Only major airline with no bailout agreement?
 

https://home.treasury.gov/news/press-releases/sm977

I understand and applaud trying to get a better deal than the others but seems like we are a big outlier here.

Statement by Secretary Mnuchin on the Payroll Support Program

April 14, 2020WASHINGTON – U.S. Treasury Secretary Steven T. Mnuchin issued the following statement on the Payroll Support Program for passenger air carriers:

“We welcome the news that a number of major airlines intend to participate in the Payroll Support Program. This is an important CARES Act program that will support American workers and help preserve the strategic importance of the airline industry while allowing for appropriate compensation to the taxpayers.

“Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, United Airlines, SkyWest Airlines, and Southwest Airlines have told us that they plan to participate in the Payroll Support Program. Conversations continue with other airlines regarding their potential participation. Treasury is also working to review and approve applications for smaller passenger air carriers as quickly as possible and will provide further guidance for cargo carriers and contractors very soon. We look forward to working with the airlines to finalize the necessary agreements and disburse funds as quickly as possible.”

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According to Teds email we will get there soon


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I hope we get there sooner then our state of the art, fleet wide WiFi.

You really think they’ll make an exemption just for Spirit?

They already have by reducing the original, unrealistic service requirements of the original bill to to the only somewhat unrealistic service requirements of the current law.

Since it appears the Frontier and Allegiant fell in line, I would be surprised if they cut Spirit alone any slack. Not to mention this thing didn’t exactly fly through the house and senate without a lot of back and fourth. We shall see though

I’m not holding my breath that we get it after seeing Allegiant and Frontier already did.


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Not a promising sign....I hope this post is wrong in the future days ahead! I’m hoping we get it!

I hope I’m wrong too as I’d like to keep my job until at least Sept 30. But it’s seeming a little suspect if everyone else has negotiated for it already and we have not.

I tend to agree. What is drastically different for Spirit ? It seems everybody else is cooperating, graduating. Of course I may not understand the big picture.

I guess some of you haven't been following any of this since the final ruling from the DOT on the 7th.

https://www.transportation.gov/sites...er%20FINAL.PDF

We have applied for an exemption (which it spells out on the last page of the final DOT ruling). and also mentioned here:

https://www.flightglobal.com/network...137825.article

If the DOT doesn't grant us this, all it means is we start up those stations that we don't go to right now and fly it 3x a week, which we are planning doing in May anyways. Why do you think Ted sent out that email today, right after this news came out about how we are not listed? Probably to let us know that they are finishing the deal. Which means the DOT accepted our request or we start flying those those stations listed in the final ruling 3x a week, or anything in between.

"Spirit Airlines Inc, a low-cost carrier which was not listed by the Treasury as reaching agreement, said it expects "to agree on terms soon" for payroll grants."
https://finance.yahoo.com/news/u-tre...203413315.html

This is not about if we are getting the money or not, it's about what we have to do to meet the DOT's requirements to get it.

You’re not the only airline. Republic is in the same boat.

That's because Frontier and Allegiant didn't apply for the exemption like we did and if they did, it was already approved by the DOT which I highly doubt it. They just went with the final DOT's ruling and added flights that they cut.

"In January, Frontier officials announced they were suspending operations in Mobile and the last scheduled Frontier flight was scheduled to take place April 22. That obviously changes with Monday’s announcement."

https://www.thecallnews.com/2020/04/...lando-flights/

Frontier applied for exemption from 35 cities... don't know if the request was granted or not.Frontier requests an exemption from its Service Obligation under DOT Order 2020-4-2 to allow it to temporarily suspend service from April 13, 2020 through June 10, 2020 at the following 35 communities:

Albany, NY (ALB)
Billings, MT (BIL)
Bloomington, IL (BMI)
Boston, MA Metropolitan Region (BOS/PVD)1 Burlington, VT (BTV)

Buffalo, NY (BUF)
Bozeman, MT (BZN)
Cedar Rapids, IA (CID) Charlotte, NC (CLT) Columbus, OH (CMH) Colorado Springs, CO (COS) Detroit, MI (DTW)

El Paso, TX (ELP)
Fargo, ND (FAR)
Sioux Falls, SD (FSD)
Spokane, WA (GEG)
Green Bay, WI (GRB)
Grand Rapids, MI (GRR) Greenville/Spartanburg, SC (GSP) Harlingen, TX (HRL)

Huntsville, AL (HSV) Wichita, KS (ICT) Jacksonville, FL (JAX) Madison, WI (MSN) Norfolk, VA (ORF)
West Palm Beach, FL (PBI) Pittsburgh, PA (PIT)

Palm Springs, CA (PSP) Portland, ME (PWM) Raleigh/Durham, NC (RDU) Louisville, KY (SDF) Syracuse, NY (SYR)

Tyler, TX (TYR) Knoxville, TN (TYS)

Only major airline with no bailout agreement?
 

It’s not as if we were the only airline to ask for exemptions JB did and has finalized an agreement.

https://www.flightglobal.com/network...137825.article


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I'm aware of that, and how do you know if the DOT approved JB's exemption or not? It doesn't mean we are not getting it just because our name wasn't mention. Why would the DOT tell us what station we must serve and how many times in the final ruling. Just so we can get denied the grant / loan later? Also I highly doubt Spirit is going to turn down the grant / loan especially after today's email from Ted.

I couldn't find the official request such as this one sent to the DOT, that's why i assume Frontier and Allegiant didn't ask for it

https://www.regulations.gov/document...2020-0037-0049

Only major airline with no bailout agreement?
 

You’re right I have no idea if those exemptions were granted or not, all I know is JB (and Frontier who applied for exemptions) came to an agreement and thus far we have not.


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Relax people, the money is coming. Ted is smartly trying to get all he can from the govt then will accept whatever terms it ends up being. Negotiating 101. He’s playing hard ball, doubt it’ll get us anything better than the other airlines but it’s worth a shot to ask.

we’ll likely end up taking the same deal allegiant and frontier did and adjust the schedule we needed. Ted even said this in the town hall that we would adjust as required by the cares act.

Spirit has never done anything like all of the other guys. Why would they start now?

You’re saying Ted didn’t accept the very first offer passed across the table?

Huh.

101 you say?

Interesting...

Well, you are probably right. Ted and his team certainly duped us and ALPA in our last contract negotiations. We are still finding out about little gems in our contract.

While I am NO fan of Teds, the only people who were “duped” in the last contract are the people who didn’t read the whole thing before voting for it.


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lol, ok, don’t really want to thread drift, but I think we were backed into a corner by the company suing us and the NMB walking away to focus on other labor groups which forced us into voting or we could still be on ice now. Certainly glad our contract isn’t amendable anytime soon.

Very true!


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im glad we arnt in contract negotiations right now. Couldn’t imagine if it staged on this long.

ehhhh Chapter 11 and BK contract could be shoved up our A$$ in no time at all

They would have to burn through a lot of cash first and exhaust a lot of other avenues.

You obviously don't know how airline BKs work. They probably already have a contingency plan like most airlines. It's debts vs assets and I'm sure they have more of the former.

well, with parked airplanes, 10pax on the flights we are operating and no end in sight to the lockdown, I’d say we are probably burning through quite a bit of cash. Also, BK is expensive, you don’t wait until the bank account is empty when you file.....

He's right. Airline's have to maintain a certain liquidity cuz the FAA knows they cannot operate safely if checks are bouncing.

An airline can file BK if their glide slope will take them down to too little liquidity in the near future. They don't have to be flat broke, and in fact the FAA would pull their cert before they got there anyway.

Ch.11 is "get our house in order" and restructure payments to creditors. It is done before the fuel tanks are bone dry. It is done to continue operating.

Ch.7 is "liquidation" aka sell the assets, chairs, popcorn machine, to pay off the creditors.

Fortunately, never checked that box off. I have checked off the furlough, cease operations and strike though.
My point was I don’t think it’s imminent.

When you see Seabury consultants coming in and they start talking to Ford and Harrison it’s time to bend over.

😂😂, well, hopefully it’s not something Spirit will experience.

I hope not, chapter 11 and the 1113c process sucks. You thought section 6 negotiations were frustrating and the company was being unreasonable...just wait.

lets all stay positive, we don't need ANY airline to lay folks off right now. I am optimistic they are working on things behind closed doors.

I like to think that those at the top are holding way too much stock to want to go through bankruptcy.