As we go to print, things have
really changed in the travel and airline world.
Look below to two articles in the last HL that the big D had soo much
cash they were funding just about everything.
NOW, they along with other airlines, are in DC with hat in hand for a
handout. The while the Fed is passing
out Billions like candy, maybe they could cough up $1 Bill for the old retired
pilots who got hosed. I’m holding my
breath, waiting for that. Look for some
airlines to not let ‘any crisis go to waste’ and use this one to “re-order”
other pension liabilities that they in no way are funded for nor have any
intention of fulfilling in the future.
Also from Capt Moser:
Airlines
and Boeing want a bailout — but look how much they’ve spent on stock buybacks
1st Two Clips below from a few weeks ago followed by
the latest article about Delta:
Delta workers to receive profit-sharing payouts
worth 2 months’ pay
Jan.
21, 2020 at
3:57 p.m. EST
Jena McGregor
Delta
Air Lines’ banner year — propelled by lower fuel prices, higher travel demand
and no sidelined Boeing 737 Max planes in its fleet — led
the carrier to beat earnings estimates and notch its 10th consecutive profitable year………………………………….
…………………………………………………..
Delta to invest $1 billion to curb global air travel's climate
impact
CHICAGO (Reuters) - Delta Air
Lines Inc said on Friday it will invest $1 billion over the next decade in
initiatives that would limit the impact of global air travel on the
environment, the first airline to make a commitment of that scale.
The aviation industry accounts
for roughly 2% of global carbon dioxide emissions and has set out a plan to
achieve carbon-neutral growth from 2020, even as air travel is forecast to
accelerate…………………………………..
Delta cuts a record number
of flights and seeks coronavirus aid from the U.S.
Mary Schlangenstein and Ryan Beene
March
13, 2020 1:17 PM
Delta Air Lines Inc. is cutting flights further, slashing spending
and seeking government aid to contend with the coronavirus outbreak — and Chief
Executive Ed Bastian warned employees that the situation is likely to get
worse.
The carrier is “optimistic” about U.S. support after discussions
with the White House and Congress, Bastian said Friday in an internal memo.
Delta will park as many as 300 planes and cut its seating capacity by 40% in
the next few months as demand evaporates. That’s the biggest reduction in
company history, including after the 9/11 terrorist attacks, he said.
“The speed of the demand falloff is unlike anything we’ve seen,”
said the CEO, who will give up his salary for the next six months. “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.”
Delta’s rush to reduce expenses underscores the swift collapse in
travel demand as the new coronavirus spreads worldwide. Cancellations are
rising so fast that more customers are scrapping reservations than making new
ones for travel over the next month, Bastian said.
The precarious situation facing U.S. carriers is focusing attention on Washington, where Treasury Secretary
Steven Mnuchin said the airlines were likely to need assistance because of
their “short-term liquidity issue.” American Airlines Group Inc. said it was
involved in discussions about government support as well.
Sen. Ted Cruz, the Texas Republican who chairs the Senate Commerce
Committee’s aviation panel, is working with airlines, Trump administration
officials and other lawmakers on economic relief measures, according to his
office.
Airlines are “on the front lines of combating this public health
crisis and are facing very real economic challenges as a result,” Cruz
spokeswoman Jessica Skaggs said in a statement.
“I’m optimistic we will receive their support,” Bastian said.
“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.”
As part of the cost cuts, Delta will defer new aircraft deliveries
and pare investment by at least $2 billion this year. The Atlanta-based company
is also adopting a hiring freeze and offering employees voluntary unpaid leave.
Delta had said it would cut domestic capacity as much as 15% and
international flights by up to 25%. United Airlines Holdings Inc. chopped its
April domestic schedule 10% and reduced international flying 20%, while
American Airlines Group Inc. said it would trim U.S. service 7.5% in April and
decrease foreign flights by 10% in the peak summer season.
The airline industry took an additional blow this week when
President Trump ordered temporary restrictions on travel to the U.S. from the European Union. Bastian warned that the 30-day ban on most flights “could be
extended,” furthering the drop in traffic.
“Demand for travel is declining at
an accelerated pace daily, driving an unprecedented revenue impact,” Bastian
said. “We’ll be making more critical decisions on our response in days to come.
The situation is fluid and likely to be getting worse.”
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