Rumor Control early out pkg?

WorldTraveler

Corn Field
Dec 5, 2003
21,709
10,721
chances are high that AA will have lots of early outs across the board in order to reduce the workforce numbers.
 

Flying low

Veteran
Jul 19, 2011
630
232
olderguyAMT said:
Am hearing vague rumors  about a new early out package offer for mechanics.  What is the latest?  Any details?
Believe it only when the you see it.
 

WorldTraveler

Corn Field
Dec 5, 2003
21,709
10,721
Doug said, no early outs for any work group, because AA is expanding not shrinking.
funny.. based of their schedules which have been loaded for this winter, their capacity is DOWN.



And he will get tired of spending a couple hundred million dollars per year to sustain the Pacific flying that AA does.


I supposed cutting European flying to be able to afford the "subsidies" that have to be given to transpacific flying is one type of strategy.
 

OldGuy@AA

Veteran
Apr 14, 2011
1,703
2,289
Tulsa
Let's see what the early out package would look like............  You leave the airline with no medical and frozen pension with D2R flight benefits.  How could anyone resist?
 

jcw

Veteran
Aug 12, 2004
2,053
2,716
WorldTraveler said:
funny.. based of their schedules which have been loaded for this winter, their capacity is DOWN.



And he will get tired of spending a couple hundred million dollars per year to sustain the Pacific flying that AA does.


I supposed cutting European flying to be able to afford the "subsidies" that have to be given to transpacific flying is one type of strategy.
 
Once again - scheduling from a US standpoint  are always down in the winter - US adjusts it's schedules to demand and regualarly does it - I know that is lost on some - they flex up and down - for example they ran a midnight bank on Sunday evenings in CLT during certain summer weekends
 
  • Like
Reactions: 3 people

BigMac

Veteran
Feb 19, 2008
813
448
TORNADO ALLEY
OldGuy@AA said:
Let's see what the early out package would look like............  You leave the airline with no medical and frozen pension with D2R flight benefits.  How could anyone resist?
The Early Out package is the equivalent of a $hit sandwich!
 
  • Like
Reactions: 1 person

WorldTraveler

Corn Field
Dec 5, 2003
21,709
10,721
Once again - scheduling from a US standpoint  are always down in the winter - US adjusts it's schedules to demand and regualarly does it - I know that is lost on some - they flex up and down - for example they ran a midnight bank on Sunday evenings in CLT during certain summer weekends
we get all of that....

but statistics show that.

On a year round basis, AA/US int'l capacity for the winter is down.

The biggest drop comes from cuts in Latin America where AA and US both are reducing the amount of capacity as it undoubtedly becomes clear that their capacity additions are not delivering the financial results they want to see for a long term basis.

AA's capacity to Asia is up driven by their DFW to Asia buildup. AA is trimming capacity in its highest profit region in order to push yields up and subsidize their Asia buildup.

staffing has to match the operation
 

bigjets

Veteran
Jan 14, 2011
1,881
1,304
Let's see the airline is short of pilots and is hiring FAs, and mechanics off the street hardly sounds like AA needs to shed the work force.
 
  • Like
Reactions: 3 people

WorldTraveler

Corn Field
Dec 5, 2003
21,709
10,721
wonderful... but in the latest quarterly report, AA had more mainline employees for the revenue generated than their peers at other airlines. The formula to justify the extra headcount used so far has been exactly what was used at US - lower compensation instead of fewer but higher paid employees.

Parker has a window where he can get by with lower salaries but at some point AA employees will say they are tired of being lower paid to avoid layoffs.

I am hoping for your sakes that natural attrition and early out packages will account for the vast majority of the reduction in workforce numbers that has to take place in order to bring your pay up.