Delta, Allegiant, and United only furloughs?
#13
Everybody is going to furlough. Very simple math. 40% pax expected by oct 1st. You either shrink your payroll or you slow roll it to bankruptcy. Not much choice. Everybody basically in same boat. If the forecast is right of 70% by next summer, how can companies continue with 100% aircraft and employees, they can't. I believe most carriers are taking the wait and see until their minimum furlough announcement dates comes about to not set off panic.
AA is planning on shrinking as well.
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AA is planning on shrinking as well.
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Last edited by sanicom3205; 05-26-2020 at 06:17 AM.
#14
Banned
Joined APC: Dec 2019
Posts: 193
Everybody is going to furlough. Very simple math. 40% pax expected by oct 1st. You either shrink your payroll or you slow roll it to bankruptcy. Not much choice. Everybody basically in same boat. If the forecast is right of 70% by next summer, how can companies continue with 100% aircraft and employees, they can't. I believe most carriers are taking the wait and see until their minimum furlough announcement dates comes about to not set off panic.
AA is planning on shrinking as well.
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AA is planning on shrinking as well.
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Most likely, the legacy airlines will shrink and the LCC/ULCC airlines will grow to fill the vacuum. The regionals will fare worst of all. It's very likely that the only regionals to emerge from this will be the AA WOs, Endeavor, SkyWest, and Republic.
#15
Gets Weekends Off
Joined APC: Apr 2013
Posts: 520
This is simply not true. Not all airlines are equal, some are in very different economic situations.
Most likely, the legacy airlines will shrink and the LCC/ULCC airlines will grow to fill the vacuum. The regionals will fare worst of all. It's very likely that the only regionals to emerge from this will be the AA WOs, Endeavor, SkyWest, and Republic.
Most likely, the legacy airlines will shrink and the LCC/ULCC airlines will grow to fill the vacuum. The regionals will fare worst of all. It's very likely that the only regionals to emerge from this will be the AA WOs, Endeavor, SkyWest, and Republic.
3 big ones will take it on the chin worse but what you don't see is the amount of cargo flights they are operating over sees, its quite large.
No LCC is going to be anywhere near the previous numbers for a year or 2. If you think the companies want to just keep people around to be nice you are highly mistaken.
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#16
Gets Weekends Off
Joined APC: Apr 2013
Posts: 520
Most analysts are now saying full recovery to 2019 levels 2-3 years.
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#17
For those that don't think airlines will
When have airlines ever been staffed correctly? Pilots always seem to think airlines will need more people and airline management always think they can get by with less. During recessions, airlines have always preferred to cancel a flight due to insufficient staffing than carry extra pilots.
And sure furloughs cost more money in the long term when compared to early outs, but furloughs save money NOW, and that is what is important. Asking management for a good early out package or pointing out that a 12 month furlough will cost the airline more money in the future is the equivalent if telling someone who lives paycheck to paycheck that a car loan will cost more than paying for the car upfront.
I predict that airlines will furlough and they will furlough more than they should. And when they recall, they will start the process too late. They will also assume their training department will handle more than it really can. Once we are well into the recovery and it is clear we are playing catch up, don't worry, you will get an email from a new management team explaining that the previous management furloughed too many but no one could have known that at the time. For the rest of your career, you will get the satisfaction of telling everyone who fly with that you were right.
And sure furloughs cost more money in the long term when compared to early outs, but furloughs save money NOW, and that is what is important. Asking management for a good early out package or pointing out that a 12 month furlough will cost the airline more money in the future is the equivalent if telling someone who lives paycheck to paycheck that a car loan will cost more than paying for the car upfront.
I predict that airlines will furlough and they will furlough more than they should. And when they recall, they will start the process too late. They will also assume their training department will handle more than it really can. Once we are well into the recovery and it is clear we are playing catch up, don't worry, you will get an email from a new management team explaining that the previous management furloughed too many but no one could have known that at the time. For the rest of your career, you will get the satisfaction of telling everyone who fly with that you were right.
#18
I wouldn't say most. The ranges are all over the place. No one really knows and for industries with large operating expenses (like airlines), it is better to be late to the party. If an airline positions itself for a recovery 2 years from now, but that recover doesn't come until 4 years, they will run out of money. Instead, they will plan for the more conservative recovery estimates. If it turns out the economy is rebounding quicker, then they will offer premium pay for a few years until they can increase staffing. Sure, they might miss out on some potential growth into new markets and they might pi$$ off some customers due to increased cancellations, but that is better than running out of money before the recovery.
#19
Banned
Joined APC: Dec 2019
Posts: 193
40% predicted pax load by furlough day, October 1st. 70% by summer 2021. 10-15% as of this month revenue compared to last year same time. 2 are majority predictions and the other is fact. Check the TSA numbers if you need some help with numbers.
Most analysts are now saying full recovery to 2019 levels 2-3 years.
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Most analysts are now saying full recovery to 2019 levels 2-3 years.
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