1. Vacation - Reduce vacation by 33%. For the top, this means a reduction from 42 days to 28. Savings to AA: $42 M - Head count loss: 682 F/A’s
2. Eliminate pre-vacation “48’s†- $11 M Head count loss: 181
3. Reduce per diem to $1.50 Domestic/$1.75 Intl. Savings: $13 M
4. Reduce “premium†rates by 50% - eliminate longevity, NB lead, night pay, reserve override – the 7/1/03 purser pay raise is eliminated. $21 M savings
5. Change layover rest to FAA minimums - $19 M savings. Head count reduction: 166
6. Eliminate benefits for OVL leaves – the only thing a F/A accrues is seniority, the only thing kept is passes (COBRA payments for insurance) No vacation accrual
7. Minimum annual hourly threshold to accrue and receive benefits $2 M savings 294 headcount reduction
8. Eliminate Article 6E Vacation Benefits (2 months accrual of vacation) $4 M – headcount reduction 71
9. Eliminate crew meals on all flights: $7 M
10. Reduce sick leave accrual to 3 hrs./mo., eliminate rapid reaccrual $10 M in savings – headcount reduction 60
11. Increase trip selection maximum to 77 (Domestic) 82 (Intl) – Monthly maximum 80 (Domestic)/85 (Intl); pure bid lines may be built to 82 (Dom)/87 (Intl); make-up to 85 (Dom)/90 (Intl) - $7M - Headcount reduction: 387
12. Incentive cut in to begin after 69 hours (instead of 67) - $5 M savings
13. Eliminate all paid holidays - $5 M
14. Eliminate EPT training pay up to 12 hours (instead of the current 8 hrs.) $1M Savings
15. Modify uniform point system (18 to 12, reduced PT, no carryover) - $2M savings
16. Eliminate underfly (F/A’s receive actual – not scheduled flt. time) - $20 M savings
17. 100% Deadhead Pay/50% credit - $2 M savings – 39 head count reduction
18. Eliminate IOD salary continuance - $1 M
19. Eliminate “last trip of month protection†– it goes back to 5 days from 7 days - $6M
20. Eliminate furlough pay - $6M (More on this below)
21. Eliminate part-time program - $3 M – 350 headcount reduction
22. Reduce lineholder guarantee to 70 hours - $2 M
The total work rule savings are “valued†at 198 MM. The total headcount reduction is 2,391.
15.6% paycut – “valued†at $153 MM
Change in Medical/Dental Benefits: $8 M (The current payment doubles)
2. Eliminate pre-vacation “48’s†- $11 M Head count loss: 181
3. Reduce per diem to $1.50 Domestic/$1.75 Intl. Savings: $13 M
4. Reduce “premium†rates by 50% - eliminate longevity, NB lead, night pay, reserve override – the 7/1/03 purser pay raise is eliminated. $21 M savings
5. Change layover rest to FAA minimums - $19 M savings. Head count reduction: 166
6. Eliminate benefits for OVL leaves – the only thing a F/A accrues is seniority, the only thing kept is passes (COBRA payments for insurance) No vacation accrual
7. Minimum annual hourly threshold to accrue and receive benefits $2 M savings 294 headcount reduction
8. Eliminate Article 6E Vacation Benefits (2 months accrual of vacation) $4 M – headcount reduction 71
9. Eliminate crew meals on all flights: $7 M
10. Reduce sick leave accrual to 3 hrs./mo., eliminate rapid reaccrual $10 M in savings – headcount reduction 60
11. Increase trip selection maximum to 77 (Domestic) 82 (Intl) – Monthly maximum 80 (Domestic)/85 (Intl); pure bid lines may be built to 82 (Dom)/87 (Intl); make-up to 85 (Dom)/90 (Intl) - $7M - Headcount reduction: 387
12. Incentive cut in to begin after 69 hours (instead of 67) - $5 M savings
13. Eliminate all paid holidays - $5 M
14. Eliminate EPT training pay up to 12 hours (instead of the current 8 hrs.) $1M Savings
15. Modify uniform point system (18 to 12, reduced PT, no carryover) - $2M savings
16. Eliminate underfly (F/A’s receive actual – not scheduled flt. time) - $20 M savings
17. 100% Deadhead Pay/50% credit - $2 M savings – 39 head count reduction
18. Eliminate IOD salary continuance - $1 M
19. Eliminate “last trip of month protection†– it goes back to 5 days from 7 days - $6M
20. Eliminate furlough pay - $6M (More on this below)
21. Eliminate part-time program - $3 M – 350 headcount reduction
22. Reduce lineholder guarantee to 70 hours - $2 M
The total work rule savings are “valued†at 198 MM. The total headcount reduction is 2,391.
15.6% paycut – “valued†at $153 MM
Change in Medical/Dental Benefits: $8 M (The current payment doubles)