Monday, January 12, 2009

Aviation bailout?

Clark Lindsey at HobbySpace has this to say about the bailout:
The Troubled Assets Relief Program (TARP) legislation can accomplish a two-fer: it will bailout firms that made bad decisions and also help drive the business aviation industry into needing a bailout of its own: ‘TARP’ Language on Business Aviation Will Fuel General Aviation Job Losses - National Business Aviation Association (NBAA) - Jan.9.09 (via a reader). By requiring "divestment of private aircraft or leases", it will reduce direct demand for new biz-av vehicles and also dump used planes on the market, which reduces demand for new ones even further.

This response to the symbolism of automaker CEOs requesting bailout funds after flying to DC on their private jets might provide some temporary emotional satisfaction, but it is counter-productive for US manufacturing in the long run. General aviation, after all, is one of the areas where the country is still extremely competitive worldwide.
Check out the comments, too.

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