Will ExpressJet survive this?
04-16-2020 | 08:21 PM
#281
Line Holder
Joined: Oct 2019
Posts: 402
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From: Crew room attendant
The CARES act contains both SBA loan provisions and the airline stimulus packages. The question is, will there be a enough money. Probably not. The SBA side is already out of money and it's been about 2 weeks. H.R. 748. Sec 4112 (a)(1):Financial Assistance For Employee Wages, Salaries, And Benefits.—Notwithstanding any other provision of law, to preserve aviation jobs and compensate air carrier industry workers, the Secretary shall provide financial assistance that shall exclusively be used for the continuation of payment of employee wages, salaries, and benefits to—
(1) passenger air carriers, in an aggregate amount up to $25,000,000,000;
United, just one carrier is losing 100 million in revenue every day. Let's see how fast these funds dry up. We all know little old ExpressJet along with all regionals will be last priority. I think it's a pipe dream for people to somehow think they are protected until September just because the act has a date range until September. If they run out of money, all bets are off unless they increase the amount.
Another part of the bill:
SEC. 4114. REQUIRED ASSURANCES.
(a) In General.—To be eligible for financial assistance under this subtitle, an air carrier or contractor shall enter into an agreement with the Secretary, or otherwise certify in such form and manner as the Secretary shall prescribe, that the air carrier or contractor shall—
(1) refrain from conducting involuntary furloughs or reducing pay rates and benefits until September 30, 2020;
(2) through September 30, 2021, ensure that neither the air carrier or contractor nor any affiliate of the air carrier or contractor may, in any transaction, purchase an equity security of the air carrier or contractor or the parent company of the air carrier or contractor that is listed on a national securities exchange;
(3) through September 30, 2021, ensure that the air carrier or contractor shall not pay dividends, or make other capital distributions, with respect to the common stock (or equivalent interest) of the air carrier or contractor; and
(4) meet the requirements of sections 4115 and 4116.
(1) passenger air carriers, in an aggregate amount up to $25,000,000,000;
United, just one carrier is losing 100 million in revenue every day. Let's see how fast these funds dry up. We all know little old ExpressJet along with all regionals will be last priority. I think it's a pipe dream for people to somehow think they are protected until September just because the act has a date range until September. If they run out of money, all bets are off unless they increase the amount.
Another part of the bill:
SEC. 4114. REQUIRED ASSURANCES.
(a) In General.—To be eligible for financial assistance under this subtitle, an air carrier or contractor shall enter into an agreement with the Secretary, or otherwise certify in such form and manner as the Secretary shall prescribe, that the air carrier or contractor shall—
(1) refrain from conducting involuntary furloughs or reducing pay rates and benefits until September 30, 2020;
(2) through September 30, 2021, ensure that neither the air carrier or contractor nor any affiliate of the air carrier or contractor may, in any transaction, purchase an equity security of the air carrier or contractor or the parent company of the air carrier or contractor that is listed on a national securities exchange;
(3) through September 30, 2021, ensure that the air carrier or contractor shall not pay dividends, or make other capital distributions, with respect to the common stock (or equivalent interest) of the air carrier or contractor; and
(4) meet the requirements of sections 4115 and 4116.
Still different allocations of money. The fact that the SBA loans are depleted have noting to do with the airlines. With 3000 employees XJT definitely isn’t a small business.
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04-16-2020 | 08:38 PM
#282
Gets Weekends Off
Joined: Sep 2011
Posts: 707
Likes: 0
From: lav dumper
You're missing the point. They grossly underestimated the amount they needed for small business. Now they are asking for $250B more. So I'm sure they underestimated the amount needed for airlines. I don't think they went through audited financials of all airlines in 3 days time. $25 billion is an arbitrary number, they probably just picked it out of thin air. Watch how fast it dries up. The fun is just beginning.
04-17-2020 | 12:28 AM
#283
Line Holder
Joined: Oct 2019
Posts: 402
Likes: 0
From: Crew room attendant
You're missing the point. They grossly underestimated the amount they needed for small business. Now they are asking for $250B more. So I'm sure they underestimated the amount needed for airlines. I don't think they went through audited financials of all airlines in 3 days time. $25 billion is an arbitrary number, they probably just picked it out of thin air. Watch how fast it dries up. The fun is just beginning.
No I get the point. Your making an assumption that XJT isn’t getting any funds out of the current grant package just because another grant package for a different industry segment is out of money.
Every article written stated that XJT had not yet reached and agreement with USTres at the time of publication. Nothing stated that it was because a shortage of money. I hate to break it to you but XJT isn’t big enough to justify a follow up article.
Your missing the point in SH’s update 9 he stated
· CARES Act – We filed an application for Payroll Support under this legislation and are in discussions with Treasury on the terms and conditions associated with this program. Our expectation is that the total dollars available to ExpressJet will only cover a portion of our total payroll needs. So, while the government payroll program is important, the grant will not be enough, and we will need to work together (with ALPA) and take other actions to address our liquidity issues at some point. The COLAs and planned Reduced Flying Lines do help.
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04-17-2020 | 01:23 PM
#285
Line Holder
Joined: May 2019
Posts: 92
Likes: 0
You're missing the point. They grossly underestimated the amount they needed for small business. Now they are asking for $250B more. So I'm sure they underestimated the amount needed for airlines. I don't think they went through audited financials of all airlines in 3 days time. $25 billion is an arbitrary number, they probably just picked it out of thin air. Watch how fast it dries up. The fun is just beginning.
04-17-2020 | 02:18 PM
#286
Line Holder
Joined: Feb 2008
Posts: 1,020
Likes: 23
From: It's a plane and it's a seat
Kirby and Munoz were absolutely idiotic to share the fact they plan to furlough so many workers. It’s obvious we are all bracing for that but their comments were not necessary. The public is ****ed the airlines are getting money , stating we will be furloughed anyway makes these payroll grants even more useless in the public eye. The point was to keep us all onboard and ready to go if the economy rebounds in the fall. Now those comments make even the original grants pointless. Why are we so special ? Why should we keep our jobs when tens of millions of others don’t ? There was an answer to that , but now there really isn’t.
04-17-2020 | 02:55 PM
#287
Gets Weekends Off
Joined: Jan 2019
Posts: 531
Likes: 0
Does Expressjet own the sims, the land, buildings, or tools?
I would be interested to hear how many weeks left of cash flow XJT has left. Any guesses? I would guess between 0 and 3. Why else would the company keep extra millions laying around? Unless United sees XJT as essential and pays for XJT to stay alive and operating. Why keep the burden of all these employees then, when they could just pay Republic and Mesa per departure?
I would be interested to hear how many weeks left of cash flow XJT has left. Any guesses? I would guess between 0 and 3. Why else would the company keep extra millions laying around? Unless United sees XJT as essential and pays for XJT to stay alive and operating. Why keep the burden of all these employees then, when they could just pay Republic and Mesa per departure?
04-17-2020 | 04:11 PM
#288
Banned
Joined: Jul 2018
Posts: 873
Likes: 0
Kirby and Munoz were absolutely idiotic to share the fact they plan to furlough so many workers. It’s obvious we are all bracing for that but their comments were not necessary. The public is ****ed the airlines are getting money , stating we will be furloughed anyway makes these payroll grants even more useless in the public eye. The point was to keep us all onboard and ready to go if the economy rebounds in the fall. Now those comments make even the original grants pointless. Why are we so special ? Why should we keep our jobs when tens of millions of others don’t ? There was an answer to that , but now there really isn’t.
04-17-2020 | 04:22 PM
#289
Line Holder
Joined: Sep 2011
Posts: 77
Likes: 0
I honestly don’t get if it’s supposed to be a joke or possibly a weird autocorrect thing.
If it’s a joke, where’s the punchline? Why is it funny?
04-17-2020 | 04:24 PM
#290
Banned
Joined: Jul 2018
Posts: 873
Likes: 0
It’s all Karma. Less then a year ago when United decided to let you fly their 175’s some of you claimed that in the next year you were talking Mesa’s 175’s also. Look what happened. You said FU to Mesa so said to bad! Mesa will be fine . ManAir not so much
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