Teach a company to fish

24 September 2020 By Lauren Silva Laughlin Follow @TheRealLSL

The company wants more public money to avoid furloughing 19,000 workers. But it should have $13 bln of liquidity by the end of the quarter, including discounted loans competitors eschewed. Even if American can’t stay afloat, there’s Chapter 11. The time for handouts is over.

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U.S. airlines including American Airlines, United Airlines, and JetBlue Airways are asking Congress for another $25 billion to avoid layoffs on Oct. 1, Reuters reported on Sept. 22.

“We’re not going to give up,” American Airlines Chief Executive Doug Parker said, according to the article. A day earlier, two Republican senators introduced legislation that would give airlines companies an additional $25.5 billion.

Congress approved $25 billion in payroll assistance for airlines in March, along with another $25 billion in government loans, as passenger numbers and revenue slumped amid the Covid-19 pandemic.

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