Job cuts are coming

[damajagua]

CEO says AMR will shed jobs in bankruptcy
New CEO of American Airlines parent AMR says company will cut jobs in bankruptcy


AP – 15 minutes ago

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Companies:
AMR Corporation
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AMR 0.66 -0.03

DALLAS (AP) -- The new CEO of American Airlines says the company will cut jobs and make tough, unpopular decisions as it goes through bankruptcy.
Thomas W. Horton also said Thursday in a letter to employees that "opportunists" might try to buy American, sell it or break it up, but he advocated keeping the company together.
Horton says American will focus in coming weeks on renegotiating debt and aircraft-lease deals. He says the company will ground some planes and shrink before it can grow again.
Horton isn't saying how many jobs will be cut or how much the airline will reduce flying. American has about 74,000 employees, and it's the nation's third-biggest airline.
American and parent AMR Corp. filed for bankruptcy protection on Nov. 29.

 

[jimntx]

There have also been articles that seem to suggest that the great majority of the cuts will come at Eagle since they were unable to complete the spinoff before bk.

 

[damajagua]

While there will probably be a disproportionately numbers of cuts at eagle
The cuts are AA will be substantial. Just from a flight attendant point of
view we are already operating with a huge overage. There are people
here that think flight attendants are are not going to be furlough
becuase of the mandarin speakers side letter of agreement
I think the company will find ways around it or staff the flight
with FSD like they staff the flights to Haiti.
If I was base at TUL or AFW I would also be very concern
about my job or at least place of work. Things are going to start moving
fast after the holidays. Our new CEO siad it all today
"We will become smaller before we grow again"
Anyone that thinks that this is not going to be a painful process
need to wake up and accept the reality at hand.
Good luck to all

 

[Buck]

While there may be some validity to your prediction, there is no real use in scaring the scared. From your F/A point of view, you are probaly correct if you already have an overage. This could be cause by a planned route restructure. However maintenance, at least OH has a very large work forcast with a shortage of mechanics. The company is still hiring mechanics, but I realize that that could come to a halt.

 

[FWAAA]

If lease rejections and/or owned aircraft repos result in grounding a few dozen planes, there will be a large number of surplus FAs. And I agree that AA will pay extra to fly the PVG speakers as non-FAs (like the Moscow flight or Haiti) rather than keep an extra 1000 or more FAs on the payroll. The FA overage gets even larger once AA gets the scheduling max it wants, either by agreement or contract abrogation. 100/hr a month scheduling limit could reduce FA staffing needs by another 1000 or more.

The FA overage, however, may be self-solving, to a degree. Work rule changes and a possible 10% or more paycut could cause some senior FAs to re-evaluate their commitment to a demanding job when there's so many other things they could do rather than suffer more concessions. A buyout could encourage those on the fence to seek a more pleasant retirement and would eventually lead to lower-wage new FAs.

 

[damajagua]

While there may be some validity to your prediction, there is no real use in scaring the scared. From your F/A point of view, you are probaly correct if you already have an overage. This could be cause by a planned route restructure. However maintenance, at least OH has a very large work forcast with a shortage of mechanics. The company is still hiring mechanics, but I realize that that could come to a halt.

Buck

I hope you are right and that I am totally wrong.
But just becuase the company is hiring does not
mean anything. They just send 20 eagle pilots
new hire trainee home. So AMR track record of hiring
right till they are furloughing is very well documented.
They announced today that up 223 eagle pilots
And flight attendants could be furlough
by the end of January.

 

[Overspeed]

While there may be some validity to your prediction, there is no real use in scaring the scared. From your F/A point of view, you are probaly correct if you already have an overage. This could be cause by a planned route restructure. However maintenance, at least OH has a very large work forcast with a shortage of mechanics. The company is still hiring mechanics, but I realize that that could come to a halt.

Everybody in M&E is focused on overhaul. What about line? I am thinking that a number of small Class Is and Class IIs are vulnerable. What's going to happen to the station and system protection? Formerly that was a blocker for a lot of small Class IIs. Will AA attempt to through provisions like that out? We could have the perfect storm overhaul and base contraction. It will be a system wide game of musical chairs!

 

[damajagua]

If lease rejections and/or owned aircraft repos result in grounding a few dozen planes, there will be a large number of surplus FAs. And I agree that AA will pay extra to fly the PVG speakers as non-FAs (like the Moscow flight or Haiti) rather than keep an extra 1000 or more FAs on the payroll. The FA overage gets even larger once AA gets the scheduling max it wants, either by agreement or contract abrogation. 100/hr a month scheduling limit could reduce FA staffing needs by another 1000 or more.

The FA overage, however, may be self-solving, to a degree. Work rule changes and a possible 10% or more paycut could cause some senior FAs to re-evaluate their commitment to a demanding job when there's so many other things they could do rather than suffer more concessions. A buyout could encourage those on the fence to seek a more pleasant retirement and would eventually lead to lower-wage new FAs.

Hate to disagree with you but I have flown with many senior flight attendants that are in their 70's and have
no desire to retire. They feel this job is a part time job to go and have dinner in fabulous cities all over the world.
While your statement makes sense to the average individual it doesn't to some of these dinosaurs.

 

[Buck]

Everybody in M&E is focused on overhaul. What about line? I am thinking that a number of small Class Is and Class IIs are vulnerable. What's going to happen to the station and system protection? Formerly that was a blocker for a lot of small Class IIs. Will AA attempt to through provisions like that out? We could have the perfect storm overhaul and base contraction. It will be a system wide game of musical chairs!

Station staffing is a result of the number of flights, correct? If so, then when filghts are reduced, staffing could be reduced?

My question in responding to your Seniority Protection issue is , can the company RED CIRCLE any unit.

 

[AV1]

CEO says AMR will shed jobs in bankruptcy
New CEO of American Airlines parent AMR says company will cut jobs in bankruptcy


AP – 15 minutes ago

Email
Print
Companies:
AMR Corporation
RELATED QUOTES
Symbol Price Change
AMR 0.66 -0.03

DALLAS (AP) -- The new CEO of American Airlines says the company will cut jobs and make tough, unpopular decisions as it goes through bankruptcy.
Thomas W. Horton also said Thursday in a letter to employees that "opportunists" might try to buy American, sell it or break it up, but he advocated keeping the company together.
Horton says American will focus in coming weeks on renegotiating debt and aircraft-lease deals. He says the company will ground some planes and shrink before it can grow again.
Horton isn't saying how many jobs will be cut or how much the airline will reduce flying. American has about 74,000 employees, and it's the nation's third-biggest airline.
American and parent AMR Corp. filed for bankruptcy protection on Nov. 29.

Read the article myself. It didn't say anything more than we already know from day 1. Why some people come on this board and basically try to scare people with the "sky is falling, sky is falling" attitudes make me want to throw up. Why this thread was started other than to scare people or worse is pathetic.

 

[DallasConehead]

It will be a system wide game of musical chairs!

I doubt there will be any kind of bump and roll. You think they are going to pay for that? Pay for the churn?

 

[amt66]

Horton was in MIA a few days ago and saig we will get smaller!!! No assurances on OH only that if we can do it competively they would look at it. Time for OH to step up to the plate!!!! The days of sat/sun off are over!!!! Be lucky you keep your jobs!!! Even if you came to the line you would be working weekends!

 

[MCI transplant]

I doubt there will be any kind of bump and roll. You think they are going to pay for that? Pay for the churn?

<_< ------ Ever consider that part of your contract may not be there when this all flushes out?

 

[amt66]

Most likely will have to relocate on your own dime with no hopes of returning to ttown

 

[AV1]

MCI Transplant,

Wasn't that the beginning of the end when TWA starting to downsizing? Just saying, it looks awfully familiar around here.