Delta To Furlough?
05-07-2020 | 12:17 PM
#1731
Rerouted On Weekends
Joined: Oct 2015
Posts: 2,937
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From: 717A
05-07-2020 | 01:00 PM
#1732
On Reserve
Joined: Dec 2008
Posts: 184
Likes: 1
From: B757/B767
Ha — forgot to add ‘’HOPEFULLY’’ the company will go down the ’got your back’ path....
05-07-2020 | 01:20 PM
#1733
Gets Weekends Off
Joined: Dec 2017
Posts: 219
Likes: 0
They will furlough as many as it takes to get into this position. If it ends up costing them a bit more in the future as things turn around it won't matter because there will be cash flowing in again.
05-07-2020 | 01:41 PM
#1734
Line Holder
Joined: Apr 2013
Posts: 743
Likes: 41
https://www.audriesaircraftanalysis....ff-reductions/
basic model shows Furlough break even point for company at 13 months. Add in some early out or SIL and it can stretch the break even point to 18 months. The fact we’re working on summer 2021 fleet plan should be good news. Still in the Time Bucket.
basic model shows Furlough break even point for company at 13 months. Add in some early out or SIL and it can stretch the break even point to 18 months. The fact we’re working on summer 2021 fleet plan should be good news. Still in the Time Bucket.
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05-07-2020 | 01:47 PM
#1735
Gets Weekends Off
Joined: Apr 2018
Posts: 4,109
Likes: 482
If Delta does a displacement like UALs, the break even point is more like 6 months. A Delta guy told me a month ago that was the plan. Push thousands to 717 and furlough from there. These 18 month break evens only play if the bump game is allowed. UAL proved they were smarter, unfortunately.
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05-07-2020 | 03:05 PM
#1736
Line Holder
Joined: Oct 2014
Posts: 1,015
Likes: 13
That’s not how math works. The cares grant money has nothing to do with furloughing. So if the break even is 13 months, then that’s it. The grant money doesn’t change if they furlough or not.
05-07-2020 | 03:11 PM
#1737
Prime Minister/Moderator
Joined: Jan 2006
Posts: 44,908
Likes: 694
From: Engines Turn or People Swim
Wrong. I've heard this argument too many times. To bank on break even furlough numbers is naive. Every airline will stem the losses to break even ASAP. By getting to cost neutral they hugely reduce risk of a slow recovery.
They will furlough as many as it takes to get into this position. If it ends up costing them a bit more in the future as things turn around it won't matter because there will be cash flowing in again.
They will furlough as many as it takes to get into this position. If it ends up costing them a bit more in the future as things turn around it won't matter because there will be cash flowing in again.
Anyone who's in a solid enough position might incur some risk lead turning the economy to be ready to grab market share. SWA maybe. Need some kind of trend vector to pull the trigger on that IMO... economic modelling seems like a crapshoot in this situation.
05-07-2020 | 03:50 PM
#1738
Gets Weekends Off
Joined: Jul 2010
Posts: 12,823
Likes: 169
From: window seat
Wrong. I've heard this argument too many times. To bank on break even furlough numbers is naive. Every airline will stem the losses to break even ASAP. By getting to cost neutral they hugely reduce risk of a slow recovery.
They will furlough as many as it takes to get into this position. If it ends up costing them a bit more in the future as things turn around it won't matter because there will be cash flowing in again.
They will furlough as many as it takes to get into this position. If it ends up costing them a bit more in the future as things turn around it won't matter because there will be cash flowing in again.
05-07-2020 | 04:01 PM
#1739
Line Holder
Joined: Apr 2011
Posts: 662
Likes: 9
If Delta does a displacement like UALs, the break even point is more like 6 months. A Delta guy told me a month ago that was the plan. Push thousands to 717 and furlough from there. These 18 month break evens only play if the bump game is allowed. UAL proved they were smarter, unfortunately.
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05-07-2020 | 04:06 PM
#1740
Gets Weekends Off
Joined: Nov 2016
Posts: 1,826
Likes: 0
From: 6th place
look at AAs displacement announcement today. No where near as drastic as United. We have less widebody flying than both. And while AA has more retirements , we are second behind them. We have more than double retirements of UA between now and 2024. I’d be shocked if we push “thousands” to the 717. We don’t even have the fleet plan so whatever that delta guy told you was just the rumor of the day.
AA also immediately lost 800 guys to early retirements. Not a huge deal, but definitely helped.
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