Dumb moves

[RPM]

Just a thought:

Let's take a typical airline that has laid off 10,000 people.
That's 10,000 people with intimate knowledge of airline operations.
That's 10,000 people that will have some sort of uniform - baggage handlers / attendants / gate agents
That's 10,000 people with IDs and access codes to various parts of airports
That's 10,000 people angry to have lost their job - in some cases without any benefits due to the 'force majeure' clause in their contracts
That's also 10,000 people unemployed in a recession - with all the other airlines laying off too. You're looking at these people trying to find a job outside of the industry that has likely employed them for a significant part of their career.

If we look at typical mental health statistics we should probably be worried about - let's say - 1/10 of 1% of these folks - that's 10 scary people out there. Let's throw in perhaps another 5 that may sympathize with various terrorist groups due to ethnic or religious backgrounds.

Now multiply the figure by the number of airlines that have announced job cuts in the thousands. American, Delta, US Airways, Northwest, British Airways, United, Midway ...

Don't you think we are throwing ourselves from the frying pan into the fire here? Scares the heck out of me.

Patrick

 

[Harv]

But, but...

Is there some way the layoffs could be avoided? I mean, if nobody's buying tickets, where are the paychecks supposed to come from?

 

[dummy]

From the taxpayers. Isn't that what the bailout money is for? Certainly it can't be just to buy fuel or newer equipment, can it?

 

[ejb]

Re: Dumb moves/airline bailout

Bailing out the airlines was a dumb move. I can't beleive it passed with such overwhelming majority of the vote.

Airlines are already losing billions before this happened, and were already laying people off before this happened. The fact that they have awful service, overpay their ceo's, overpay the pilots for a part-time job and have unions going on strike every few weeks to demand more money and more benefits and more time off has a lot more to do with the airlines problems than 9/11 did.

All we did by giving them 15Billion in taxpayer money is allow weak companies, with poor business models in an overbuilt industry to stay in business...whats next? a bailout of the dotcom industry? Think off all the jobs that would have been saved...

If businesses can't figure out how to make a buck, they SHOULD go out of business. The remaining companies will be stronger and will have less competion and will be able to raise the ticket prices to a level that allows the airlines to stay in business. Why should the none-flying public be giving welfare to corporate idiots...really burns me up. If passengers are unwilling to pay the ticket price that allows the airlines to stay in business, than maybe it is not that important a service after all.

Any why would they use the $15B to pay people to show up at work if their is no work to do because nobody is flying...would have been a lot better to give the $15B back to the people that paid it and encourage them to take a trip.



<P ID="edit"><FONT SIZE=-1>Edited by ejb on 09/27/01 10:20 AM (server time).</FONT></P>

 

[cowboydoc]

Re: Dumb moves/airline bailout

I agree with everyone on this issue. The airlines only had a couple planes that were destroyed that are covered by insurance. Other people lost family and business that won't be covered by insurance. I don't understand either how this helps at all. They are still slashing jobs right and left. You know that mgmt. sure isn't going to take a pay cut. This money should have at least been used for severance packages. Most of the people let go were just see ya. All I can see that it does is keep paying the salaries of the people already making the most money. If you notice when the ax starts falling it sure as heck doesn't go top down!

 

[TerryinMD]

Re: Dumb moves/airline bailout

The "bailout" is probably misguided. I agree with most of what is being posted. However, there is going to be a larger domino effect with the loss in revenue for the airline industry. Have you seen the gas prices drop in the past week or so? I have seen the prices drop 10-20 cents a gallon in our area (Western MD and bordering states). I heard somewhere that the airline industry accounts for somewhere near 10% of the countries GDP. That's significant!!

Has anyone heard of how the $15B is to be used? Follow the money trail.....

Terry

 

[Harv]

<font color=blue>Isn't that what the bailout money is for?</font color=blue>

From what I've been hearing, the bailout money is only a partial/temporary boost. Note that more layoffs have been announced since the bailout was announced.

Also, this problem isn't limited to the airlines. Certainly there are many businesses in the Manhattan area that are facing financial ruin as a direct result of the disaster. And nation-wide, any business related to travel or tourism is already suffering big time. Just moments ago, I heard on the news that San Francisco hotels are doing 66 percent of their normal business. The same broadcast stated that unemployment just hit the highest levels since 1992, and it's going higher every day.

Like the national ID card, I think it's easier to say it's a dumb idea than it is to come up with a better one. /w3tcompact/icons/crazy.gif

[Footnote: Bush has now authorized the shoot-down of any threatening airliner. You think that will help ticket sales?]

<P ID="edit"><FONT SIZE=-1>Edited by Harv on 09/27/01 09:08 AM (server time).</FONT></P>

 

[Bird]

Re: Dumb moves/airline bailout

Wow, ejb & Cowboydoc, you guys seem to have some strong opinions of the bailout, and they match my own.

Richard, I don't know how accurate they were, or details, amounts, etc., but I did see on the TV news last night that American Airlines was the only one not providing a severance package for those laid off, but that as a result of the bailout money, they have re-considered and will be providing some severance pay.

Bird

 

[RichNJ]

From the "bailouts" that I have seen, none of the money actually gets to the people at the bottom. It somehow disapears at the top. Look the the S&L bailout, Mexico, Chrysler. Basically the money is used to protect the investments of the big guys. Usually the workers get the PTO shaft.

 

[Harv]

Re: Dumb moves/airline bailout

I was just re-reading this thread, and thought I'd better clarify my own position. If I'm reading it right, the original "dumb move" was referring to the layoffs, yet the discussion now is focusing on the bailout.

I agree with most, that the bailout is dubious at best. As far as the layoffs are concerned, until we get our economy back on track, I don't see how they can be avoided.