Exactly. Where do you people think that equity owners are on the list when a company comes under bankruptcy protection? Answer: Dead Last.
The government would bailout the top airlines from going bankrupt, there is no way they would let 2 or 3 major airlines go bankrupt.
They will just reorganize under Chapter 7, but all speculators will lose everything (bonds +70%, equity 100%) I read somewhere years ago that eventually airtravel would be only for the rich.
Crandall said on CNBC the Govt needs to treat them as Utilities. Not a bad idea. You have to have them, and they can't make money. What other solution is there?
That's like the ABC of economics. When the suppliers' costs change for a given output, the supply curve shifts in the same direction. For example, assume that someone invents a better way of growing wheat so that the cost of wheat that can be grown for a given quantity will decrease. Otherwise stated, producers will be willing to supply more wheat at every price and this shifts the supply curve S1 outward, to S2âan increase in supply. This increase in supply causes the equilibrium price to decrease from P1 to P2. The equilibrium quantity increases from Q1 to Q2 as the quantity demanded increases at the new lower prices. In a supply curve shift, the price and the quantity move in opposite directions. If the quantity supplied decreases at a given price, the opposite happens. If the supply curve starts at S2, and shifts inward to S1, the equilibrium price will increase, and the quantity will decrease. This is an effect of supply changing. The quantity demanded at each price is the same as before the supply shift (at both Q1 and Q2). The equilibrium quantity, price and supply changed. When there is a change in supply or demand, there are four possible movements. The demand curve can move inward or outward. The supply curve can also move inward or outward.
They'll all get bailed out again. I think the government will probably undue the deregulation and either make a monopoly or duopoly of some sort. there too necessary for our infastructure.