Rants and Podcast
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Dec 17, 2020 | Podcast
The Lingering Effects of Airline Bailouts
Despite receiving billions in government bailouts, the world’s airlines are struggling and will continue to do so.
Bank bailouts and state financial assistance have certainly done their part to provide lifelines, but this path is not the most sustainable path forward.
Will the aid and bailouts do more to help the industry or hurt it? Are there any viable alternatives?
In this episode, renowned airline, finance expert, and author of Aircraft Valuation, David Yu returns to the show to share how financial assistance will impact our industry moving forward.
3 Things We Learned from David
- Why leaning on aid isn’t a long-term solution: Financial assistance and bailouts are attractive options, but they cannot be relied upon for too long. Waiting on aid will only delay the inevitable for many airlines and leasing companies.
- Why we shouldn’t expect a second round of bailouts: While airlines have received a lot of financial assistance, other industries have not. Governments are now being forced to look at a wider swath of bailout needs.
- Why banks will become less accommodating: Banks have been generally amenable in the wake of COVID-19, but that might not always be the case. There is only so much the financial institutions can do.
Northstar Group is a retained executive search firm that places executive leaders in the aviation, aerospace and defense arena.