Coronavirus storline #4: Airlines

March 16 – Airlines are in trouble and already there is talk of a $50 billion bailout. International travel is at a standstill, and companies are canceling routes at a furious pace. United Airlines is cutting its flying in half in April and May.

This of course brings back memories of the post 9/11 airline bailouts, where the government handed out $5 billion in cash to airlines and billions more in subsidized loans, insurance payments, and other benefits, although not all of the loans were used up. It should be noted that several airlines went into bankruptcy around that time, including United Airlines and US Airways.

March 17 – In the $850 billion bailout proposal, it seems there is $50 billion for airlines.

Jacob Robbins

Author: Jacob Robbins

Jacob Robbins is an assistant professor of economics at the University of Illinois at Chicago.

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