The Flinchum File
Thoughtful Economic Analysis and Existential Opinions

Force-Feeding Vinegar

09/25/2020

The joke among investment analysts is . . . if you want to have a small fortune in airline stocks, you just need to invest a large fortune!

The aviation industry is a huge business, employing many thousands of people and consuming huge quantities of capital – both debt capital and equity capital.  Whenever there is an economic crisis, they also consume large quantities of taxpayer capital.  In fact, they just went back to Congress for another helping of our taxpayer dollars!

Do you remember your Mother saying you can attract more bees with honey than with vinegar?  Maybe their business wouldn’t be so bad, if they offered a little more honey and a little less vinegar.    It is a miserable experience!

I remember the countless hours spent in waiting rooms, trying to read in bad light.  No honey there!
I’ve wondered why an “equipment change” means you cannot sit with your family or friend?
If we used to have a smoking section, why can’t we now use it for families with infants?
Why does one draft beer cost $6?

I especially remember an overnight flight from Gatwick into Dulles, thinking I had a gaseous neighbor, only to find a dirty diaper underneath my seat, courtesy of the young mother in the seat behind me!!

Airline companies have perfected letters and emails that read “in order to serve you better, we’re going to make something less convenient.”  Then, they blame it on safety or security or something . . .

Yes, I know the thousands of jobs must be protected, but I wish the millions of flyers could simply be respected.
Yes, I know airline companies are not regulated as utilities, because they still spend millions buying back their own stock.
No, I don’t like being force-fed with vinegar!

So, in consideration for the nice employees who are required to force-feed the company’s vinegar to the innocent passengers . . . to protect our safety and security, of course . . . I will not object to yet another bailout of the airline industry . . . not much.

We are a fee-only advisor providing best interest fiduciary services to clients
in Chesapeake, Newport News, Norfolk, Suffolk, Virginia Beach, Williamsburg, and the surrounding areas of Hampton Roads.

CONTACT BAY CAPITAL ADVISORSWe Will Respond Promptly

Contact Us Bottom