Are they taking the money !!
 

So is the company going to sign up for the money from uncle sam ?

They already applied for it, as noted on the company website and during the webcast. Applying for it =/= agreeing to the Treasury's terms. Whether that happens still remains to be seen.

Sounds like everyone is taking it (Alaska isn't mentioned by name though)

https://reut.rs/2RxnTRi

It might be possible that it would be somewhat more cost effective for some airlines to decline the grants and just furlough. But then you'd be "that guy"...

If things drag out and you decide later this year that yeah you really do need grants, good luck getting any sympathy from the house. They might decide to just let you be the token chapter 7 example.

This may be a case of cooperate to graduate.

I still bet they take it. Sounded like the grants were going to cover 70-80% of payroll. Even with the 30% loan aspect it will still cover close to half of payroll.

I doubt we furlough half(and it'd have to be more than that to make it cost effective) After furloughs no more incintive lines which is saving currently saving money. On top of that we are required a 30 day notice for furlough. Drawing our salaries out even longer at full cost.

Expect a notice for furlough in September for Oct 1st. Gives them time to get a handle on 2021 summer demand and do downgrade/displacement training if they are allowed to downgrade per the government grant restrictions.

Anyone have any word if this is possible before 9/31? We all know they can’t change rates of pay, but no clarity on this yet. You’d think no as it would be a $100k pay cut for some individuals, but it certainly could be a grant loophole.

Easy-Peasy workaround: Do the downgrades during the slow summer months. Pay protect those pilots at min line guarantee at CA pay. On 01 Oct you have all the replacement FO's you need for a mass furlough. The bill only says they have to pay you, it doesn't guarantee what kind of work you do (or don't do).

Dollars to donuts that's how it goes down, unless they can get some kind of relief interpretation. But the later could actually be risky, getting back to my what-if theme of needing more money from congress this fall after abusing loopholes to violate the spirit of the first relief package. Might not want to be "that guy"... especially if there's a regime change next January.

Last I read they were seeking clarification from the government if downgrading is allowed. Perhaps one of the details they are still negotiating. Just a guess.

TREASURY: “Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, United Airlines, SkyWest Airlines, and Southwest Airlines have told us that they plan to participate in the Payroll Support Program."