FT.com / Global Economy - Airlines seek cash for ash as flights restart.
I was caught up in all this.
I suffered disruption.
I suffered a cost.
I'm not asking for a government bail out.
I think the government did the right thing. In the face of unknown risk they were cautious. I'm glad they were.
Why should airlines be bailed out when I won't be?
As ever the likes of Branson (on television last night) want to put their hand in the tax pot without ever paying into it.
That's unacceptable.
Business has to accept its own risks. In the airline business that includes the risk of being unable to fly.
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What happens when a small business fail to adequately manage risk and suffers financial loss? Well normally the order goes something like this:
1.) losses are met by equity
2.) the owner goes to the bank to try and get some funding
3.) the owner puts his hand in his own pocket (Richard (B not M), you are very rich!)
4.) the business goes out of business and administrators/ ips or liquidators are called in. If its a fundamentally good business it will get snapped up in the murky world of prepacks
I’m not sure there are any reasons why the airlines in this instance are any different.
They may claim that jobs are at risk, which would seem like a gun-to-the-head tactic, but I suspect they are not. There’s not a lot of slack in the airline industry. Looks like the shareholders may just have to take it on the chin for once, rather than taking it on everyone elses chin
I agree. Airlines should not be compensated. Nor should passengers get any compensation.
Although I think you’ll find Virgin/Branson has paid a damn sight more into the pot then you have.
I think the airlines are suffering rather unfairly due to the EU rules on compensation. Maybe that is wy they are asking for Government help? I have no sympathy with Ryanair, but it does seem a bit unjust that they have to compensate someone who might have paid £100 for their tickets, when the compensation runs into several nights hotel bill for something completely out of Ryanair’s control.
@Greg
They knew the rules
They took the risk