Why would they not if it covers 100% of last years payroll for the time frame line CARES 1.0? It would cost Spirit nothing to keep everyone

edit: I guess this was answered above me.

Why are we burning 4 mil a day with the cares?

because there is other expenses beside labor...

True, so what expense can they control? There’s more to the cost of a pilot than your hourly wage. The whole operation has to shrink for now. We will all know the rest of this story in a few weeks. The clock is ticking for the October timeline

1.5 million

My guess is that number is higher without CARES and a furloughing X number of employees. So you shrink (what do you shrink?) and still pay a certain percentage of your employees or you get CARES money and reduce service as much as permitted through CARES and the Govt picks up 100% the payroll instead of Spirt furloughing and incurring that cost and still paying all of the people left. Can’t really shrink away the airplanes except the 319s. The planes will keep coming. Only way to stop that cost is try and renegotiate or fold up the company.

The best choice if I was running the company would be to hope CARES 2.0 happens and reduce service as much as permitted via CARES and demand allows along with those non payroll operating costs and let CARES pick up 100% of the payroll.

Ok, I’m out. Best of luck to us all. As an old timer that’s seen a lot over the decades, prepare to be blind sided newcomers

Cares 1 didn’t cover 100%. It was 73% of April thru Sept 2019 actual, so for a growing company like this one was year over year, that number was really only in the high 60s. And only 70% of that number was grants, the rest was a loan, so maybe slightly less than 50% of 2020 payroll was truly “free money”. Still great and hard to turn down this time or last time, but it’s not anywhere close to 100%.

I’m sure you have and I respect your wisdom. But I don’t think many of us are going to be “blindsided”. We know the dangers that might be coming to us. If we get furloughed or downgraded, well, we were prepared for it...if not, then great, and we consider our selves lucky.

Again...I belive we are all prepared for the adversity that is coming our way.

It wasn’t 100%. That information was readily available when NK received the CARES Act funds. Disappointed in you Boy Scout. Thought you would have known that.😉

What part of LAST YEAR’s payroll was hard to read?