Mark Cuban says bailed out companies should never be allowed to buy back stocks

Re:Mark Cuban says bailed out companies should never be allo... by arcticbull on Wednesday March 18, 2020 @08:36PM (#22623087)

WestJet in Canada for instance is basically going into hibernation. They're laying off 50% of the workforce, and cancelling all US and international flights [1]. They are however not yet being bailed out by the government, and they are also not going out of business.

I'm not sure any small carrier need go bankrupt. They park their planes, furlough their staff, and in a few months, open up with some summer promos. Not flying doesn't mean a trip through Chapter 11.

[1] https://torontosun.com/business/money-news/canadian-airlines...

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Re:Mark Cuban says bailed out companies should never be allo... by cjbassi on Wednesday March 18, 2020 @08:48PM (#22623176)

This plan of action makes perfect sense to me, and I'm confused why American companies aren't doing the same? Or are they? If so, why would they need to be bailed out?

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Re:Mark Cuban says bailed out companies should never be allo... by arcticbull on Wednesday March 18, 2020 @08:53PM (#22623213)

My question exactly. Especially as airlines have very tight relationships with credit card issuers who historically have provided debtor in posession financing as the us majors have exited bankruptcy. They do this by prepaying for large quantities of miles to hand out in reward for credit card spending. Ask them first before coming by with hat in hand.

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