Bailout Grant Strings Are Too Much

Reply Subscribe

Page 2 of 9

Last »

Thread Tools

Search this Thread

03-31-2020, 05:36 PM

#11

PosRateGearUp

Passed Recurrent

Joined APC: Mar 2016

Position: FO

Posts: 207

Quote:

Originally Posted by guppie

Negative. The equity stake is for the LOANS, not the grants. No equity stake for taking the grants. Very important distinction.

You may want to re-read sec 4117 of the bill, titled Tax Payer Protection. The equity stake absolutely does apply to the grants and was left open for Mnuchin to determine what would be required.

03-31-2020, 06:06 PM

#12

guppie

Gets Weekends Off

Joined APC: Feb 2018

Position: B-737 Captain

Posts: 649

Quote:

Originally Posted by PosRateGearUp

You may want to re-read sec 4117 of the bill, titled Tax Payer Protection. The equity stake absolutely does apply to the grants and was left open for Mnuchin to determine what would be required.

I stand corrected. The airlines will still line up like a bum at the soup kitchen and the taxpayer will hopefully someday turn a profit on the deal.

03-31-2020, 08:40 PM

#13

rickair7777

Prime Minister/Moderator

Joined APC: Jan 2006

Position: Engines Turn Or People Swim

Posts: 39,211

Quote:

Originally Posted by guppie

I stand corrected. The airlines will still line up like a bum at the soup kitchen and the taxpayer will hopefully someday turn a profit on the deal.

Most yes.

May be one or two who skip the line at the soup kitchen and just go straight to the BK drive-through... they'll probably get more favorable cuts to labor contracts while the crisis is still on everyone's minds.

03-31-2020, 09:51 PM

#14

cesnacaptn

Gets Weekends Off

Joined APC: Feb 2007

Posts: 357

Quote:

Originally Posted by Sniper66

cash on hand not credit, here it is

delta 2.8 B
american 631 million
united 6B
alaska 670m
jetblue 829 m
SWA 3.8 B
Hawaiian 373m
allegiant 122 m
spirit 979 m

And yes I know they can bleed through very fast
facts only look it up

Where did you get these numbers? They are way off what I found online and what I know about my company.

04-01-2020, 02:37 AM

#15

Andy

Gets Weekends Off

Joined APC: Mar 2006

Position: guppy CA

Posts: 5,152

Quote:

Originally Posted by BangDingOw

IMO, maybe SWA wont because they have so much $, but I bet they grab it also.

Does anyone have any idea how much SWA has lost on its fuel hedges? They've had to put up additional collateral during the entire drop in energy prices.

For that matter, Delta's got additional energy costs due to its Trainer refinery. The costs are hidden off balance in Monroe Energy LLC, but that's got to also be costing Delta a lot of money due to the crack spread compression.

Every single airline's in very bad financial shape and I don't see any of them passing on the government cheese. There will be strings attached, but I doubt that Mnuchin will make them onerous, as he's invested a great deal of time getting this legislation through Congress.

04-01-2020, 02:40 AM

#16

Andy

Gets Weekends Off

Joined APC: Mar 2006

Position: guppy CA

Posts: 5,152

Quote:

Originally Posted by cesnacaptn

Where did you get these numbers? They are way off what I found online and what I know about my company.

They don't look right to me either.
We will all have a better idea after Q1 earnings (losses) are released. Every single airline is going to have fugly numbers, but that won't matter much, as the government will provide enough assistance to keep all airlines out of chap 11 through the fall.