Delta to Cut Capacity 40%

[Airbubba]

From a company memo issued today:

Ed Bastian to Delta Colleagues Worldwide

The Challenge Facing Us - COVID-19 Impact Growing Rapidly

Earlier this week, I updated you on the steps we are taking to protect our people, our customers and our business amid the COVID-19 (coronavirus) outbreak. In just the few days since, the situation has worsened considerably, with large public events cancelled, businesses suspending travel, and popular destinations facing heightened government travel restrictions, including a 30-day ban to continental Europe announced Wednesday night.

Demand for travel is declining at an accelerated pace daily, driving an unprecedented revenue impact. Cancellations are rising dramatically with net bookings now negative for travel over the next four weeks. To put that in perspective, we’re currently seeing more cancellations than new bookings over the next month.

The speed of the demand fall-off is unlike anything we’ve seen – and we’ve seen a lot in our business. We are moving quickly to preserve cash and protect our company. And with revenues dropping, we must be focused on taking costs out of our business.

In order to do this, we are taking difficult but determined actions to protect the financial position of the company.

These include:

An overall capacity reduction in the next few months of 40 percent – the largest capacity reduction in Delta’s history, including 2001.
Elimination of flying to continental Europe for the next 30 days, which could be extended. We will maintain service to London.
Parking up to 300 aircraft as our reduced capacity requires a substantially smaller fleet.
Deferring new aircraft deliveries to manage our reduced capacity and preserve cash.
Reducing capital expenditures by at least $2 billion for the year, including delaying aircraft mods, IT initiatives and other opportunities to preserve cash.
Immediately offering voluntary short-term, unpaid leaves as well as an immediate hiring freeze.
Substantially reducing the use of consultants and contractors.

We’ll be making more critical decisions on our response in days to come. The situation is fluid and likely to be getting worse. But what hasn’t changed is this: Delta remains better-positioned to weather a storm of this magnitude than ever before in our history. We’ve spent a decade building a strong, resilient airline powered by the best professionals in the business. We will get through this, and taking strong, decisive action now will ensure that we are properly positioned to recover our business when customers start to travel again.

In coming days and weeks, every one of us will have an opportunity to contribute to Delta’s durability. That ranges from considering a voluntary leave that works for you and your family, to identifying opportunities to save money in your division or department, to volunteering for the Peach Corps to help our customers and colleagues at the airport. I ask all of you to see what you can do to help us save cash.

In light of these developments, I’m foregoing 100 percent of my salary, effective immediately, for the next six months.

We are in discussions with the White House and Congress regarding the support they can provide to help us through this period. I’m optimistic we will receive their support. That said, the form and value is unpredictable, and we can’t put our company’s future at risk waiting on aid from our government.

Above all, nothing is more important than the care, safety and health of our customers and each other. That includes the many steps we are taking to keep our planes and facilities clean and disinfected, as well as our never-ending commitment to flight safety even among these distractions. We need to assure our customers it is safe to fly in all respects, now more than ever. We also understand the need for social distancing as a means to protect our customers and each other, and we encourage all of our people to be mindful of every opportunity to reduce the risk of transmission at work and in your daily lives. This is a severe crisis.

I know many of the newer members of the Delta family have never experienced this level of uncertainty in our business. Your veteran colleagues will tell you that we have been through turbulent times before, and what has always carried us through has been our commitment to our values, our culture and each other. I am confident that we will emerge from this crisis as a strong, trusted global brand that truly connects the world like no other. And we will be stronger for having gone through this experience.

I continue to be honored and humbled to lead this team. I will give you another update early next week. Thank you for all that you are doing, and will continue to do in the days ahead, to care for the Delta family and our customers.

Ed

[bafanguy]

Yes, they've also stopped all pilot interviewing including those already given interview dates. They'll be "reinvited" at some future time. People were told to continue updating applications since Delta will continue reviewing applications during this hiatus.

Scuttlebutt is that they'll honor the firm class dates already given to applicants through the end of April. I think that's about 100ish pilots. We'll see about that one. I hope those with job offers don't get "Uniteded".

Tough times...

[Una Due Tfc]

No flying to continental Europe, will continue serving London. No mention of other UK airports, or Irish ones. I'm guessing they're getting the chop so

[procede]

Especially not flying to AMS is a pretty big deal.

[Una Due Tfc]

Especially not flying to AMS is a pretty big deal.

Given the absolute mess the Dutch government have made of things, it is prudent though. Telling people only those with symptoms were contagious despite overwhelming evidence to the contrary....morons.

[Airbubba]

As with many current U.S. pilot contracts, it appears that the Delta PWA (Pilot Working Agreement) allows furlough without notice or much additional pay under some circumstances.

From Section 21 - Furlough and Recall:

B. Furlough
...
https://cimg8.ibsrv.net/gimg/pprune.org-vbulletin/909x605/dal_contract_1_3581b20618cc435f41186ad7adb6c42e4c825c89.jpg
https://cimg9.ibsrv.net/gimg/pprune.org-vbulletin/883x61/dal_contract_3_9cd96963a60c82ee7ac24c24fa1245018e311dbd.jpg

[lomapaseo]

I just booked some tickets on Delta at very good prices. Not worried even with the cuts, because I know they will take care of me.

[avtur007]

I love how a guy in his position with undoubtedly millions in the bank makes a statement of forgoing his salary for 6 months. Wake up mister, you in the privileged list, I'm sure you could live comfortably for the rest of your life on the money you've banked from your salary. But the reality is 99% of your workers can't, so how about taking a permanent salary cut and sharing the remainder out amongst your lowest paid employees and making things a bit more equal for them, so when the sh1t hits the fan, the folks who can't afford to save now have half a chance to save in the future You make me puke with your hypocrisy sir.

[pilot9250]

I love how a guy in his position with undoubtedly millions in the bank makes a statement of forgoing his salary for 6 months. Wake up mister, you in the privileged list, I'm sure you could live comfortably for the rest of your life on the money you've banked from your salary. But the reality is 99% of your workers can't, so how about taking a permanent salary cut and sharing the remainder out amongst your lowest paid employees and making things a bit more equal for them, so when the sh1t hits the fan, the folks who can't afford to save now have half a chance to save in the future You make me puke with your hypocrisy sir.

It's a token. He's making a sacrifice at the same time he's inviting others to make a sacrifice. That's good.

He isn't trying to solve global inequality or reinvent capitalism.

[lomapaseo]

It's a token. He's making a sacrifice at the same time he's inviting others to make a sacrifice. That's good.

He isn't trying to solve global inequality or reinvent capitalism.

agree but.....

I don't care about tokens. I care about how it affects me, not him

[SamYeager]

It's a token. He's making a sacrifice at the same time he's inviting others to make a sacrifice. That's good.

Alex Cruz at BA is talking about job cuts etc. and I don't recall hearing about any offer from him to even forego a week's salary. Which person deserves more respect?

[aterpster]

Yes, they've also stopped all pilot interviewing including those already given interview dates. They'll be "reinvited" at some future time. People were told to continue updating applications since Delta will continue reviewing applications during this hiatus.

Scuttlebutt is that they'll honor the firm class dates already given to applicants through the end of April. I think that's about 100ish pilots. We'll see about that one. I hope those with job offers don't get "Uniteded".

Tough times...
The next step will be furloughs and likely quite soon.

[lomapaseo]

The next step will be furloughs and likely quite soon.

In some companies they they call it a freedom to take a leave-of-absence without pay,
magnanimous of them

[bafanguy]

The next step will be furloughs and likely quite soon.

aterpster,

That's always a possibility in these situations. But DL and ALPA have come to a LOA regarding the virus stuff where, among other things, Special Incentive Lines are offered where you get 55 hours pay/month for staying home. And sick leave policy has been adjusted to where, IIUC, calling sick will not come out of one's sick leave bank. I suppose you could say they're trying to adjust as painlessly as they can.

Beyond that it's all up for grabs. Nothing would surprise me under the circumstances.

[giggitygiggity]

In some companies they they call it a freedom to take a leave-of-absence without pay,
magnanimous of them

What exactly is a furlough? Could you call it 'forced unpaid leave'? Genuine question as we don't use the word over here.

[MichaelKPIT]

Special Incentive Leaves are offered where you get 55 hours pay/month for staying home.

Are you sure about that? I thought that had been debunked as a false rumor. I’m not saying you’re wrong - I’ve just heard both versions and don’t know which is true...

[MichaelKPIT]

What exactly is a furlough? Could you call it 'forced unpaid leave'? Genuine question as we don't use the word over here.
As someone who grew up in England and has worked 21 years in America, I would say that’s a pretty accurate description. Furloughs are typically fairly long term - months, even years but don’t have to be. You are free to claim unemployment and seek work elsewhere. Sometimes you’ll be told you can’t work for a competitor but not always. Think of it as redundancy with a right to be called back, and callbacks typically happen in seniority order. If you do get called back you can say no if you’ve moved on to something better. An employer can also let you keep some benefits while you’re out, for example in the case of an airline they can let you keep staff rate travel etc. Hope that helps.

[Airbubba]

President Trump just said that a ban on travel from the UK and Ireland will be announced soon. He also said that domestic travel restrictions are currently being considered.

[bafanguy]

Are you sure about that? I thought that had been debunked as a false rumor. I’m not saying you’re wrong - I’ve just heard both versions and don’t know which is true...

Michael,

I'm always prepared to be wrong and try to practice frequently to be ready for it. This time I might be right though. How many take it is yet unknown. This from LOA 20-01:

3. Special Incentive Line For the May and June 2020 bid periods, the parties agree to reinstate Special Incentive Line (“SIL”) LOA #2 and amend as follows:

Delete Paragraph 2. 3)Amend Paragraph 9. a) to read:a)a pilot will receive a SIL guarantee of 55 hours of pay and credit at his applicable composite hourly rate.

[giggitygiggity]

As someone who grew up in England and has worked 21 years in America, I would say that’s a pretty accurate description. Furloughs are typically fairly long term - months, even years but don’t have to be. You are free to claim unemployment and seek work elsewhere. Sometimes you’ll be told you can’t work for a competitor but not always. Think of it as redundancy with a right to be called back, and callbacks typically happen in seniority order. If you do get called back you can say no if you’ve moved on to something better. An employer can also let you keep some benefits while you’re out, for example in the case of an airline they can let you keep staff rate travel etc. Hope that helps.
Thanks, good description. I dont think we have anything quite the same as that over here, just unpaid leave or redundancies. Either way, we're all f***ed.

[Airbubba]

Are you sure about that? I thought that had been debunked as a false rumor. I’m not saying you’re wrong - I’ve just heard both versions and don’t know which is true...

According to a Deltoid relative the 55-hour Special Incentive Lines (SILs) have indeed been offered but no furlough plans have been announced to the rank and file. Yet.

[MichaelKPIT]

Michael,

I'm always prepared to be wrong and try to practice frequently to be ready for it. This time I might be right though. How many take it is yet unknown. This from LOA 20-01:

3. Special Incentive Line For the May and June 2020 bid periods, the parties agree to reinstate Special Incentive Line (“SIL”) LOA #2 and amend as follows:

Delete Paragraph 2. 3)Amend Paragraph 9. a) to read:a)a pilot will receive a SIL guarantee of 55 hours of pay and credit at his applicable composite hourly rate.
Yep - I think you probably are right! ;-)

[bafanguy]

From Delta's pilot recruiting Facebook page. Looks as if they're trying not to "United" people:

"Presently we have extended Contingent Job Offers (CJOs) to pilots for classes extending through the end of April, and we take that commitment very seriously. Some of those pilots, specifically the ones starting this coming Monday the 16th, and Monday the 23rd, are already inside the window where they’ve had to give 2 weeks notice to their employers to come work for us. For those pilots, as they were told on the phone yesterday, class will be held, and they should report to Atlanta as scheduled.

For classes starting outside that two week window, a final decision has yet to be made, and we have to ask those pilots for their patience. We hope to have that decision this coming week, possibly as early as Monday, and they will hear very soon after we know."

[MichaelKPIT]

It does look like DL are really trying to do what's right through all this. Just look at the homepages on the websites of the top four - BA, AA, UA, DL. The first three are all trying to sell seats at all costs, some of them even saying don't bother calling us unless your flight is within 72hrs - we're too busy. DL are focused much more on caring for their existing passengers and reassuring new ones, while still leaving the ability to book new flights top and center of every page. I know who I'd trust!

[Airbubba]

From Delta's pilot recruiting Facebook page. Looks as if they're trying not to "United" people:

What were United's moves with ending hiring that you are referencing? In the past United has usually honored job offers years later when hiring resumed. They wanted you to be current on something, not an easy task in a downturn market flooded with airline pilots.

Even if they get furloughed a couple of days later (I've seen it happen) it's a good idea to show up for class to get that seniority number. Delta gives out a number on the first day. Seniority within the class is determined by the last four digits of the Social Security Number, highest last four equals lowest seniority number. Any company transferees are placed at the top according to their Delta date of hire.

[bafanguy]

What were United's moves with ending hiring that you are referencing? In the past United has usually honored job offers years later when hiring resumed. They wanted you to be current on something, not an easy task in a downturn market flooded with airline pilots.

Even if they get furloughed a couple of days later (I've seen it happen) it's a good idea to show up for class to get that seniority number.

Bubba,

The way I heard/saw it told was that UAL cancelled a class of 23 pilots 3 days before the start date leaving those 23 people high and dry after they'd cut bait from their previous employers. Very poor form.

These 23 didn't have the option of showing up and getting a seniority number. Perhaps they'll be recalled to a class at some future date but that doesn't make up for the short term heartlessness of stranding 23 pilots who moved mountains to get to UAL.

In the overall scheme of UAL, honoring one class date and adding 23 more pilots before they stopped hiring would be insignificant. Quitting your previous employer to go to UAL only to be stranded 3 days before the promised class date is not insignificant to those 23 pilots. It really doesn't even make any difference how those 23 people weathered the event, it's slimy behavior on UAL's part.

And yes, I'd imagine it's been done before by some other airline. We'll see how DL manages their similar circumstances of stopping hiring with class dates scheduled and promised.

[Kenny]

Bafan,

While no one at UAL liked what was done, UALPA reached out to all of them to make sure they were ok financially and that all had jobs to go to. The majority were able to secure new employment or return to their previous employers. In addition UAL pilots started a fund to cover any expenses for anyone in the class that experienced financial difficulty. Also, UALPA secured positions in class with two of the United Express carriers, without needing an interview, the following week.

While it’s not how any of the UAL pilots would have like things to have been done. As a group, we stepped up and did what was right.

[Airbubba]

Delta 9900 ferry flight numbers moving planes to places like Birmingham and Marana for storage (or sale).

https://cimg8.ibsrv.net/gimg/pprune.org-vbulletin/976x573/delta_9900_b493870e5313e130066202237b4febc8045d9767.jpg

[MichaelKPIT]

Delta 9900 ferry flight numbers moving planes to places like Birmingham and Marana for storage (or sale).

Mostly A330's although a couple of 767's in there, a 777 and a 757. I've heard the FA community are expecting a big announcement at 1500 EDT today.

[Airbubba]

Mostly A330's although a couple of 767's in there, a 777 and a 757. I've heard the FA community are expecting a big announcement at 1500 EDT today.

I've learned to hate the 'Big Announcement' in the flying business. :(

Here are the current inbounds to Marana, I'm sure lots more to follow.

https://cimg2.ibsrv.net/gimg/pprune.org-vbulletin/692x652/mzj_2a0f14826b795eaa9f3a26a187a07afbe5db87bf.jpg

[bafanguy]

Bafan,

While no one at UAL liked what was done, UALPA reached out to all of them to make sure they were ok financially and that all had jobs to go to. The majority were able to secure new employment or return to their previous employers. In addition UAL pilots started a fund to cover any expenses for anyone in the class that experienced financial difficulty. Also, UALPA secured positions in class with two of the United Express carriers, without needing an interview, the following week.

While it’s not how any of the UAL pilots would have like things to have been done. As a group, we stepped up and did what was right.

Kenny,

Yes, I had heard what UALPA and individuals did on behalf of the 23. That's why I said this in a previous post: "It really doesn't even make any difference how those 23 people weathered the event...".

It's to be applauded but the fact they were able to land on their feet is merely a lucky coincidence. It's still abominable behavior on UAL's part.

In contrast, here's what AA is reputed to have done for a delayed class:

17 Mar class:

“While your orientation is suspended, your employment at American is not. We want to do the right thing by you and by your families, so we will be making you an American Airlines employee as of March 17. As an employee, you will receive a paycheck, have travel privileges and be eligible to enroll in our medical coverage. We will reschedule your orientation once life returns to normal. Renee, Dena, Don, or Teri will reach out to you tomorrow to address any questions you may have.”

Quite a contrast if it's accurate.

[733driver]

I've learned to hate the 'Big Announcement' in the flying business. :(

Here are the current inbounds to Marana, I'm sure lots more to follow.

https://cimg2.ibsrv.net/gimg/pprune.org-vbulletin/692x652/mzj_2a0f14826b795eaa9f3a26a187a07afbe5db87bf.jpg
Ouch. Somehow that screenshot really drove it home for me. What a shame.

[Airbubba]

New memo out today. From CNN:

Internal Delta memo: Airline to "hit the pause button" on some operations
From CNN's Greg Wallace and Kylie Atwood

Delta needs to “essentially hit the ‘pause button’” on some of its operations, CEO Ed Bastian told employees in a memo Wednesday, making further major cuts to its operations that include parking more than half of its aircraft.

The company’s cuts include cutting back 70% of its capacity, further pay cuts for executives and company leadership, as well as paring back its operations in airports around the country – including its major hub in Atlanta.

“With fewer customers flying, we need less space in airports,” Bastian wrote. “Among other initiatives, we will temporarily consolidate airport facilities in Atlanta and other locations as necessary and close the majority of our Delta Sky Clubs until demand recovers.”“We are reducing our active fleet size by parking at least half of our fleet – more than 600 aircraft,” he wrote, as well as retiring older planes.

He also said “roughly 10,000” employees have volunteered to take leaves of absence.

Bastian did not announce any layoffs, but he did not count out the possibility.

“I know everyone is concerned about the security of your jobs and pay. Given the uncertainty about the duration of this crisis, we are not yet at a point to make any decisions," Bastian wrote.

Some context: Bastian's message followed a telephone call he and executives at other US airlines held with President Trump to discuss the state of the industry and its request for billions of dollars of government financial assistance.

Bastian said the discussions have been "constructive."

[Airbubba]

Today's Delta memo from the CEO:

To: Delta Colleagues Worldwide

From: Ed Bastian, CEO

Subject: Protecting Delta's Future

As the COVID-19 (coronavirus) pandemic progresses globally, its impact on our business continues to grow. To contain the virus, social distancing has become widespread and new travel directives are being enacted, now including more than 40 nations worldwide.

First and foremost, I want to remind everyone of the importance of your health and safety. It is safe to travel, but always make sure you are taking the necessary steps to ensure your health and that of our customers and our people. The CDC has important guidelines available, so please follow all necessary precautions.

Following the national emergency that was declared by the U.S. President, demand for travel has dropped significantly. Revenue for the month of March is now expected to decline by almost $2 billion over last year, with our projection for April falling even more. Therefore, we will continue to make significant capacity reductions with a 70 percent systemwide pullback planned until demand starts to recover. Our international operation will take the largest reduction, with over 80 percent of flying reduced over the next two to three months.

We are having constructive discussions with the White House and Congress, and remain optimistic that our industry will receive support to help address this crisis. That said, we have to continue to take all necessary self-help measures. Cash preservation remains our top financial priority right now. Making swift decisions now to reduce the losses and preserve cash will provide us the resources to rebound from the other side of this crisis and protect Delta's future.

We are deferring nearly all of our capital spending, including all new aircraft deliveries, until we have better clarity on the duration and severity of the situation.

In addition, we are looking to secure more than $4 billion in cash savings in the June quarter alone. This will include capacity-related savings as we suspend flying, and we are also targeting expense reductions from:


All Delta officers will take a 50 percent pay cut through June 30, with directors and managing directors taking a 25 percent cut during that same period.​
As I mentioned last week, I've cut my own salary by 100 percent through the next six months. Our Board of Directors elected to forego their compensation over the next six months as well.
With fewer customers flying, we need less space in airports. Among other initiatives, we will temporarily consolidate airport facilities in Atlanta and other locations as necessary and close ​the majority of our Delta Sky Clubs until demand recovers.
We are reducing our active fleet size by parking at least half of our fleet – more than 600 aircraft. We also will be accelerating retirements of older aircraft like our MD-88/90s and some of our 767s.
We are reducing any maintenance spend that is not necessary to support the safety of our operation.
We have reduced most contractor spend, except where needed to support the operation.

Voluntary leaves are one of the best and most immediate ways you can help as we strive to protect jobs and pay. I want to thank each of the roughly 10,000 Delta people who have already volunteered and I urge everyone, especially our merit employees, to seriously consider whether a temporary leave makes sense for you and your family right now. Please remember that you will continue to have access to your health and flight benefits while on leave.​

As we draw down our operation, I know how painful it is to essentially hit the "pause button" on so many things that are core to what we do for our customers and our mission to connect the world. But what will never stop is the spirit of the Delta people, which is shining through brighter than ever even in this dark moment. I have received hundreds of emails and messages from my Delta colleagues over the past week, and your passion, commitment and confidence in our future is truly inspiring.

In particular I want to thank the Reservations and Customer Care team, who are doing incredible work managing an unprecedented volume of calls and taking care of our customers who need to adjust their travel plans.

Make no mistake – we will get through this. This is a temporary health crisis and an end will, hopefully soon, be in sight. Never underestimate the power of travel as an essential service to our world. All of our work over the past decade to fortify our company and transform our business model will serve us well in the weeks and months ahead, as we endure and, eventually, recover.

Please continue to make the health and safety of each other and our customers our top priority. Wherever possible, we are moving to have our people work remotely to reduce the risk of transmission. For those working in the operation, continue to always follow our safety and security guidelines to minimize distractions, and call a safety time-out when needed. And please be mindful in your personal lives to take steps to protect yourself and your loved ones, including social distancing and recognition of those who are most vulnerable, including the elderly and those in poor health. Be aware that if your doctor advises you to stay home because you may have been exposed to COVID-19, you will be paid and won't have to deduct that time from your PPT bank.

I know everyone is concerned about the security of your jobs and pay. Given the uncertainty about the duration of this crisis, we are not yet at a point to make any decisions. And those are very painful decisions to even consider. But know that my No. 1 priority is taking the very best care of all of you. In this unpredictable environment we can't take any options off the table, but any steps that would affect your jobs or pay rates would be the absolute last thing we would do, and only if necessary to secure Delta's long-term future.

I will be in touch again by the end of the week with additional updates as we navigate this together. Thank you for all you are doing for each other, for our customers, and for your communities and your loved ones in this unprecedented time. ​

Ed

[gums]

Salute!

Holy crapola, Bubba!

This is getting serious, huh? I wonder how the "executive" jet business will be doing for the folks with the $$$$.

Gums sends...

[SamYeager]

All Delta officers will take a 50 percent pay cut through June 30, with directors and managing directors taking a 25 percent cut during that same period.​
As I mentioned last week, I've cut my own salary by 100 percent through the next six months. Our Board of Directors elected to forego their compensation over the next six months as well.


Curious why these individuals aren't sharing the pain. They hardly strike me as short of moolah.

[Turbine D]

Salute!

Holy crapola, Bubba!

This is getting serious, huh? I wonder how the "executive" jet business will be doing for the folks with the $$$$.

Gums sends...
After a booming week, it appears the future is 'up in the air.'

https://www.flightglobal.com/business-aviation/business-jet-industry-faces-uncertain-future-after-several-days-of-booming-demand/137265.article

[Oh gaim]

After a booming week, it appears the future is 'up in the air.'

https://www.flightglobal.com/business-aviation/business-jet-industry-faces-uncertain-future-after-several-days-of-booming-demand/137265.article

Typically the very wealthy are impacted last, least and recover first and faster.

[Airbubba]

Here's the letter from airline CEO's (including FedEx and UPS) to the Congressional leadership urging a bailout package. Emphasis is mine on the furlough protection clause. An opener I suppose and CYA for the inevitable furloughs if they don't get the requested payroll protection 'grants' of at least $29 billion.

March 21, 2020

Dear Leader McConnell, Leader Schumer, Speaker Pelosi and Leader McCarthy:

On behalf of 750,000 airline professionals and our nation’s airlines, we respectfully request Congress to continue to move expeditiously to pass a bipartisan proposal that includes a combination of worker payroll protection grants, loans and loan guarantees and tax measures.

Time is running out. The worker payroll protection grants are critical to saving the jobs of our employees. Over the past week we have communicated to our employees the dire situation we are in and the potential impacts on them if our government doesn’t step up to help.

We are doing our part. Over the past decade we have reinvested over 73 percent of our operating profits back into our people and product, creating good paying jobs at a rate that has outpaced other sectors. As a result of a global pandemic and government actions to contain it, we are now undertaking over $30 billion of self-help measures, including asking our employees to take voluntary unpaid time off, parking planes and trying to obtain financing in today’s credit market. Those markets are closing up. Given the extreme nature of this situation, we respectfully urge Congress not to pursue opportunistic measures that will hurt, not help our ability to recover Unless worker payroll protection grants are passed immediately, many of us will be forced to take draconian measures such as furloughs.

If Congress is able to reach a bipartisan agreement on these three critical elements, airlines are committed to ensuring that:

If worker payroll protection grants are enacted, equaling at least $29 billion, participating passenger and cargo air carriers will not furlough employees or conduct reductions in force through August 31, 2020.
If loans and/or loan guarantees are enacted, equaling at least $29 billion, participating passenger and cargo air carriers commit to:


Placing limits on executive compensation;
Eliminating stock buy backs over the life of the loans; and
Eliminating stock dividends for the life of the loans.

The breadth and immediacy of the need to act cannot be overstated. It is urgent and unprecedented.

We are united as an industry and speaking with one voice. We urge you to swiftly pass a bipartisan bill with worker payroll protections to ensure that we can save the jobs of our 750,000 airline professionals who are coming to work every day to serve the traveling and shipping public.

Thank you,

https://cimg0.ibsrv.net/gimg/pprune.org-vbulletin/500x578/airline_ceos_signatures_2_6d3e0443f4ebeb6a541a6451b44096103f 29fc4d.jpg




https://news.delta.com/deltas-ed-bastian-other-ceos-request-congressional-action-save-us-aviation-jobs

[Sqwak7700]

Let me sum up;

We promise to be good next time dad, just pay off the credit card this one last time please.

🤢🤮

[West Coast]

Curious why these individuals aren't sharing the pain. They hardly strike me as short of moolah.

Director level folks aren't rolling in the moolah like those in the executive group.

[bafanguy]

The March 16th pilot new hire class has been sent home. Hard to say for sure what comes next.

[Airbubba]

Here's the letter from airline CEO's (including FedEx and UPS) to the Congressional leadership urging a bailout package. Emphasis is mine on the furlough protection clause. An opener I suppose and CYA for the inevitable furloughs if they don't get the requested payroll protection 'grants' of at least $29 billion.

https://news.delta.com/deltas-ed-bastian-other-ceos-request-congressional-action-save-us-aviation-jobs

So far I don't see any mention of 'grants' to the airlines in today's Senate bill. It is hundreds of pages long and is written like international NOTAMs. Loans and loan guarantees it seems.

$50 billion in loans to the pax airlines, $8 billion in loans for the freight dogs and $17 billion in loans for the Boeing bailout.

13 (b) LOANS, LOAN GUARANTEES, AND OTHER IN-
14 VESTMENTS.—Loans, loan guarantees, and other invest-
15 ments made pursuant to subsection (a) shall be made
16 available as follows:
17 (1) Not more than $50,000,000,000 shall be
18 available to make loans and loan guarantees for pas-
19 senger air carriers.
20 (2) Not more than $8,000,000,000 shall be
21 available to make loans and loan guarantees for
22 cargo air carriers.
23 (3) Not more than $17,000,000,000 shall be
24 available to make loans and loan guarantees for
25 businesses critical to maintaining national security.

There is a weak sounding no-furlough clause attached to the loan or loan guarantee:

18 (F) the agreement requires the eligible
19 business to maintain its existing employment
20 levels as of March 13, 2020, to the extent prac-
21 ticable, while the loan or loan guarantee is out-
22 standing; and

[Airbubba]

There is a weak sounding no-furlough clause attached to the loan or loan guarantee:

Now it appears that even that mild 'furlough protection' language was left out of the draft of the bill marked 'Final'.

And what was assumed to be the Boeing bailout fund has suddenly expanded in paragraph (3) cited above:

11 (3) Not more than $150,000,000,000 shall be
12 available for other eligible businesses.

This copy is from Senator McConnell's website:

https://www.republicanleader.senate.gov/imo/media/doc/CARES%20Act%20Final%20-%20Mar%202020.pdf

[Airbubba]

And yet another report from a Reuters reporter. :confused:

https://cimg7.ibsrv.net/gimg/pprune.org-vbulletin/865x301/shep_dbc08e862674054bb8faf687f9cc3ac470c3e2a8.jpg
https://cimg0.ibsrv.net/gimg/pprune.org-vbulletin/836x302/shep3_c62cf5b3ddd392c1c7ab53763ce08f65b98da494.jpg

Looks like Mitch's copy above was not the final bill. Did cargo drop from $8 billion in loans to $4 billion in loans? And pax airlines down to $25 billion in loans instead of $50 billion?