Thread: Hold My Bier
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Old 08-28-2020 | 04:43 AM
  #20  
Hedley
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Originally Posted by chrisreedrules
Does the current cash burn rate account for the Payroll Support? As in, after October 1st does cash burn go back up?

And I agree, I think a trip to the courts is in store for all 3 legacies by next summer. Further government grants and loans will likely just push the time frame out that some airlines file.
From what I understand it is multiple issues facing cash burn. The government cheese didn’t pay for all payroll expenses, and it required that service to previous markets be maintained. The money significantly reduced the burn, but other expenses such as aircraft lease payments, gates, slots...... roll on. If there is another round of govt. money, I can see some of those restrictions lifted. The airlines will argue that they need to be completely maintained, or they must be allowed to adjust their staffing and route structure to get the cost under control. The short answer to your question is yes. If the taxpayer does not pay airline labor cost, the airlines will be faced with either throwing gasoline on the cash burn, or slashing payroll starting Oct 1.
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