News: Europe’s $ 36 bn in airline bailouts

Bloomberg reports that European airline bailouts might come with (ESG, but predominently E-) strings attached. This could herald the start of lower emission travel …

As a shareholder this might alarm you. Do you want to invest in an industry/company, if governments are major shareholders and will most likely strongly influence the future?

The time of cheap flights for everyone might even come to an end, if a combination of the following might happen (but I believe it is unlikely): governments blocking necessary efficiency measures (incl. laying off employees), closing down unprofitable locations, increasing tax and other fees on tickets, banning flights that to not meet their ESG ideal. For example, Austria funding the local arm of Lufthansa takes radical steps

  • imposing a minimum ticket price of € 40
    • increasing the attractiveness of non-flying alternatives
  • hiking fees on short-term flights to € 30
    • personal note: I believe that is a very positive development. Short term flights in Europe are should be unneccessary and uneconomical, not only from a price perspective but on many occasions even on a time perspective as well. I still love to remember the public transportation system in Japan 🙂 Europe should have its own Shinkansen (Japanese bullet trains) …
    • btw, infrastructure would be there even when the Euro is not anymore…
Photo by David Dibert on Pexels.com

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