American Airlines to lay off thousands
05-23-2008, 11:18 AM
#12
Gets Weekends Off
Joined APC: Sep 2006
Position: B-737
Posts: 392
From the APA Union Boss in ORD
Fellow Chicago Pilots,
I am sure by now you have heard or read about American Airlines' response to the record high oil price and the unstable U.S. airline industry. As was announced on Wednesday, AMR is reducing domestic capacity by 11 percent at both American Airlines and American Eagle, and is looking at increasing international flying.
A quick overview of AMR’s announcement:
--Delivery of 70 737-800s in the next 30 months
--34 in 2009
--36 in 2010
--Up to 42 MD-80s parked. These aircraft were scheduled for replacement in 2009
--At least 3 Airbus parked and possibly more going forward
--35 to 40 RJ and turboprops parked
The parking of these aircraft will equate to 6 percent of the domestic capacity. Management also said that this could result in employee reductions and facility closures. By mid-June, management will solidify the number of employee reductions, facility closures and schedule adjustments.
So what does this mean to the Chicago pilots?
American is short some 200 pilots going into the summer season, and the plan is to make it work short-staffed through the summer. And as we start a “training bubble” with the arrival of more 737s and unknown pilot retirements, going forward it is unlikely American will furlough any pilots.
American is looking into reducing city pairs that are unprofitable and unfortunately, ORD has many city pairs that are unprofitable. It does appear that ORD will have a greater percentage of city pairs that will be cut. How this will affect the number of jobs at ORD on the MD-80 going forward is unknown at this time.
Right now, the plan is to reintroduce the 737 to ORD sometime in 2009, and with the announcement of the possibility of more international flights, my hope is that ORD base will remain the same size or possibly increase.
So where do we go from here?
As pilots, we have no control over of the current economic conditions, U.S. foreign policy, lack of a U.S. energy policy, AMR’s lack of a fuel hedge, inefficient aircraft, airline reliability and an economically unstable airline industry.
What we do have control over is making sure that we continue to do what the pilots at American Airlines do best -- taking care of the crew and passengers and safely and comfortable flying them from Point A to Point B.
As a union, we have control over our preparation for the certainty of the uncertainty of this industry. APA has retained Miller Buckfire, a highly creditable merger and acquisition firm (which, coincidently, AMR looked at retaining back in 2002). In addition, APA has created a trust to pay the legal fees incurred in merging seniority lists, if AMR were to merge in the future. Preparation is vital to assure that the pilots of American Airlines do not get put into a position in which we have to make rushed decisions. The APA leadership has prepared and will continue to prepare for the industry volatility.
Mr. Arpey stated this past Wednesday he believes in paying top dollar for top talent. We at APA believe that concept also holds true for the pilots of American Airlines and are committed to restoring our profession.
Enjoy this Memorial Day weekend with family and friends, for those who have to work and be away from your family, I thank you.
Fly Safe and take care of one another!
I am sure by now you have heard or read about American Airlines' response to the record high oil price and the unstable U.S. airline industry. As was announced on Wednesday, AMR is reducing domestic capacity by 11 percent at both American Airlines and American Eagle, and is looking at increasing international flying.
A quick overview of AMR’s announcement:
--Delivery of 70 737-800s in the next 30 months
--34 in 2009
--36 in 2010
--Up to 42 MD-80s parked. These aircraft were scheduled for replacement in 2009
--At least 3 Airbus parked and possibly more going forward
--35 to 40 RJ and turboprops parked
The parking of these aircraft will equate to 6 percent of the domestic capacity. Management also said that this could result in employee reductions and facility closures. By mid-June, management will solidify the number of employee reductions, facility closures and schedule adjustments.
So what does this mean to the Chicago pilots?
American is short some 200 pilots going into the summer season, and the plan is to make it work short-staffed through the summer. And as we start a “training bubble” with the arrival of more 737s and unknown pilot retirements, going forward it is unlikely American will furlough any pilots.
American is looking into reducing city pairs that are unprofitable and unfortunately, ORD has many city pairs that are unprofitable. It does appear that ORD will have a greater percentage of city pairs that will be cut. How this will affect the number of jobs at ORD on the MD-80 going forward is unknown at this time.
Right now, the plan is to reintroduce the 737 to ORD sometime in 2009, and with the announcement of the possibility of more international flights, my hope is that ORD base will remain the same size or possibly increase.
So where do we go from here?
As pilots, we have no control over of the current economic conditions, U.S. foreign policy, lack of a U.S. energy policy, AMR’s lack of a fuel hedge, inefficient aircraft, airline reliability and an economically unstable airline industry.
What we do have control over is making sure that we continue to do what the pilots at American Airlines do best -- taking care of the crew and passengers and safely and comfortable flying them from Point A to Point B.
As a union, we have control over our preparation for the certainty of the uncertainty of this industry. APA has retained Miller Buckfire, a highly creditable merger and acquisition firm (which, coincidently, AMR looked at retaining back in 2002). In addition, APA has created a trust to pay the legal fees incurred in merging seniority lists, if AMR were to merge in the future. Preparation is vital to assure that the pilots of American Airlines do not get put into a position in which we have to make rushed decisions. The APA leadership has prepared and will continue to prepare for the industry volatility.
Mr. Arpey stated this past Wednesday he believes in paying top dollar for top talent. We at APA believe that concept also holds true for the pilots of American Airlines and are committed to restoring our profession.
Enjoy this Memorial Day weekend with family and friends, for those who have to work and be away from your family, I thank you.
Fly Safe and take care of one another!
05-23-2008, 12:38 PM
#13
SDQ Base Chief
Joined APC: Mar 2006
Position: 320 CA
Posts: 5,691
As far as things go for AE, we operate a total of 308 aircraft. Announcement was for parking 35-40 RJs and "additional turboprops." So that means a large chunk of our flying will be decreased. We have about 3000 pilots total and crew about 5 CAs and 5 FOs per a/c. There hasnt been any official word on how many displacements and furloughs are ahead, but you can do the math. We have been losing about 50-60 pilots/month in the past to go to other carriers, but since every other major and regional has stopped hiring I doubt we will have much attrition to solve the ensuing over staffed situation.
05-23-2008, 04:53 PM
#14
alchemist
Joined APC: Apr 2007
Posts: 1,089
05-24-2008, 04:53 AM
#15
Retired
Joined APC: Feb 2008
Position: whale wrangler
Posts: 3,527
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