I believe it will take place immediately. Alaska’s understanding, and they are seeking guidance, is, no furlough can take place. This is not a furlough just a change in seat. They are not changing FO pay, just changing the number of FO’s.

 

Wrong assumption! That is with the CARE act, without it 40-70% of small businesses would have most likely failed.



There are a few reasons. While Mills applauds the number, $347 billion to small business, she is still concerned whether it will be enough. Furthermore, there’s another problem — the logistics of getting that money to businesses before the cash runs out.

“A lot depends on what happens between the banks and the fintechs and the Treasury and the SBA in the next week,” she said. “When I read the bill, it was pretty clear that they were going to rely on the old piping system of the lender banks.”

In Mills’ view, that system may not have the speed required, and banks ought to partner with PayPal (PYPL) and Square (SQ), which have extensive small business networks.

The stakes here are made even higher by the fact that small businesses are delicate.

“If we don't keep these small businesses afloat they're very, very hard to restart,” she said. “If we want to have a very V-shaped, U-shaped curve here in a recovery, we need to keep them solvent for a period of time.”

The current bill has eight weeks of help, but again, Mills said more may be required.

 

Wouldn't that change the hourly rate/benefits due to a change in position?

 

It’s a valid question and one Alaska legal is seeking clarity on. It’s also the same reason 22 pilots are still in training here, not company compassion. If they were 100 percent confident the bid would have been out next week. There is no job loss, no change in the pay scale, just a change in seat. My impression is they are pretty confident they are right and the bid will be out soon.

 

You even try to spin it like the company will. A capt is making 250k and now making 150k is a paycut. There's no way around that.

 

It’s semantics, I already had to listen to the rationale. I can honestly say I think they are right. They didn’t furlough anyone, they didn’t ask for any concessions. Alaska would love to use this time to do something productive while everyone is sitting around.

 

That makes total sense. Do the downgrades now so they will be properly staffed when the furloughs happen.

God this makes me sick, just a few weeks ago the airlines were set for indefinite growth and hiring... now this. Im still in shock that come October I will not have a job.

 

For the love of God just stop, you may think you know and maybe you do but there’s a lot
of people way more clued in than you that realize you’re doing way more harm than good. Nobody knows what’s going to happen in this industry and you’re making mine and a lot of other people jobs a lot more difficult by acting like you know everything.

 

No one has a definitive answer but let's not stick our heads in the sand either. I'd plan for the worst case scenario and try to be in the front of the wave. The sky isn't falling quite yet but every legacy and major airline will most likely scale back and come out of this thing substantially leaner when this is all over. The big three will be hit the hardest but Alaska and SWA are far from immune. Do the math. No business is going to lose money keeping its employees afloat, especially puzzle palace. Furloughs are inevitable in my opinion and I hope I'm dead wrong.

 

Of course that’s possible but all that needs to be said is plan for the worst and hope for the best. When all you do is say look at me and how much I know like he’s doing it’s causing nothing but panic. I fall well into the furlough number and am lucky enough for this to matter none to me besides a slight sting but there’s so many that aren’t prepared and they’re all freaking out right now. We have zero evidence that there’s furloughs, sure it’s probably obvious but there no reason to runaround with our heads chopped off just yet. Cooler heads will prevail in this!