Furlough estimate
09-01-2020 | 06:25 PM
#1691
Line Holder
Joined: Apr 2013
Posts: 741
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Something I don’t understand...the payroll savings based on furloughing 2850 pilots on the bottom of the list constitutes a savings of $25-30 million per month (avg $140/hr x 70 mpg). If we are burning 25-30 million every day, what does furloughing anyone save?
At $18B cash on hand and a burn of $25M each day, the money runs out in 720 days. That is nearly 2 years. Furloughing 2850 pilots for two years stretches the $18B a little less than a month, right? Or, am I way off on my math?
At $18B cash on hand and a burn of $25M each day, the money runs out in 720 days. That is nearly 2 years. Furloughing 2850 pilots for two years stretches the $18B a little less than a month, right? Or, am I way off on my math?
5 billion ish will be the number to declare bankruptcy. Right now its supposedly just over 1 billion loss a month. So we have about a year to stop the bleeding.
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09-01-2020 | 07:41 PM
#1692
Gets Weekends Off
Joined: Jan 2020
Posts: 215
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Long time follower from your friendly Dispatch group. Thought you guys might be interested to know that 155 Dispatchers received their furlough notices today, effective 10/1. Coupled with 22 EO's and the hours-equivalent of 9 voluntary leaves, approximately 35% of the Dispatch Seniority list has been cut. Furloughs go back to January 2013 DOH.
09-02-2020 | 07:57 AM
#1694
Line Holder
Joined: Feb 2014
Posts: 87
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From: Learnin' the 121 ropes
That makes sense to me. I guess my view is a bit narrow and I also did not factor in all the other employee groups. It sucks for all of us and the Pilot group is just one piece of it.
09-02-2020 | 09:22 AM
#1695
Line Holder
Joined: Nov 2012
Posts: 311
Likes: 4
From: Stick Monkey
Why 5 Billion? I'm assuming you have to have working capital to get you through the Chapter 11 without getting any more loans since, well, who lends to a Company in BK.... but How long did the last Chapter 11 take? Anyone on property remember!?
09-02-2020 | 09:40 AM
#1696
Gets Weekends Off
Joined: Sep 2019
Posts: 1,538
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BK funding is quite common. There are companies that specialize in funding BK plans for large corporations. Very profitable for the lender.
09-02-2020 | 09:56 AM
#1697
Line Holder
Joined: Nov 2012
Posts: 311
Likes: 4
From: Stick Monkey
09-02-2020 | 10:35 AM
#1698
Gets Weekends Off
Joined: Sep 2019
Posts: 1,538
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Not usury rates, couple of points over prime maybe. Profitable because the MBA's at the bank get to have input into the restructuring plan and of course big fees for underwriting. They get first dibs on clean loans to a stronger company coming out the other side.
09-02-2020 | 10:48 AM
#1699
Gets Weekends Off
Joined: Jan 2020
Posts: 215
Likes: 0
Last edited by Poss; 09-02-2020 at 10:59 AM.
09-02-2020 | 01:17 PM
#1700
Slam-Clicka
Joined: Dec 2019
Posts: 1,570
Likes: 85
Funded by cuts to labor. What a great system we have......
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