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To: exodus
But there is, Texasforever.
It's called America West Airlines.
Our government claimed a 33 percent cut of a private company.

If I may, the article you point to says no such thing - that the government "claimed" a third of the airline. Rather, the government offered a loan to a troubled airline, and as the loan was seen to be rather risky, they asked for the stock as collateral to the loan, and non-voting stock to boot. This is hardly the same as simply seizing private property.

If you don't like the man's strings, don't take the man's money - America West won't do anything involuntarily here. They can reject the loan and seek money in the capital markets, or they can just die. But to claim that this is somehow the same as nationalizing the airlines is just silly.

586 posted on 12/29/2001 9:19:25 PM PST by general_re
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To: general_re
*******************

But there is, Texasforever.
It's called America West Airlines.
Our government claimed a 33 percent cut of a private company.
Here's the thread, posted by carenot earlier today.
577 by exodus

************************

To: exodus
"If I may, the article you point to says no such thing -
that the government "claimed" a third of the airline.
Rather, the government offered a loan to a troubled airline,
and as the loan was seen to be rather risky,
they asked for the stock as collateral to the loan,
and non-voting stock to boot.
This is hardly the same as simply seizing private property.
If you don't like the man's strings,
don't take the man's money - America West won't do anything involuntarily here.
They can reject the loan and seek money in the capital markets, or they can just die.
But to claim that this is somehow the same as nationalizing the airlines is just silly. 586 by general_re

************************

The article didn't say "collateral," general_re.

The article says,
"(The government)...asked for a 33-percent stake in the airline
as a condition for approval to reflect the risk involved..."

A "stake" is not collateral,
the government will now own a 33 percent share of the airline.

It also said,
"...Aviation analysts said America West still faces difficulties
given the uncertain industry outlook,
and the harsher terms of the agreement
would likely keep the largest carriers from applying..."

The United States owns 33 percent of America West Airlines,
whether it survives or not.

597 posted on 12/29/2001 9:35:12 PM PST by exodus
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