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Step back in time!
LTP: MCI Base Reduction in Force
April 6, 2005
Kansas City Maintenance Base RIF
Leader Talking Points
> Regrettably, we are proceeding at MCI with the previously announced June RIFs as planned (announced in November 2004) because adverse industry conditions persist, deteriorating our yields and resulting in significant fleet plan changes. Increased competition in the maintenance, repair and overhaul business also continues to challenge us.
> Between 500-600 management and front-line employees are expected to be affected.
> The numbers will fluctuate due to:
Stand-in-stead program.
Retirements.
Finalizing plans in some departments (Inventory Control, Purchasing, etc.).
>AA's current plans are for MCI to be a strong component of M&E's future, as indicated by the 25-year lease we recently signed with the City and the approximately 900 jobs that will remain here and we're working hard to increase.
> Working together with the TWU and the City, our joint marketing teams have done and will continue to do everything possible to secure third party work in order to reduce the need for and number of RIFs and eventually create opportunities for recalls -- a goal we all share.
25 potential customers in the pipeline (leasing companies, airlines, commercial and military contracts).
Marketing by advertising in MRO magazines worldwide and participating in MRO conferences.
Third-party maintenance for Capital Cargo.
The Capital Pylon Mod project's "Specialty 767 Pylon Mod Package" to sell our services.
Reno Air lease return C-check completed at MCI, saving more than $400,000.
Third-party work in our standards lab.
While progress is being made, it regrettably is not yet enough to offset the need for RIFs
The June 2005 dock plan utilizes our Super Bay and support shops only.
> Adverse industry conditions (high fuel costs, low yields, effects of legacy carriers in bankruptcy and LCCs) have resulted in significant fleet plan changes that critically impact MCI's work load.
Original plan to reactivate 28 parked MD80s by the end of 2005 was changed.
Working collaboratively with the TWU last fall, we were able to defer approximately half of the planned RIFs from last December to this June.
> This reduction is due to competitive and economic pressures, and does not in any way reflect the quality of our work. We have the best people in the industry.
> Transitional programs to support affected colleagues will be activated and more information about them will be provided in separate communications soon.
> AA wants to keep as much of its maintenance work in-house as possible and we believe the market for third-party work will continue to grow, so we need to stay focused on the work we're doing and positive about the opportunities we are pursuing.
> Our confidence, consistency and commitment today and tomorrow are critical to our future success and to our ability to be able to recall those affected.
> If we continue to increase our efficiency and productivity, along with our high quality, we are convinced opportunities remain for MCI.
LTP: MCI Base Reduction in Force
April 6, 2005
Kansas City Maintenance Base RIF
Leader Talking Points
> Regrettably, we are proceeding at MCI with the previously announced June RIFs as planned (announced in November 2004) because adverse industry conditions persist, deteriorating our yields and resulting in significant fleet plan changes. Increased competition in the maintenance, repair and overhaul business also continues to challenge us.
> Between 500-600 management and front-line employees are expected to be affected.
> The numbers will fluctuate due to:
Stand-in-stead program.
Retirements.
Finalizing plans in some departments (Inventory Control, Purchasing, etc.).
>AA's current plans are for MCI to be a strong component of M&E's future, as indicated by the 25-year lease we recently signed with the City and the approximately 900 jobs that will remain here and we're working hard to increase.
> Working together with the TWU and the City, our joint marketing teams have done and will continue to do everything possible to secure third party work in order to reduce the need for and number of RIFs and eventually create opportunities for recalls -- a goal we all share.
25 potential customers in the pipeline (leasing companies, airlines, commercial and military contracts).
Marketing by advertising in MRO magazines worldwide and participating in MRO conferences.
Third-party maintenance for Capital Cargo.
The Capital Pylon Mod project's "Specialty 767 Pylon Mod Package" to sell our services.
Reno Air lease return C-check completed at MCI, saving more than $400,000.
Third-party work in our standards lab.
While progress is being made, it regrettably is not yet enough to offset the need for RIFs
The June 2005 dock plan utilizes our Super Bay and support shops only.
> Adverse industry conditions (high fuel costs, low yields, effects of legacy carriers in bankruptcy and LCCs) have resulted in significant fleet plan changes that critically impact MCI's work load.
Original plan to reactivate 28 parked MD80s by the end of 2005 was changed.
Working collaboratively with the TWU last fall, we were able to defer approximately half of the planned RIFs from last December to this June.
> This reduction is due to competitive and economic pressures, and does not in any way reflect the quality of our work. We have the best people in the industry.
> Transitional programs to support affected colleagues will be activated and more information about them will be provided in separate communications soon.
> AA wants to keep as much of its maintenance work in-house as possible and we believe the market for third-party work will continue to grow, so we need to stay focused on the work we're doing and positive about the opportunities we are pursuing.
> Our confidence, consistency and commitment today and tomorrow are critical to our future success and to our ability to be able to recall those affected.
> If we continue to increase our efficiency and productivity, along with our high quality, we are convinced opportunities remain for MCI.
