PPRuNe Forums - View Single Post - BA unhappy about Open Skies/Ch 11 not a subsidy
Old 7th Dec 2005, 08:44
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Carnage Matey!
 
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I think you'll find in the UK that both the individual and the employee pay National Insurance to pay for the NHS, plus a healthy part of the 33% Corporation Tax and 40% personal income tax goes that way too!

Dumping pension onto the PBGC certainly is an indirect subsidy. It relieves US airlines of the burden of paying their pension dues. There is no equivalent over here, the airlines have to pay their pensions or extract the money from the employees like BA is trying to do.

Chapter 11 allows airlines to dodge their creditors whilst artificially boosting cashflow at the expense of non-Chapter 11 airlines. In the UK if you can't pay your creditors the board gets sacked, the administrators take over and more than likely the company goes under. In the US you just keep on running and drag the whole market down with you.

At least we finally have somebody who will concede that the ATSB loans were a subsidy. The payments were out of all proportion to the costs incurred by the three day shutdown and were a very thinly disguised attempt to bail out airlines which were in dire financial straits even before 9/11.
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