Originally Posted by
iahflyr
Well my estimate of number of furloughs just increased now that management isn’t cutting hours of 15,000 workers from 40hrs a week to 30hrs a week. Doug Parker is a smart guy, and that was just another knife in the gut for an already bleeding UAL.
United can not afford paying full payroll of 93,000 people for the next 6 months while making virtually $0 in revenue and having all the other fixed costs that cannot be shed. This is going to be ugly.
Yeah, it's ugly. Big ugly. But it's also ugly for every single passenger airline.
There's a reason why the CARES act was enacted, and it's exactly to cover the employee expenses and take them off the table. Those part-time reductions that UAL was trying to impose would only buy UAL a couple days of cash burn. At best.
As for Doug Parker, AA said they were burning $70M/day in cash and working to get it down to $50M. For a company with more than debt UAL and a much higher cash burn, it's not hard to see who the bear will catch first unless things change in a significant way. Of course he'd like to slow everybody else down with him.