Delta Air Lines’ CEO Ed Bastian argued with a straight face that Delta did not receive a taxpayer bailout during the pandemic. Does his claim have any merit?
CEO Ed Bastian Claims Delta Air Lines Did Not Actually Receive a Bailout
Earlier today I outlined Delta’s strong financial outlook for 2022 and how the Atlanta-based carrier recently recorded record demand for a calendar month. Bastian has made his rounds in the media to discuss Delta’s return to profit and made a frankly outlandish claim on CNBC’s Squawk Box concerning taxpayer bailouts during the pandemic.
“While it has been, two years ago, classified as a bailout, candidly it wasn’t a bailout. The money that was provided to the airlines were there to hold employees in place for the period of time it took for the vaccines to show up,” says $DAL CEO Ed Bastian on covid bailouts. pic.twitter.com/LEM7hKJ7dT
— Squawk Box (@SquawkCNBC) April 13, 2022
Bastian was asked about whether he felt any duty to U.S. taxpayers over Delta shareholders due to the bailout and responded:
“While it had been, two years ago, classified as a bailout, candidly it wasn’t a bailout. The money that was provided to the airlines were there to hold employees in place for the period of time it took for the vaccines to show up and people to start traveling again.
“The airlines actually did not receive any significant amount of windfall back through the taxpayers, though we greatly appreciate the support. Because had we not received that support, we would have been forced to lay off tens and tens of thousands of people, and we’d be in a position today not having the air service that this country needs.”
My response:
Talk about a narrow definition of what constitutes a bailout!
One Mile At A Time helpfully points out a figure that strongly undermines Bastian’s logic.
- February 2020 – Delta had 91,416 employees
- February 2021 – Delta had 62,588 employees
Sure, Delta may not have been allowed to furlough employees after accepting Payroll Support Program (PSP) support, but money was used to offer employees early retirement packages as a way to permanently reduce labor costs.
Buying off senior flight attendants and pilots marked a great way to reduce labor obligations while not running afoul of bailout guidelines.
The result? Meltdown after meltdown during the pandemic due to insufficient staffing, even through the bailout (even by Bastian’s own words) was meant “to hold employees in place” in order to effectuate a rapid recovery when the pandemic receded.
CONCLUSION
Sorry, but Bastian’s logic is absurd. To make that argument with a straight face is an insult to U.S. taxpayers.
Sort of like:
‘vaccines stop the spread’
‘Two weeks to flatten the curve’
‘Lockdowns don’t hurt poor people’
Or, the latest one
‘We need to go to war with Russia, we definitely didn’t overthrow the Ukrainians government in 2014’
Double speak is a way of life now.
New normal is being assures you were never blatantly lied to.
LOL!!! Spot on. And then Musk puts an offer to buy Twitter and allow free speech. Liberals minds are melting today.
Define “free speech,” please.
LOL!!! Musk is a genius!!! And have you seen the approval ratings for your loved grandpa in the new polls this morning? Is your head spinning today? LOL!!!
Musk is a conman and the toothless SEC only fines him a fraction of the profit he makes manipulating the market. Pumping investments on twitter that he just purchased and then selling when the value temporarily spikes.
Conservative’s utter fascination with Putin/Ukraine and their eagerness to be apologists for him is utterly mind boggling.
“but Hunters laptop!” “But Biden!” “But Pizzerias!” “Deep State!”
Give it a rest, no one outside of Tucker Carlson actually believes any of it, and he only believes is long enough to get you suckers to pay attention and pad his paycheck.
I’d make a comment, but it’s too hard to type while holding my phone during my expected 9 hour wait to get through to the Medallion desk.
There’s either speakerphone so you actually use the internet while waiting on a call, or a call back feature so you don’t have to hold your phone for 9 hours.
I know, I know, you’re just trying to pull some snark, but you just made yourself look like an utter imbecile in the process. 😀
While I may not always agree with Jan, I will say that there is no one here that can deliver such a biting (and often) true assessment.
Hump? What hump?
Well, if you never really needed the money but took it to line your pockets, is it really a bailout?
Envy is such a noble emotion.
OMG, What am impolitic thing to say. Is he off his meds?
We are only 2 days away from the relaunch of LAX-LHR! Nonstop service from Los Angeles to Europe is finally resuming on United this Saturday, April 16, onboard the 787-9 Dreamliner.
Heard you the first time…
Remember back in the day when Delta employees banded together to buy the airline a new 767? When will that happen again?
No rapist admits to raping
No robber admits to robbery
No airline CEO ever admits to taking money from the US government!