- It also depends on how airliners react. Any thoughts? I think I'm right. Either way, these big layoffs may be delayed???
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The previous bailout for the airlines was specifically tied to the airlines’ payroll. The government covered the costs of the airlines’ unneeded employees in exchange for the airlines agreeing to not fire them till October. It had absolutely no impact on current or future operations planning, which is where MRO and future plane orders got hit. In other words, the last bailout didn’t help Pratt at all.
The bailout for the airlines is certainly not changing Pratt’s announced layoffs. They’re coming.... some day.
Unfortunately, that’s not how it works. So the stimulus for one group doesn’t necessarily mean an immediate response for another group. Because remember, the company needs booking and sales. So until those contracts are signed, there is no guarantee that work is coming our way. And it takes time for those RFPs to go out and get a response. On the government side their fiscal year is October. On the commercial side the fiscal year is January. And typically, they’ve already done the budgets for 2021 two months ago. Now it doesn’t mean those budgets will stay the same, but they already understand what they’re going to be spending money on. And they’ve already targeted 15,000 people across this company to lay off. That means real money on Wall Street and that’s what drives a lot of this.