Longhornmaniac8

I think Occam's Razor applies here.

I can't see any scenario where Bedford would do that without assurances from the Treasury on what is permitted in our situation.

Without that money, there may not be a Republic to save, which doesn't serve Bedford any good.

The Administration has already wildly deviated from the intent of the Law, we shouldn't be surprised when they continue to make stuff up to help the businesses and screw the workers.

Casualinterest

Sorry to hear anybody is getting Furloughed right now, but just to help those reading these. Airlines are allowed to Furlough up to 10% when taking the grants and loans. They also have fewer restrictions when taking less than 100 million. It's an incorrect characterization that media and lawmakers made by saying it prevents Furloughs. It prevents wide scale Furloughs. Our union confirmed this with alpa and mentioned it on a conference call to us that airlines are still in fact allowed to do so before October 1. But the optics would be poor for any major to do it.

This article clears it up nicely

https://www.nationalreview.com/corner/coronavirus-relief-airline-bailout-furloughed-employees/

Oh and one more hiccup. The cares act authorized the treasury secretary to negotiate the terms of the grants and loans further beyond the scope of the care act language. That's how he was able to attach the loans (and notes) as mandatory when the act called them optional. So we don't know specifically what other terms were negotiated behind closed doors beyond the specific text of the act

dera

Thats just plain out wrong.
The assistance comes in two parts. The part with payroll protection grants allows no furloughs. The loans allow the 10% haircut.
They are Sec 4114(a)(1) and Sec 4003(c)(2)(G) in the CARES act. This is from the Treasury Guidance:

"refrain from conducting involuntary layoffs or furloughs, or reducing pay rates and benefits, of employees of the applicant and its subsidiaries (or, in the discretion of the Secretary of the Treasury, any affiliated entity) until September 30, 2020; "

For the loans;

"The agreement provides that, until September 30, 2020, the borrower will maintain its employment levels as of March 24, 2020, to the extent practicable, and in any case will not reduce its employment levels by more than 10 percent from the levels on such date. "

Casualinterest

Except that now the grants are conditional upon also taking a loan. Mnuchkin added that as a requirement in the final deals. Hence, anyone taking a grant, also takes a loan.

This condition was not in the cares act because he's granted the authority to negotiate additional restrictions. Which is exactly what he did

"But Treasury Department isn't expected to cede much ground, according to people familiar with the talks. Treasury officials, which are working with financial advisers and lawyers on the aid, believe the $2 trillion relief package, known as the CARES Act, gives the department wide discretion to implement the airline grants, including converting some of them to loans"

dera

But you can take the loan without taking the grant.
If you take the grant, you can't furlough. If you only take the loan, you can furlough 10%.

LoneStar32

nobody knows at this point.

Casualinterest

That was the original intent, then treasury came back at the 11th hour and required airlines to take 30% of the grant money in the form of a loan and provide warrants. This was missed by a lot of people because it was after the act was passed.

But, again, because no one has seen the actual terms in each deal there is no way of knowing what was actually agreed to beyond what corporate communication releases. Remember that the law just specifies what may be done, and that treasury is permitted to enter into agreements with the airlines under whatever terms they can negotiate. Unions are rightfully upset.

“The bipartisan law passed by Republicans and Democrats and signed by President Trump specifically states that the Secretary may receive warrants, options, debt securities, or other financial instruments to provide compensation for American taxpayers,” Brent McIntosh, undersecretary of Treasury’s international affairs unit, said in an interview. He’s playing a leading role in distributing aid to airlines.​​​​​

Mnuchin’s team is requiring large carriers to repay 30% of the grants through low-interest loans due within five years, Bloomberg News reported Friday. The agency said it has received 230 applications for aid from passenger carriers of all size.

Longhornmaniac8

This is what people are missing.

The original intent of the Act has been totally bastardized by the Administration. They're totally making up the rules as they go along. Whatever the text of the law says isn't how it's being administered in practice.

It is true that there are two separate programs, for grants and loans. It is true that the grants now require companies requesting over $100 million to also take out a loan on a portion of the money over $100 million.

The grant portion was supposed to stipulate no furloughs, while the loan portion allowed for reductions in workforce up to 10% of March 24th levels. Because the Treasury has blurred the lines between the two, no one really knows what the rules are.

If anyone honestly believes Bedford would make the moves he's made without clarifying what the expectations are, they're a level of cynic I just don't share. Bedford is plenty of things, and I'm the farthest thing from an apologist there, but he does know how to run a company. This kind of stuff is honestly pretty basic.

embraerjetpilot

Since when did they follow the law anyway?


They fired the people responsible for oversight of this bill.

Flyguy41

Hey everyone, I’ve got a class date with Republic and have just received my ATP/CTP date. I’ll be using Sheppard Air to study the ATP/CTP portion. For those of you have gone through training at Republic, what would you recommend I know/study prior to class, any other suggestions? Thanks in advance!