Corona Virus
03-15-2020 | 10:47 PM
#21
Prime Minister/Moderator
Joined: Jan 2006
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From: Engines Turn or People Swim
They didn't say to expect furloughs but certainly hinted that it's in the cards.
03-15-2020 | 10:49 PM
#22
Prime Minister/Moderator
Joined: Jan 2006
Posts: 44,888
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From: Engines Turn or People Swim
honestly depends on the CPA “capacity purchase agreement” they have with there partner. In the past the wholly owned had larger cuts then the non wholly owned. For example. OO may have a min block hr limit with United. They can fly them less but have to pay the min... But Envoy may not. AA could drop the flying to zero with no consequence...
Yes history has shown that times like these puts the "Owned" in wholly owned.
Better to fly for an independent contractor... unless your contract is about to expire.
03-16-2020 | 03:49 AM
#23
Gets Weekends Off
Joined: Sep 2010
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Times like these? They’re saying that travel bookings and cancellations are far exceeding 911. The last recession took months to hit bottom. Thus giving the airlines more time to react and react in a more controlled manner. We’ve not yet seen a viral pandemic effect the industry such as this. I don’t think anyone will come out unaffected by mainline reductions. And I’m pretty sure ASA’s have an escape clause for this reason? This week will be interesting and show us what we might expect
03-16-2020 | 05:47 AM
#24
Gets Weekends Off
Joined: Apr 2018
Posts: 351
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Times like these? They’re saying that travel bookings and cancellations are far exceeding 911. The last recession took months to hit bottom. Thus giving the airlines more time to react and react in a more controlled manner. We’ve not yet seen a viral pandemic effect the industry such as this. I don’t think anyone will come out unaffected by mainline reductions. And I’m pretty sure ASA’s have an escape clause for this reason? This week will be interesting and show us what we might expect
Anyway, was bored during my sit. Wanted to see what the others were talking about. Good luck from a YX guy.
03-16-2020 | 09:34 AM
#25
Prime Minister/Moderator
Joined: Jan 2006
Posts: 44,888
Likes: 684
From: Engines Turn or People Swim
Times like these? They’re saying that travel bookings and cancellations are far exceeding 911. The last recession took months to hit bottom. Thus giving the airlines more time to react and react in a more controlled manner. We’ve not yet seen a viral pandemic effect the industry such as this. I don’t think anyone will come out unaffected by mainline reductions. And I’m pretty sure ASA’s have an escape clause for this reason? This week will be interesting and show us what we might expect
But this has been discussed elsewhere... Force Majeure (Act of God) contract provisions are pretty strong for a DIRECT Force Majeure... ie if the fed grounds the airlines, Force Majeure would apply.
But hypothetically if somebody got a disease from a bat in Timbuk Two, the bug spread, damaged the economy, causing a recession, and United wants to claim Force Majeure and ditch their regional contracts, that might be a real stretch.
The guy who caught the virus from the bat might be able to claim Force Majeure to get out of HIS contract, but his misfortune does not automatically propagate endlessly down the chain of events.
Nationwide grounding is Force Majeure. A downturn in the economy is probably not in this context. Regardless of the trigger, an economic downturn is not really unforeseeable (some would say it was obviously overdue), although you could debate that based on the magnitude of a big downturn.
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