The Cost of a Furlough
10-11-2020, 03:02 PM
#12
Gets Weekends Off
Joined APC: Oct 2005
Position: 737 FO
Posts: 270
$18.6M x 12 months = $223.2 Million
$223M - $30M furlough costs = $193.2M
$193.2M / $175k avg FO pay = 1104 pilots
Just another way to look at the 10% pay rate cut for a year. 12 days of cash burn for the year isn't significant, but 1105 pilot's pay for the year is pretty significant. About 12% of the seniority list.
10-11-2020, 04:53 PM
#13
Furloughed Again?!
Thread Starter
Joined APC: Aug 2007
Position: Boeing 737
Posts: 4,804
Using this math and the $18.6M/month that SWAPA said we would save the company:
$18.6M x 12 months = $223.2 Million
$223M - $30M furlough costs = $193.2M
$193.2M / $175k avg FO pay = 1104 pilots
Just another way to look at the 10% pay rate cut for a year. 12 days of cash burn for the year isn't significant, but 1105 pilot's pay for the year is pretty significant. About 12% of the seniority list.
$18.6M x 12 months = $223.2 Million
$223M - $30M furlough costs = $193.2M
$193.2M / $175k avg FO pay = 1104 pilots
Just another way to look at the 10% pay rate cut for a year. 12 days of cash burn for the year isn't significant, but 1105 pilot's pay for the year is pretty significant. About 12% of the seniority list.
To add on to that though, No way to know what downgrade training or displacements will cost, but we can look at the EXTO training overview in Comply and see that a 24 month furlough will require an entire initial training event upon recall. That won’t be cheap.
10-11-2020, 05:02 PM
#14
Gets Weekends Off
Joined APC: Feb 2018
Posts: 1,264
Thanks for figuring out the math. Only problem I see is that $30 million is a one time charge. so using your numbers in months following the initial hit would be around 1275 pilots.
To add on to that though, No way to know what downgrade training or displacements will cost, but we can look at the EXTO training overview in Comply and see that a 24 month furlough will require an entire initial training event upon recall. That won’t be cheap.
To add on to that though, No way to know what downgrade training or displacements will cost, but we can look at the EXTO training overview in Comply and see that a 24 month furlough will require an entire initial training event upon recall. That won’t be cheap.
10-11-2020, 05:02 PM
#15
Gets Weekends Off
Joined APC: Jul 2013
Position: 175 CA
Posts: 1,544
Well let’s say average pilot between captain and FO makes say 250,000. Times say pilot group 9000 = 2.25 billion. 10% of that is 225 million. Now let’s say the average FO in furlough zone makes 200,000 you’d need to furlough 1125. Obviously I made these numbers up but there you go.
10-11-2020, 06:02 PM
#16
Furloughed Again?!
Thread Starter
Joined APC: Aug 2007
Position: Boeing 737
Posts: 4,804
No. that’s what I was saying based on the EXTO training plan document. After 24 months out, a whole new initial training event just as if they were new hires, except this time, at their longevity pay rate. Hugely expensive. And, if recalled to a domicile other than the one they were furloughed from they are entitled to a paid move. (Take rate will probably be much higher than when displaced) Just a hugely expensive training event when they finally recall - not to mention the associated upgrades etc.
10-12-2020, 03:10 AM
#17
Gets Weekends Off
Joined APC: Aug 2011
Position: Hoping for any position
Posts: 2,522
Are WARN act notices required? I’m not 100% familiar with that act and it’s requirements but I thought a 60 day notice is required? Do you guys have that in your contract also? Have they sent notice to anyone yet they intend to furlough?
You guys set the bar with your voluntary measures so I’m hoping you do the same for anything else. Hopefully it doesn’t come to that. Good luck all.
You guys set the bar with your voluntary measures so I’m hoping you do the same for anything else. Hopefully it doesn’t come to that. Good luck all.
10-12-2020, 03:15 AM
#18
Furloughed Again?!
Thread Starter
Joined APC: Aug 2007
Position: Boeing 737
Posts: 4,804
Yes. The WARN act is also known as the plant closing act. Any furlough or layoff of more than 150 workers requires notification 60 days in advance of the event.
Our CBA requires 30 days notice so the WARN notices would come first.
Sent from my iPhone using Tapatalk
Our CBA requires 30 days notice so the WARN notices would come first.
Sent from my iPhone using Tapatalk
10-12-2020, 06:05 AM
#20
Logbook...
Joined APC: Sep 2008
Posts: 416
If every pilot were to be furloughed and Kelly hired monkeys that fly for free bananas, he gets 100 days or so of cash burn relief. Just sayin.
Without a recovery, it just doesn’t matter. He’s not gonna furlough because that would be ****ing away the one thing that may save this place: the ability to rapidly recover and expand as people travel again.
Without a recovery, it just doesn’t matter. He’s not gonna furlough because that would be ****ing away the one thing that may save this place: the ability to rapidly recover and expand as people travel again.
Thread
Thread Starter
Forum
Replies
Last Post
