Jimdunbar

Anybody heard what the future holds for our FA’s?

CincoDeMayo

Health insurance is covered for 4 months for the 117 that will be furloughed.

Factor in displacement costs, training (no matter how small) and other small costs, they aren’t furloughing these guys to truly “save money.” They are doing it so they can tell shareholders that they are reducing staffing at all levels and trying to conserve cash. Upper management might even still get a bonus, being that their bonus is made up of various factors including fuel management and on time performance.

onedolla

You ain't wrong there!

Jimdunbar

I don’t really disagree, but keep in mind that it’s “bean counter” decisions. If accounting can show that they save any amount, they will do it. I mean, 806 WARN notices, that’s really specific. 117, again really specific. They had a really specific number related to labor. If they were using round numbers, I’d say yeah, they are doing this for some other reason. Other than survival. We don’t have all the puzzle pieces, even if we did, it still wouldn’t make sense to us. Most likely anyway

Excargodog

I think this shows that management has decided a number of things:
1. Survival of NK isn’t really in doubt. Things will be lean for awhile but they’ve got the cash to weather it.
2. They have now shown the politicos they have done what they can - or at least made a good faith effort. The idea of additional federal aid so they can continue to pay people $4 grand a month is a lot easier than it is $15 grand a month.
3. They really believe they are going to NEED pilots in the foreseeable future and WANT to keep in relatively good graces with the pilot group. The forced contraction of the Big Three has opened up opportunities - like gate spaces - that were previously tied up and stifling competition. If the legal fight over EWR gates isn’t already moot It likely will be by the time this years block hour decreases constrain United scope next year. Having looked past the immediate contraction, they are starting to look at the opportunities in the recovery,

This fiasco - airline industry wide - has created a temporary surplus of pilots but it has exacerbated the shortage over the long haul by interrupting newbie training and maturation while sending some to early retirement. The rebound when it comes will come unevenly, but it is still likely to be lead by domestic and leisure flying. WN, NK,F9, will benefit from that.

acecrackshot

Totally agree with this...we are showing pain to the Street.

Mtnbikemike

Also, what’s specific is the last contract negotiations where management outmaneuvered ALPA, were ruthless and backed us into a corner all because of social media and weak pilots in the heard.
Not saying that this EIL and VIL was bad, it is actually good for those to take an extended vacation and save jobs, but let’s not get fooled into thinking this was out of the kindness of managements heart. There was something that benefits them also. It’s just business.

8JRMfortheyear

this right here

Slowhawk

I was looking at MCO’s numbers recently, WN is on fire, 35% of all MCO passengers, up from less than 25% pre-covid. NK is up to 16% from 13%. They must be offering some pretty low fares, but they can’t compete with us when we make so much cash off fees.

side note... Is there a way that those of us fortunate enough to not be furloughed, can help the furloughed guys pay for COBRA etc?

Halon1211

Should we expect to see some “what if’s” with this displacement bid just like with the vacancy bids?