airlines and bailouts
the us government has in the past bailed out its airlines(9/11), its motorcar industry (chrystler corporation), its aircraft manufacturers by supporting them with defense orders,and to a certain extent supported its tobacco business as well as as in the recent past the banks , the uk bailed out northern rock and b&b and by the looks of it alot of european banks are also going to be bailed out and other businesses too have been and will be bailed out
its just that if we analyse history governments need profitable enterprise and also to keep its citizens employed and as a famous economist has quoted in recessionary times they could pay people to just build roads and demolish them and rebuild them for atleast they provide employment
as far as aviation is concerned a country dependant on tourism needs infrastructure in the form of airlines and good transportation for these are the bases of growth
i feel that governments must ensure that flag carriers keep on flying and being efficient in the use of resourses after all it is cheaper to pay skilled people wages for working rather than dole for not working
i agree the thinking is more macro economic than micro