Furloughs at AA, you know they are coming

[Correcting]

This sucks. The ugliness continues. More pilots on the street from the one carrier that seemed to have a hope.

I don't have a source for that info, just using common sense. Cut 12% of capacity in six months, you're gonna see furloughs.

Oh, but retirements will avoid the need for furloughs. Bull sheet. Hello age 65 rule. Exactly who's going to be retiring?

Maybe pilots will get some breathing room if AA offers buyouts to get some senior guys out of there, but I wouldn't count on it.

 

[J.Otto]

My Country, 'Tis of Thee....

 

[siucavflight]

SPECIAL EAGLEWIRE FOR MAY 21, 2008
Published Especially for the Employees of American Eagle

* * * * PLEASE POST ON ALL BULLETIN BOARDS * * * *

May 21, 2008


Eagle and Executive Employees,

At today’s annual stockholder’s meeting, AMR announced its decision to make even deeper capacity cuts for the fourth quarter of this year than previously announced. The rapid growth in jet fuel prices, combined with the weakening economy, has created very difficult conditions for airlines in the United States.

The fuel price impact from January to March was up more than $660 million dollars for AMR compared to prices paid during the same period last year. As we all know, prices for jet fuel – as well as for gasoline – have increased even further in April and May. Although AA has raised prices several times and increased various customer fees, total revenues have not kept pace with expenses. AMR’s loss of $328 million during the first quarter was alarming and the continued increase in fuel prices and signs of economic softness are further cause for concern.

Under these conditions, many of AA’s and Eagle’s routes do not generate enough revenue to pay for variable expenses such as fuel, landing fees, taxes and the salaries of our crews and other operational personnel. As a result of these facts, and to ensure that AMR has enough financial resources to weather this storm, it has decided to reduce its system-wide capacity.

While AA has not made final decisions on the specific schedule changes, it expects to cut 11 percent to 12 percent of fourth quarter domestic mainline capacity from 2007 levels and has directed Eagle to reduce our schedule by approximately the same percent. As a result of these reductions, American plans to retire 40 to 45 mainline aircraft and the regional network will be reduced by 35 to 40 regional jets, as well as some number of turbo-props.

Unfortunately these capacity reductions will result in layoffs at both American and American Eagle – and could result in facility closures or consolidations. As we get a better understanding of the new schedules and carefully evaluate our staffing requirements by work group and by location over the coming weeks, we will communicate specific changes as quickly as we can.

I am grateful for the excellent work Eagle’s people do. You are making a difference every day by ensuring that every trip and every job is performed safely, by caring for our customers and finding ways to complete our work efficiently under challenging conditions. I am confident that we will adapt to the changes announced today as well as to the outcome of the ongoing divestiture process and that Eagle will be one of the world’s safest, most reliable and successful regional airlines. Thank you for all your efforts.

Sincerely,

Peter Bowler
President and CEO

 

[airlinepilot]

Does AMR already have pilots on the street? What is the most junior FO DOH? Just curious.

 

[Poahi]

$132.50 today

 

[flyboy006]

its gonna be the same everywhere... NWA to displace 75 or so which will probably end up in furlough, DAL will probably furlough by years end, AA, UAL they all will have to do something if oil keeps going up. After the summer rush ends, who knows what will go on... How many people will get let go at each company is another story.. my .02 cents

 

[willNOTfly4free]

Does AMR already have pilots on the street?

Yes, they do. Nearly 2,000 pilots.

With CNBC saying oil is currently pushing $133/barrel, I thank my lucky stars I'm only a spectator on this segment of the industry.

 

[Rizzo]

So I bet APA is wishing they had that new flow-thru agreement with Eagle. Here's a question. You've still got flow-backs at Eagle. You also have some that have been recalled. Who gets the furlough, the guys still at Eagle, or the ones that were recalled? Was recall done in seniority order?

 

[regionalcap]

I thought they are getting 34 737's next year. Wouldn't this replace most of the MD's being parked?

 

[whatitdoing?]

Word is 200 to 250 pilots are going to be furloughed at CAL during our July system bid.........this sucks.