GET FREE E-MAIL UPDATES: SEND US YOUR EMAIL ADDRESS WITH SUBSCRIBE IN THE SUBJECT LINE
or subscribe to our
Twitter service

UNDERNEWS

Undernews is the online report of the Progressive Review, edited by Sam Smith, who covered Washington during all or part of ten of America's presidencies and who has edited alternative journals since 1964. The Review, which has been on the web since 1995, is now published from Freeport, Maine. We get over 5 million article visits a year. See prorev.com for full contents of our site

October 15, 2009

CORPORATE BLACKMAIL OF COMMUNITIES

David Sirota, Open Left - Frontier [Airline] declared bankruptcy on April 10, 2008, ultimately got bought by Republic Airways in August of 2009, and has been reporting operating profit for 10 straight months (probably a big reason that Republic bought it, and Southwest tried to).

In recent weeks, however, Republic Airways has been threatening to slash Frontier jobs in Denver (the airline's hometown) unless Denver and Colorado governments hand the company a series of special tax breaks. . .

This particularly ugly threat comes, of course, just as the city and state's massive budget deficits are causing huge cuts to the most basic social services for the most vulnerable populations (the homeless, the indigent, the mentally ill, etc. . .

Either hand over the taxpayer cash, the airline is saying to the pols, or we'll slash jobs in a high-profile way, hurt your economy, and embarrass you. The standard reaction from politicians in this situation is to do what Denver and Colorado officials initially did by seeming to promise capitulation. . .

Of course, it rarely works out that way - what most often ends up happening is that the capitulation destroys tax revenue and - worst of all - the jobs that the tax breaks were chasing end up leaving anyway.


3 Comments:

Anonymous Anonymous said...

Walmart Airlines.

October 15, 2009 4:52 PM  
Anonymous Anonymous said...

In Denver right now we have an ad campaign by frontier in which animals painted on airplanes sing about how much they love this city. It's kind of creepy.

October 17, 2009 4:02 PM  
Anonymous Anonymous said...

any news coming ?

December 12, 2009 6:50 PM  

Post a Comment

<< Home