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.
People are making travel plans and booking tickets as the holiday season nears. Johannes Thomas, CEO of Trivago, joined Cheddar News to provide tips on saving when booking lodging ahead of Thanksgiving and Christmas.
Elon Musk unveiled 'Grok,' his new A.I. chatbot over the weekend, adding that it will be more rebellious than its counterparts. Cheddar News breaks it down.
Heinz is combining two popular flavors for its new condiment, pickle ketchup.
Federal health officials are expanding an investigation into potentially lead-tainted pouches of apple cinnamon fruit puree marketed for children amid reports of more illnesses and additional product recalls.
Berkshire Hathaway, the conglomerate run by businessman Warren Buffett, reported its operating earnings in its most recent quarter jumped more than 40% from a year ago but posted its first net quarterly loss in a year.
Maks Chmerkovskiy and wife Peta Murgatroyd, of "Dancing With the Stars" fame, are branching out into skincare.
Donald Trump began testifying Monday morning in his civil fraud trial, producing the spectacle of a former president and the leading Republican presidential candidate defending himself against allegations that he dramatically inflated his net worth.
The trial between Google and the maker of the game Fortnite will begin Monday as a San Francisco jury will hear Epic Games' case claiming the Google Play Store takes an unfair commission on purchases made through apps.
One of the most self-made and success stories in the country, Emma Grede, has worked along with the Kardashian Jenner family on many of their best-known brands. Grede, CEO and co-founder of Good American, gave back to the next generation of business leaders as a featured speaker at the Chase for Business Make Your Move summit last week. She spoke with Cheddar News about her career, her company's fashion brand, working with the famous Kardashian-Jennifer family and balancing her own family life.
Berkshire Hathaway, the conglomerate run by businessman Warren Buffett, reported its operating earnings in its most recent quarter jumped more than 40% from a year ago but posted its first net quarterly loss in a year.
