> We have no choice but to bail them out.
Why not though? If they go under, someone will step in to buy the assets and hire the employees back. It's not like air travel will go away forever.
Why not though? If they go under, someone will step in to buy the assets and hire the employees back. It's not like air travel will go away forever.
They don't need to be indispensable. they just need to be critical enough that not bailing them out is much more expensive than bailing them out.
The solution is to prevent this scenario from ever happening in the first place, by either requiring sufficient competition, or requiring sufficient capital reserves (see: banking and reinsurance), or just nationalizing the thing.