Was American Airlines “Too Big To Fail?” James Dondero Opines

Some experts might only believe that the term “Too Big To Fail” (TBTF) was only invented in 2008. Of course, careful analysis will show that it has always existed in the United States. You could point to JP Morgan bailing out the United States government or the first Chrysler bailout. Was American Airlines “Too Big To Fail?”

 

“American Airlines History”

 

According to James Dondero, The US airline industry was gradually built up after the Wright Brothers flight in 1903. Small courier companies started to be formed. Eventually, American Airlines purchased up to 80 of these, creating its company in the 1930s. Airlines mergers are a common practice.

 

What many have forgotten in hindsight, is that in early 2001, American Airlines acquired the bankrupt Trans World Airlines. Of course, in September 2001, the World Trade Center disaster placed a heavy burden on all of the United States airline companies. Heretofore, their business plan had been based on certain basic expenses. Thereafter, they were forced to pay for tightened security. This also forced them to modify all of their time schedules.

 

American Airlines has a 19% market share (revenue passenger miles). Its key hubs are in Charlotte, Chicago, Dallas, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington D.C. These airline routes retain their value, even during the American Airlines bankruptcy.

 

“Profiting on Themes”

 

The United States government could not allow American Airlines to fail because it would diminish the ability for citizens to travel around the world. Air travel is a key benefit of modern life. It also might lower the prestige of the United States around the world. And, what would happen to all of those airline routes?

 

Local cities depend on American Airlines for tax revenue and jobs. There are plenty of other companies, which contracted with American Airlines to provide services. American Airlines was “Too Big To Fail.”

 

“Too Important To Fail Youth”

 

Another group, which cannot be allowed to fail are children. Thankfully, James Dondero has invested his time, energy and money into “Reasoning Mind” – a Dallas school program to provide mathematics computers for children from pre-kindergarten to seventh grade.