Airlines Don't Need to Be Saved by Taxpayers Again
The first $50 billion government lifeline was critical to steering the economy through the worst of the pandemic and beyond; the next $29 billion is more complicated.
When will airlines be ready to stand on their own?
Photographer: Scott Olson/Getty Images North AmericaLast March, the government provided U.S. airlines a $50 billion lifeline in one of the largest industry-wide interventions in American history. The industry received a further $29 billion through the bipartisan year-end relief package and President Joe Biden’s stimulus plan. The enormous volume of support raises a question: Was this in taxpayers’ interest, or was it a classic case of corporate welfare that primarily benefited shareholders?
A careful examination of the record shows that the initial intervention during the height of the panic was certainly the best available alternative. But more recent support to an industry the government had already stabilized raises questions about the marginal return on taxpayer dollars.