Furloughs?
07-03-2020 | 12:58 PM
#21
New Hire
Joined: May 2012
Posts: 4
Likes: 0
From: A320/Captain
No concessions
None of us have a crystal ball and the only thing in our control is to continue to operate the flight as safely and efficiently as possible. However when the company denied profit sharing they closed the door on concessions. If we don’t share the wealth then we don’t share the famine.
07-03-2020 | 01:21 PM
#22
Gets Weekends Off
Joined: Jul 2018
Posts: 118
Likes: 0
I’m in the bottom 10% and the house I’m building is going to be sold to someone else if I get furloughed, but I’d rather that happen over y’all taking concessions.
That said, we junior guys reeeeeaaaally appreciate everyone participating in the voluntary mitigation stuff. Could save us some real hardship
That said, we junior guys reeeeeaaaally appreciate everyone participating in the voluntary mitigation stuff. Could save us some real hardship
07-03-2020 | 02:11 PM
#23
Perennial Reserve
Joined: Jan 2018
Posts: 14,246
Likes: 257
Furlough 500 pilots From 1 October until summer 2021
250 on first year pay times min guarantee is 9x72x$58x250= ~$ 9 million
250 on second year pay 9x72x$109x250= $17.7
Displace 250 most-likely 4th year captains 9x72x($208-123)x250= $13.7 million.
so basically $40 million less whatever the training churn would be for the downgrades.
At a $4 million cash burn rate a day that is only ten days. When you consider costs, I’m not too sure that modest a furlough would even be worth doing. My guess is that it will either be considerably more than 500 or Spirit won’t furlough at all.
Granted, I ain’t got $40 million PERSONALLY, but it still seems like a lot of trouble for not all that much gain.
07-03-2020 | 02:31 PM
#24
Line Holder
Joined: Sep 2005
Posts: 1,753
Likes: 20
Hmmm... Let’s see what that would actually save:
Furlough 500 pilots From 1 October until summer 2021
250 on first year pay times min guarantee is 9x72x$58x250= ~$ 9 million
250 on second year pay 9x72x$109x250= $17.7
Displace 250 most-likely 4th year captains 9x72x($208-123)x250= $13.7 million.
so basically $40 million less whatever the training churn would be for the downgrades.
At a $4 million cash burn rate a day that is only ten days. When you consider costs, I’m not too sure that modest a furlough would even be worth doing. My guess is that it will either be considerably more than 500 or Spirit won’t furlough at all.
Granted, I ain’t got $40 million PERSONALLY, but it still seems like a lot of trouble for not all that much gain.
Furlough 500 pilots From 1 October until summer 2021
250 on first year pay times min guarantee is 9x72x$58x250= ~$ 9 million
250 on second year pay 9x72x$109x250= $17.7
Displace 250 most-likely 4th year captains 9x72x($208-123)x250= $13.7 million.
so basically $40 million less whatever the training churn would be for the downgrades.
At a $4 million cash burn rate a day that is only ten days. When you consider costs, I’m not too sure that modest a furlough would even be worth doing. My guess is that it will either be considerably more than 500 or Spirit won’t furlough at all.
Granted, I ain’t got $40 million PERSONALLY, but it still seems like a lot of trouble for not all that much gain.
07-03-2020 | 04:14 PM
#25
Line Holder
Joined: Dec 2019
Posts: 339
Likes: 0
From: A320 For Your Health
Hmmm... Let’s see what that would actually save:
Furlough 500 pilots From 1 October until summer 2021
250 on first year pay times min guarantee is 9x72x$58x250= ~$ 9 million
250 on second year pay 9x72x$109x250= $17.7
Displace 250 most-likely 4th year captains 9x72x($208-123)x250= $13.7 million.
so basically $40 million less whatever the training churn would be for the downgrades.
At a $4 million cash burn rate a day that is only ten days. When you consider costs, I’m not too sure that modest a furlough would even be worth doing. My guess is that it will either be considerably more than 500 or Spirit won’t furlough at all.
Granted, I ain’t got $40 million PERSONALLY, but it still seems like a lot of trouble for not all that much gain.
Furlough 500 pilots From 1 October until summer 2021
250 on first year pay times min guarantee is 9x72x$58x250= ~$ 9 million
250 on second year pay 9x72x$109x250= $17.7
Displace 250 most-likely 4th year captains 9x72x($208-123)x250= $13.7 million.
so basically $40 million less whatever the training churn would be for the downgrades.
At a $4 million cash burn rate a day that is only ten days. When you consider costs, I’m not too sure that modest a furlough would even be worth doing. My guess is that it will either be considerably more than 500 or Spirit won’t furlough at all.
Granted, I ain’t got $40 million PERSONALLY, but it still seems like a lot of trouble for not all that much gain.
07-03-2020 | 04:31 PM
#26
Line Holder
Joined: Sep 2014
Posts: 1,691
Likes: 21
From: 60’s Tech, Right
Pilots and labor are just one piece of a large pie. Too many keep assuming this industry is just gonna snap back. What if it doesnt? Then we're bailing on gates, selling planes (as 'colored' by Ted in the Q1 conference call) and 'right-sizing' in a meaningful, survival-driven way. Hoping for the best.
07-03-2020 | 04:34 PM
#27
Line Holder
Joined: Dec 2019
Posts: 339
Likes: 0
From: A320 For Your Health
07-03-2020 | 04:35 PM
#28
Line Holder
Joined: Mar 2019
Posts: 64
Likes: 0
From: A320 FO
Assuming furlough is indeed imminent, is this almost certainly going to fall under “Act of God” (making furlough benefits null) or does the CARES funding pushing timelines out mean that the company would likely be obligated to provide that coverage?
07-03-2020 | 04:41 PM
#29
Thread Starter
Gets Weekends Off
Joined: Oct 2019
Posts: 439
Likes: 0
Pilots and labor are just one piece of a large pie. Too many keep assuming this industry is just gonna snap back. What if it doesnt? Then we're bailing on gates, selling planes (as 'colored' by Ted in the Q1 conference call) and 'right-sizing' in a meaningful, survival-driven way. Hoping for the best.
07-03-2020 | 05:23 PM
#30
Perennial Reserve
Joined: Jan 2018
Posts: 14,246
Likes: 257
There are gonna be lots of barely flown and recently built NEOs freed up by the bankruptcies of European carriers. It wouldn’t surprise me if they could be picked up fairly cheaply. For that matter, interest rates are REALLY low. Ditching older CEOs on lease to get newer and more efficient NEOs might be a good thing. Even if you had to borrow money from the government and give them an equity interest in Spirit to do it. Your management damn sure ought to be shopping for discount parts in that market.
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