AirTran Town hall meeting?

[Max Powers]

Anyone go? Grim or optimistic? Perhaps lots of smoke being blown up our sphincters. Anyone ask about Bob F's 7+ million dollar take this year?

 

[Murphy]

Asked a fellow pilot in the jetway who heard in the crew room from another pilot three other pilots removed from somebody who actually attended the town hall meeting that the common theme was "capacity reduction."

 

[CoolSidePillow]

furloughs? or just stagnation with no possibility of raises or new contract?

 

[funnyman12]

Talked to a buddy whom attended. Didn't sound like any furloughs in the near term. He is fairly junior and said made him a bit optomistic that he will keep his job. Apparently someone asked what price oil would have to rise to to majorly cripple us...$200/barrel was what Bob Fornaro mentioned. Once again this is second hand info. Didn't sound like a doom and gloom tyoe of thing which is goos

 

[Lear70]

furloughs? or just stagnation with no possibility of raises or new contract?

Stagnation certainly, but we knew that already from the deferred deliveries, sale of delivery slots, and 10k 1st quarter statements from company management.

Still haven't heard hard details, although the rumor is that it was nothing earth-shattering, just saying that we're certainly NOT growing and MAY be pulling down some capacity if fuel prices don't abate (which they likely won't).

What that means is less work, and the lines are already averaging around 80 hours. If they get below 70 hours average line value... well... use your imagination.

Contract? Likely nothing good long-term. Some people are thinking that it would have been good to take T.A. 2 but they aren't thinking long-term:

1. T.A. 2 gave up a LOT of work rules, and you NEVER get work rules back, and

2. If we had taken the pay raises in T.A. 2 and IF the company comes asking for concessions sometime in the near future, you can bet the company would have come asking for those new pay raises back just as surely as they'll ask for things now.

Like many people said: Current book is better than what they were proposing. Sure, it might have been a 3% - 5% raise for some, but it came with a 20% pay cut for new-hires and a loss of a LOT of work rules and insurance cuts for retirees.

Too early to be having that discussion, with an INCREASE in cash-on-hand from this quarter over last, and a loss that could have been made up with a $7 fare increase per passenger.

This is chess, not checkers.

 

[PCL_128]

Agreed. This latest set of developements just proves that TA2 would have been a mistake. Management would be looking for concessions on those $183/hr Captain rates, plus we would have given up our scope and work rules. Not good. We're much better off with our current agreement for the time being than with TA2.

 

[Ty Webb]

If we had signed that POS . . . . I mean TA . . . you would probably be seeing the Mesa 85-seaters showing up right about now, and the 717 downsizing beginning.

 

[RIDETHELIGHTING]

dont forget the retired trn dept. would also be protected from furlough. Right now they go first.

 

[Max Powers]

dont forget the retired trn dept. would also be protected from furlough. Right now they go first.

Are you serious????? They should be the first to go!!! Did the TA2 actually address them?

The present history of America if you read between the lines is the older generation using their political clout to take everything they can from the younger generation.

We need to reduce the pay difference between FO and CPT not increase it - this will help to bring some transportability to our profession. And never get rid of scope, only strengthen it.

 

[scarlet]

The training Dept retirees have to go first ??

 

[Eagle757shark]

AirTran boosts cash reserves with offering

By RUSSELL GRANTHAM
The Atlanta Journal-Constitution
Published on: 05/01/08
AirTran Airways said Thursday that it completed the first phase of a combined offering of stock and debt that is convertible into stock, netting more than $140 million.
The Orlando-based discounter also said it expects to complete the second phase of the offering Friday to sell about $12 million in additional stock.
AirTran, the second-largest airline at the Atlanta airport, earlier said the proceeds from the securities sales would be used to boost its cash reserves to about $500 million.
Airlines have been scrambling to cut costs or stockpile cash to defend themselves from soaring jet fuel costs and the threat of a recession.
In a statement, AirTran President Bob Fornaro said, "The successful completion of these offerings, in combination with our low cost structure, high quality product and young all-Boeing fleet, provides improved financial flexibility and uniquely positions AirTran Airways for the challenges the industry faces in dealing with record high fuel cost."

TOWN HALL MEETING:
In the town hall meeting they basically talked about the game plan for the company going forward. Most of what we already know.

1. Reduction in Growth: Plans to reduce capacity by deferring deliveries and selling planes.

2. Cutting Costs: all departments have reduced budgets and the company has gained concessions from vendors and has reduced hiring.

3.Raising Money: See above- they have been able to raise $140 million dollars to bring our cash up to $500 million in the bank. I guess they will look at selling more airplanes in the future if need be.

4. Fuel Hedges: 50% fuel hedged for rest of 2008 at around $2.90.

5. RAISING REVENUE: Ticket prices have been raised and plans are to raise revenue through Charging for bags, aisle and window seats. They raise approx $100,000 dollars a day I believe by selling extra leg room at I think around $5.00. More revenue enhancements on the way. Selling food on west coast flights being experimented with on all Los Angeles flights.

Meeting was about what the company is doing to address the high fuel prices. AirTran is trying to be Pre-cautionary vs reactionary as many of the legacies are.

 

[labatt]

I didn't know that either. Just looked it up. Good call by Ridethelighting. Not sure about TA2. Bet Lear70 would know that one.

Didn't go to the town hall meeting, but the guy that I flew with said they were considering selling 2 of the current planes in our fleet. Flat growth thru 2010 with the possibility of a 10% reduction. Thought the DAL/NWA deal would be good for us. Hunker down/save cash mentality. The recent bond helped a lot and took a little pressure off us. Wall street seemed to like it today. New revenue generating programs while inflight. No specifics on what they'll be selling onboard. Heard in Europe they are going to have live gambling inflight.

Glad to see they are finally publishing some cost savings ideas and backing it up with actual numbers. APU burn, waiting for gates/ext power, excess weight ect.

A couple good examples:

5% of flights waiting 2 minutes for a gate= $442,000 in fuel/year.

30 minutes of APU usage on every flight=$50,000/day in fuel.

5 pounds less in crew baggage (every flight for the year, system wide) would save $205,312 annually.

A couple million here and there and pretty soon we are talking about real money.

Next few moves from the NPA will be interesting. Like your line Lear, "This is chess, not checkers"

 

[RadioClash]

5 pounds less in crew baggage (every flight for the year, system wide) would save $205,312 annually.

What do they mean by that? Don't bring a bag and start turning your skivvies inside out each day of the trip? Or maybe getting rid of the ridiculous amount of alternates we have to carry in our Jeps ie getting a brick for each aircraft?

 

[labatt]

What do they mean by that? Don't bring a bag and start turning your skivvies inside out each day of the trip? Or maybe getting rid of the ridiculous amount of alternates we have to carry in our Jeps ie getting a brick for each aircraft?

I think if each crewmember (5 people on a 717 or 737) would loose 1 pound out of their bags. Total savings for the year for the entire fleet.

I like your idea about the Jepps, according to crewplace it's coming. On another note we'll be the last airline to be paperless, but we'll see it eventually. Put me down for the over +9. 2017 ought to do it.

 

[Eagle757shark]

I didn't know that either. Just looked it up. Good call by Ridethelighting. Not sure about TA2. Bet Lear70 would know that one.

Didn't go to the town hall meeting, but the guy that I flew with said they were considering selling 2 of the current planes in our fleet. Flat growth thru 2010 with the possibility of a 10% reduction. Thought the DAL/NWA deal would be good for us. Hunker down/save cash mentality. The recent bond helped a lot and took a little pressure off us. Wall street seemed to like it today. New revenue generating programs while inflight. No specifics on what they'll be selling onboard. Heard in Europe they are going to have live gambling inflight.

Glad to see they are finally publishing some cost savings ideas and backing it up with actual numbers. APU burn, waiting for gates/ext power, excess weight ect.

A couple good examples:

5% of flights waiting 2 minutes for a gate= $442,000 in fuel/year.

30 minutes of APU usage on every flight=$50,000/day in fuel.

5 pounds less in crew baggage (every flight for the year, system wide) would save $205,312 annually.

A couple million here and there and pretty soon we are talking about real money.

Next few moves from the NPA will be interesting. Like your line Lear, "This is chess, not checkers"

I don't think the Delta/Northwest merger will yield that much. However, the merger between US Airways and United which seems imminent may yield many potential assets for AirTran. There will probable be a huge shift in Northeast assets if US Airways and United merge. The question is, how much will AirTran be willing to put up to acquire those assets. There will be many others bidding on those assets as well.