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SKYW mgm positioning for paycuts

  • Thread starter Thread starter WAZUP
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WAZUP

Well-known member
Joined
May 3, 2006
Posts
165
American Eagle Wants to Cut $75M in Labor Costs
March 22, 2012 0900 MT

American Eagle, which operates feeder flights for American Airlines, said Wednesday that it wants to cut annual labor costs by $75 million and could shed 500 or more jobs over time.

CEO Daniel Garton said that with greater productivity, Eagle could get by with fewer workers, and jobs could be eliminated through layoffs or attrition.

Garton cited 500 jobs, but Eagle spokesman Bruce Hicks said later it could be up to 600 jobs, or nearly 5 percent of the airline's workforce.

Garton said Eagle needs to cut costs to compete for work from American and other airlines. Eagle and American are both owned by AMR Corp., which filed for bankruptcy protection in November.

Eagle was expected to provide more details on bankruptcy cost-cutting during meetings with unions later in the day.

Eagle uses smaller planes than American's to connect passengers from smaller cities to American's hub airports. Its revenue last year was $2.5 billion, about 10 percent of AMR's total.

The cuts announced Wednesday would equal 3 percent of Eagle's 2011 revenue. By contrast, American wants to eliminate 13,000 jobs and cut labor costs by $1.25 billion a year, an amount that equals nearly 6 percent of AMR revenue excluding Eagle.

James C. Little, president of the Transport Workers Union, which represents ground workers at American and Eagle, agreed that American's proposed cuts are much deeper than Eagle's.

"But $75 million spread across a much smaller company is still a major hit," Little said as he awaited details from Eagle.

The president of the flight attendants' union, Robert Barrow, said Eagle "plans to slash operating costs on the backs of labor." He said the company was taking advantage of the bankruptcy process to demand deep, long-term concessions from unions.

The future ownership of Eagle is up in the air. Before the bankruptcy filing, AMR had announced it would sell Eagle or spin it off to AMR shareholders, but that strategy is now on hold.

Garton said moves like cutting labor costs will make Eagle financially stronger and "well-positioned to take advantage of any opportunity" during or after the bankruptcy process.

American wants to shift more of its flying to lower-cost regional airlines, but it also wants to spread the flights among several carriers instead of relying almost entirely on Eagle. Garton said if Eagle fails to cut costs, it will give American more incentive to hire other regional airlines.

Eagle has about 13,000 employees compared to American's 73,000. Eagle has about 260 planes, three-fourths of which have 50 or fewer seats, which makes them costly to operate, especially as fuel prices rise.

AMR filed for bankruptcy protection in November after losing more than $10 billion since 2001.

--By David Koenig, Associated Press

Only a matter of time till Chipaway tries for some pay cuts. There is a reason this was posted. Well he can have his cut's when he loses his job.
 
Say again?

How does an article about Eagle/AMR bankruptcy correlate into pay decreases at SkyWest? By that same logic, AMR seeking cost cuts means DAL, UAL, and SWA will all be asked for concessions too?
 
How does an article about Eagle/AMR bankruptcy correlate into pay decreases at SkyWest? By that same logic, AMR seeking cost cuts means DAL, UAL, and SWA will all be asked for concessions too?

First, WAZUP is trying to stir trouble and provoke responses. Secondly, this article appeared under SKW stock headlines and maybe WAZUP thinks there's a correlation. He knows otherwise and should know that airline news of just about any other similar airline generally appear under the headlines of another airline.
 
WAZUP must have forgot to take his or her meds this morning...go sleep it off
 
Brad Holt say:
On the industry news front, most of you may have read about American Airlines parent AMR Corp. (AMR) this week as they announced that they must cut annual spending by $75 million at regional carrier American Eagle, and will eliminate as many as 600 jobs as the company restructures in bankruptcy.

Reports say that about half of the cost reductions will come from lowering pay and reducing overtime, with the balance being achieved through changing unproductive work rules, scheduling restrictions and retirement-account contributions. Its also been reported that the American Eagle plan builds on Americans requirement for $1.25 billion in annual labor-cost reductions and the cutting of approximately 13,000 jobs.

This is a very unfortunate situation and is a stark reminder to us that we must continue to work together each day to improve efficiency and save where we can. Many of you have sent us your suggestions for becoming more efficient, and I encourage you to continue to report the inefficiencies you see. Weve made good progress here at ExpressJet in reducing our cost and becoming more efficient and that will serve us well in the future. I sincerely appreciate each of you for your hard work and ideas in this area.

"blow me where the pampers is", Brad.
 
50 seat RJ's are toast. No sense taking less to fly them, they will be gone either way. To bad for the regionals, on the upside I really believe there will be better positions with the majors for ALL regional pilots in the future.
 
50 seat RJ's are toast. No sense taking less to fly them, they will be gone either way. To bad for the regionals, on the upside I really believe there will be better positions with the majors for ALL regional pilots in the future.

Although i hope what you say is true about the majors i have some skepticism about the 50 seaters going away. People have been saying that for years now and they are still around. Eventually, i agree they will be phased out but i don`t think anytime soon. The regionals will not go away completely however the smaller regionals will not survive in my opinion.
 
Brad Holt say:
On the industry news front, most of you may have read about American Airlines parent AMR Corp. (AMR) this week as they announced that they must cut annual spending by $75 million at regional carrier American Eagle, and will eliminate as many as 600 jobs as the company restructures in bankruptcy.

Reports say that about half of the cost reductions will come from lowering pay and reducing overtime, with the balance being achieved through changing unproductive work rules, scheduling restrictions and retirement-account contributions. Its also been reported that the American Eagle plan builds on Americans requirement for $1.25 billion in annual labor-cost reductions and the cutting of approximately 13,000 jobs.

This is a very unfortunate situation and is a stark reminder to us that we must continue to work together each day to improve efficiency and save where we can. Many of you have sent us your suggestions for becoming more efficient, and I encourage you to continue to report the inefficiencies you see. Weve made good progress here at ExpressJet in reducing our cost and becoming more efficient and that will serve us well in the future. I sincerely appreciate each of you for your hard work and ideas in this area.

You're absolutely right. Efficiency is paramount:

- 3 re-branding ventures in as many years
- Lost revenue/cancellations due to understaffing

Oh, and my favorite...

- SkyWest/ExpressJet run as separate airlines, Ergo:
*2 Presidents/COOs
*2 VPs of: FlightOps, InFlight, Customer Servive, People, Market Development, Maintenance, etc.
*Multiple, redundant office buildings & Hangers
*Redundancy in support personnel


BUT NOOOOO!

"Let's start with decommissioning the POPCORN MACHINE in the crew lounge. Then, we can alienate them even more by asking them to donate some more of their skill. That will get us in the black!"

Seriously? You really had to throw American's story in there as a threat? Wow.
 
The popcorn machine is gone?

The popcorn machine is gone?

THAT TEARS IT Im really pissed now. At least mini indi is untouched. Phew!!!
 
You know. Those fancy coffee machines in the loung will be next
 
50 seat RJ's are toast. No sense taking less to fly them, they will be gone either way. To bad for the regionals, on the upside I really believe there will be better positions with the majors for ALL regional pilots in the future.

XJT 50 seat ERJs are under contract for another 9.5 years and CRJs til 2016 or 2017
 
Ha. They will not last that long without bankrupting the company. Many will hit D check in that timeframe which is simply not affordable.
 

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