Perhaps the money can be taken as grant with ties to equity but there is an option for it to be repaid. So when the market returns and revenue restarts, companies that are making profits can repay the sums and recover their equity. Haven’t read the thousands of pages so don’t know...

 

it doesn’t sound like the grant is tied to F9 owning anything later. BB was saying that it isn’t really grant money. It’s basically the same funds that the fed would have to pay in unemployment if airlines were to furlough. Instead, they are using the same funds to just keep the people on payroll. The loans (which we don’t need) have strings attached and must be paid back.

 

Maybe unlikely, but I could see a scenario where we take the loans. It doesn't have strings attached to Indigo, just F9. It would lower our CASM to a even more ridiculously low number.

I mean if someone offered you and interest free loan, why not take it if you are 1000% positive you can repay it.

 

did you listen to the call? He said we are taking the 200million in grant money, but that payroll cost for the same period was 300 million. Therefore, they are working with APLA and AFA to offer better COLA and leave options to close the gap from the 200 million grant to the 300 million payroll cost.......More details on the leaves will follow in 24-48 hours.

 

As a business owner, when someone offers you free or cheap money, you jump at the opportunity as long as you can pay it back.

 

IOW: "hey everybody, I want you to know I'm a business owner!".

 

If they are planning on flying even a third of the fleet on average by Sept 30th then the costs are part of the regular cost of doing business. They shouldn’t discount necessary staff against the 200 mil. That’s the pot of money to float the fat that would be trimmed. Is that not the point of the grant money.

 

I hear what your saying but I would imagine the initial ramp back up isn’t going to be 80% loads. Definitely not the normal cost of doing business. It’s more than likely a break even plan. They can’t cut pay so the their only option to save payroll costs are colas. That’s a good thing for us. I’m planning on taking a cola if it’s reasonable.

 

I was pleasantly surprised at the candid speak from BB during the teleconference. No doom and gloom, mostly recapping what has happened from an operations standpoint while the bookings fell off almost entirely. And some positive outlook about where they predict to be this summer with contingency plans if demand doesn’t return. But most of all, not only a plan to survive but to forge a new path later this year. It left me thinking why BB only chose to be a leader now, but better late than never I suppose.

If I had to paraphrase the last 8 minutes of the teleconference is would be “Cash is King to survive this crisis, which we have, but Cost is King to emerge successful on the other side; which we’re already set-up to do.”

As they say, “actions speak louder than words.” I’m already doing the part I agreed to for the money/benefits we approved in the current CBA. Let’s see if Barry can earn those equity options that he WILL NOT be forgoing this April through June.

 

Never thought I'd say this......but I'll crack the beer open early and cheers to that. I agree. Finally a path laid out and a bit of leadership. I was curious when the rudderless ship was going to run ashore.