Rumor Control early out pkg?

chances are high that AA will have lots of early outs across the board in order to reduce the workforce numbers.
 
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.
 
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.
 
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?
 
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
 
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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!
 
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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
 
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.
 
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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.