David Banmiller, an airline industry insider and former CEO of Pan Am, doesn't like referring to the $25 billion of relief the airline industry got from the federal government as a 'bailout.'
"When we use the words 'bailout,' I think that's a bit of a misnomer," Banmiller told Cheddar Tuesday, adding that it reminds people of the 2008 financial stimulus. "It's a financial support mechanism to get us through these extremely difficult times."
According to Banmiller, who now runs consulting firm The Falcon Group, that money came with unsavory strings attached.
"The strings I was hoping I would not see was some level of ownership control, stock ownership, board membership," Banmiller said. "Board membership by government employees is not a good idea."
But that's what Washington got. Banmiller said that when airlines are considering changes to routes, the U.S. government now has a say in the process.
"It's a very hard subject at any airline," Banmiller said. "Right now, airline whiz kids are looking at city pairs and what they can afford and what they can feed their hubs and their spokes."
Despite the airline industry staring down the barrel of what Banmiller says will be a two-year-long recovery 'if we're lucky,' he still believes the government's intervention may hurt the industry he's dedicated more than 50 years of his career to.
"I'm concerned that the government may gain too much leverage in this situation," Banmiller said. "Some airlines probably won't survive it."
Earlier Tuesday, United Airlines confirmed reports that it planned to layoff 30 percent of its administrative positions.
Big brands that have relied on TikTok videos to reach younger consumers do not appear to be panicking as they wait to see what happens. But they have started planning.
It's been 15 years since the last fatal crash of a U.S. airliner, but you wouldn't know that from a torrent of flight problems that made news in the last three months.
Abortion opponents want the high court to ratify a ruling from a conservative federal appeals court that would limit access to a medication called mifepristone, which was used in nearly two-thirds of abortions last year.
Annie Chechitelli, chief product officer at Turnitin, breaks down how students and teachers alike can learn from artificial intelligence – while still maintaining academic integrity.
Neiman Marcus Group CEO Geoffroy van Raemdonck talks luxury shopping and TikTok, why the company prefers to be private for now, and the benefits of flexible work arrangements.
Rebecca Walser, founder and CEO of Walser Wealth Management, discusses how geopolitical conditions, the bifurcated economy, and other volatility could weigh on markets.
The video announcement Friday came after weeks of speculation spread on social media about her whereabouts and health since she was hospitalized in January for unspecified abdominal surgery.
