Alison Sider of the Wall Street Journal asked whether Delta supports a CARES Act extension (airline payroll support), since Delta CEO Ed Bastian hasn’t been nearly as public on the issue as others like American’s Doug Parker.
Bastian was in a tough spot.
- The first round of payroll support had the government providing $5,436,331,186 to Delta. A straight extension of the payroll support program would presumably provide another $5.4 billion.
- But the purpose of the program is to prevent furloughs. At this point Delta hasn’t furloughed anyone. They’re in talks with their pilots over whether 1700 furloughs (the only ones on the table) can be avoided.
- Delta has successfully reduced their payroll through leaves and early retirements such that $5.4 billion would now be about 100% of payroll for 8 months at the airline. That’s a far cry from ‘what’s needed to avoid furloughs’ let alone a small piece of payroll for just six months.
Bastian said of course they support it! Then he pivoted to talking about Delta’s successes, being able to “save 40% of employee costs.” Then he returned to saying “that’s my view on that…we’re still hopeful something will happen” to extend CARES Act money and give Delta another $5.4 billion in federal subsidies.
Pressed on whether it’s less of a priority for Delta than other airlines, Bastian offered “I don’t think it’s less of a priority for Delta..we would be pleased to see [CARES Act money] given to all the industry.” Of course they would!
Doesn’t sound like it was such an awkward moment then.
@ Gary — Let’s start an airline.
How about someone ask Eddie why they think serving beer and wine is safe on a 6AM domestic flight but coffee and juice is somehow too dangerous?
Daniel it was an awkward moment for Delta Airlines. Their previous CEO reduce all non union ground employees from full-time (40h per week) down to part-time (30h per week or lower) during the first CARES act. Delta also reduced their FA’s minimum guarantee flight hours. If you look at Delta’s total payroll from both Q2 and Q3 and add it all up Delta’s original CARES act bailout of $5.4 billion more than covered their payroll for the past 6 months. If my math is correct Delta Airlines still has nearly $1 billion dollars in CARES act funds they didn’t use on payroll like they promised they would. The entire $5.4 billion dollars of funded by the tax payers of America was supposed to go directly to employees but that didn’t happen at Delta. Delta couldn’t reduce employees hourly pay to instead they reduced employees hours.
Of course no one at Delta wants to talk about the original CARES act let alone a second CARES act except to say they wouldn’t not pass up a second CARES act. Delta’s payroll for the next 6 months will not be anywhere close to $5.4 billion dollars. But I’m sure Delta would still take another $5.4 billion dollars tax payer funded bailout.
How’s this an awkward moment? Sounds like a sensationalist headline to get the clicks on the article. Awful journalism.
Eddie would rather reduce head count by furlough rather than use reduced hours for pilots, which has been the industry standard. He will furlough flight attendants when voluntary leaves expire too!! As for Tax Payer dollars, this is not tax payer dollars, this is money being printed for the sole purpose of stimulating the economy and providing much needed relief for many families!!
Is ANYONE gonna talk about how they FIRED all of the contractors and put flight attendants in those jobs to so call “save” jobs? Delta didnt save anything by firing one set of folks to protect another. They act like they didn’t send anyone to the unemployment lines. Its complete BS and a sham of a story they paint to the media all to keep their flight attendants from bringing in a union. Its sad really. All other airline CEOs and Airline Union groups are doing the work while Delta sits backnand reaps the benefits without doing or joining in on ANY of the work. It’s pathetic!