Originally Posted by
iahflyr
That is correct. Delta has expenses other than payroll. Congress made the grants in the amount of 6 months of payroll (it looks good politically), but that money goes into Delta’s general fund to pay for everything. If Delta doesn’t reduce payroll expenses, it will go out of business.
Imagine if you got laid off, had no other income, and the government gave you a grant for 6 months worth of making your mortgage payment. Would you just make your mortgage payment, or would you need to use it for food, utilities, and other expenses that you cannot cut?
I get that Delta, and my own house, has expenses other than payroll (kids allowance for me), but while I have not read the actual governement bill, every article and press brief speaks as if the money is specifically earmarked for payroll. Hell even Ed said so in his memo;
"
The agreement includes $25 billion in direct financial assistance for airline employee salary and benefits.....The payroll assistance funds ensure there will be no involuntary furloughs or reductions in pay rates through Sept. 30, 2020.
So I don't see how they can look at it as a one time cash infusion to pay the bills now when it seems the intent is to pay the payroll bills over the next six months.