750 flights/day
08-06-2020 | 03:44 PM
#381
Gets Weekends Off
Joined: Oct 2010
Posts: 4,603
Likes: 0
Well, if I understood what they were saying yesterday, the won’t take the CARES money if it stipulates no layoffs or furloughs. Spirit is in survival mode at the moment and they said it’s cheaper to furlough. So unless I misunderstood or something miraculous happens, furloughs are coming
edit: I guess this was answered above me.
08-06-2020 | 04:17 PM
#384
On Reserve
Joined: Oct 2019
Posts: 145
Likes: 0
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
08-06-2020 | 04:21 PM
#385
Gets Weekends Off
Joined: Oct 2010
Posts: 4,603
Likes: 0
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.
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.
Last edited by Qotsaautopilot; 08-06-2020 at 04:33 PM.
08-06-2020 | 04:40 PM
#387
Line Holder
Joined: Nov 2016
Posts: 304
Likes: 3
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%.
08-06-2020 | 04:50 PM
#388
Gets Weekends Off
Joined: Oct 2017
Posts: 3,469
Likes: 44
Again...I belive we are all prepared for the adversity that is coming our way.
08-06-2020 | 05:15 PM
#389
Gets Weekends Off
Joined: Nov 2015
Posts: 213
Likes: 0
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.😉
08-06-2020 | 06:12 PM
#390
Gets Weekends Off
Joined: Oct 2010
Posts: 4,603
Likes: 0
Thread
Thread Starter
Forum
Replies
Last Post
