Yeah, but it's not that simple. Six months of an airlines expenses are more than the entire company is worth. The economics of the business don't make sense if they were to sit on cash at those levels. For it to make sense, air travel would need to cost twice as much.
Airlines are a unique animal, both due to the economics of the business and the fact that they provide a mission critical function for our economy. I have no problem with them getting financial assistance, as long as it comes largely at the expense of the investors/lessors, rather than the taxpayers. If we bail them out, we get concessions from all the lessors and we own equity.
Airlines are an edge case and need government support to stay afloat in this situation, as they are expected to operate at a loss during this crisis.
The airlines needed a bailout for just the few days they were down after 9/11. If they were in that poor condition after just a few days than I'm surprised they're not all bankrupt a month ago from the current crisis.
Could they were just taking advantage of the situation back then.
Airlines are also an edge case who carry absurd debt loads as part of their operation and have huge day to day operating costs.
In the rest of the "western" world, this has gone like:
Subsidies from government to landlords, business owners, etc. have eased the immediate concern of loss of income from the shutdown and allowed businesses to pause production/operations. Loans to the same have ensured they can continue to survive through the shutdown.
Furlough is the norm, not layoff. The payrolls are not reduced, the headcount are on unpaid leave. Payments to unemployment insurance and the like are being obviated by the state. Unemployment is being paid to citizens on furlough and additional payments are being made in some cases (not all.)
In many cases rents are being obviated- in Germany the banks are deferring mortgage payments to the end of the loan, and renters are being charged fractional rents. Businesses the same- the landlords are getting a deferment on mortgage payments, but they're legally obligated to pass that through to renters as fractional rent. They've also declared a VAT holiday through end of year, so consumption-based taxation is on hold.
Healthcare is state-insured and is not something individuals accrue debt for in most of these places, so no state subsidies of healthcare beyond the norm are required, even if the bills will be a bit higher.
Equipment has been widely available, including masks, tests, and ventilators, because of systemic stockpiles of these items. Only nations which didn't respond early to flatten the curve (see: Italy) have had their healthcare systems overwhelmed.
So I look at the much more calm and responsible manner the rest of the civilized world is reacting to the economic situation being caused here, at how they basically have the infrastructure and oversight to allow the "Pause" button to be hit, without people talking about "destroying the economy" of that nation.
Like I keep saying, responsible families have savings for emergencies. Responsible nations do too, and in robust economic times, they raise taxes and pay down deficit and debt, they put surplus away for a rainy day, etc. Responsible corporations do also- the giants are sitting on their cash war chests and smiling while the smaller guys struggle and die- happy to snap their assets up in bankruptcy. When times like these happen we have to pull together- not continue to predate on one another. We have to act in good faith- something being lost in our capitalist society via the reduction of oversight and the reduction of tax rates, allowing the pillaging of the economy via cash extraction.
This is a uniquely American situation we've let the "free market" get us into, and we're being told we have to throw the lives of the weak on the bonfire of capitalism to keep it from dying as a result. I reject that argument and say that the piper has come calling- it's time to raise taxes on the rich to ensure that we are well-equipped to deal with this sort of situation in the future.
So yeah, I'll reduce it back down to "corporations should be able to survive for six months without undue distress" without an issue. Our society should be responsible enough to require it, rather than leaving corporations as valueless husks of branding and process that collapse in the smallest instability.
