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BA calls for a Government bailout
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Eugene Gold Wednesday 21 April 2010 |
It was only to be expected, after the problems caused by the Icelandic volcano, that British Airways would ask for Government help. With disruption costs running at £15 million to £20 million per day, BA was bound to be hurting. The same undoubtedly goes for all of the airlines and aviation industry companies.

The question is, should the taxpayer bail these companies out? We did it for the banks and, to a lesser extent, did it for the car industry; so why not the airline industry ?
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Mark Jones, Bristol 22 April 2010, 11:52AM | |
Why should taxpayers compensate every private firm that hits a stumbling block? Airlines make significant profits in the high times and should be prepared to shoulder losses when problems arise. I’d rather see the 100,000 stranded taxpaying British travellers compensated. | |
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Britain cannot afford to continue to bail out industries. I can understand an interest free loan to help companies over the immediate period but then costs have to go up to make the businesses viable again. This will reduce flying, which is a good thing for the environment, and make people realise that low-budget, low-cost flights were always going to come to an end. | |
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When we (I am an American living in London) closed our airspace following 9/11, we compensated your British airlines for their loss of business. Perhaps you might like to consider to the same for us this time. It is not just British Airways that suffered - our guys fly over here too. | |
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Christine Jenkins, Sheffield, UK 22 April 2010, 01:09PM | |
I just read what Marcia Kennedy wrote and cannot see how we can pay for other countries. We just do not have the money and there are still lots of our own people stuck in America on holidays and paying for their own meals and hotels. | |
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Yes, it was going to be requested but I doubt if it will happen. After 9/11 the Americans paid compensation to not only their domestic airlines but also to the international ones. I just do not see us being able to do that. I also think that the days of hand outs are gone. The argument about industry critical to the State cuts no ice with me. If an industry is needed that it will make money. If it cannot make money then, in reality, it is not needed. | |
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Dave Repton, Derby, England 22 April 2010, 06:27PM | |
What is the betting that Brown will get all big and boastful and commit us to paying. He was first in line to pay the banks and I would not be surprised if he gets upgrades and free travel for the rest of his life whilst we all end up paying more. And to think that I voted for Tony Blair before I knew what a waste of space this bunch are. | |
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Ken Taylor, Sheffield, UK 22 April 2010, 07:06PM | |
You cannot expect the airlines to meet all of these costs. It is unpalatable to have another bailout but something has to be done. This is a problem beyond the normal business or insurance risk and has to be recognized and shared. Alternatively, we might ask Iceland to pay and they can then have another national vote on it. | |
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This is another step too far. We (the UK) cannot afford to fund the airline industry. If the companies cannot make money, then the prices have to go up. This may signal the end of the budget flights market but that may actually not be a bad thing. | |
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We have had the same problem here in Sweden with government support for our industries. It is not something that either country can afford in the long term. Companies and industries have to stand on their own feet. | |
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Pete, Lancs 23 April 2010, 08:07PM | |
How can you expect the airlines to pay for all the troubles and for the hotels and meals of the people. If they do that they are going to put up the prices and we are going to be paying more for the holiday next year. It is not fair that ordinary people should pay more. The government should tax the airlines more on their profits and make businesses pay more because they use the planes more for their people. They could also charge foreigners more when they want to come here using our airports. | |
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My husband and I had a restaurant which suffered really badly after 9/11. Prior to that we had had lots of American tourists eating with us and they were great. I mean that, not just good for business but mostly really appreciative and nice customers. Then suddenly it stopped. None of them came over and they seemed to have rediscovered traveling in America. We very nearly went under. Our great little business went from successful to a basket case overnight. We deserved compensation but none offered us any. With the ash problem, it will just have been a week of pain, ours was probably nine months. So, no I do not think we should bail out these companies. | |
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Marcus Riley, Penge 10 May 2010, 12:15PM | |
This is a difficult decision, but the UK is clearly too broke to bail out BA and other suffering airlines, they will have to ride out the economic slum like the rest of us. | |
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Christine, Woking 11 May 2010, 06:32AM | |
So what happens about companies screwed up by the BA strike? Taxi firms, parking, hire car and all the people that make their living helping the travelling public. Do we get compensation from BA or Unite? of course we dont. Yes, the ash thing was no ones fault but there are lots of other things that also make it hard to make a sensible living and put all jobs at risk. | |
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Many Perkins, Crawley 12 May 2010, 12:36PM | |
My sister gets commission on sales where she works at Gatwick and last month her money was way down. Who should she go to to ask for compensation? There are so many people hurt by this ash thing and it is still going on. | |
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Charlie Fields, York 15 May 2010, 06:25PM | |
It is all the smaller commpanies and individuals that get harmed by all this, I think they are all totally selfish and have a total disregard for eveyone else that this directly affects. | |
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Jim Lanter 17 May 2010, 06:14AM | |
Here we go again with the next bunch of ash delays. Are we going to have to support the airlines this time? Are the airlines going to have to pay compensation and hotel bills again? The radio says that this ash cloud could last for months and possibly even years so we do need to get a workable solution. | |
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Steven T 4 June 2010, 02:07PM | |
Richard Branson has urged the government to avoid the bail out of British Airways. I hope everyone will remember what little compassion Branson has demonstrated for those who will lose their livelihoods if BA goes to the wall. The man presents an exterior of a likeable fop but deep down he doesn't care about anyone but himself and his billions. | |
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Helen, London 23 June 2010, 10:54AM | |
I'd be interested in knowing if BA's debts are included in the governments latest emergency budget? | |
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