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United Airlines poised to slash payroll costs

Old 03-25-2020, 07:37 AM
  #211  
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Originally Posted by pilotgolfer View Post
was that guy a fighter pilot? He referenced an analogy of being in fighter cockpit.
he has about 400 hours flying about New England according to another article, so I’d have to say no! Maybe he’s been in a couple given his net worth though.
or he’s just seen top gun 100 times
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Old 03-25-2020, 09:07 AM
  #212  
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Originally Posted by Firsttimeflyer View Post
quick recap for those who didn’t want to watch it:

they still own all their United Shares
they shorted other airlines during the drop
never expected revenue to fall to essentially 0
they bought more United Shares at low/lower prices
$150 mil a day in payroll costs aren’t sustainable and need .gov intervention
the airline industry will look different coming out of this, there will be some winners and some losers but United will be around.
special project where big money investors want to buy into a couple of hard hit leisure based stocks and United is part of that
thinks stock will get back to where it was or higher but will be longer than a few months to get there

Just to nitpick but the highlighted above about our daily payroll costs is way inaccurate.

Based on the 2019 annual report: Investor Relations - United Airlines Holdings, Inc.

2019 2018 Increase (Decrease) % Change
Salaries and related costs $ 12,071$ 11,458 $ 613 5.3
Aircraft fuel 8,953 9,307 (354) (3.8)
Regional capacity purchase 2,849 2,649 200 7.6
Landing fees and other rent 2,543 2,449 94 3.8
Depreciation and amortization 2,288 2,165 123 5.7
Aircraft maintenance materials and outside repairs 1,794 1,767 27 1.5
Distribution expenses 1,651 1,558 93 6.0
Aircraft rent 288 433 (145) (33.5)
Special charges 246 487 (241) NM
Other operating expenses 6,275 5,801 474 8.2
Total operating expenses $ 38,958 $ 38,074 $ 884 2.3


so that comes $33 million/ day ($12,071 billion/365 days) $150 million per day would be $54.75 billion per year!!! More then our entire operating revenue by $10+billion.
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Old 03-25-2020, 09:20 AM
  #213  
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That number actually came from the interview, where he was talking about the combined payrolls of all airlines, not only United. Got lost in translation.
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Old 03-25-2020, 09:40 AM
  #214  
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Originally Posted by PilotGR View Post
Not sure if you've ever owned a business, but I come from a family of lots of business owners. Large and small. Shareholders or not. We should have more than 3 months of cash to stay afloat.
At the current time that amount of cash is very close to our market cap. Cash on hand is great as long as the laws are changed to prevent another Icahn or Lorenzo, or a Toys R Us buyout (theft).
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Old 03-25-2020, 01:29 PM
  #215  
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Originally Posted by Grumble View Post
At the current time that amount of cash is very close to our market cap. Cash on hand is great as long as the laws are changed to prevent another Icahn or Lorenzo, or a Toys R Us buyout (theft).
The American taxpayer will never want to see the majors make a profit again after this bailout is approved.
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Old 03-25-2020, 01:37 PM
  #216  
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Originally Posted by airlinepilot50 View Post
The American taxpayer will never want to see the majors make a profit again after this bailout is approved.
Americans could hardly stomach the concept of airlines or any other industry making profits, period. Even before all this. That's what happens when instead of money, finance, and economics, high schoolers are taught Shakespeare and Calculus. Zero idea of how the world works.
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Old 03-25-2020, 01:40 PM
  #217  
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Originally Posted by airlinepilot50 View Post
The American taxpayer will never want to see the majors make a profit again after this bailout is approved.
Just be sure to tell them what you posted previously about your pilot skills being too good for them anyway.
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Old 03-25-2020, 01:42 PM
  #218  
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Originally Posted by CousinEddie View Post
Just be sure to tell them what you posted previously about your pilot skills being too good for them anyway.
Do you have a plan after September?
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Old 03-25-2020, 01:47 PM
  #219  
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Originally Posted by airlinepilot50 View Post
Do you have a plan after September?
Played this game long enough. It’s your former FOs I’m concerned with.

Before the public gets too outraged, consider this. Certainly a better record than a gallon of milk.

https://www.bts.gov/sites/bts.dot.go...3Q%202019.xlsx

Last edited by CousinEddie; 03-25-2020 at 02:22 PM.
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Old 03-25-2020, 02:52 PM
  #220  
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Originally Posted by KonaJoe View Post
Americans could hardly stomach the concept of airlines or any other industry making profits, period. Even before all this. That's what happens when instead of money, finance, and economics, high schoolers are taught Shakespeare and Calculus. Zero idea of how the world works.
Yes, god forbid HS kids should learn about Shakespeare or calculus. I do agree personal finance is way underemphasized in our society, but 40 years ago, legally fleecing Americans was much more difficult... which probably coincides with more econ and finance majors today.
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