Record pilot retirement at AA on one day
Thread Starter
Join Date: Jan 2006
Location: US
Posts: 2,205
Likes: 0
Received 0 Likes
on
0 Posts
Record pilot retirement at AA on one day
http://www.chicagotribune.com/travel...,4631217.story
chicagotribune.com
Retiring pilots put American in a bind
By Julie Johnsson
Tribune reporter
February 2, 2008
American Airlines is canceling flights and placing management pilots in its cockpits as it grapples with an onslaught of early pilot retirements that has left it short-handed for February.
On Friday, 143 pilots retired from American, the nation's largest airline. That's one of the largest pilot groups to depart en masse in airline history, amounting to about half the total number of American pilots who typically retire in a given year, according to the carrier's pilots union.
The majority of those cashing out are Boeing 767 and 777 captains at the top of the airline's pay scale, including 16 such pilots based at Chicago's O'Hare International Airport.
Their abrupt departure is creating a manpower crunch on some of American's most lucrative overseas routes. The airline has canceled 28 flights for February, including trips from Chicago to London and Beijing, because of staffing shortfalls.
American is the third major airline to grapple with pilot shortages over the past year as U.S. carriers stretch staffing in a bid to lower costs. United Airlines was forced to cancel flights as storms depleted its pilot reserves in December, and Northwest Airlines struggled to man its planes during peak travel periods last summer.
"All the slack gets cut out of the system in a restructuring, so there's very limited ability to respond to anomalies," said aviation consultant Robert Mann, president of R.W. Mann & Co.
Many American pilots retired early to take advantage of a contracting quirk that enabled them to turn back the clock as they collected their retirement payout. If they left by Feb. 1, that lump-sum payment would be based on an investment fund's value on Oct. 31. The pilots fund has shed nearly 20 percent of its value since that date, and with the economy slowing it isn't likely to rebound soon.
Pilots at the end of a 30-year career at American who left Friday stood to gain about $300,000, according to the Allied Pilots Association, American's pilots union.
The decision to retire was a no-brainer for Mark Epperson, a Boeing 767 captain and 30-year American veteran, since the investment gain far exceeded the salary he would have earned by staying on the job.
"We're talking about work free for a year and a half," said Epperson, 59, who retired months earlier than he had planned. "It just doesn't make sense, with all the risk in the industry, to not take that [gain]."
To cope with its mass exodus, American has urged pilots not to take vacations this month and is offering perks to those who volunteer for extra flying.
The carrier also has called in about 250 pilots who hold management posts, such as helping train pilots or flying jets to and from its maintenance base in Tulsa.
The Allied Pilots Association, which is embroiled in contract negotiations with company management, says those maneuvers prove American needs to speed its rehiring of the 2,107 pilots who remain furloughed and haven't been offered an opportunity to rejoin the airline.
"If you send management pilots back to the line, that's an indication that you don't have enough line pilots," said Gregg Overman, the union's communications director.
American spokeswoman Susan Gordon notes that the carrier has recalled about 660 pilots over the past year. But planning its manpower for the month ahead has been difficult, she said, because pilots who are retiring aren't required to notify the company in advance.
"If someone doesn't show up Feb. 1 for their flight to Beijing, that's their first clue that you're retired," said David Aldrich, an Airbus A300 captain for American.
----------
[email protected]
Copyright © 2008, Chicago Tribune
chicagotribune.com
Retiring pilots put American in a bind
By Julie Johnsson
Tribune reporter
February 2, 2008
American Airlines is canceling flights and placing management pilots in its cockpits as it grapples with an onslaught of early pilot retirements that has left it short-handed for February.
On Friday, 143 pilots retired from American, the nation's largest airline. That's one of the largest pilot groups to depart en masse in airline history, amounting to about half the total number of American pilots who typically retire in a given year, according to the carrier's pilots union.
The majority of those cashing out are Boeing 767 and 777 captains at the top of the airline's pay scale, including 16 such pilots based at Chicago's O'Hare International Airport.
Their abrupt departure is creating a manpower crunch on some of American's most lucrative overseas routes. The airline has canceled 28 flights for February, including trips from Chicago to London and Beijing, because of staffing shortfalls.
American is the third major airline to grapple with pilot shortages over the past year as U.S. carriers stretch staffing in a bid to lower costs. United Airlines was forced to cancel flights as storms depleted its pilot reserves in December, and Northwest Airlines struggled to man its planes during peak travel periods last summer.
"All the slack gets cut out of the system in a restructuring, so there's very limited ability to respond to anomalies," said aviation consultant Robert Mann, president of R.W. Mann & Co.
Many American pilots retired early to take advantage of a contracting quirk that enabled them to turn back the clock as they collected their retirement payout. If they left by Feb. 1, that lump-sum payment would be based on an investment fund's value on Oct. 31. The pilots fund has shed nearly 20 percent of its value since that date, and with the economy slowing it isn't likely to rebound soon.
Pilots at the end of a 30-year career at American who left Friday stood to gain about $300,000, according to the Allied Pilots Association, American's pilots union.
The decision to retire was a no-brainer for Mark Epperson, a Boeing 767 captain and 30-year American veteran, since the investment gain far exceeded the salary he would have earned by staying on the job.
"We're talking about work free for a year and a half," said Epperson, 59, who retired months earlier than he had planned. "It just doesn't make sense, with all the risk in the industry, to not take that [gain]."
To cope with its mass exodus, American has urged pilots not to take vacations this month and is offering perks to those who volunteer for extra flying.
The carrier also has called in about 250 pilots who hold management posts, such as helping train pilots or flying jets to and from its maintenance base in Tulsa.
The Allied Pilots Association, which is embroiled in contract negotiations with company management, says those maneuvers prove American needs to speed its rehiring of the 2,107 pilots who remain furloughed and haven't been offered an opportunity to rejoin the airline.
"If you send management pilots back to the line, that's an indication that you don't have enough line pilots," said Gregg Overman, the union's communications director.
American spokeswoman Susan Gordon notes that the carrier has recalled about 660 pilots over the past year. But planning its manpower for the month ahead has been difficult, she said, because pilots who are retiring aren't required to notify the company in advance.
"If someone doesn't show up Feb. 1 for their flight to Beijing, that's their first clue that you're retired," said David Aldrich, an Airbus A300 captain for American.
----------
[email protected]
Copyright © 2008, Chicago Tribune
Join Date: May 2003
Location: Manchester
Posts: 33
Likes: 0
Received 0 Likes
on
0 Posts
American spokeswoman Susan Gordon notes that the carrier has recalled about 660 pilots over the past year. But planning its manpower for the month ahead has been difficult, she said, because pilots who are retiring aren't required to notify the company in advance.
"If someone doesn't show up Feb. 1 for their flight to Beijing, that's their first clue that you're retired," said David Aldrich, an Airbus A300 captain for American.
"If someone doesn't show up Feb. 1 for their flight to Beijing, that's their first clue that you're retired," said David Aldrich, an Airbus A300 captain for American.
For any company let alone an airline is there not procedures and formalities to go through before you can hang up your wings.
Thread Starter
Join Date: Jan 2006
Location: US
Posts: 2,205
Likes: 0
Received 0 Likes
on
0 Posts
You can retire at anytime.
Advanced notice has some benefits as the article mentions -
Many American pilots retired early to take advantage of a contracting quirk that enabled them to turn back the clock as they collected their retirement payout.
The advance notice doesn't apply post 60 so they've created a situation where they won't be able to figure out when a 60+ pilot will retire.
There is no legal obligation to notify the company when you plan on retiring.
Advanced notice has some benefits as the article mentions -
Many American pilots retired early to take advantage of a contracting quirk that enabled them to turn back the clock as they collected their retirement payout.
The advance notice doesn't apply post 60 so they've created a situation where they won't be able to figure out when a 60+ pilot will retire.
There is no legal obligation to notify the company when you plan on retiring.
Join Date: May 2003
Location: Manchester
Posts: 33
Likes: 0
Received 0 Likes
on
0 Posts
You can retire at anytime.
Advanced notice has some benefits as the article mentions -
Many American pilots retired early to take advantage of a contracting quirk that enabled them to turn back the clock as they collected their retirement payout.
The advance notice doesn't apply post 60 so they've created a situation where they won't be able to figure out when a 60+ pilot will retire.
There is no legal obligation to notify the company when you plan on retiring.
Advanced notice has some benefits as the article mentions -
Many American pilots retired early to take advantage of a contracting quirk that enabled them to turn back the clock as they collected their retirement payout.
The advance notice doesn't apply post 60 so they've created a situation where they won't be able to figure out when a 60+ pilot will retire.
There is no legal obligation to notify the company when you plan on retiring.
Do the so called pilots not even have the self responsibilty and good manners to notify the airline just for the sake of the passengers who have effectively paid their wages over the past 30 years
Last edited by Just an Engineer; 2nd Feb 2008 at 16:52. Reason: Typo
Join Date: May 2003
Location: Manchester
Posts: 33
Likes: 0
Received 0 Likes
on
0 Posts
But what happens when the airline lays you off with no notice....two way street!!
What about the unsuspecting pax in the middle of your so called two way street.....I mean common it doesn't take much to give them say a weeks notice of intention then at least they can cancel/make other arrangements with flights
Thread Starter
Join Date: Jan 2006
Location: US
Posts: 2,205
Likes: 0
Received 0 Likes
on
0 Posts
kwachon - that's true assuming you have enough pilots on reserve.
10% of the 777 CA's retired. That's 40% of the typical reserve coverage. Manning could be tight.
Beginning of the month, and the end of the month, are traditionally the difficult manning periods.
10% of the 777 CA's retired. That's 40% of the typical reserve coverage. Manning could be tight.
Beginning of the month, and the end of the month, are traditionally the difficult manning periods.
AA management certainly knew the importance of the Feb 1 date. While they didn't know the number, they should have seen that it would be much more than normal. Their management is the original (at least in the US) beancounters instead of aviation people.
Join Date: Aug 2006
Location: evicted
Posts: 339
Likes: 0
Received 0 Likes
on
0 Posts
Quote:
But what happens when the airline lays you off with no notice....two way street!!
Thats an argument between you and the airline.....
What about the unsuspecting pax in the middle of your so called two way street.....I mean common it doesn't take much to give them say a weeks notice of intention then at least they can cancel/make other arrangements with flights
But what happens when the airline lays you off with no notice....two way street!!
Thats an argument between you and the airline.....
What about the unsuspecting pax in the middle of your so called two way street.....I mean common it doesn't take much to give them say a weeks notice of intention then at least they can cancel/make other arrangements with flights
It's the airline's responsibilty to staff the airline adequately to deal with these situations. If short-staffing is the airline's business model, then that's what they get.
Pax need to blame the airline for that.
Trash du Blanc
Join Date: Mar 2001
Location: KBHM
Posts: 1,185
Likes: 0
Received 0 Likes
on
0 Posts
What about the unsuspecting pax in the middle of your so called two way street....
We all got the unregulated, free market, cut-throat airline mentality that we wanted.
These pilots have seen their paychecks in real dollars decline 50% in 15 years. All the while the salaries of their top bosses were multiplying geometrically.
Can't fly on American? Get on travelocity and find somebody else. Loyalty's for suckers in this brave new world. And trust me on this, the pilots didn't choose it to be this way.
Huck accurately described in a nutshell what the situation is at another major US airline-based FAR from Texas.
Other than one or two present/former US airline CEOs who have some experience flying multi-engine airplanes, the rest of them are simply number-crunchers with no interest in aviation. Number/data-crunching require no people skills.
Therefore, leadership is usually quite absent.
Their (often) totally callous/arrogant attitudes towards their staff have reaped this harvest. If you think this is bad, just talk to pilots who have flown RJs for two (or more) or the smaller airlines for a few years. They are unable to ever hire enough pilots. They are always far behind.
Hundreds leave for jobs at better companies which often pay about the same.
Other than one or two present/former US airline CEOs who have some experience flying multi-engine airplanes, the rest of them are simply number-crunchers with no interest in aviation. Number/data-crunching require no people skills.
Therefore, leadership is usually quite absent.
Their (often) totally callous/arrogant attitudes towards their staff have reaped this harvest. If you think this is bad, just talk to pilots who have flown RJs for two (or more) or the smaller airlines for a few years. They are unable to ever hire enough pilots. They are always far behind.
Hundreds leave for jobs at better companies which often pay about the same.
Join Date: Aug 2002
Location: Switzerland, Singapore
Posts: 1,309
Received 0 Likes
on
0 Posts
I'm pretty sure that those number crunchers are ready to spend an extra cent or two for the guys not showing up the next morning if it threatens to cancel the flight. This fight is not about flying or not, its about money. Those guys retire and then just fly for AA during their spare time...
Join Date: May 2000
Location: Seattle
Posts: 3,195
Likes: 0
Received 0 Likes
on
0 Posts
Many American pilots retired early to take advantage of a contracting quirk that enabled them to turn back the clock as they collected their retirement payout.
The advance notice doesn't apply post 60 so they've created a situation where they won't be able to figure out when a 60+ pilot will retire.
The advance notice doesn't apply post 60 so they've created a situation where they won't be able to figure out when a 60+ pilot will retire.
Management had adequate notice. It IS their fault if they have to cancel flights!
Has AA never heard of contingency management?
Or risk management?
Or succession management?
These are key tools in a (good) manager's toolbox.
Actually, I think I've just answered my own question...
Or risk management?
Or succession management?
These are key tools in a (good) manager's toolbox.
Actually, I think I've just answered my own question...
Join Date: Nov 2002
Location: KHIO - Portland, Oregon. USA
Posts: 57
Likes: 0
Received 0 Likes
on
0 Posts
TX Employment Laws
I would presume that they are employed under Texas Laws, so they are in an "at will" state. There is no obligation on either side in terms of contacts of employment, the retirement bit is the exit vehicle and the current state of the stock market precipitated it. As others have said, AA could easily have fired them with no notice, so it is a two way street....
- Tim
- Tim
Last edited by Tim_CPL; 4th Feb 2008 at 09:08. Reason: typo
Join Date: Sep 2000
Location: The Valley Where the Thames Runs Softly
Age: 77
Posts: 556
Likes: 0
Received 0 Likes
on
0 Posts
It's not just airlines. A few years ago a flood of experienced head teachers retired at once because of a quirk in the pension rules. The government was caught flat-footed, because they hadn't thought it through properly.