Thursday, August 7, 2008

Aerolíneas Argentinas to be nationalised. Am convinced US and Euro airlines will also be seeking help soon

Wharton has some very interesting analysis in this article over the nationalisation of Aerolíneas Argentinas. We have to all prepare ourselves for a series of bad news stories from Airlines. Cathay Pacific just announced their first loss in 5 years (bloomberg article). Nationalisation is usually a very emerging economy solution to a problem with problems at important national assets. However with the UK government bail out of Northern Rock and US government coming to the rescue of Fannie Mae and Freddy Mac I am predicting that we will see US and European airlines receiving some help (or lots of help) in the form of government hand outs by this time next year. Especially if their BS scare campaign blaming oil speculators is successful.

thanks to jmiguel.rodriguez for the photo from flickr

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