When airline executives realized a few years ago that they could charge passengers extra fees for just about anything — meals, checking bags, even choosing seats — their businesses seemed bulletproof.
“I don’t think we’re ever going to lose money again,”
washingtonpost.com/business/2020/…
“I don’t think we’re ever going to lose money again,”
washingtonpost.com/business/2020/…
AA chief executive Doug Parker told giddy investors in 2017
They undertook share buybacks, boosting investor value. Trump and congressional GOP sweetened the outlook for big businesses further when they passed a $1.5T tax cut that slashed the corporate rate beginning in 2018.
They undertook share buybacks, boosting investor value. Trump and congressional GOP sweetened the outlook for big businesses further when they passed a $1.5T tax cut that slashed the corporate rate beginning in 2018.
That seems so long ago. Now airlines, hotels, cruise lines, coal-mining companies and others strangled by coronavirus shutdowns are lining up to receive slices of a $2 trillion aid package funded by taxpayers.
Hilton, for instance, announced a $2 billion stock buyback on March 3, weeks AFTER coronavirus cases began affecting the industry.
Cruise lines for years have avoided taxes and U.S. safety regulations by registering their vessels abroad.
Coal companies put some of their
Cruise lines for years have avoided taxes and U.S. safety regulations by registering their vessels abroad.
Coal companies put some of their
workers in harms way and are now asking to get out of a tax that generates $ to compensate former miners who have black lung disease
The choice is between 2 options unsavory to many: bail out some of the country’s largest corporations or watch as they put more people out of work
The choice is between 2 options unsavory to many: bail out some of the country’s largest corporations or watch as they put more people out of work
“You don’t want to reward companies for doing shortsighted, short-term things the past 11 years. You don’t want to reward them for stock buybacks and excessive CEO compensation. The trouble is a lot of the cos that are in trouble right now are the ones that have been doing that.”
Airlines and hotel chains have in recent years dramatically increased spending on stock buybacks (which can pump up a share price without building anything or hiring anyone) and sometimes generous dividends (payments to shareholders).
Cruise lines are also facing potential cash shortages, but they are domiciled in Liberia, Panama and elsewhere to avoid nearly all U.S. taxes and safety regulations.
In exchange Congress should make al cruise companies change their domicile to the US and start paying taxes!
In exchange Congress should make al cruise companies change their domicile to the US and start paying taxes!
Coal-mining companies also have asked for help, including a request that the government rescind a $220 million tax increase to support 25,700 disabled coal miners, many of whom have suffered from black lung disease.
And they are forcing them to continue to work!
And they are forcing them to continue to work!
A year ago Arne Sorenson, CEO of Marriott, the world’s largest hotel chain, announced the co would return $11B to shareholders through buybacks and dividends by 2021. Its share price jumped 3% on the announcement.
Now the company has begun furloughing tens of thousands of
Now the company has begun furloughing tens of thousands of
employees, laying them off but allowing them to maintain health benefits. Sorenson was among execs to meet with Trump seeking a reported $150M of direct aid to hotels. The co has since suspended dividend payments stopped share buybacks and cut Exec salaries for the year
@threadreaderapp unroll please
