Will ExpressJet survive this?
07-18-2020 | 07:28 PM
#881
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Joined: Oct 2019
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07-19-2020 | 06:53 AM
#885
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Joined: Dec 2011
Posts: 2,028
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From: A320 FO
It's pretty hard to guess which strategy is better. Without significant improvement in bookings or more taxpayer assistance both roads lead to restructuring.
The early plans were all based on a V shaped recovery which clearly isn't happening (cue sophomoric reasoning that a vaccine will cause demand to roar back; the economic damage is already baked into the cake and will take years to recover).
The network carriers are not particularly well positioned to pivot to domestic leisure flying as the primary source of revenue. International and high margin business travel will be the last markets to return. Those markets are critical to both widebody and regional jet profitablity.
07-19-2020 | 09:29 AM
#887
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Joined: Feb 2014
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So for us new guys who are still under the bonus agreement, it does state that we are not required to repay anything if we are terminated without cause. So if the airline shutters we are off the hook.
If it survives and we spend a year on furlough, I don’t believe that will count toward the 24 months because it requires “active service as a pilot.”
I also don’t think some asset shift to combine us with C5 could keep us on the hook, but who knows. They could try to TSA us and change the rules.
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If it survives and we spend a year on furlough, I don’t believe that will count toward the 24 months because it requires “active service as a pilot.”
I also don’t think some asset shift to combine us with C5 could keep us on the hook, but who knows. They could try to TSA us and change the rules.
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07-19-2020 | 09:52 AM
#888
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Joined: Sep 2011
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From: lav dumper
A defunct company won’t come after you for a little bonus. This will be a question of solvency and cash flow. Minimal revenue coupled massive fiscal liabilities will be the nail in the coffin. Once the furlough happens everyone that will be left will be maxed out on pay scale, 401k match and 4 weeks vacation given the group is so senior. And that’s across the board in all labor groups, lots of senior people. This is no bueno.
07-19-2020 | 01:18 PM
#889
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Joined: Feb 2020
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A defunct company won’t come after you for a little bonus. This will be a question of solvency and cash flow. Minimal revenue coupled massive fiscal liabilities will be the nail in the coffin. Once the furlough happens everyone that will be left will be maxed out on pay scale, 401k match and 4 weeks vacation given the group is so senior. And that’s across the board in all labor groups, lots of senior people. This is no bueno.
07-19-2020 | 02:07 PM
#890
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Joined: May 2017
Posts: 2,012
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Qualitatively that is true. Nothing is going to make bookings roar back to 2019 ... 4 times higher than they are now. But a vaccine could certainly make them double in December rather than June, which might make the difference
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