Buyouts starting at American
03-16-2020, 05:11 PM
#21
Gets Weekends Off
Joined APC: Apr 2016
Posts: 393
Take some of your own advice man. No need for language like that when everyone is already on edge.
03-16-2020, 05:18 PM
#22
Gets Weekends Off
Joined APC: Sep 2013
Posts: 941
That’s one way of looking at it. This LOA is pretty generous. One might say too generous, particularly letting a guy retire at 62 and collect 50 hrs/month for three years. plus 401k and PS.
Maybe AA sees this blowing over quickly and these leaves and early outs being a very limited offering.
Maybe AA sees this blowing over quickly and these leaves and early outs being a very limited offering.
If you are way overstaffed in the WB CAP seat you have three
ways of fixing it.
1. Bumping/Training/Bumping/TrainingBumping/Training--repeat--repeat--repeat until you furlough the junior guy off the bottom of the list. This takes months/years in which you prob actually increase total costs, before you actually start decreasing total costs on a monthly basis. So, you will have no near term cash savings.
2. Allow retirements to take care of the overstaffing. Will work, but based on how overstaffed you are versus how many retirements you have coming up it may not achieve very much cash savings very quickly.
3. accelerate #2 by giving some portion of the cash savings you achieve to the pilot that retires early. So, in their case if you get 100 guys to leave now that weren't due to retire until Sept or beyond and pay them 50 per month instead of 75, you get 2500 hours of pay saved per month during the critical months you are trying to save cash. This plan allows them to save all that money without writing a check right now.
Option 3 is the only one that really achieves any savings that you need immediately. Given the massive drawdown of the WB flying, I am sure they would be happy to have 100 guys leave. While that is only about $1M per month, I think that at this point every $M counts.
Unfortunately, on the bottom of the seniority list, they could furlough any narrowbody FOs that are not needed for the next few months and start saving immediately there as well. Any bump/train process even from 767 back to 737/320 would be too time consuming to have any short term cash savings benefit. So, if there is a furlough, I would expect it to be small in number and short in duration.
03-16-2020, 06:08 PM
#23
Gets Weekends Off
Joined APC: Mar 2014
Posts: 797
This is a good post, you broke it down well. I know everybody laughs as us (AA), but I really think we got a nice deal out of this. We have about 3000 wide body pilots right now, and no use for them for months, they got creative and I think will have plenty of takers.
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03-16-2020, 06:24 PM
#24
Gets Weekends Off
Joined APC: Oct 2008
Posts: 553
Italy is about to stop treating anyone over 80 because their hospitals are being overwhelmed and they need to save the beds for people who are more likely to survive All these precautions are about not overwhelming the medical system; they're about protecting the community but, that might require people to have some perspective and not be selfish DBs. In other words we're screwed...
03-18-2020, 09:04 AM
#25
Line Holder
Joined APC: Aug 2016
Posts: 28
03-18-2020, 11:56 AM
#27
Gets Weekends Off
Joined APC: Dec 2019
Posts: 131
That’s one way of looking at it. This LOA is pretty generous. One might say too generous, particularly letting a guy retire at 62 and collect 50 hrs/month for three years. plus 401k and PS.
Maybe AA sees this blowing over quickly and these leaves and early outs being a very limited offering.
Maybe AA sees this blowing over quickly and these leaves and early outs being a very limited offering.
03-19-2020, 03:01 AM
#29
Gets Weekends Off
Joined APC: Aug 2006
Position: A330 First Officer
Posts: 1,465
Too funny. Now you will have teenagers and old guys with fake ID's to get into bars.
03-19-2020, 04:33 AM
#30
Follower
Joined APC: Mar 2020
Posts: 57
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