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.
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A Michigan judge is putting sponges in the hands of shoplifters and ordering them to wash cars in a Walmart parking lot when spring weather arrives. Genesee County Judge Jeffrey Clothier hopes the unusual form of community service discourages people from stealing from Walmart. The judge also wants to reward shoppers with free car washes. Clothier says he began ordering “Walmart wash” sentences this week for shoplifting at the store in Grand Blanc Township. He believes 75 to 100 people eventually will be ordered to wash cars this spring. Clothier says he will be washing cars alongside them when the time comes.
