Second payroll stimulus for airlines
08-05-2020 | 05:32 PM
#51
Prime Minister/Moderator
Joined: Jan 2006
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From: Engines Turn or People Swim
I actually disagree. I think the no furloughs makes its more palatable. The worst bail outs are the ones where they get billions lay off a bunch of people and pocket the money. That is always seen by the public as for executive compensation whether it is or it isn’t. That said I think airlines like the idea of kicking the can down the road. It give them more liquidity and they can spoil up if demand returns after medical advances.
08-05-2020 | 06:03 PM
#52
Gets Weekends Off
Joined: Nov 2016
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There was a post or two somewhere else on APC linking to a news release from today that said 16 Senate Republicans supported more airline funding. Assuming the Senate Dems also support it, that would be enough.
08-05-2020 | 07:51 PM
#53
Prime Minister/Moderator
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From: Engines Turn or People Swim
I'm sure that the Senate can muster enough support to save critical national infrastructure. I'm not so sure they'll extend the no furlough protections as part of the deal. Although it might be politically expedient (for both sides) to simply extend the existing program, lock, stock, and barrel rather than fight the other team over specific provisions.
08-05-2020 | 07:57 PM
#54
Gets Weekends Off
Joined: Dec 2017
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For the most part yes. An airline is not going to take $2B in grants with strings if the strings cost them $3.5B
But there's a little hope. If they get $2B but only have to spend $2.2B, they might eat the difference to keep the capacity enabled, on the off chance things turn around.
But honestly I wouldn't expect "no furloughs" this time around. The part of the public which is paying attention would be PO'ed by that, although it seems most of them aren't paying attention (none of my non-aviation friends or family were aware of the original no furlough deal).
But airline aid is still a good thing, even if you personally get some time on the beach. You'll come back sooner and to a better life if your employer can stay out of Ch.11 (or maybe just come back period if they can stay out of Ch.7).
But there's a little hope. If they get $2B but only have to spend $2.2B, they might eat the difference to keep the capacity enabled, on the off chance things turn around.
But honestly I wouldn't expect "no furloughs" this time around. The part of the public which is paying attention would be PO'ed by that, although it seems most of them aren't paying attention (none of my non-aviation friends or family were aware of the original no furlough deal).
But airline aid is still a good thing, even if you personally get some time on the beach. You'll come back sooner and to a better life if your employer can stay out of Ch.11 (or maybe just come back period if they can stay out of Ch.7).
08-06-2020 | 12:31 PM
#55
Line Holder
Joined: Jun 2017
Posts: 991
Likes: 9
see the thing is they didn’t cover 100% for 6 months last time. It was only 73% of 2019 pay over the same 6 months. Any growing company would be less than that due to more staff this year. Plus 70% of that 73% was grant, the rest is a loan. So you are only talking about April to Sept 2020 covering about 50% of total payroll (with TOWOP and other reduced line pay savings that may be higher than 50% but not even close to 100)
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