US airlines pushing for massive bailout gave $45bn to shareholders in five years

[Ohiogal]

They shouldn’t get one penny!

*********

The United States’ five largest airlines – which are pushing for a $50bn-plus bailout to help them survive the Covid-19 crisis – have handed out more than $45bn to shareholders and executives over the last five years, research by the Guardian has found.

The US government is currently considering a request from Airlines for America, a group that represents the nation’s major carriers, for a payout to help firms cope with the pandemic.

With travel bans in place across the globe, industry groups are warning that airlines could run out of money within months.

But airlines are now facing criticism for paying out billions to investors – mainly through share buybacks – rather than saving this money up.

Delta, American Airlines, United, Southwest and Alaska have spent $44.9bn on share repurchases and dividends in the last five years, according to Guardian research. In addition, nearly $750m has been paid out to executives over the same time period.

According to separate data compiled by Bloomberg, these five airlines have spent 96% of their free cashflow on buying back their own shares over the last decade.

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https://www.theguardian.com/business/2020/mar/18/america-airlines-bailout-shareholders-coronavirus

[bluedigger]

1. Shareholders are owners, right?

Let them pass the hat around amongst themselves before they bring it to us.

[uponit7771]

2. WOW !!!

[VarryOn]

3. In exchange for a bailout...

They should be required to expand legroom, to stop charging for checked bags, to pay greater compensation to passengers for airline-caused delays, etc. This would be a great opportunity get some stuff straightened out. If they want on the dole, let's add a few strings.

[dumbcat]

4. What should they have done

With their free cash flow? If the owners don’t make a profit, why should they run an airline?

[ooky]

9. Pay out bonuses?

If they can use 96% for stock buy backs, it seems there should be something there to reward employees and still be profitable.

[maxrandb]

10. This is bullshit

Yes, companies are in business to make profit.

Prior to St. Ronnie Raygun, the top executives at major companies made 10-12 times more in compensation than their highest hourly wage earning employee, and those executives were plenty rich.

Now, top executives are making 300-500 times more in compensation then their highest paid hourly wage earning employees.

What you posted is a right-wing Retrumplican talking point.

You know, I'm a perfect example. In 1981, I made $12.60 an hour, time-and-a-half for overtime, double time for Sundays and Holidays, as a stock clerk at Big Bear Supermarkets in Ohio. That was with a high school diploma.

What I made in 1981 is equivalent to $96K per year in today's dollar . Look it up. Use whatever calculator you want to see what $12.60 an hour in 1981 would be worth today...then go to your local supermarket and count all the BMW 5 Series the stock clerks are driving.

The problem is not that companies aren't making "a profit"...the problem is they aren't fucking paying enough to the people that make that profit possible.

[spanone]

5. Jet Blue also....they've been pushing the 'worse than 9/11' bullshit

[2naSalit]

6. Fuck NO! Not one dime! ...nt

[doc03]

7. They will take the money and buy stock back and give bonuses to their CEOs nt

[ooky]

11. We're nuts if we allow that again. They should have to agree not to do that

and their leadership be held criminally liable if they do. Not one penny should go to CEO's or executive bonuses, or stock buy backs. Operational cash only deal. Anything else is bullshit. Otherwise we should not agree to bail them out. Frankly, one of the options should be to let them bankrupt if necessary and then the U.S. Government take them over. That would protect the services and the employees. Cut the grifters loose. And, yeah, that's socialism.

[Hermit-The-Prog]

8. Let them eat cake.