking: What
happened to all that money we gave the ailing airline industry after Sept.
11? Congress allocated $15 billion to save the carriers after the terrorist
attacks, of which $5 billion were outright grants. Of that, US Airways
pocketed $287 million and United took $724 million. Are these airlines going
down and taking our tax dollars with them?

Read more at http://www.elliott.org/vault/oped/2002/thanks.htm

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