Originally Posted by
waren9
AirNZ will indeed be going to the market for capital raising. Any money that needs to be paid back is not a subsidy, regardless of where it come from. No Govt loan will ever be “forgiven” either. It may be converted to an increased shareholding as has happened before. Either way, I see no subsidising going on that would enable AirNZ to operate any more cheaply than it already does.
I can’t tell if you’re being deliberately ignorant or you have some sort of prejudice against that airline.
And this is where a market distortion occurs. Whether it’s AirNZ or the ME3, SingAir it’s all the same. Airlines backed or financed via their respective governments that otherwise would be broke. So the debt could be converted into an increased shareholding if they can’t repay the debt. That’s an implicit guarantee is it not. Didn’t happen to Virgin. It was subject to market forces unlike most airlines on the IFAM list yet our own government thinks that’s fair. It’s an outrage and has been way before Covid high lighted the disparity even more so.