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The airlines were buoyed by PPP loans.
by xwdv 4y ago
The airlines were buoyed by PPP loans.
- Retric 4y agoWhich didn’t even fully cover the dramatic drop in customers let alone these policy changes. What people forget is companies are in competition, if every airline is forced to refund ticks then the industry simply reaches a new equilibrium with very slightly higher ticket prices. However, if any airline defects to worse customer service they all end up doing the same. Thus the need for customer focused regulations.
- butlerm 4y agoAirlines did not qualify for PPP loans. They did receive substantial direct support from the federal government however. PPP "loans" were reserved for businesses with less than five hundred employees that weren't worth very much (relatively speaking) either.
- xwdv 4y agoSo even better than PPP loans??
- deleted 4y ago[deleted]
- butlerm 4y agoProbably. All told the government basically covered 18 months of airline payroll expenses but the airlines had to pay about 25% of that back. PPP "loans" were intended as payroll support for a shorter period with 100% forgiveness in most cases.