Connect and get the inside scoop on Airline Companies

Welcome to Airline Pilot Forums - Connect and get the inside scoop on Airline Companies

If this is your first visit, be sure to check out the FAQ. Join our community today and start interacting with existing members. Registration is fast, simple and absolutely free.


User Tag List

Post Reply
 
Thread Tools Search this Thread
Old 06-14-2020, 12:02 PM   #1  
Line Holder
Thread Starter
 
tacocasa's Avatar
 
Joined APC: Apr 2017
Posts: 27
Default UAL still paying regionals 100%?

Rumor floating around United is still paying 100% of salaries and money to some of the regionals. So the regional getting CARES moneys and also united monay.

why would they do that? To hide cash at the regionals (holy owned like XJt) then renegotiate concessions at mainline claiming theyre out of cash. Later they can get that cash back because they own XJt.

Anyone hear that? If so then someone is playing some big games in willis towers. Reminds me of the Dick Ferris CEO in the 80ís who bought a bunch of hotels and started funneling cash to hotels from the airline. Charging the airline the maximum rate. Then went to pilots and claimed he needed concessions.
tacocasa is offline  
Old 06-14-2020, 12:54 PM   #2  
Gets Weekends Off
 
DL31082's Avatar
 
Joined APC: Jul 2009
Position: CRJ-200 CA
Posts: 413
Default

Quote:
Originally Posted by tacocasa View Post
Rumor floating around United is still paying 100% of salaries and money to some of the regionals. So the regional getting CARES moneys and also united monay.

why would they do that? To hide cash at the regionals (holy owned like XJt) then renegotiate concessions at mainline claiming theyre out of cash. Later they can get that cash back because they own XJt.

Anyone hear that? If so then someone is playing some big games in willis towers. Reminds me of the Dick Ferris CEO in the 80ís who bought a bunch of hotels and started funneling cash to hotels from the airline. Charging the airline the maximum rate. Then went to pilots and claimed he needed concessions.
UAL is probably paying their regionals as defined by their CBAs. XJT is not a wholly owned of UAL. UAL does not have a wholly owned.
DL31082 is offline  
Old 06-14-2020, 12:57 PM   #3  
Gets Weekends Off
 
PilotBases's Avatar
 
Joined APC: Apr 2020
Posts: 366
Default

Quote:
Originally Posted by DL31082 View Post
UAL is probably paying their regionals as defined by their CBAs. XJT is not a wholly owned of UAL. UAL does not have a wholly owned.
No itís says Holy Owned, the Vatican really is the group behind Mana Air. Man(n)a from heaven?
PilotBases is offline  
Old 06-14-2020, 02:31 PM   #4  
Gets Mon-Sun Off
 
TransWorld's Avatar
 
Joined APC: Aug 2016
Position: Up Front
Posts: 3,278
Default

Quote:
Originally Posted by PilotBases View Post
No itís says Holy Owned, the Vatican really is the group behind Mana Air. Man(n)a from heaven?
Are you saying they fly on a wing and a prayer? (Sorry I could not resist.)
TransWorld is offline  
Old 06-15-2020, 09:42 AM   #5  
Prime Minister/Moderator
 
rickair7777's Avatar
 
Joined APC: Jan 2006
Position: Engines Turn Or People Swim
Posts: 29,296
Default

Quote:
Originally Posted by tacocasa View Post
Rumor floating around United is still paying 100% of salaries and money to some of the regionals. So the regional getting CARES moneys and also united monay..
UAL doesn't own any regionals (owning an equity stake is not the same as control ownership).

UAL has contracts with all of it's regionals for X amount of block hours. Those contracts have options for the purchase of additional block hours.

UAL typically exercises the additional block-hour provisions.

Also some regionals do additional "at risk" flying, using the UAL marketing system. The regional pays UAL a fee and pockets the rest of the revenue.

Right now UAL is contractually obligated to keep paying the regionals for their minimum baseline block hours. So in that sense, UAL is still paying regionals, similar to all of us getting guarantee instead of the 80-90 hour lines we're used to.

UAL is not exercising any options for additional block-hour purchases, and I'm sure that most at-risk flying is stopped right now. So regionals are probably not in the black, like many pilots they depend on "overtime" to profit.

Regionals are still eligible for CARES money. So some regionals might well be getting their contractual "guarantee" and also CARES money. That's legal per CARES, it is a very blunt and lopsided instrument (had to be, to get it done in time).

For the majors, the CARES money might barely cover payroll (if enough folks take VLOA / IL / Early Out). But none of them will really bank any additional money since their revenue went to near-zero

Regionals on the other hand might be able to bank CARES money to help with their recovery, since most regionals revenue did NOT go to zero, but rather to "min guarantee". At least until a major partner declares BK.

Last edited by rickair7777; 06-15-2020 at 06:29 PM.
rickair7777 is offline  
Old 06-16-2020, 02:57 PM   #6  
Gets Weekends Off
 
trip's Avatar
 
Joined APC: Sep 2009
Posts: 1,813
Default

According to the last earnings call SKYW waived their partner FPD minimum block hours.
trip is offline  
 
 
 

 
Post Reply
 



Thread Tools Search this Thread
Search this Thread:

Advanced Search


Related Topics
Thread Thread Starter Forum Replies Last Post
Republic nearing deal to buy TSA fortyeight Republic Airways 203 09-23-2018 06:28 PM
All UAX carriers will be denying jumpseat to UAL mainline pilots on 8/31/08 EngineOut Regional 153 05-10-2017 10:12 AM
LUAL 737s EZBW United 131 05-04-2017 08:19 PM
How can SMI/J not understand this?? ReserveDog United 46 05-23-2014 07:23 AM
Interesting Perspective on PS/TPA Negotiation Regularguy United 57 03-12-2012 04:46 PM


All times are GMT -8. The time now is 02:52 PM.