Furloughs
05-05-2020 | 09:04 PM
#61
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Joined: Nov 2018
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It amazes me, these greedy executives and CEO's. Over the last 10 years the airlines have posted billions upon billions in profits, of which 96% of that went towards shareholder buybacks. Now a rainy day comes along and they cry to congress they have no money. Meanwhile over the past decade the executives have amassed their own little fortunes. Now congress, using the American taxpayer dollars bails them out, to protect maybe some jobs. But in the end a good amount of people will still probably be furloughed anyway. It's almost criminal.
05-05-2020 | 11:34 PM
#62
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Joined: Feb 2020
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From: FO
Sure they made billions over the years, and now they're losing billions each month. That's not a rainy day, it's an apocalypse. But it's the CEOs fault for being greedy. They should have foreseen a cataclysmic event that would dwarf 9/11 and make it look like a minor slowdown.
05-06-2020 | 05:05 AM
#64
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3 months operating expenses is nothing when revenue is practically zero. A bunch of that cash is in the form of loans which have to be paid back with interest. You also don’t go into bankruptcy broke, it takes money to play that game. United is being criticized for making aggressive cuts in workers hours, downgrading positions, and preparing now for a smaller company this fall. As a result, our cash burn is about half of what AA and DAL.
05-06-2020 | 05:13 AM
#65
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Maybe a bit of both. The share buybacks have (or had) become absurd in scope and magnitude. Imagine what UAL could have done with just half of what they blew on buybacks-facility improvements, GSE, software, etc...or even a rainy day fund. They went into this disaster with essentially zero money in the bank. I'm not saying keep a few billion in the bank, but a few hundred million wouldn't hurt, to blunt the initial impact of whatever disaster struck. The activist investors need to be kept on a leash. Management seems loyal to them but as soon as UAL dumps 2B into buybacks the investors sell and move on. So much for loyalty.
05-06-2020 | 06:51 AM
#66
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Joined: Oct 2019
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3 months operating expenses is nothing when revenue is practically zero. A bunch of that cash is in the form of loans which have to be paid back with interest. You also don’t go into bankruptcy broke, it takes money to play that game. United is being criticized for making aggressive cuts in workers hours, downgrading positions, and preparing now for a smaller company this fall. As a result, our cash burn is about half of what AA and DAL.
I was responding to the poster prior to me that said they should have a few hundred million sitting around and was pointing out that they DO have that and that it's a drop in the bucket compared to what they need.
05-06-2020 | 07:48 AM
#67
Banned
Joined: Apr 2020
Posts: 26
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3 months operating expenses is nothing when revenue is practically zero. A bunch of that cash is in the form of loans which have to be paid back with interest. You also don’t go into bankruptcy broke, it takes money to play that game. United is being criticized for making aggressive cuts in workers hours, downgrading positions, and preparing now for a smaller company this fall. As a result, our cash burn is about half of what AA and DAL.
05-06-2020 | 08:00 AM
#68
Gets Weekends Off
Joined: Nov 2016
Posts: 133
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The problem is, the money infusion didn’t come with instructions on how it was to be distributed. The company has attorneys to parse every word in the Act and bend them whichever way best suits the company’s need.
05-06-2020 | 08:02 AM
#69
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Joined: Aug 2019
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05-06-2020 | 08:04 AM
#70
Gets Weekends Off
Joined: Nov 2016
Posts: 133
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3 months operating expenses is nothing when revenue is practically zero. A bunch of that cash is in the form of loans which have to be paid back with interest. You also don’t go into bankruptcy broke, it takes money to play that game. United is being criticized for making aggressive cuts in workers hours, downgrading positions, and preparing now for a smaller company this fall. As a result, our cash burn is about half of what AA and DAL.
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