Don't Bailout the Airlines! (unless they agree to this first!)

The airline industry is asking for a massive bailout due to impact from COVID-19, and the Trump administration is quickly coming to their defense.

And this comes after they have been reporting record profits in recent years on the backs of American consumers, with such profits boosted by excessive fees for baggage/schedule changes, anti-competitive pricing in certain markets, decreased competition through consolidation and corporate welfare handouts (i.e. tax cuts)!

And what have airlines been doing with excess cash? According to Bloomberg News, the five biggest U.S. carriers spent 96 percent of their free cash flow over the past decade on stock buybacks to boost share prices! 

At the same time, US airlines have accumulated unsustainable levels of debt! American Airlines, for example, now has debt of nearly $30 billion, nearly 5 times its current market value!!!!

It is imperative that any coronavirus-related financial assistance be accompanied by new, effective and reasonable regulations to fix abuses by this industry.

Otherwise, this situation will repeat itself time and time again. Shareholders and lenders will continually be rewarded to the detriment of our national debt, consumers, employees and working people.

Therefore, we demand sensible and responsible reform before any current bailout is provided: 
1. Airlines must maintain adequate levels of cash reserves
2. Airlines must have limits on the amount of allowable debt outstanding
3. Airlines must treat customers better - e.g. caps on fees charged for baggage, schedule changes and reasonable seat size allowances  
4. Airlines must invest in R&D spending aimed at mitigating climate impact
5. Ownership of multiple airlines by individual or affiliated entities must be limited to avoid collusion and anti-competitive practices

(Note: a commission of independent experts should set the various levels, limits and caps at reasonable levels aimed at long-term industry health)

Airlines violating these provisions shall face financial penalties, restrictions on stock buybacks and limits on executive compensation.

In general, it is time for airlines to treat consumers and employees (and the planet!) more fairly and elevate their status in relation to shareholders and lenders!

Please sign and share this with others. Let the airlines and lawmakers know that a bailout of the airline industry is only tolerable with new regulations that protect Americans!