Do UPS and FedEx Need an Airline Bailout?
People aren't flying much these days, but packages are. If anything, people are ordering so much that it's swamping Amazon.
I've written before about the push by airlines for a huge bailout package. The push is led by the airline trade group, Airlines for America, which, aside from the usual suspects, includes UPS and FedEx.
Do UPS and FedEx really need a bailout? I'm highly skeptical that any airline should be getting a bailout. Especially considering Warren Buffett's renewed profiteering in the face of a bailout, which will certainly help the lefty billionaire elect more Democrats. But no obvious distinction has been drawn between the different member organizations of Airlines for America. And considering what a disastrous waste the 9/11 bailout for airlines was, those are perhaps questions that should be asked.
While two-thirds of the money doled out by the Department of Transportation did go to the major carriers, hundreds of millions more went to places you wouldn't expect.
"It was a massive boondoggle," says Republican Illinois Senator Peter Fitzgerald. "Congress just got out the ladle and shoveled it all over the place."
For example: $20 million was shoveled to three bankrupt airlines like Vanguard, Midway, and Reliant. Nearly $165 million went to package-delivery companies. Another $5 million went to helicopter companies that, among other things, ferry workers to oilrigs and run tours to the Grand Canyon. Even three companies that arrange travel from the U.S. to Cuba cashed in.
Vacation tour operator Bill LaMacchia doesn't apologize for his $3.5 million.
"It is a prudent decision for any organization to take advantage of an opportunity," says LaMacchia.
Nobody seems to want to talk about the bailout express smashing through our national debt. There's an eagerness to sign some trillion dollar checks without asking any questions. Maybe some questions ought to be asked.