Showing posts with label downsizing. Show all posts
Showing posts with label downsizing. Show all posts

Wednesday, September 08, 2010

ALPA responds to Comair plans for drastic fleet reduction, crew furloughs

by B. N. Sullivan

ComairLast week, U.S. regional airline Comair, a wholly owned subsidiary of Delta Air Lines, announced plans for a drastic reduction of its aircraft fleet over the coming two years.  The carrier plans to retire 49 of its 93 aircraft, including most of its 50-seat CRJ 100s and 200s, by the end of 2012.  Furloughs are sure to follow.

Today, Comair management was scheduled to meet with union leaders from several of its work groups, including representatives of the Air Line Pilots Association (ALPA), the International Association of Machinists and Aerospace Workers, and Teamsters Local 513.

Capt. Matt Lamparter, chairman of the Comair unit of ALPA released the following statement today:
“Obviously, we are deeply disappointed by the company’s plans to restructure the airline. However, our commitment has been and remains to our pilots and to protecting our contract, our jobs, and our futures.

“We intend to use the full array of ALPA resources to ensure that any downsizing of the company will have the input of our pilot group and will respect our contract. We have scheduled meetings with Comair management and plan to be a full partner as this restructuring moves forward.

“Despite the heavy burden of this announcement, Comair pilots will continue to demonstrate the professionalism and solidarity—both in the cockpit and out—that built this airline and carried it through a bankruptcy and a strike. As before, when faced with challenges, this pilot group has overcome and succeeded. Although the situation is different, our goal is the same: a strong and unified pilot group and a successful airline.”
Comair has not yet made public the number of crew and ground staff jobs that will be cut in the course of the restructuring.  Expect to hear about voluntary severance offers and furloughs in the near future.

Monday, January 18, 2010

Japan Airlines: Imminent bankruptcy to result in loss of 15,700 jobs

by B. N. Sullivan

JAL logoJapan Airlines (JAL), which has been struggling financially for some time, is expected to file for bankruptcy tomorrow. As a part of its restructuring plan, the airline will eliminate 15,700 jobs -- one third of its work force, according the the Financial Times. The staff reductions are expected to occur over a period of up to three years, rather than all at once.

"JAL’s bankruptcy could be the largest of a Japanese group outside the financial services sector and would be one of the country’s fifth or sixth-largest," says the Financial Times.

JAL is expected to continue operations during its restructuring. The airline will cease operating more than 20 unprofitable routes.

In 2009, JAL asked pilots, cabin crew, and ground workers to volunteer for two months of unpaid leave, and even suspended part of its pilot training programs to save money. Pensions of pilots and other workers also were reduced.

Two U.S.-based carriers -- American Airlines and Delta Air Lines -- have been embroiled in a bidding war for some of JAL's routes. JAL and American are both members of the Oneworld alliance, but JAL is reportedly considering a move to SkyTeam, which would ally it more closely with Delta, which is already a member of SkyTeam.

Reuters reports:
In recent days, reports have suggested that Atlanta-based Delta, with its strong transpacific route structure, could be irresistible for JAL.

A Japanese newspaper reported on Saturday that JAL has already agreed on a tie-up with Delta.
Reuters also reported that while the Japanese government does not have an official stance on who JAL should ally with, some senior officials in the transport ministry are pushing for JAL to defect to SkyTeam.

Tuesday, January 05, 2010

Mesa Air Group files for Chapter 11 bankruptcy protection

by B. N. Sullivan

Mesa Air GroupCiting an "untenable financial situation" due to leases on aircraft it no longer needs or wants, Mesa Air Group has filed voluntarily for Chapter 11 bankruptcy protection. Mesa CEO Jonathan Ornstein said the move will allow Mesa to "eliminate excess aircraft."

"In addition" said Ornstein, "this action will give us the opportunity to reach a more timely conclusion in the litigation with Delta Air Lines in which Mesa is currently seeking damages in excess of $70 million."

Mesa sued Delta Air Lines after the latter canceled a lucrative contract.

In a statement to the press Mesa claimed that they "will continue to operate as normal, without interruption" during the financial restructuring. No layoffs were announced, however fleet reductions usually are accompanied by work force downsizing as well, so who knows what may be in store later in the year for crews and other Mesa employees.

Meanwhile, Mesa's press release specified (among other things) that the company is "seeking authority from the Court... to continue to pay employee salary and benefits," stating that it has ample liquidity to support itself during the bankruptcy process.

Mesa operates as Delta Connection, US Airways Express and United Express under contractual agreements with Delta Air Lines, US Airways and United Airlines, respectively, and independently as Mesa Airlines and go! Mokulele. The latter is not included in Mesa's Chapter 11 bankruptcy filing.

UPDATE Jan. 6, 2010: The Mesa Air Group (MAG) unit of the Air Line Pilots Association (ALPA) has released the following statement regarding Mesa's bankruptcy filing:
“While we are not surprised by the company’s bankruptcy filing, it is a sad day for all of us as MAG pilots. Our company experienced tremendous growth since it began operating in 1982.

Unfortunately, the steady decline in the U.S. economy has had a tremendous impact on our partners and our company and MAG was forced to declare bankruptcy to eliminate excess aircraft. The bankruptcy process will allow our company to restructure its fleet and debt so that it meets the flying needs of our partners and remains competitive for future business opportunities.

“MAG has some of the lowest costs in the industry. Labor expenses are clearly not the problem, and the company indicated that they plan to honor the existing collective bargaining agreement with their pilots. The union will continue working to protect our pilots’ rights under this agreement.

“We have an extremely dedicated pilot group and are strongly committed to seeing our airline succeed. MAG pilots offer its partners and their customers quality service and proven performance, and we are committed to maintaining the same level of excellence for passengers traveling on our aircraft.”

Thursday, November 05, 2009

Job cuts in the works for bmibaby pilots and cabin crew

by B. N. Sullivan

bmibaby.comBMI Group, which operates the UK-based low fare airline bmibaby, is planning a restructuring that will cut flights on certain bmibaby routes, and reduce the carrier's fleet of Boeing 737 aircraft by five in 2010. In conjunction with the downsizing, 54 pilots and 82 cabin crew stand to lose their jobs. BMI managing director Crawford Rix indicated that 22 management and support positions are "at risk for redundancy" as well.

Crew members at risk for losing their jobs are currently based at Birmingham, Manchester and Cardiff. At the same time, though, another ten pilots and 15 cabin crew will be needed at East Midlands due to the restructuring. At this point, it is unclear if some of the crew members at risk for redundancy would be repositioned to East Midlands.

Reuters, quoting a statement from the Unite union, says that Unite "would be working to stop compulsory redundancies at the airline." BBC News also reported that "discussions had been started with staff and union representatives with a view to minimising job losses where possible."

The BBC quoted Brian Boyd, Unite's national officer for aviation, who said: "Today's announcement casts further doubt over the whole bmi group as its new owners Lufthansa search for cost savings.

"Unite members are once again caught at the sharp end of business restructuring," Boyd commented.

BMI Group, the parent of bmibaby, is in turn owned by Lufthansa.

Thursday, October 29, 2009

US Airways plans to scale back, close some crew bases, reduce work force by 1,000

by B. N. Sullivan

US Airways A320US Airways has announced plans to reduce its work force by about 1,000 in early 2010. Among the jobs cuts: about 200 pilots and 150 flight attendants. Roughly 600 ground workers also will be laid off.

Crew bases at Las Vegas and New York/La Guardia will be closed as of January 31, 2010; the Boston crew base will be eliminated in early May. Crew bases in Philadelphia, Charlotte, Phoenix and Washington, D.C. will be retained.

Following what the carrier calls a 'realignment strategy', US Airways plans to consolidate its operations around its three hub cities -- Charlotte, Philadelphia and Phoenix -- plus Washington, DC. Shuttle service between New York/LaGuardia Airport, Boston and Ronald Reagan Washington National Airport will continue.

Among the changes: reduction of the number of Las Vegas flights; closure of stations at Colorado Springs and Wichita; redeployment of 15 E-190 aircraft to the shuttle service; and suspension of five European destinations currently served from Philadelphia. The airline plans to return its Philadelphia-Beijing flight authority to the Department of Transportation (DOT) "until economic conditions improve, while retaining the option to reapply for this authority in the future."

US Airways CEO Doug Parker said, "By concentrating on our strengths we will be better positioned to return US Airways to profitability, which will result in a more consistent experience for our customers, better returns for our shareholders and greater job stability and career opportunities for our employees."

[Photo Source]

Thursday, September 17, 2009

Aeroflot to cut 2,000 jobs -- for now

by B. N. Sullivan

AeroflotRussian flag carrier Aeroflot announced it will cut 2,000 jobs over the next six months. That number represents about 13 percent of Aeroflot's current work force. At least one news report suggests that further cuts may follow.

The AFP news service quoted an Aeroflot spokeswoman who said that 2,000 jobs will be cut by the end of this year or first quarter of next year. However, AFP also cited an item from Russia's Interfax news agency in which a 'company insider' stated that "Aeroflot had already cut 500 jobs and could cut up to 6,000 -- more than one-third of the company's 15,500 employees."

From AFP:
Asked about the likelihood of more sweeping job cuts, [Aeroflot spokeswoman] Danneburg said: "Yes, maybe even more, but for now 2,000."

"The general director has more than once said the staff needs to be thinned, now with the crisis this has become necessary," she added.
The Russian government owns a 51 percent stake in Aeroflot, which is a Sky Team member. The carrier announced in July that its year-over-year profits had fallen by 88 per cent. In June, Aeroflot Cargo declared bankruptcy.

Wednesday, September 16, 2009

Japan Airlines restructuring includes loss of 6,800 jobs

by B. N. Sullivan

JAL logoJapan Airlines (JAL) has announced plans to reduce its work force by about 14 percent over the next three years. This means some 6,800 of JAL's current 48,000 employees will lose their jobs.

The airline, which is Asia's largest carrier by revenue, also wants to reduce to reduce the pay and pensions of pilots and other workers. Earlier this year, JAL asked pilots, cabin crew, and ground workers to volunteer for two months of unpaid leave, and even suspended part of its pilot training programs to save money.

Today's announced job cuts are part of JAL's restructuring plans, which also include a large reduction in international passenger and freight flights. The Financial Times, quoting a Japanese transport ministry official, reports that "JAL's international and domestic routes are currently split 50-50, but the airline would now focus more on domestic services."

At present, JAL is in talks with Delta Airlines, American Airlines, and Air France-KLM about their possible investment in the Japanese carrier. In return for an infusion of between $200 million and $300 million, the investor airline(s) would gain access to important Asian markets -- China, in particular -- through code-sharing.

As Reuters columnist Alexander Smith writes:
Oneworld and to a greater extent SkyTeam -- which includes Air France and Delta -- are both relatively under-weight in Asia and will seize on any opportunity that comes along. If winning the prize means providing cash to bail out an ailing airline such as JAL, then they see it as a necessary evil.
Smith also mentions the that such a deal might present "an opportunity to push an open skies deal with the United States." At the same time, notes Smith, "nobody is holding their breath for the United States to relax its rules so far as to allow majority foreign ownership -- especially in the middle of a recession."

Saturday, May 09, 2009

Delta proposes early retirement plan to ALPA to counter 'pilot staffing overage'

Delta Air Lines logoDelta Air Lines has too many pilots. That is the gist of the reason why the carrier has proposed "a pilot retirement incentive program" to the Air Line Pilots Association (ALPA), which represents Delta's 12,000 pilots.

According to a letter from the chairman of the Delta unit of ALPA to the pilot membership, the proposed pilot retirement incentive program is "designed to address what management perceives to be a current pilot staffing overage." The letter to the pilots from Lee Moak, chairman of the Delta Master Executive Council (MEC) of ALPA, was reprinted in today's Atlanta Business Chronicle.

The letter says that the proposal was presented to the union's Negotiating Committee late last month.
Under the terms of the proposal, active pilots who have met certain age and length-of-service metrics would be eligible to participate in the program. Participating pilots would receive a severance payment, medical and dental benefits for a limited period of time and retiree travel benefits.
The Negotiating Committee plans to meet soon with Delta management to begin discussions regarding the proposal. The number of pilot jobs Delta is seeking to eliminate was not specified.

Separately, the Negotiating Committee also is engaged in discussions with management about details relating to Delta's recently announced closure of the 747-200 categories (both in Anchorage and Minneapolis) and the Anchorage base.

Earlier this year, Delta Air Lines offered a voluntary buyout program to reduce staff in conjunction with a capacity reduction. Delta pilots were not eligible for that program.

Tuesday, April 14, 2009

FedEx to take 14 aircraft out of service

FedExAir cargo carrier FedEx has announced plans to reduce its fleet by 14 aircraft. FedEx currently operates 670 aircraft. According to a document filed with the U.S. Securities and Exchange Commission (SEC), the freight carrier indicated that 10 A310-200s and four MD10-10s would be permanently removed from service by May 31, 2009.

Yesterday's SEC filing stated, "This decision reflects management's ongoing efforts to optimize the company's express network in light of continued excess aircraft capacity due to weak economic conditions and the expected delivery of newer, more fuel-efficient aircraft in fiscal year 2010."

The company has plans to replace the aircraft with newer, more fuel-efficient aircraft in the coming fiscal year.

Monday, April 13, 2009

Qantas to park 10 aircraft and cut 1,750 jobs

Qantas logoBig news from Australia: Qantas is planning a major capacity reduction, and will downsize its staff, due to a "rapid and significant deterioration of trading conditions in the past few weeks".  Among the 1,750 jobs cut will be 500 management positions.  

An article about the Qantas capacity reduction plans in The Australian quoted the carrier's CEO, Alan Joyce, who said, "We employ over 34,000 people and we are striving to protect as many of their jobs as possible, but the capacity reductions to protect the long-term viability of the overall Qantas Group mean that up to 1,250 equivalent full-time positions will be affected in addition to the management reductions being made."  

The Australian reports that Qantas "would try to use a range of workforce initiatives to manage the downturn such as annual leave, long service leave, attrition, redeployment, leave without pay, promoting part-time work and exploring job-sharing" in order to mitigate the number of redundancies, but that jobs losses "would be inevitable."

The Australian flag carrier plans to reduce passenger capacity by 5% on both domestic and international routes. A reduction in freight capacity is in the works as well.  To that end, Qantas will park 10 aircraft and put them up for sale.  At least one source mentioned that those aircraft would be widebody planes, including Boeing 747s and Boeing 767s.  Qantas also plans to defer deliveries on new aircraft, including four Airbus A380s and a dozen Boeing 737-800s. 

In late 2008, Qantas reduced its worldwide work force by 1,500.  That round of job cuts included the closure of the Jetstar crew base at Adelaide.  No word yet on how many crew jobs will be lost in the current round of cuts.

Tony Sheldon of the Transport Workers Union of Australia said the union would seek urgent meetings with Qantas to discuss the lay‐offs.

"We will be talking to Qantas about how staff can be retained over this period with preference given to the retention of direct‐hire staff. We will also be talking to them about the recall of affected staff as the situation improves," Sheldon said.

Friday, February 20, 2009

2,100 Delta employees volunteer for buyouts

Delta Air Lines logoThe Atlanta Journal-Constitution is reporting that 2,100 Delta Air Lines employees have volunteered to take buyouts as the carrier seeks to reduce its work force. The 'voluntary programs to adjust staffing' -- including early retirements and severance -- were announced by Delta in December in conjunction with its planned capacity reduction.

Last month, Delta said it was seeking to eliminate about 2,000 jobs, or about 2.7 percent of its workforce. Workers with at least 10 years of service whose age and seniority add up to at least 55 were offered a severance package that would include two weeks of pay for each year of service, plus travel privileges and health insurance for a specified period.

In a message to employees, Delta CEO Richard Anderson said, "Passengers, our customers, are not buying tickets at rates they were buying tickets a year ago. Obviously, we wish we didn't have to decrease our capacity, but we cannot fly our airplanes around at low load factors."

Tuesday, February 17, 2009

Singapore Airlines, unions, discuss effects of planned capacity reduction

Singapore AirlinesThe management of Singapore Airlines has been meeting with union leaders to discuss how to mitigate the potential impact of the airline's announced capacity reduction on staff. Singapore Airlines plans to reduce its capacity by 11 per cent between April of this year and March of 2010.

The current capacity reduction plan will entail the decommissioning of 17 aircraft. Earlier, Singapore Airlines had announced plans to remove only four aircraft from their fleet.

According to the airline, talks between management and Singapore Airlines' three staff unions includes discussions of accelerated clearance of leave entitlements, voluntary leave without pay, voluntary early retirement and shorter work months.

Noting that Singapore Airlines "does not have a domestic operation to soften the blow from the slump in international air traffic," CEO Chew Choon Seng said 2009 is going to be a very difficult year for the airline.

"We have already taken action such as expanding and stepping up training and re-training programmes, and we will contemplate retrenchment only as a last resort, but we do not have the luxury of time and we need to agree and act on some measures quickly so that we can push back the point of retrenchment as far as possible and improve our chances of avoiding it altogether," Mr. Chew said.

"The Company will work with the staff and the unions in forging a consensus on the action plans. Together in cooperation, we will rise to the challenges confronting us and ride out the storm," Mr. Chew said, pledging that should cuts in salary become necessary, management would be the first to take them.

Tuesday, February 03, 2009

SAS Set to Cut Work Force by 40%

SAS logoScandinavian carrier SAS has announced plans to restructure, and according to news reports, that will have a massive impact on jobs at the airline. SAS CEO Mats Jansson told reporters that the airline will cut 40 percent of its routes, sell foreign units, and eliminate about 9,000 employees.

SAS plans to cut about 3,000 jobs outright. In addition, another 5,600 employees will leave the airline as part of operations that are to be sold or outsourced. In all, about 40% of the current 23,000 jobs at SAS will be eliminated from the airline's payroll.

According to the BBC, SAS "hopes to sell its interests in Spirit, Air Greenland, BMI, Estonian Airways, Skyways, Cubic and Trust, as it concentrates on business travel in the Nordic market." Divestment of its Spanish subsidiary, Spanair, is already underway.

In a press release, the SAS CEO said the restructuring was necessary "to address one of the most severe economic declines that we probably have ever seen."

"The principal feature of Core SAS is a renewed focus on what we do best: serving our Nordic home market and our core customers, business travelers. Combined with a new, streamlined organization, a substantially improved cost base, a strengthened capital structure, and a more customer-oriented culture, we have all the right measures in place to create shareholder value going forward."

Sunday, January 25, 2009

Layoffs for 345 more Air Canada flight attendants

Air Canada Boeing 777Air Canada has announced to its staff that it will reduce its flight attendant work force by 345 in early March of this year. The layoffs are a result of the carrier's plans to use one less flight attendant in its business-class cabins on transatlantic flights. Canada's largest airline also is reducing the frequency of flights on certain routes, and using smaller aircraft on other routes. Air Canada currently employs some 5,700 flight attendants.

Several officials of the Canadian Union of Public Employees (CUPE), which represents Air Canada flight attendants, spoke to the media regarding yesterday's announced job cuts, saying they were unexpected.

Cidalia Ribeiro, president of CUPE Local 4092, told CTV.ca, "They're just saying it's a cost reduction exercise and they're cutting back service on some of our overseas flights."

Ribeiro said at least half of the affected flight attendants are based at Toronto. Air Canada reportedly told its employees that the layoffs are expected to be temporary, and that some might be recalled as early as April.

An article in the Montreal Gazette about the proposed job cuts quoted Paul Moist, national president of the CUPE, who said the loss of hundreds of additional flight attendant jobs means "more pain, and we’re extremely concerned."

Moist also expressed concern that reducing the number of flight attendants on flights on the trans-Atlantic route could have a negative effect on service, and could potentially compromise safety as well.

Air Canada reduced its work force by 2,000 employees in the summer of 2008. Among those laid off were about 600 flight attendants.

[Photo Source]

Friday, January 09, 2009

Bad News and Some Good News for Atlantic Southeast Airlines Pilots

SkyWest - Delta Connection CRJ900Pilots at Atlantic Southeast Airlines (ASA) received some bad news and some good news this week. The bad news: 80 of ASA's 1,700 pilots will be furloughed as of Feb. 9, 2009. On the more positive side, ASA soon will be flying 10 new CRJ-900 regional jet aircraft.

Furloughs

The furloughs resulted, in part, from planned capacity reductions for the coming year by Delta Air Lines. As a Delta Connection operator, ASA is directly affected by Delta's reduction in flying.

An article about the ASA pilot furloughs in the Atlanta Journal-Constitution quoted David Nieuwenhuis, chairman of the ASA group of the Air Line Pilots Association union, who said the pilot furloughs may last for at least a year, though that could change.
The ASA pilots union is working with the union’s national office to help find jobs for furloughed pilots, such as at other carriers, charter operations or overseas operations, Nieuwenhuis said.

The pilots’ contract protects pilots from furlough if they were hired by the date it was signed in November 2007, Nieuwenhuis said.
All of ASA's pilots are domiciled in Atlanta.

Fleet Re-shuffle

Yesterday, SkyWest, Inc. announced that 10 CRJ-900 regional jet aircraft previously ordered by Delta will be flown by ASA. ASA is a wholly-owned subsidiary of SkyWest.

ASA currently operates 110 CRJ-200s and 39 CRJ-700s. Several months from now, when the new CRJ-900s begin flying, 20 of the CRJ-200s will be removed from Delta Connection service. SkyWest says that the CRJ-200s are scheduled for removal from contract service between April 2010 and August 2010, which is earlier than the existing scheduled termination dates as contained in the Delta Connection Agreement.

In a statement to the press, SkyWest said, "ASA will evaluate how it will redeploy the CRJ-200s based on market conditions at the time of removal from Delta contract operations. Options may include, but are not limited to, subleasing the aircraft and operating certain aircraft in pro-rate operations."

Bradford R. Rich, SkyWest Executive Vice President and Chief Financial Officer, said, “This transaction represents a good faith effort by SkyWest, Inc. to help Delta right-size its fleet through the replacement of 50-seat CRJ-200s with the larger, more efficient 76-seat CRJ-900s. Additionally, we expect the deal to solidify ASA as Delta’s primary regional carrier in Atlanta through the addition of the CRJ-900 aircraft to its fleet portfolio.”

Last year ASA retired 12 ATR-72 turboprops from its fleet.

[Photo Source]

Tuesday, December 02, 2008

Furloughs Coming with Delta Air Lines 2009 Capacity Reduction?

Delta Air Lines logoEarlier today Delta Air Lines management announced plans to decrease systemwide capacity, for both Delta and Northwest, during 2009. The global economic recession and weaker demand for air travel were cited as reasons.

Plans call for domestic capacity to be reduced 8-10%, along with a 3-5 % reduction in international capacity. Delta's systemwide capacity in 2009 will be down by 6-8%, year over year.

So said a memo to Delta's more than 75,000 employees from CEO Richard Anderson and President Edward H. Bastian. The memo also said:
We are taking these actions to secure your careers and return us to sustained profitability. In the meantime, we are analyzing the impact on staffing as it pertains to these capacity reductions and, as in the past, we will offer voluntary programs to adjust staffing needs. We will continue to make decisions that are in the long-term interest of our colleagues, customers, shareholders and the communities we serve.
No word (yet) on what might happen if those 'voluntary programs' do not result in the required number of staff reductions. Stay tuned.

Friday, November 21, 2008

Job Cuts Announced by Air New Zealand

Air New Zealand CEO Rob FyfeAir New Zealand has announced the elimination of 200 full-time jobs, in conjunction with a capacity reduction, to save costs. Citing a slump in long haul travel due to the deepening global recession, the airline's CEO, Rob Fyfe (pictured at right), told Radio New Zealand that more job cuts may be necessary.

Fyfe said, "I am not saying this is the end because I don't know where the end of this recession cycle is."

The 200 full-time jobs that are about to be eliminated will include 100 long haul cabin crew. Other work areas affected are recruitment, airline operations, and technical operations planning and management.

In a statement to the press, Fyfe said, "We have been working hard on a series of initiatives to minimise the need for redundancies. These include pilots taking leave without pay, giving staff on individual contracts the opportunity to work fewer hours, introducing part-time hours for cabin crew, not replacing non-safety sensitive roles, not renewing temporary contracts and a freeze on executive salaries.

"However, it has become clear that these measures will not fully address the excess staff levels we now have as a result of these capacity reductions, especially in the long haul business where capacity is being reduced by eight percent when compared with the last financial year."

[Photo Source]

Monday, September 15, 2008

Pilots concerned over Alaska Airlines plan to lay off up to 1,000 line employees

Alaska Airlines logoIn conjunction with a capacity reduction of 8%, Alaska Airlines has announced plans for a work force reduction. In a statement issued late last week, the carrier's parent, Alaska Air Group, Inc., said that it will eliminate 850 to 1,000 "operational" positions at Alaska Airlines, including pilots, flight attendants, aircraft technicians, and reservations, customer service and ramp agents. The press release said, in part:
In response to the current environment, the company has undertaken a variety of initiatives to improve profitability and protect its cash balance. These measures include raising fares, increasing fees and instituting a charge for a second checked bag, taking steps to reduce fuel consumption, and deferring or eliminating numerous projects and capital spending.

"These steps, when combined with the recently completed transition to an all-Boeing 737 fleet, improve our viability, but are not enough to eliminate the need to reduce the number of our employees," [chairman and CEO of Alaska Air Group] Ayer said.

Alaska Airlines is working with the unions representing operational employees to offer early-out programs and six-month to two-year leaves of absence to minimize the number of involuntary furloughs. Affected employees will leave the company starting in November and continuing through early 2009.
Furloughs for 190 pilots are among the anticipated job cuts at Alaska Airlines -- a move that the pilots' union worries will limit the airline's ability to respond to market opportunities. The Air Line Pilots Association (ALPA), the union that represents Alaska's 1,500 pilots, issued the following statement in response to the carrier's furlough announcement:
“We are concerned that, particularly as oil prices continue to plummet, Alaska Airlines will reduce its pilot ranks so severely that our management will create a situation in which our carrier will be unable to take advantage of its strong cash position and respond to opportunities to grow as other airlines cut routes and capacity,” said Capt. Bill Shivers, chairman of the Alaska Airlines Master Executive Council of the Air Line Pilots Association.

“Following 9/11, Alaska Airlines strategically used its strong financial position to grow our airline and expand into new markets. When conditions again improve to the point that would allow financially strong carriers to grow, we are concerned that competitors such as Southwest, Virgin America or Jet Blue will be in a position to capitalize on opportunities that our company has denied itself the ability to take advantage of. Returning pilots to the line after a furlough is a time consuming process, and if management follows through on announced plans to reduce pilot ranks so severely, they create a scenario where we are no longer a nimble carrier able to quickly respond to emerging opportunities.

“We’ve already worked with Alaska’s management to create early out retirement and extended leave of absence programs, designed to mitigate the furlough and are continuing to look at ways to prevent the furlough as required by our Collective Bargaining Agreement. We will continue to support and represent all of our pilots, including any who management may choose to furlough.”
Alaska Air Group, Inc., also announced coming capacity and work force reductions for its other airline, Horizon Air. Management expects to reduce Horizon Air capacity in the fourth quarter by about 20 percent compared to the same period last year. The work force reduction at Horizon Air will include elimination of 94 pilot positions "through attrition, early-out packages and leaves, and a furlough of about 40 pilots this November."

In other work groups at Horizon Air, furloughs are being minimized through early-out programs, unpaid leaves and attrition, the company said.

Wednesday, August 27, 2008

United Airlines will furlough 1,550 flight attendants

United Airlines logoUnited Airlines has announced plans to reduce its flight attendant work force by 1,550, effective Oct. 31, 2008. The announcement came in a letter issued this morning to the the Association of Flight Attendants (AFA), the union representing United Airlines cabin crew.

Today's announcement had been anticipated for many months. United Airlines had suspended recruitment of new flight attendants in March of this year. At that time, the flight attendants' union was notified that the airline was planning to downsize its fleet. In early June, United Airlines first made public its capacity reduction plans, and offered some of its senior flight attendants an 'Early Out' Program that provided incentives to voluntarily separate from the company. Weeks later, United announced that 950 of its pilots would be furloughed in the Fall of 2008.

In accordance with the provisions of the labor contract between United Airlines and the AFA, the airline must first offer voluntary furloughs to its flight attendants before imposing involuntary furloughs. According to the AFA, flight attendants who choose a voluntary furlough will continue to accrue seniority and receive many benefits, including retention of medical and dental benefits as well as travel benefits. Voluntary furloughs of durations ranging from six to 21 months are being offered.

Should fewer than the target number of 1,550 voluntary furloughs be awarded, a secondary method for reducing the number of involuntary furloughs, called the Partnership Flying Program, may be offered in bases with an overage of flight attendants. Partnership Flying, essentially a job-sharing scheme, will be offered only if an overage of flight attendants still exists after all voluntary furloughs have been awarded.

For more information about aspects of the United Airlines flight attendant furloughs, visit the website of AFA's United Master Executive Council.

Sunday, August 10, 2008

From Flight Attendants to the Flying Public: We're Sorry

I received this in an email from a flight attendant I know. She said she saw it posted on a frequent flier message board. After a quick Google search, I found it on airliners.net and also on DISboards.com, both of which attributed it to "author unknown." (When you have some time on your hands, you might want to follow those links and read the comments left by members of those boards.)

Gold StarsI have a feeling that this message will 'go viral' and will start showing up on cabin crew message boards any minute! Meanwhile, I'm awarding the unknown author a Gold Star for really complete coverage of the issues -- but if you have any items to add, you are welcome to post them in the comments section below this article.

Maybe flight attendants should print this and hand it out to passengers, or maybe paste it on the underside of tray tables -- you know, so it will be visible when the tray table is in its full upright and locked position!
  • We're sorry we have no pillows.
  • We're sorry we're out of blankets.
  • We're sorry the airplane is too cold.
  • We're sorry the airplane is too hot.
  • We're sorry the overhead bins are full.
  • We're sorry we have no closet space for your oversized bag.
  • We're sorry that’s not the seat you wanted.
  • We're sorry there’s a restless toddler/overweight/offensive smelling passenger seated next to you.
  • We're sorry the plane is full and there are no other seats available.
  • We're sorry you didn't get your upgrade.
  • We're sorry that guy makes you uncomfortable because he “looks like a terrorist”.
  • We're sorry there’s a thunderstorm and we can't take off.
  • We're sorry we don't know when it will stop.
  • We're sorry you're crammed into a space so small that if you were an animal PETA would protest.
  • We're sorry our plane has no music or video entertainment for your 3 hour flight.
  • We're sorry we ran out of your favorite soda.
  • We're sorry there are no more sandwiches.
  • We're sorry that Budweiser costs $6.
  • We're sorry we don't have diapers for your baby.
  • We're sorry we don't have milk for same baby.
  • We're sorry you can't hang out by the cockpit door waiting to use the bathroom.
  • We're sorry you can't hang out at the back of the airplane.
  • We're sorry you have to sit down and fasten your seatbelt.
  • We're sorry you have to put your seat up for landing.
  • We're sorry we don't know when we're going to land.
  • We're sorry we don't know whether your plane to (substitute any city in the world) will be waiting for you when we land.
  • We're sorry we've been diverted because we ran out of gas waiting to land.
  • We're sorry for these and so many other things that we have absolutely no control over but which we are held accountable for EVERY SINGLE DAY.
Please understand. Flight attendants are not the enemy. We share your space. More than anyone - we want to have a nice, pleasant travel experience.

There is a reason behind everything we ask you to do. It may be a FAA directive. It may be security related. It may be a company procedure.

We don't just make stuff up. We don't spend 8 weeks at the flight academy learning how to pour a Coke. There are many things that flight attendants are watching for constantly on every flight FOR YOUR SAFETY. It’s not because we're bored or so controlling that we just enjoy telling people what to do.

I, for one, would like to have one flight where I didn't have to repeatedly tell people to put their seats up for landing. Seriously. Can't you just do what we ask sometimes? Without the glares, eye rolling and disdain? For the record - putting your seat up for landing may not seem that important to your personal safety. However, it is very important for the person sitting BEHIND YOU. If you have ever tried to get out of a row where someone has their seat back you know it can be a challenge. Try grabbing your ankles (emergency brace position) or getting out of that row quickly with smoke in the cabin.

Understand a little better now?

Many of the things we ask passengers to comply with are FAA directives. Like carry-on bag stowage and exit row requirements. And like when we can serve drinks (in the air) and when we can't (after the aircraft door is closed or on an active taxiway). We are only allowed to move about the cabin during taxi out for safety related duties. We can't get you blankets, or hang coats, or get you drinks. It’s not because we don't want to. It’s because we are held personally responsible if we fail to comply with FAA directives. Meaning that the FAA can fine us personally up to $10,000 if we fail to comply with or enforce an FAA Directive.

Like no bags at the bulkhead. No children in the exit row. No one moving around the cabin during taxi. Perhaps now you know why flight attendants get a little testy when people move about the cabin when they're not supposed to. It’s not the company that gets in trouble for that. It’s us.

Personally, I wish the airlines would show worst case scenario safety videos. Like what happens if you walk through the cabin during turbulence. There could be a guy who has just fallen and smacked his face on the metal armrest and now has a bloody, gushing broken nose. Or an elderly lady who now has a broken arm because someone walking to the bathroom fell on her.

Maybe a passenger with a broken neck because somebody opened an overhead bin during turbulence and a suitcase fell out and onto the person sitting beneath it. These things can easily happen in a fast moving, unstable air environment.

Please just trust that we are looking out for your best interest and stop fighting with us about everything we ask you to do. It is exhausting.

Finally, please, please direct your hostility and frustrations in the direction where they will be most effective: The customer service department. They are the ones equipped to handle your complaint and implement procedures for CHANGE.

Think about it. Complaining to the flight crew about all your negative travel experiences is about the same as complaining to the office janitor because your computer isn't working. It may make you feel better to vent about it - but it really won't fix anything. More than anybody we are already aware of the lack of amenities, food, service and comfort on the aircraft. Please share your concerns with the people in the cubicles at corporate who need that information to make better decisions for the flying public.

It’s frustrating that so many people are in denial about what the travel industry is about now. The glory days of pillows, blankets, magazines and a hot meal for everyone are long gone. Our job is to get you from point A to point B safely and at the cheapest possible cost to you and the company. So be prepared. If you are hungry - get a sandwich before you get on the plane.

If it’s a 3 hour flight, anticipate that you may get hungry and bring some snacks. If you are cold natured - bring a wrap. Think for yourself and think ahead. Otherwise, don't complain when you have to pay $3 for a cookie and are left with a crusty blanket to keep you warm.

We hear often that the service just isn't what it used to be. Well, the SERVICE we get to provide now isn't what it used to be. When I was hired, my job was to serve drinks, meals, ensure that safety requirements were met and tend to in-flight medical issues.

Since 9/11 my primary job is to ensure that my airplane will not be compromised by a terrorist. 9/11 may be a distant memory now to many, but be assured that EVERY DAY a flight attendant reports to work he or she is constantly thinking about 9/11. We feel a personal responsibility to ensure that something like that never happens again. We can never relax. We can never not be suspicious about someone’s intentions.

It is difficult to be vigilant and gregarious at the same time. Especially when most of us are working 12 hour days after layovers that only allow 5-6 hours of sleep. Not because we were out partying and having a grand time on the layover - but because the delays that you experience as a passenger also affect us as a crew, so that what was a 10 hour layover is now 8 hours which doesn't leave a lot of time to recover from what has become an increasingly stressful occupation.

Despite everything, I still enjoy being a flight attendant.

I am writing this letter because I do still care about my profession and about the public perception of flight attendants. In the increasingly challenging travel world it is becoming more imperative than ever for people to just be decent to each other. I can go through an entire day without one person saying anything remotely civil. I will stand at the aircraft door and say hello to everyone who enters and maybe 50% will even look at me and even less will say hello back.

I will try to serve someone a meal who can't be bothered to take their headsets off long enough for me to ask them what they want. Most of the time the only conversation a passenger has with me is when they are complaining.

Is it any wonder why flight attendants have shut down a bit? After suffering the disdain of hundreds of passengers a day it’s difficult sometimes to even smile, much less interact. We are human. We appreciate the same respect and courtesy that passengers do.

The next time you fly, try treating the flight attendants the way you would like to be treated. You may be surprised how friendly your flight crew is when they are treated like people.
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Amen!

P.S. In a related vein, you might want to have a look at this recent article, too: Don't blame the flight attendants...