Originally Posted by
neville_nobody
It will be a bad move by any government to keep propping up airlines. It’s the old profits go private debt goes public scenario. Why should tax payers who by a large majority live in urban areas prop up a foreign owned ASX listed regional airline? Not to mention all the moral hazard generated by such a move. There’s also the issue of picking winners. Why is REX any more important than Bonza, Virgin or Ansett?
I guess the ideal solution to that is that any government handouts/bailouts come in exchange for said government also owning a stake in the airline. It wouldn't be a particularly bad idea considering it is essentially a monopoly to many of it;s destinations, which can't support two competitors.