AA to cut 13,000 jobs
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AA to cut 13,000 jobs
American Airlines told its unions Wednesday it plans to cut 13,000 jobs from the staff of 88,000 at the nation's No. 3 airline.
American Airlines: We'll have 'many fewer' jobs - Feb. 1, 2012
American Airlines: We'll have 'many fewer' jobs - Feb. 1, 2012
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American lost $30 million a day in December.
AMR Posts $904 Million Loss in Monthly Bankruptcy Report - Bloomberg
Not that long ago, those folks strutted around the terminal like Delta pilots.
Looks like 400 pilot furloughs this time, plus the inevitable call for more pay cuts.
The downward spiral for the legacy airline industry continues...
AMR Posts $904 Million Loss in Monthly Bankruptcy Report - Bloomberg
Not that long ago, those folks strutted around the terminal like Delta pilots.
Looks like 400 pilot furloughs this time, plus the inevitable call for more pay cuts.
The downward spiral for the legacy airline industry continues...
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Here's the company's dreamsheet for the new pilot contract, they might get most of it:
http://www.restructuringamr.com/docu...INAL_CLEAN.pdf
_____________________________
And here's an overview of the desired changes to the AA employee CBA's:
http://www.restructuringamr.com/our-people-apa.asp
http://www.restructuringamr.com/docu...INAL_CLEAN.pdf
_____________________________
And here's an overview of the desired changes to the AA employee CBA's:
All Employee Restructuring Objectives
•Reduce employee costs
•Our approach to employee savings is focused on preserving base pay rates as much as possible by increasing productivity
•Implement universal changes to active and retiree medical for current employees
•Remove and relax restrictions on our business
•Remove structural barriers that limit flexibility and ultimately growth
•Eliminate pension underfunding obligations
•Terminate defined benefit plans to eliminate the company’s more than $800 million annual funding obligation
•Implement new first-dollar profit sharing plan
Overview of Pilot Proposals
•Targeted Annual, Permanent Cost Savings: $370 million per year (20% of pilots’ total costs)
•Approximately 400 pilot furloughs
•Lessen restrictions on codeshare and regional flying
•Increase pilot schedule max time to align with other carriers
•Improve scheduling through Preferential Bidding System
•Eliminate various premium pay options; provide sequence protection
•Reduce dependency on reserves
•Implement case management for sick absences
•Introduce pay banding
•Replace Pilot A and B (retirement) Plans with a defined contribution plan with 13.5% company contribution
Rationale
•Successful restructuring goes beyond competitive benchmarking. Any previous estimates of our employee cost gap aren’t relevant to our current situation. We are facing a far different challenge in the restructuring process, one that requires that we get to a cost and operational structure that allows us to successfully implement our business plan.
•We’ve worked hard to minimize impact on pilot base pay rates and jobs by focusing our strategic cost-saving efforts on productivity in contract areas like scheduling, reserves and time away from work.
•Restrictive contract provisions like Scope have limited our ability to compete with carriers that have more operational flexibility. The proposed changes to Scope will improve American’s ability to compete and will help better position the company for growth of the mainline.
•Reduce employee costs
•Our approach to employee savings is focused on preserving base pay rates as much as possible by increasing productivity
•Implement universal changes to active and retiree medical for current employees
•Remove and relax restrictions on our business
•Remove structural barriers that limit flexibility and ultimately growth
•Eliminate pension underfunding obligations
•Terminate defined benefit plans to eliminate the company’s more than $800 million annual funding obligation
•Implement new first-dollar profit sharing plan
Overview of Pilot Proposals
•Targeted Annual, Permanent Cost Savings: $370 million per year (20% of pilots’ total costs)
•Approximately 400 pilot furloughs
•Lessen restrictions on codeshare and regional flying
•Increase pilot schedule max time to align with other carriers
•Improve scheduling through Preferential Bidding System
•Eliminate various premium pay options; provide sequence protection
•Reduce dependency on reserves
•Implement case management for sick absences
•Introduce pay banding
•Replace Pilot A and B (retirement) Plans with a defined contribution plan with 13.5% company contribution
Rationale
•Successful restructuring goes beyond competitive benchmarking. Any previous estimates of our employee cost gap aren’t relevant to our current situation. We are facing a far different challenge in the restructuring process, one that requires that we get to a cost and operational structure that allows us to successfully implement our business plan.
•We’ve worked hard to minimize impact on pilot base pay rates and jobs by focusing our strategic cost-saving efforts on productivity in contract areas like scheduling, reserves and time away from work.
•Restrictive contract provisions like Scope have limited our ability to compete with carriers that have more operational flexibility. The proposed changes to Scope will improve American’s ability to compete and will help better position the company for growth of the mainline.
OLD RED DAMASK
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As a SLF used to fly AA a lot. They have never responded to two complaints I have made. Flew MAN-ORD-SJC, they have taken off the early flight at 0730 from SJC -ORD so now you can't connect to the ORD-MAN flight. This flight was always full and always had a standby list, is it any wonder they went into Chapter 11 with cutting back on services that were full!!
BTW the MAN-ORD was a 8hr flight in a 757, cramped seating, no individual in flight entertainment, poor meals and bad service. Until US carriers realise that the customer comes first and start by putting on a service similar to e.g. Middle East carriers, who fly similar length on flights between the UK and Middle East they deserve to go bust.
I have sympathy with the staff but none with the management who didn't keep the airline up to date with travellers expectations.
BTW the MAN-ORD was a 8hr flight in a 757, cramped seating, no individual in flight entertainment, poor meals and bad service. Until US carriers realise that the customer comes first and start by putting on a service similar to e.g. Middle East carriers, who fly similar length on flights between the UK and Middle East they deserve to go bust.
I have sympathy with the staff but none with the management who didn't keep the airline up to date with travellers expectations.
Paxing All Over The World
It reminds me of 1988 and an American colleague who clung to the ailing PanAm, due to a hoard of their FFMs. I was working for an American Merchant Bank (in the UK) and most of us were using VS. He knew PA had poor customer service but he kinda knew it would not get better. And that was before Lockerbie.
Watching old companies die is not nice and it's really not nice for the staff on the inside. But the company will die.
Watching old companies die is not nice and it's really not nice for the staff on the inside. But the company will die.
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Here's the Allied Pilots Association's somewhat muted call to battle over the company's latest demand for contract concessions:
posted on February 01, 2012 16:51
APA INFORMATION HOTLINE
This is APA President Captain Dave Bates with the APA Information Hotline for Wednesday, Feb. 1.
AMR MANAGEMENT PRESENTS SECTION 1113(c) PROPOSALS: This afternoon, management presented the Allied Pilots Association with their proposed changes to our collective bargaining agreement (CBA). I am sure that all of you, like me, will be dismayed when you see the wholesale changes management has proposed making to our working conditions, job security and benefits. A few of the most notable items include:
Termination of our defined-benefit pension plan.
Sweeping changes to our Scope agreement which would allow hundreds of larger regional jets to be operated at commuter affiliates, as well as the ability to outsource AA pilot jobs through domestic code-sharing agreements with other domestic and international airlines.
Widespread changes to duty rigs, sick leave and medical contributions.
Management also announced that there may be as many as 14,000 employee layoffs company-wide, including up to 400 pilots. While we are relieved that management has not proposed reductions to our base pay rates, a significant percentage of our pilots could face hourly pay cuts with the elimination of night and international pay.
With the assistance of our legal and financial advisers—who also attended today’s briefings—the APA leadership has already begun conducting a thorough analysis of the term sheet as part of our preparations for the resumption of negotiations. The APA Board of Directors has been in caucus today and is likewise participating in our analysis of the term sheet.
In a related development, the National Mediation Board (NMB) has informed APA that it is planning to re-engage in our negotiations, so we will no longer be in recess status.
As a further reminder, the status quo provisions of the Railway Labor Act remain in effect. Please continue your resolute focus on the safe and efficient operation of the airline and we will remain similarly focused at the bargaining table on ensuring that you are treated fairly and appropriately.
In closing, I want to emphasize that management’s proposal marks the starting point for restructuring negotiations. APA will be resolute in representing your interests to the utmost of our ability throughout the difficult process that lies ahead.
Thank you for checking this hotline. We will continue providing you with regular updates as developments warrant.
APA INFORMATION HOTLINE
This is APA President Captain Dave Bates with the APA Information Hotline for Wednesday, Feb. 1.
AMR MANAGEMENT PRESENTS SECTION 1113(c) PROPOSALS: This afternoon, management presented the Allied Pilots Association with their proposed changes to our collective bargaining agreement (CBA). I am sure that all of you, like me, will be dismayed when you see the wholesale changes management has proposed making to our working conditions, job security and benefits. A few of the most notable items include:
Termination of our defined-benefit pension plan.
Sweeping changes to our Scope agreement which would allow hundreds of larger regional jets to be operated at commuter affiliates, as well as the ability to outsource AA pilot jobs through domestic code-sharing agreements with other domestic and international airlines.
Widespread changes to duty rigs, sick leave and medical contributions.
Management also announced that there may be as many as 14,000 employee layoffs company-wide, including up to 400 pilots. While we are relieved that management has not proposed reductions to our base pay rates, a significant percentage of our pilots could face hourly pay cuts with the elimination of night and international pay.
With the assistance of our legal and financial advisers—who also attended today’s briefings—the APA leadership has already begun conducting a thorough analysis of the term sheet as part of our preparations for the resumption of negotiations. The APA Board of Directors has been in caucus today and is likewise participating in our analysis of the term sheet.
In a related development, the National Mediation Board (NMB) has informed APA that it is planning to re-engage in our negotiations, so we will no longer be in recess status.
As a further reminder, the status quo provisions of the Railway Labor Act remain in effect. Please continue your resolute focus on the safe and efficient operation of the airline and we will remain similarly focused at the bargaining table on ensuring that you are treated fairly and appropriately.
In closing, I want to emphasize that management’s proposal marks the starting point for restructuring negotiations. APA will be resolute in representing your interests to the utmost of our ability throughout the difficult process that lies ahead.
Thank you for checking this hotline. We will continue providing you with regular updates as developments warrant.
Last edited by Airbubba; 2nd Feb 2012 at 02:54.
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It is really nice to be retired from this airline. I flew to TGU to get away from AMR mentality because I came from a fun airline and was bought by AMR which made it a not fun airline. Once out of MIA you were done with the BS. Now it was fun again. Flying to TGU is the most fun job you can have. It is a bit sporty but worth it. It is named as the second most dangerous airport in the world. The first one was only Turboprop STOL's in Asia.
Psychophysiological entity
I have used AA a lot over the last 10 years. It has gone from moderate to desperately bad over that time. Last leg home to the UK was 10 hours of torture in a seat just about big enough for someone half my size.
Small things like having a Visa card demanded for even the first drink. Can't the management see what this implies - the impression it leaves with the passenger? Dreadful food, served with an indifferent attitude. In flight entertainment? I'm long past caring about that, given they can only provide a 10c headset for the masses. Just horrible, and in my case, little choice of carrier.
I've been lied to about flight connection times. Having those lies substantiated by a VP of the company in a 40 minute conversation. Having my hold baggage fly the next leg without me, despite assurances it couldn't possibly happen. How legal can that be?
It goes on and on. I dare say mine are typical of thousands of complaints, and AA are now powerless to do anything about it. Fuel prices and a multiplicity of other authorities' hands held out for a share of the ticket price mean there is insufficient money to do the job.
Hearing about the shedding of maintenance staff leaves me wondering just what other cuts of vital services might be made behind the scenes. It seems to me the entire fabric of the industry is built on financial quicksand.
Small things like having a Visa card demanded for even the first drink. Can't the management see what this implies - the impression it leaves with the passenger? Dreadful food, served with an indifferent attitude. In flight entertainment? I'm long past caring about that, given they can only provide a 10c headset for the masses. Just horrible, and in my case, little choice of carrier.
I've been lied to about flight connection times. Having those lies substantiated by a VP of the company in a 40 minute conversation. Having my hold baggage fly the next leg without me, despite assurances it couldn't possibly happen. How legal can that be?
It goes on and on. I dare say mine are typical of thousands of complaints, and AA are now powerless to do anything about it. Fuel prices and a multiplicity of other authorities' hands held out for a share of the ticket price mean there is insufficient money to do the job.
Hearing about the shedding of maintenance staff leaves me wondering just what other cuts of vital services might be made behind the scenes. It seems to me the entire fabric of the industry is built on financial quicksand.
'The downward spiral for the legacy airline industry continues...'
Not sure which world you are living in Air Bubba but AA is the exception not the rule in the American 'Legacy airline industry'
They have been run into the ground by incompetent management.
If you care to inform yourself you would discover that all remaining 'Legacy's'
are consistently profitable.
Not sure which world you are living in Air Bubba but AA is the exception not the rule in the American 'Legacy airline industry'
They have been run into the ground by incompetent management.
If you care to inform yourself you would discover that all remaining 'Legacy's'
are consistently profitable.
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Not sure which world you are living in Air Bubba but AA is the exception not the rule in the American 'Legacy airline industry'
If you care to inform yourself you would discover that all remaining 'Legacy's' are consistently profitable.
'Lad, I see you're new at this stuff'
Hardly, I've been working for a 'legacy' since before you were a 'little bubba'
two bankruptcies, furloughs and many years of paying dues while watching
this industry go through the immense change required to finally consolidate to the point it can be consistently profitable has given me a little more insight than you
Hardly, I've been working for a 'legacy' since before you were a 'little bubba'
two bankruptcies, furloughs and many years of paying dues while watching
this industry go through the immense change required to finally consolidate to the point it can be consistently profitable has given me a little more insight than you
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two bankruptcies, furloughs and many years of paying dues while watching this industry go through the immense change required to finally consolidate to the point it can be consistently profitable has given me a little more insight than you
You Sir, are an inspiration to us all.
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stilton,
With your experience, I don't think you should count the chickens before the eggs hatch. I am sure you are aware, airline profitability follows a historic sine curve over time. The median of the curve (neutral point) falls below the average break-even of the "Legacies". There is no reason to believe that is going to change anytime soon. Consistently profitable depends on how one looks at it, by month, by quarter, by year? At the moment, the collective profitability of the "Legacy" airlines would hardly buy but a few single aisle jets, if they had to pay cash. Perhaps this will change if the collective management of the "Legacies" decide the grass isn't greener on the other side of the fence and tend to business in their own backyards, focus, focus, focus... Don't see this happening anytime soon, either.
If you care to inform yourself you would discover that all remaining 'Legacy's' are consistently profitable.
SkyGod
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AA has been going steadily downhill sine the day Crandal left: One idiot after another at the helm and now the employees are being raked over the coals to "save" the company. 
A guy like Herb Kelleher or Gordon Betune could have made AA a jewel and the envy of the worlds airlines, but instead AA promoted bean counters and empty suits. The result of those decisions are going down in flames...
A guy like Herb Kelleher or Gordon Betune could have made AA a jewel and the envy of the worlds airlines, but instead AA promoted bean counters and empty suits. The result of those decisions are going down in flames...
Count Niemantzarr:
"As soon as an airline outsources its engineering to save money. it is time to stop flying with that carrier".
That is just about the biggest piece of rubbish that I have ever seen on pprune.
I came out of the front of the "Stable Inn" in Bangor, Maine on 26 May, 1979 hoping to complete my final "sign off" on a Laker DC-10. I was flying with the Chief Pilot. We saw on the front page of the local paper the famous Chicago photographs of N110AA with an engine missing about to hit the ground at ORD.
Your memory is obviously crap. (I was going to say defective, but you are talking bulls*it).
In order to change a CF-6 engine, it was necessary to offer a specially designed hydraulic trolley underneath the engine before disconnecting the engine from the pylon. The pylon could then be diconnected from the wing.
The totally wonderful American Airlines maintenance team concerned had figured that they could get more time in the pub by putting a forklift truck underneath the engine (which weighed a little bit more than your weekly Tescos shopping) and then disconnecting the pylon from the wing and taking the whole thing off in one piece.
The same team had created cracks of up to 30" in pylons using this wonderful process in at least three other aircraft.
AA maintenance were entirely responsible for the N110AA disaster.
Tell me again that outsourcing maintenance is a hazard?
"As soon as an airline outsources its engineering to save money. it is time to stop flying with that carrier".
That is just about the biggest piece of rubbish that I have ever seen on pprune.
I came out of the front of the "Stable Inn" in Bangor, Maine on 26 May, 1979 hoping to complete my final "sign off" on a Laker DC-10. I was flying with the Chief Pilot. We saw on the front page of the local paper the famous Chicago photographs of N110AA with an engine missing about to hit the ground at ORD.
Your memory is obviously crap. (I was going to say defective, but you are talking bulls*it).
In order to change a CF-6 engine, it was necessary to offer a specially designed hydraulic trolley underneath the engine before disconnecting the engine from the pylon. The pylon could then be diconnected from the wing.
The totally wonderful American Airlines maintenance team concerned had figured that they could get more time in the pub by putting a forklift truck underneath the engine (which weighed a little bit more than your weekly Tescos shopping) and then disconnecting the pylon from the wing and taking the whole thing off in one piece.
The same team had created cracks of up to 30" in pylons using this wonderful process in at least three other aircraft.
AA maintenance were entirely responsible for the N110AA disaster.
Tell me again that outsourcing maintenance is a hazard?