Essay about Case – The U.S. Airline Industry Public Support

1396 Words Nov 13th, 2013 6 Pages
Case – The U.S. Airline Industry Public Support

August 26, 2013

Arguments In Favor of the Federal Government Providing Support to the U.S.
Airlines
“To preserve the continued viability of the United States air transportation system” is the title of a bill introduced before congress, by Rep. Don Young (R-AK), September 14, 2001, in response to the
September 11 attack. The title of the bill is the overriding argument justifying federal support to the U.S. airlines. “If planes don’t fly, the whole economy shuts down,” said Sen. Jay Rockefeller (D-WV).
Airlines play a crucial role in facilitating commerce, providing jobs, and bringing the people of geographically distant communities closer together. Specifically, proponents’,
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The government is essentially forcing Americans to invest in the airline industry for a rate of return not commensurate with the level of risk. Also, if the government has an equity stake, it may feel obligated to protect the taxpayer’s investment by pouring more money into failing airlines.

In the Event Federal Financial Assistance is Provided to the Airlines, the Carrier
Should be Expected to Repay the Government
There are many ways air carriers repay the federal government for its assistance.







Perhaps the most import way is by the recipient carrier restructuring its organization to operate efficiently and cost-effectively.
Another way is for the recipient carrier to work diligently to pay off any guaranteed loans as soon as economically possible.
Yet, another way air carriers can repay the government is to ensure superior training of its employees in areas of safety, security, and customer service.
Provide compensation (in any form that would give workers a sense of ownership in the company) to airline employees sufficient enough so as to enable them to live well above poverty level, to retain skilled workers, and reduce employee turnover.
Air carrier stock warrant should be issued to the Government with airline profits going into, for example, SS trust fund.

The purpose of the foregoing forms of payment is for the air carrier to work on

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