FNGFO

Seems like an easy add on from the BOD, and probably standard practice if extra liquidity is required moving forward.

Qotsaautopilot

I posted this the night of that Oscar sent the email to employees. A family member forwarded it to me. He spoke of executives taking paycuts and needing to control payroll costs. When a CEO and other executives take a paycut it’s to set an example. The money is inconsequential to the health of a company to burns billions but it’s hard to ask for one without taking one yourself. So to me that says appears to be “looking” for paycuts. That was also before APA released their voluntary leave packages. It looks like and are are two different things.

I’m Not close to retirement but I’ve been at this long enough to know that airline managements will absolutely use a major short term crisis to lock in long term concessions. Even if they have snap back provisions, they will be violated and the pay never returns. I’m also aware of the major cascading training costs involved at carriers with multiple types when it comes to furloughs. Management always tries what’s easy. This is not new.

again they haven’t asked so far but United management was the first to release the “we need to control payroll” message and I’ve seen this movie before.

I think Alpa national knows this is huge but also short term and hopefully are working with each airline’s MECs to work on big solutions but that have us all that want to be back working as quickly as possible and at full pay.

Andy

Copy all and I understand exactly how you interpreted the management message as a pretense. I've been furloughed twice at the lazy U and have seen firsthand the paycuts during down times.
We're still waiting to rebid next month, although I suspect it will pretty much be 50 hour surplus reduction lines for everyone … perhaps even a lower number than 50 hours? I don't know and am just waiting for information from leadership.

Will there be paycuts? Us keyboard warriors are hardcore on no paycuts, but we all know that resolve can fade rapidly when faced even more undesirable choices. So I have learned to not comment with 'full pay til the last day' because that never seems to happen.

Chimpy

so how concerned should we be with $1,000,000,000.00 in the bank (rapidly diminishing) and a market cap of $600,000,000.00 and falling

Qotsaautopilot

Also getting emails from big retailers that say they are now closing but will continue to pay employees salaries and benefits. It’s going to get less palatable for big businesses to screw over employees this time around

Qotsaautopilot

Btw we all have an ALPA call to action in your email about prioritizing pilots in any assistance package to the airlines.

63,000 ALPA members and there is zero reason 63,000 of these shouldn’t go out today.

two clicks and it sends. You don’t have to do anything

CAirBear

Already Done ✅👍🏻

Avro85

Fulllpay to the last day.

Everytime the furlough mitigation strategies kick in, the only thing ensured is that those management have slated for furlough go out to the street lighter in the pocket book and those left are making a good bit less than the CBA stipulates .

Unfortunately, union leadership never seems able to grasp this axiom . Carrier after carrier, union after union.

DrSteveBrule

This is beyond my basic knowledge, but see TPG Capital and Midwest Air.

Andy

A bit concerning. Take some azzhole like carl Icahn, who bled a ton of cash out of TWA. He could go in and buy controlling interest in the company and then leverage everything to the hilt, pumping up the cash balance. Then he would turn around and do a 'special dividend' which would cover his initial buy in. Or a myriad of other strategies to bleed an airline dry.

It's not a concern at the moment because no one's going to loan him a bunch of money on airline assets. But if the industry starts recovering, it will be something to be concerned about. And this applies to all airlines, both big and small. Smaller is easier, but big is also possible.

But this is not the 5 meter target; we have other things to worry about in this industry right now.