Friday will see the start of negotiations between the United States-based low-cost Spirit Airlines (S64) (SAVE) and workers’ unions about the possibility to put 20-30% of employees on unpaid leave in October 2020
An internal memo, which was obtained by Reuters, details the unsustainability of the company’s daily cash burn of over $100 million. “It’s now clear that the demand increase we saw in June was an outlier, and the downward trend will continue,” Sprit Airlines CEO Ted Christie says in the memo.
The US Government’s stimulus package is about to expire in September, as does the commitment to abstain from laying off workers.
The extension of the package for another three months is still unclear, so the company is looking for alternative ways to mitigate the expenses.
According to the memo, Spirit’s pilots and flight crew are amongst the workers at risk of furloughs.