More like dumb move by Kirby. No offense, but did he really think he was going to get away with this?

Take billions in tay payer dollars and then cut employee pay 25% through hours. Ridiculous. He is a weasel. Just watch out.

Glad everyone spoke out.

 

Just as it was never the intent for any of the payroll grant provisions of the CARES Act to be loans. Congress negotiated a payroll grant provision and a separate loan provision with the understanding that the grants were "free money" for airlines to keep and use to pay employees and benefits. However, the law contained final language allowing the Treasury Secretary sole discretion to determine the payouts so hence we have 30% of the grant money actually being loans to the airlines. Many in congress came out saying that was not the intent, but unfortunately the language is the result. Would have been great if congress had asked what the total payroll costs were for each airline in that 2019 period and wrote the bill with 100% of that number as an unconditional grant. In a $2.2 trillion package, what's another $7-8 billion during this crisis. Unfortunately, that didn't happen and we are all living with this reality. Not unexpected that airline managements will be, well, airline management.

 

UAL couldn't sell those junk bonds for 9%. They couldn't even sell them at 11%. Scraped the whole thing. No deal. Hope the Gov'mt loan is enough. Scary and sad.

https://www.bnnbloomberg.ca/united-a...ints-1.1433725

 

Taking hours away from ops and then changing his mind a few days later makes Kirby look bad, they didnt think that the union IAM would take them to Federal court? - which IAM did. Company thought maybe ops people would just lay down and accept it? Company lawyers tell Kirby they would lose in court? A big Fail for one of Kirbys first moves as CEO.

Then a Fail on the bond sale.

Whats the next Fail?

 

Setting up a bond sale is not cheap. Nice chunk of cheese gone out the window. Only one making any money from this were the banksters.

Question is, “who in his right mind would think anyone would buy airline bonds right now”? They shoulda just saved that money for the Delaware lawyers.

 

Kirby is not the CEO yet.

 

Delta had no trouble selling 3.5B at 7%. He11, Carnival Cruise Lines sold 6B at 11.5%. 😯

 

financial times article said there was pushback on the collateral, I guess yall grouped all your old jets for this and they balked.

 

Did the Delta sale actually execute? I don’t think so.

Their 3.4% dated 2023 are yielding 12%, selling for .80 cents....sooo

no 7% listed for sale.

 

Thats what I read in the WSJ. Didn’t actually check the ticker. Dang. 12% !!