Hacker News Reader

Parent Full thread

josephorjoe

You can save the industry without bailing out the stock holders and bond holders, as those are three different things.

So, what is important?

1. Maintaining a functional airline industry

2. Making sure the bondholders get back 100% of their loans?

3. Making sure shareholders don't lose their equity stake?

I would agree that #1 is important.

View on HN

Well if airlines go bankrupt, that's a lot of assets that could be sold at fire-sale prices, and an opportunity for other surviving airlines to jump in and take over those planes and routes. Since China seems to have contained the outbreak, and probably have the economic power to do it, maybe they'll buy up a bunch of failed airlines...

1 and 2 are important. 3 is not important. Shareholders should lose everything in a bailout, that's the deal when one decides to buy equity in a company.

Reply on news.ycombinator.com