Originally Posted by marcal

So I've been thinking about the potential ALV/Furloughs/survival of the airline like everyone. I'm a bubble candidate to lose my job if this all goes south. I just want to get a discussion on if we are looking at potential ALV reductions vs furloughs the right way. I see these at two separate issues. I don't believe they are related.

1.) The survival of the airline is predicated on cash flow. With no revenue, stretching every dollar prolongs the airline surviving.

2.) The airline is going to be smaller and there will(most likely) be furloughs on the other side and we don't know how long that will take.

I absolutely do not believe we should be taking any concessions to prevent any furlough because they are unrelated. If we are smaller, we're losing guys and gals.

I am however, open to the union discussing methods to stretch our cash flow through the significant downturn, IF IT IS STRUCTURED AS A LOAN THAT PAYS US INTEREST.

When Delta taps a line of credit, they pay interest. If we were to offer 20 hour ALV reductions, I would want 5-10% interest on that in some way/shape/form. I don't think that would be unreasonable. I am in no way shape or form advocating for a permanent amendment of our PWA. Any change would have to be temporary as an LOA.

Just as an example of what I'm thinking:
Each pilot reduces ALV by 20 hrs/month for a period of one year until things stabilize(240hrs). If it is say paid back over a 5 year period with the company paying us 5% interest, they would have five years after an agreed upon date or financial hurdle to pay us back roughy 5-10 extra hours every month for those five years(this is just a rough guess on what it would cost them to pay back this "loan" to them. If this is structured as a loan(I don't know if that can be done), it would be paid back at a higher priority in a BK.

Thoughts?