Q:

I work in construction and a few months ago when the second wave started I was missing my child support. A buddy from my crew suggested a payday loan. It brought me the money I needed, but I didn’t know it was going to turn into a huge debt. After getting the loan, I couldn’t afford my rent for the next month, so I got another loan. My truck was supposed to be confiscated so I took out some loans online because my credit rating means I can’t get any money from my bank. Now I owe more money on all of these loans and the credit cards that I maxed out before than I earn. I have no idea how to make all the payments and the pressure is killing me. How do I get out of this huge mess? ~ Damon

A:

The pandemic has hit us all very hard in many ways, and in the face of the pressure, it can be difficult to step back and make thoughtful decisions. Unfortunately, when it comes to our money, the long-term consequences of expensive decisions can be hardship.

A

current survey

from the Credit Counseling Society shows that one in four Canadians is concerned about their current financial situation. However, turning to costly short-term loans ultimately does little to alleviate anxiety. Think of it this way: If you are short of cash now and have no savings to hand, how can you repay the short-term loan plus interest and fees and still live with the remaining money? ? As many have found out, the answer is “you don’t”. You pay off the loan with the money you have, but take out a new loan to get through until your next paycheck.

A payday loan, whether in person or online, can seem like an easy way to bridge a shortfall from one paycheck to the next, especially if you’ve run out of traditional loans like credit cards, a line of credit, or an overdraft. But the reality is that most people find out the hard way that they accidentally got stuck in a debt cycle that is difficult to escape.

The longer you ignore debt, the worse it gets

If you’re used to using an available credit card on a cash advance to cover a daycare or rent, or clicking an app to get instant online credit to cover regular living expenses (e.g. it’s hard to imagine how You will survive without those lifelines, but if you ignore your debt, it will get worse, not better.

Our survey

also found that more than a third (36 percent) of Canadians would not seek professional financial advice until their debt reached uncomfortable levels. The truth is that those who get in touch earlier tend to have more options. And having a plan, even a difficult one, is better than wondering when the other shoe is going to fall.

Nobody can argue with the convenience of an instant loan, and regaining control of your finances can feel like a daunting task. But honestly ask yourself what your future will be if you do nothing. How are you going to deal with all the stress and pressure?

Alternatives to expensive loans for people with poor credit ratings

Learn how to escape the payday loan cycle

In order to break out of the payday loan cycle, you need to know what owed you in the first place. Think about your circumstances and consider:

● Was there an emergency expense that wiped your savings account and you didn’t have a chance to rebuild it before facing the next money crisis?

● Has your income decreased?

● Have your expenses increased?

● Where do you stand with your budget? Do you have one?

● Are there any non-financial factors that have contributed to your situation?

● Do you have debts that you should have settled sooner?

Once you know why you were looking for payday loans, there are steps you can take to avoid relying on them again to make ends meet.

Check your budget

Check out next

Your Büdget

. The best way to deal with your debt depends a lot on where it is. If you’re on a budget, now is the time to create one. When you know how much all your expenses are, including some savings on expenses that are incurred regularly throughout the year, subtract them from your income – how much is left? If you have some money left, your options are other than having your entire paycheck requested.

Open a new bank account bank

Next, you should keep your paychecks safe. Maybe you have to

open a bank account

with a financial institution that you do not owe any money to. When you agreed to the payday loans, you also gave them permission to take payments from your bank account. While you are working to clarify your situation, it is important to keep your cash safe. The same goes for the other debts that you are in arrears; Your money could be set off against a debt once your paycheck is on deposit.

Develop a payment plan

If you still have money in your budget,

propose a payment plan

to your payday loan lender or company. Even though they may not agree, staying in regular communication with them and making small, consistent payments goes a long way.

If you don’t have money to make payments,

Get help

before your situation worsens. The last thing you want is for your wages to be seized and child benefit withdrawn at the source. There’s no shame in asking for help when you need it. Just make sure it’s available reliably and for free or at a low cost. Expert advice will go a long way in engaging your creditors as you work to get rid of all of your debts.

Assess yourself for the warning signs of debt

Create your own safety net

As you outline your budget, make sure you set aside a small amount to open an emergency savings account. You may feel that the money could be better used to pay off debt, but some savings will actually help keep you debt free. It seems so counter-intuitive, however

Saving is really a superpower

. Call it Plan B, a safety net, or just an emergency account. With a little money to fall back on, you won’t have to take out new credit on your next money crisis. Start small and work your way up. You will be surprised how quickly that adds up.

Check your own credit report

There is no consensus across Canada on whether or not payday lenders share information about their track record with the credit bureaus. Many of the largest companies will report your information, and some of the smaller ones won’t report unless you have a default value. The best way to find out what’s on your credit report is to

Get a copy of your own report for free

.

A copy of your credit report is also a great way to see where you stand on your other debts. While taking care of your payday loans may be your top priority, regaining control of your paychecks will allow you to add all of your debts to your payment plans.

When it comes to bad credit, the bigger question isn’t whether your credit is getting worse, but are you making any progress towards getting back on track financially? It is

There is no point in worrying about your creditworthiness

; do whatever you can to get back on track, balance your expenses with your income, settle all of your debts (not just the payday loans), and your evaluation will take care of itself in time.

Protection for consumers

Most provinces in Canada have laws that set the maximum fees a payday lender can charge, how often loans can be renewed, and what remedies they must offer customers who cannot afford to pay back their loan. Review what lenders doing business in your province are required to adhere to

the consumer protection office of your state

. Just be aware that no legislation can protect the consumer from himself. While payday lenders are required to disclose to their customers the cost of taking out the loan, someone desperate to cope with a money squeeze will not focus on the cost of borrowing. For them, the only thing that counts is receiving the money.

The bottom line on payday loans and quick, easy cash

The convenience of instant cash and easy payday loans can feel like the help you need to manage your finances. But there is never a quick and easy solution to debt. Get help sooner or later because it is always a good time to stop relying on an expensive, temporary solution to a more serious underlying problem.

Related reading:

5 Reasons To Avoid Payday Loans

How to Overcome 8 Sources of Financial Problems

What to do after a raise

Scott Hannah is president of the Credit Counseling Society, a nonprofit organization. For more information on managing your money or debt, please contact Scott by

E-mail

, check

nomoredebts.org

or call 1-888-527-8999.

Copyright Postmedia Network Inc., 2021

What are alternative assets?

Why invest in alternative investments?

What is to be considered

Common types of alternative assets

How to invest in alts

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On a late summer Wednesday morning, legendary rapper Nas is lounging in a Scandinavian-chic conference room in the Lower Manhattan headquarters of the venerable hip-hop media company Mass Appeal. Even before he graced the cover of Mass Appeal for the first time in 2002, he was a mainstay of reporting, one of the most influential hip-hop artists of all time.

But he’s not here for another Mass Appeal story. Today Nas, 44, is a co-owner of the company. It’s part of his extensive venture capital portfolio, which includes stakes in startups from Casper to Dropbox – investments often made through his QueensBridge Venture Partners fund (named after the New York City residential projects he grew up on). Pretty good for an artist who was reluctant to achieve business success and always felt more comfortable rapping about African history than launching clothing lines.

“I was a music guy for years, and then suddenly it was like I had reached an age … I think it was just age or just wisdom,” explains Nas in his signature baritone rasp. “I felt it was time now.”

Almost 25 years after his first album was released Illmatic, Nas lands on ours List of hip-hop cash kings for the first time among high-earning rappers after grossing $ 35 million last year. That’s thanks to over 40 shows and a lot of support from Hennessey – and his share of the sale of Ring, a smart doorbell maker, to Amazon. While Nas may have missed the sneaker and streetwear deals of the late 90s, his startup investments have shown him to be a later commercial force and a little unlikely trailblazer.

Take his stake in Mass Appeal, which occupies two floors of a SoHo WeWork building, an industrially stylish room with a pet snake shedding its skin in a neon-lit aquarium (a gift from rapper Young Thug). Mass Appeal was revived five years ago by Peter Bittenbender, co-founder of the creative studio Decon, and Sacha Jenkins, co-founder of Ego trip Magazine.

The latter spent much of his youth in Queens, where Nas grew up with a blues-playing father and mother who worked for the postal service prior to its publication Illmatic, still considered by many to be the best rap album of all time. Jenkins recognized Nas’ talent early on and stayed in touch with the development of Mass Appeal.

“Sacha connected all the dots and called Nas, just like this: ‘Would you like to help?’” Recalls Bittenbender. “That was absolutely not part of his job at the time, but he had a history [with] the brand, so it made a lot of sense. “

Nas came and invested a six-figure sum in a million dollar round with Decon and early stage White Owl Capital Partners. Mass Appeal reappeared in 2013 with plans to become a quarterly print publication. This strategy has now given way to a multimedia approach.

Today, Mass Appeal’s editorial output exists primarily on platforms like YouTube, which is home to its popular video series. There is “Rhythm Roulette”, in which Mass Appeal challenges producers to turn three blindfolded records into a beat from a local record store, and “Open Space”, which offers interviews with prominent guests.

Mass Appeal has also expanded into other areas, founded its own creative agency and released specials such as the hip-hop documentaries rapture and Freshly dressed. Nas contributed to both, arranging a performance for YouTube’s music director Lyor Cohen – the former head of Def Jam Records – who then got Mass Appeal to work on a Google campaign to mark the 44th anniversary of hip-hop with an interactive graphic That was staged by hip-hop pioneer Fab 5 Freddy. Nas also helped Mass Appeal arrange interviews with famous friends like Kanye West and Diddy Freshly dressed.

“Hip-hop was so embedded in the lives of so many people who make decisions,” says Jenkins. “Now [Nas is] a moving piece of social capital. This capital is tied into his art and this art opened all these doors, you see? Now people understand that art itself is linked to culture and culture is linked to commerce. “

Nas has followed a similar formula in his other investments. His inspiration came when he met Andreesen Horowitz co-founder Ben Horowitz and at a dinner arranged by his mass appeal investor Steve Stoute around 2012 (“I’m a great foodie,” the rapper says). Two years later, Nas founded QueensBridge Venture Partners with his manager Anthony Saleh. There were also general partners Ajay Relan, Anand Murthy, Craig Vaughan and Dee Murthy (a fifth, Rashaun Williams, has since left the company).

Since then, Nas has received stakes in dozens of startups, either through angel investing or QueensBridge, including many of those scouted by Andreessen Horowitz: Lyft, Genius, and Coinbase, to name a few. He’s not the only rapper with equity stakes, of course. Many of the other hip-hop cash kings have invested in Silicon Valley favorites, from Jay-Z (Uber, stock trading app Robinhood) to Diddy (Spotify), though Nas seems to be the most prolific.

Most recently, Nas helped found Mass Appeal Records in 2014 and released his newest album earlier this year, Nasir, on the label. This came after he managed to convince the Universal Music Group to let him out of the last record of his deal; the record giant also joined him as an investor in Mass Appeal.

“There was no time when [rappers] didn’t think about investing, “says Nas.” The world opens up by chance. “

You can reach Zack O’Malley Greenburg at zgreenburg@forbes.com. Cover photo by Franco Vogt for Forbes.

SACRAMENTO, California –

Thousands of small businesses in California are on the verge of failure – and desperately need some quick buck from the federal government to keep them alive.

However, it found that many loan applications were put on hold when government computers crashed.

One of those companies in trouble is Chill-N-Go in Rancho Cordova, where face masks were made Thursday. This is very different from the insulated wine bags usually made – but currently it’s the only way to stay afloat.

“We pretty much laid off our entire workforce,” said Bill Estberg, owner of Chill-N-Go.

Estberg is looking for cash – so he applied for a $ 190,000 loan with the Small Business Administration.

“For me, the bottom line here is survival,” said Estberg. “This is a 43 year old company. Many of these people have been here for over 30 years. ”

While Estberg received a $ 10,000 grant from the SBA, he has made little progress on the nearly $ 200,000 in loans he applied for.

Independent small businesses need capital to survive, but the processing and approval of credit by the Small Business Administration is a common headache.

“There’s a traffic jam,” said John Kabateck, California director of the National Federation of Independent Business.

Kabateck added it was “a problematic backlog for small businesses to get the loans they need and get them today”.

“Fifty percent of our members said they won’t be here for the next month or two. They will close their doors and send their employees home because they cannot survive, ”he said.

Many small shops have closed because of the corona virus. And this week a number of banks have had major problems connecting to the SBA website.

“They couldn’t get in,” said Virginia Vareal, executive director of the Golden Pacific Bank in Sacramento.

“It kept crashing all morning,” said Vareal. “We couldn’t get in. We could only process one loan out of hundreds – and found out that pretty much it was with bankers in the US.”

What went wrong with the SBA?

“As you can imagine, we received a lot of applications on the first day,” said Miryam Barajas, Regional Communications Director for Small Business Administration. “And we’ve made some changes to the database that processes these loans.”

“For example, we created a timing mechanism so that all lenders can access information at the same speed,” added Barajas.

The SBA “limited access to the database last night even to our very small lenders – those who had assets of $ 1 billion or less,” Barajas said. She added that the move was “so that their companies have access to these loans”.

The SBA has made millions in loans, Barajas told KCRA 3. “As of Wednesday night, we had about 960,000 approved applications under the second round of the paycheck protection program. That gives us nearly $ 90 billion approved for lending, ”said Barajas.

Barajas told KCRA 3 that the computer problems are now completely resolved, but Bill Estberg is still on hold.

“I’ll be more nervous in 30 days,” said Estberg. “In 60 days I’ll really be wondering if this will even work.”

The Small Business Administration is still processing approximately $ 220 billion in loan applications under the second round of the Paycheck Protection Program. Barajas advised companies to check with their lender if they haven’t received any feedback from the SBA.

U.S. airlines have pawned gates, flight routes, and pretty much any asset they could find in the back of a hangar to protect the weather the corona crisis. Now they are considering selling Miles in bulk to their credit card partners to raise cash.

United Airlines Holdings Inc. and Delta Air Lines Inc. and their respective credit card partners, JPMorgan Chase & Co. and American Express Co., have discussed dumping miles ahead of schedule and for less than lenders would normally pay, folks with the Thing familiar.

The talks may not lead to any deals, but they show how desperate the airlines have become in the weeks since the coronavirus pandemic has put the US economy into hibernation and canceled thousands of flights. They’ve pledged many of their assets over the past few weeks to secure billions in loans, but it won’t be enough to get them through what is likely to be months of slump.

Banks routinely buy miles from airlines to reward consumers for their credit card spending. What you recently discussed is different: the banks would – all at once and at a discount – buy miles that they would otherwise have bought as cardholders in the future. The cash injection could help keep airlines alive and protect card partnerships that generate billions in annual spending.

Airlines relied on their card partners and during the 2008 downturn following the September 11, 2001 terrorist attacks trying to avert bankruptcy. But it’s not an attractive option. Airlines that do this are sacrificing future revenue and potentially the upper hand in negotiating with their credit partners.

LONDON (Reuters) – Sanjeev Gupta’s GFG Alliance secured a loan from Trafigura in 2018 by entering into a six-year contract to sell aluminum to the commodity trader at a discount to market prices, two sources with direct knowledge of the agreement told Reuters.

The loan was used to fund GFG’s December 2018 purchase of Europe’s largest aluminum smelter in Dunkirk, France, the two sources said.

They said the agreement, which was not previously made public, suggests that the Dunkirk plant is less exposed to the GFG Alliance’s larger funding problems because, unlike other parts of the conglomerate, it had different funding than Greensill Capital’s one Filed for bankruptcy last week.

A third source close to the matter said the Dunkirk plant, whose aluminum production is vital to the automotive, aerospace and packaging industries of continental Europe, generates cash and does not rely on Greensill for funding.

Industry sources said GFG relied on Greensill for short-term funding, but also used some longer-term loans to buy steel and aluminum plants, including its Dunkirk facility.

GFG said it would “not comment on the specific terms of our business agreements.” Trafigura declined to comment.

Gupta said GFG is in talks with administrators about what is known as a standstill, which means it could suspend debt payments to Greensill for an agreed period of time.

GFG, an umbrella company of the Gupta network of steel, aluminum and energy companies, told unions last week that it has sufficient funding to meet its current needs but is looking for long-term alternatives.

The agreement signed in November 2018 to sell aluminum to Trafigura at a discount, according to a copy of the contract viewed by Reuters, offered an incentive to participate in the Dunkirk financing as it provided the commodities trader with additional income on top of interest procured from the loan earned, the two sources said.

GFG bought aluminum at market prices and sold it to Trafigura at a discount of $ 20 per tonne.

A consortium that included banks loaned GFG a total of $ 350 million to buy the Dunkirk cottage, a presentation document prepared for the lenders and viewed by Reuters. Trafigura has pledged $ 150 million of that, said one of the first two sources to speak on condition of anonymity.

Gupta contributed the remainder of the $ 500 million asking price for the Dunkirk hut, as this presentation document shows.

A fourth source said GFG had repaid part of the loan from Trafigura and the banks and the outstanding amount is now $ 250 million. The Dunkirk aluminum operation was used as collateral for the loan, the source added.

Trafigura has agreed to buy up to 560,000 tons of aluminum from GFG, or at least 93,000 tons per year, between 2019 and 2024, according to the contract viewed by Reuters. At current market prices, 560,000 tons are worth $ 1.2 billion.

This document also shows that the first 460,000 tons would be sold to Trafigura at a discount of $ 20 per ton, showing the additional amount GFG was willing to pay to secure funding from the commodity trader.

PARIS / AMSTERDAM (Reuters) – Air France-KLM is in talks with banks to obtain loans guaranteed by the French and Dutch governments of up to 6 billion euros ($ 6.5 billion) as the Airline group prepared for an ongoing coronavirus shutdown, sources told Reuters.

The two states, which each own 14% of Air France-KLM, have interrupted a long-running boardroom feud to address the money crunch, according to three people close to the discussions. But the crisis ultimately risks deepening their conflict, they said.

Details and amounts have not yet been finally clarified and could change, it said. In the most likely scenario, Air France could get around € 4 billion in French guaranteed loans, while KLM would get close to € 2 billion backed by The Hague, two sources said.

The group has hired BNP and Societe Generale to advise on the refinancing, two of the sources said.

Both banks declined to comment.

“We are of course in constant talks with both governments,” said a spokeswoman for Air France-KLM and declined further comments.

Governments around the world are scrambling to prop up bankrupt airlines as the pandemic gains momentum, travel demand dwindles and traffic nearly grinds to a halt.

The French and Dutch governments also declined to comment in detail on the talks between Air France and KLM. Both countries have agreed to offer financial aid.

“We have been in talks with KLM and Air France for a long time, and specifically with the French state,” said Dutch Finance Minister Wopke Hoekstra on Wednesday to Reuters. “It is extremely important to help this vital company through these troubled times.”

Air France-KLM’s emergency loans would be many times their depressed market cap of € 2.12 billion – reflecting the magnitude of the threat to the major airlines and the steps being taken to rescue them.

The U.S. Senate approved a $ 58 billion bailout for the U.S. aviation industry on March 25, the day before Singapore Airlines received a $ 13 billion lifeline. Lufthansa is on billions in aid.

GUARANTEES

Loans for Air France and KLM are backed by their respective governments, two people said, with the Paris package including € 300 billion in aid to businesses pledged last month with a 70 percent state guarantee.

Air France is in talks with potential lenders such as Credit Agricole and Natixis, while KLM will likely fall back on existing relationships with Dutch banks, one of the sources said, adding that agreements are expected this month.

France is resisting banks’ demands for higher government loan guarantees, the same people say. For comparison: the German competitor Lufthansa is to secure the emergency financing with an 80 percent state guarantee.

Credit Agricole declined to comment, while Natixis did not respond to requests for comment.

According to the EU guidelines relaxed for the crisis, state-guaranteed loans may not exceed a quarter of 2019 sales – 4.15 billion euros for Air France and 2.77 billion euros for KLM.

“Both governments are working to pump as much as possible instead of pumping as little as possible,” a source said.

At Air France-KLM, which emerged from the merger of the two national airlines in 2004, the French and Dutch governments disagree on management and strategy.

Frustration exploded in March of last year when the Dutch state surprisingly took over a stake in the group that was supposed to match France’s stake and counteract its clout.

A stalemate has occurred in which the Dutch government has not received any of the concessions it requested, while the value of its investment has fallen by 60%. Group CEO Ben Smith’s efforts to achieve greater integration have also largely stalled.

NATIONALIZATION?

In view of the global crisis, the talks between the governments were “dynamic and transparent”, said one of the participants. “The focus for all of us is on saving our economies.”

But the credit frenzy would leave a debt-laden Air France KLM in need of new capital if the coronavirus disruption wears off, two sources said, reinvigorating tensions that could lead to a breakup.

The nationalization of Air France “is one possibility among others that we are not ruling out,” said French Transport Minister Jean-Baptiste Djebbari on Sunday. On the Dutch side, “several options are still being considered, including a government-backed loan” or an equity stake, a source said.

A likely reorganization could fuel resentment at KLM, which has consistently outperformed Air France’s profitability while preventing the strikes that plagued its stable mate.

Both airlines have cut their flights by more than 90% and cut costs with the help of government-funded vacations. KLM, which employs 35,000 people versus 45,000 at Air France, is also permanently cutting 2,000 jobs.

The company’s directors need to “keep a close eye on” each airline’s contribution to the recovery effort, said a Dutch source close to the board. “We will see.”

Uncertainty about the length and depth of the industry slump made the rescue operation even more difficult, said one of the interviewees.

According to shutdown estimates by Citi analyst Mark Manduca, who believes Ryanair and Wizz Air are the only major European airlines avoiding refinancing, the group is burning almost € 700 million in cash a month.

Summary

• delta has increased its fair share of cash since the beginning of the COVID-19 pandemic and believes it is well positioned to handle the debt due over the next 18 months.
• There is no certainty that delta will ultimately achieve its goal of balanced daily cash burn by 2020 as demand trends remain opaque, but the airline is not deviating from its plan to achieve that goal.
• The airline is also unsurprisingly in talks with airbus Postpone deliveries as it declares to do its best to minimize aircraft deliveries over the next 18 to 24 months.

delta assures that its cash on hand is robust enough to weather the COVID-19 crisis

US Airlines have raised massive amounts of liquidity since the beginning of the COVID-19 pandemic. delta closed the second quarter of 2020 with $ 15.7 billion in liquidity, and company executives recently announced that the newly raised liquidity (approximately $ 15 billion) has a mixed average rate of 5.5% .

The $ 15.7 billion that includes wage subsidies delta Received under the Coronavirus-Aid, Relief and Economic Security (CARES) Act, corresponds to approximately 19 months of liquidity.

delta assures that its level of liquidity is more than sufficient to handle the upcoming debt maturities, which is $ 450 million due in December 2020 and an unsecured loan of 600 million that is debt that delta raised during the COVID-19 crisis; “So we’ve already successfully refinanced that,” said delta Paul Jacobson, Chief Financial Officer.

Additionally, delta has a $ 3 billion bridging loan due March 2021 with collateral attached.

The airline has stressed that it will continue to be able to raise additional capital, either on its own or by using unencumbered assets. delta is also entitled to a CARES act loan of 4.6 billion US Government.

delta remains focused on zero daily cash burn by YE2020 but demand is under pressure

delta improved its daily cash burn, reducing it from $ 100 million in March 2020 to $ 27 million in June 2020, which is better than previous predictions of a daily cash burn of $ 30 million for that month.

The airline expects to maintain the same level of cash burn in July 2020 as it was in June 2020 as demand growth has stalled.

In June-2020 delta saw a steady increase in net sales while refunds decreased, and although the increase in sales has flattened out as infections have increased, Mr. Jacobson said sales remain stable at this point.

“As we see the further way to reduce our operating costs [by] 50% and keeping these net sales relatively flat, it’s July [Jul-2020] comes out flat by June [Jun-2020]”Explained Mr. Jacobson.

delta reduced its total cost of ownership by 50% year-over-year in Q2 2020 and expects its costs to decrease by the same amount in Q3 2020. The decrease in costs is largely due to more than 40,000 employees who have taken voluntary, short-term unpaid leave and crews who have reduced their working hours. Around 17,000 employees of the airline have also volunteered to leave the company.

It will be difficult to find more cost-cutting measures to zero the airline’s cash burn by the end of 2020, and delta CEO Ed Bastian has confirmed that “it will really be on the commercial side of the business, that will be much more important in getting us to that break-even level”. [daily cash burn] as the demand hopefully … starts to pick up again when we look at late summer and autumn ”.

A total of, delta continues to believe it could take two years or more to benefit from a sustained recovery, Bastian said, given the combined impact of the pandemic and the associated impact on the global economy. And the airline expects its revenue in Q3 2020 to be just a fraction of the previous year’s figure – 20 to 25%.

delta works with airbus to adjust deliveries as hundreds of jets are parked

How delta works to meet its cash burn goals, the airline is also involved airbus regarding his order book at the airframe. This is shown by the CAPA fleet database delta has a total of 245 airbus Aircraft to order, and the manufacturer represents 98% of the airline’s total backlog.

“We are clearly in a situation in which we do not need any planes,” said Bastian. “We have a lot of planes on the ground and we are doing our best for the next 18 to 24 months to minimize shipments,” he said.

According to CAPA’s fleet database delta has 597 aircraft in service and 781 inactive. The airline is also retiring 100 aircraft in 2020.

Mr. Bastian explained that delta worked with airbus but nothing was finished yet. “I can assure you that there will be no cash capex on any aircraft delta for some time, ”he emphasized.

Unpredictable demand will make it difficult for you US Airlines to Achieve Cash Burn Goals

delta, like so many airlines, is breaking new ground to position the company to withstand the significant challenges posed by the COVID-19 pandemic. And similar to most of them US Airlines, delta is working feverishly to reduce its cash burn to zero so that it can better withstand the crisis and cope with the upcoming debt maturities.

But with almost zero visibility on demand via that US High season, it could get tough for delta and be US Counterparties to meet their cash burn goals.

As the fall and winter seasons draw closer, when cash flow is typically much leaner than summer, airlines will inevitably begin to develop medium-term scenarios that do not involve an early return of revenue and further reduction in cash. Burns are instructed.