FrugalFlyerv2.0
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- Oct 29, 2003
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On paper 100% true, EU law does not allow public bailout of corporations.WorldTraveler said:EU law does not permit public bailouts of airlines.
In reality, the situation is different.
In the sense that AMR (along with Onex Corp.) was unable to buy CP then merge it with AC and bring the resulting carrier from * to 1-world - yes, it was a 100% failure. (It was a long shot, Canadian law would not allow AMR to own >25%. Using Onex Corp. to circumvent the law did not fool a judge so the deal was off and AC under pressure was forced to purchase CP instead of letting it die).WorldTraveler said:speaking of CP, wasn't AA involved in that airline? was that a, uh, strategic failure?
At the same time thought, CP switched to Sabre, and AMR over the course of ~10 years nicely recovered it's 25% investment in CP.
Too early to judge, but DLs purchase of VS may turn out to be a similar success or failure. It isn't exactly the same thing, but there certainly are similarities.
No. All I've done wasWorldTraveler said:let's be clear, though. You are looking for anything you can to find reason to argue that DL's fuel strategy is a failure.
i) ponder whether the purchase of the refinery could be analogous to UALs strategy in forming Allegis Corp. in the 1980s, and
ii) point out what was written about the refinery purchase by others - mainly that it is a mistake.