The U.S. Airline Industry Public Support
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The U.S. Airline Industry Public Support
There is a big debate on the subject of government support for airline industry. This case study focuses on both sides of the argument and gives very short answers to this issue. More detailed answers can be found else where online. This case is pretty easy and self explanatory so you should not have issue to elaborate your answers more thoroughly. Thanks and good luck in your class.
1. The U.S. government has bailed out numerous companies in the past but in this situation congress has helped the whole industry to recover. The argument is that there is nothing that the airlines could do to convince the public to fly again. People were too afraid of another possibility of terrorist attack and no promotion or advertisement was going to change publics mind.
2. Some people do not support government’s interaction with private companies because they believe that it is natural for unsuccessful companies to fail in the free market. Another argument is that some airlines were struggling way before the terrorist attack and this companies should not have been bailed out.
3. I believe that the taxpayers money was used to bail out the airline industry therefore the public should not be expected to repay the government. If we expect airlines to repay the government they would simply charge the public higher prices for flights. I personally think that we should not make airlines to repay because in the end the pubic will be paying for this bail out.