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adnj wrote:Dohplaydat wrote: Governments haven't bailed out any airline just yet, reason being, bail out now and in a year they still fail.
Airlines are now being forced to lean up, cut routes and lay off.
In case you were unaware of what happened nearly a month ago:
US government agrees on $25bn bailout for airlines as pandemic halts travel
Passenger airline companies are receiving direct aid as part of the $2.2tn Coronavirus Aid, Relief, and Economic Security Act
https://www.theguardian.com/business/20 ... s-industry
"Dude": Europe is prepping a €26B bailout package. I suppose that you missed that also.Dohplaydat wrote:adnj wrote:Dohplaydat wrote: Governments haven't bailed out any airline just yet, reason being, bail out now and in a year they still fail.
Airlines are now being forced to lean up, cut routes and lay off.
In case you were unaware of what happened nearly a month ago:
US government agrees on $25bn bailout for airlines as pandemic halts travel
Passenger airline companies are receiving direct aid as part of the $2.2tn Coronavirus Aid, Relief, and Economic Security Act
https://www.theguardian.com/business/20 ... s-industry
Dude US airlines operate differently, you think trump letting any big business fail on his watch
adnj wrote:"Dude": Europe is prepping a €26B bailout package. I suppose that you missed that also.Dohplaydat wrote:adnj wrote:Dohplaydat wrote: Governments haven't bailed out any airline just yet, reason being, bail out now and in a year they still fail.
Airlines are now being forced to lean up, cut routes and lay off.
In case you were unaware of what happened nearly a month ago:
US government agrees on $25bn bailout for airlines as pandemic halts travel
Passenger airline companies are receiving direct aid as part of the $2.2tn Coronavirus Aid, Relief, and Economic Security Act
https://www.theguardian.com/business/20 ... s-industry
Dude US airlines operate differently, you think trump letting any big business fail on his watch
adnj wrote:"Dude": Europe is prepping a €26B bailout package. I suppose that you missed that also.Dohplaydat wrote:adnj wrote:Dohplaydat wrote: Governments haven't bailed out any airline just yet, reason being, bail out now and in a year they still fail.
Airlines are now being forced to lean up, cut routes and lay off.
In case you were unaware of what happened nearly a month ago:
US government agrees on $25bn bailout for airlines as pandemic halts travel
Passenger airline companies are receiving direct aid as part of the $2.2tn Coronavirus Aid, Relief, and Economic Security Act
https://www.theguardian.com/business/20 ... s-industry
Dude US airlines operate differently, you think trump letting any big business fail on his watch
adnj wrote:adnj wrote:"Dude": Europe is prepping a €26B bailout package. I suppose that you missed that also.Dohplaydat wrote:adnj wrote:Dohplaydat wrote: Governments haven't bailed out any airline just yet, reason being, bail out now and in a year they still fail.
Airlines are now being forced to lean up, cut routes and lay off.
In case you were unaware of what happened nearly a month ago:
US government agrees on $25bn bailout for airlines as pandemic halts travel
Passenger airline companies are receiving direct aid as part of the $2.2tn Coronavirus Aid, Relief, and Economic Security Act
https://www.theguardian.com/business/20 ... s-industry
Dude US airlines operate differently, you think trump letting any big business fail on his watch
Just a little more detailed info because "US airlines operate differently."
----------------
Air France, which has obtained €7bn in loans and loan guarantees from the French government, and Lufthansa, currently negotiating a €9bn rescue package with Berlin, top the charts in the airline bailout tracker compiled by Carbon Market Watch, Greenpeace, and Transport & Environment.
European governments have formally agreed €11.5bn in financial aid for airlines , including a £600m loan from the UK Treasury and Bank of England for EasyJet. A further €14.6bn is under discussion, including £500m Richard Branson is seeking from the British government to aid Virgin Atlantic.
https://www.theguardian.com/business/20 ... nvironment
neilsingh100 wrote:I forgot to mention that most of the money CAL will require is in US dollars meaning we would be depleting our foreign reserves to keep it as a going concern. I believe CAL also has a lot of foreign debt on its balance sheet. I hope government has the conviction to deal with CAL the same way it dealt with Petrotrin.
Redman wrote:What would it look like if we let CAL fail.?
Leases for airplanes, fuel, terminal/gate fees are paid in US dollarsDohplaydat wrote:neilsingh100 wrote:I forgot to mention that most of the money CAL will require is in US dollars meaning we would be depleting our foreign reserves to keep it as a going concern. I believe CAL also has a lot of foreign debt on its balance sheet. I hope government has the conviction to deal with CAL the same way it dealt with Petrotrin.
Hmm didn't consider this, it might be true, but is it really? I suspect most of CAL's costs are opex which isn't paid in US unless they're paying foreign staff salaries. I could be wrong.
neilsingh100 wrote:Leases for airplanes, fuel, terminal/gate fees are paid in US dollarsDohplaydat wrote:neilsingh100 wrote:I forgot to mention that most of the money CAL will require is in US dollars meaning we would be depleting our foreign reserves to keep it as a going concern. I believe CAL also has a lot of foreign debt on its balance sheet. I hope government has the conviction to deal with CAL the same way it dealt with Petrotrin.
Hmm didn't consider this, it might be true, but is it really? I suspect most of CAL's costs are opex which isn't paid in US unless they're paying foreign staff salaries. I could be wrong.
Redman wrote:neilsingh100 wrote:Leases for airplanes, fuel, terminal/gate fees are paid in US dollarsDohplaydat wrote:neilsingh100 wrote:I forgot to mention that most of the money CAL will require is in US dollars meaning we would be depleting our foreign reserves to keep it as a going concern. I believe CAL also has a lot of foreign debt on its balance sheet. I hope government has the conviction to deal with CAL the same way it dealt with Petrotrin.
Hmm didn't consider this, it might be true, but is it really? I suspect most of CAL's costs are opex which isn't paid in US unless they're paying foreign staff salaries. I could be wrong.
Of course some expenses are hard currency.
So is some of the revenue.
A foreign carrier would pressure our forex situation as well.....they eh taking TT.
Dohplaydat wrote:Great point, I rather pay a local airline for a ticket than a foreign company.
paid_influencer wrote:Dohplaydat wrote:Great point, I rather pay a local airline for a ticket than a foreign company.
the bail out will cost much more than a ticket.
running an airline is an expensive as hell thing. Maybe Trinidad needs to know the limits of its pocket and do as we did with Petrotrin. Getting past that mental hurdle to close Petrotrin was one of the major achievements of the current administration.
I hope Caribbean Airlines is not at that point, but we are in a brave new world where economic depression (not recession) is the reality. Major changes will have to be made.
also, stay far away from 'helping' LIAT. The small islanders funding that venture always biting up about "high" ticket prices. There is no room for Trinidadians to make a profit and even if we do - them goh say we robbing them, God goh smite we, etc.
speedmelter wrote:There is something that will guarantee cal to never make money and is that stupid airbridge to Tobago. It’s been a burden on this blasted country for too many years and will never be addressed.
ek4ever wrote:Maybe they could get the OWTU to run it
speedmelter wrote:It is quite likely that CAL may acquire LIAT at this point. It could be a good opportunity but they will inherit some debts. There is a CAL chairman I think on the committee for the roadmap forward nonsense so it may be something they government may jump at.
CAL acquiring LIAT makes no sense the same way they should have not acquired Air Jamaica. I don't think the public understands the amount of money CAL lost over the last decade and what it will cost tax payers going forward. Conservative estimates are in the billions and requires US dollars. I predict if we keep CAL going and we end up at the door steps of the IMF as most economists are predicting will happen by 2022 government will be forced to divest loss making entities similar to what Jamaica was forced to do with Air Jamaica so any money we put in now will be lost.speedmelter wrote:It is quite likely that CAL may acquire LIAT at this point. It could be a good opportunity but they will inherit some debts. There is a CAL chairman I think on the committee for the roadmap forward nonsense so it may be something they government may jump at.
MaxPower wrote:speedmelter wrote:There is something that will guarantee cal to never make money and is that stupid airbridge to Tobago. It’s been a burden on this blasted country for too many years and will never be addressed.
Pretty much sums it all.
speedmelter wrote:It is quite likely that CAL may acquire LIAT at this point. It could be a good opportunity but they will inherit some debts. There is a CAL chairman I think on the committee for the roadmap forward nonsense so it may be something they government may jump at.
Dohplaydat wrote:MaxPower wrote:speedmelter wrote:There is something that will guarantee cal to never make money and is that stupid airbridge to Tobago. It’s been a burden on this blasted country for too many years and will never be addressed.
Pretty much sums it all.
You know it often surprises me how much you all can learn from a simple economics class.
There are so many benefits of the air bridge both economic and social. We need a cheap low cost 'bridge' to Tobago. And if anything, an additional flight should be added for ad-hoc travel.
And as for making it profitable, many have tried, it just isn't possible given the ticket price.
speedmelter wrote:Dohplaydat wrote:MaxPower wrote:speedmelter wrote:There is something that will guarantee cal to never make money and is that stupid airbridge to Tobago. It’s been a burden on this blasted country for too many years and will never be addressed.
Pretty much sums it all.
You know it often surprises me how much you all can learn from a simple economics class.
There are so many benefits of the air bridge both economic and social. We need a cheap low cost 'bridge' to Tobago. And if anything, an additional flight should be added for ad-hoc travel.
And as for making it profitable, many have tried, it just isn't possible given the ticket price.
The route is way too short to make money from a maintenance and overhead costing standpoint. Tobago should be accessible by boat only and have an emergency chopper for air transport. I don’t understand why there is need to air ferry persons several times for the day across there and back at the taxpayer expense.
speedmelter wrote:Dohplaydat wrote:MaxPower wrote:speedmelter wrote:There is something that will guarantee cal to never make money and is that stupid airbridge to Tobago. It’s been a burden on this blasted country for too many years and will never be addressed.
Pretty much sums it all.
You know it often surprises me how much you all can learn from a simple economics class.
There are so many benefits of the air bridge both economic and social. We need a cheap low cost 'bridge' to Tobago. And if anything, an additional flight should be added for ad-hoc travel.
And as for making it profitable, many have tried, it just isn't possible given the ticket price.
The route is way too short to make money from a maintenance and overhead costing standpoint. Tobago should be accessible by boat only and have an emergency chopper for air transport. I don’t understand why there is need to air ferry persons several times for the day across there and back at the taxpayer expense.
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