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

by B. N. Sullivan

Last 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.

UPS pilot furloughs begin, despite union efforts to save jobs

by B. N. Sullivan

Today, 54 UPS pilots were furloughed -- the first of at least 300 pilots slated to be laid off by the carrier in coming months. The furloughs were announced in February of this year, and are the first ever for UPS.

"At a time when the number one issue for most Americans is creating jobs, UPS is creating unemployment," said Captain Robert Thrush, President of the Independent Pilots Association (IPA).

The IPA, which represents the 2,800 UPS pilots, had worked with the company during the past year to save $117 million via a Voluntary Jobs Protection Program. According to the union, the UPS pilots were able to generate cost savings for UPS by: taking reductions in flight pay guarantees; taking unpaid leaves of absence; participating in job sharing; taking military leave; contributing unused sick bank time; and taking early retirement. The IPA said in a press release that the savings created by the program should have been "enough to keep these 300 pilots employed well into 2011."

Captain Thrush said, "This all came to a crashing halt on January 11 when UPS pulled a bait and switch. They told us that they now needed $244 million in savings through 2015, and that its preference was for 'compulsory savings' – UPS speak for furlough.

"While we were taken back by UPS almost doubling its original request and tacking on an additional four years, our pilots didn’t flinch. They were more than willing to step-up, extend and expand the Voluntary Jobs Protection Program to cover UPS's demands, and keep the 300 employed," Thrush continued.

Nevertheless, in February UPS told the IPA that the company was unwilling to continue the voluntary savings program or anything similar. Instead, the coming furloughs were announced.

At that time, UPS Airlines President Bob Lekites said in a press release, "This is a painful decision for our people, but one that is right for the on-going health of our business."

Then Lekites went on to say, "Companywide, we will continue to evaluate all opportunities and make adjustments as necessary to ensure our company is well-positioned to emerge stronger than ever as the economy continues to recover. We applaud our pilots for the way they've joined with UPS in trying to tackle this problem and hope we can identify a mutually beneficial outcome."

Those statements did not sit well with the pilots' union.

Says Captain Thrush, "What I find the most galling are the disingenuous statements in the UPS press release. They mockingly hold out hope that the furloughs may be mitigated, averted, or eliminated; and shamefully attempt to place blame on the pilots for somehow failing to act.

"At a time when unions are being excoriated, and blamed for a litany of economic ills it's important to remember that one union covered the cost to save 300 jobs – instead UPS chose to create unemployment and add to local, county, state and federal unemployment and social services rolls."

UPS announces plans for pilot furloughs

by B. N. Sullivan

Hundreds of UPS pilots may be facing furloughs in the near future.  In a press release issued today, the freight carrier announced plans to furlough "at least 300" of its 2,800 pilots.  Plans call for the layoffs to occur in phases, with the first group receiving furlough notices in May of this year.

At the same time, however, the company said it would continue to work with the pilots' union, the Independent Pilots Association, to identify cost-saving measures "that would avert or mitigate the layoffs before they take effect."  According to the UPS press release:

Last June, the IPA identified significant savings through voluntary programs such as pilots taking short- and long-term leaves of absence; military leaves; job sharing; reduction in flight pay guarantees; early retirement, and sick bank contributions. UPS subsequently agreed it would not furlough any pilots in 2009.

The two sides have been working cooperatively ever since to identify additional cost-cutting initiatives that would eliminate the threat of layoffs entirely. Subsequent discussions have failed, however, to identify sufficient operating savings.

"This is a painful decision for our people, but one that is right for the on-going health of our business," said UPS Airlines President Bob Lekites.

"Companywide, we will continue to evaluate all opportunities and make adjustments as necessary to ensure our company is well-positioned to emerge stronger than ever as the economy continues to recover.  We applaud our pilots for the way they've joined with UPS in trying to tackle this problem and hope we can identify a mutually beneficial outcome," Lekites said.

Republic Airways to shut down Lynx Aviation and furlough crews

by B. N. Sullivan

When Republic Airways acquired Frontier Airlines several months ago, Lynx Aviation -- Frontier's regional turboprop subsidiary -- was a part of the deal. Now Republic has decided to do away with Lynx, shed its fleet of 11 Bombardier Q400 aircraft, and eliminate about 175 jobs.

Republic announced that Lynx Aviation will cease operations by mid-September of this year. Plans call for most of the current Lynx routes to be served in the future by Republic Airlines E-170 and E-190 aircraft, flown by Republic pilots.

Furloughs will begin in April. The Denver Post reports that of Lynx Aviation's 120 pilots and 110 flight attendants, 40 in each group will be retained until September, when remaining Lynx employees will be furloughed. The Denver Post quoted a Republic spokesman who said that Lynx employees will be given the opportunity to continue with Republic or Frontier and will receive priority hiring. Those who don't stay on will be given severance.

American Airlines announces new round of pilot furloughs

by B. N. Sullivan

American Airlines announced today "the unfortunate need to furlough up to 175 of our pilots in the first half of 2010." Among those who will be laid off are previously furloughed pilots who returned to work during the past year. The airline already has 1,887 pilots on furlough.

In a message to its membership, the Allied Pilots Association (APA), which represents American Airlines pilots, said that "management intends to furlough approximately 130 active pilots. Management has also indicated that the total could reach as high as 160 over the next two months." Presumably those numbers are estimates, since the airline mentioned 175 pilot furloughs in the first half of 2010, and the union specified 160.

According to APA:

The union leadership and Negotiating Committee are discussing a variety of potential furlough mitigation tools, such as voluntary leaves-of-absence and furloughs-in-stead. APA is hoping to compel management to institute early retirement incentives and other such mechanisms to minimize, if not outright eliminate, the need to furlough. Talks with management concerning these issues will continue.

Initial furlough notifications have begun and we estimate that approximately two-thirds of the furloughs will be effective at the end of February. The remaining furloughs will likely take effect at the end of March.

In a statement to the press, American Airlines said, "The impact of the economy and reduction in capacity over the last 18 months, coupled with lower than expected pilot attrition, has resulted in a pilot surplus. This was a painful but necessary decision, as this staffing adjustment will better align the size of our pilot organization with the size of our current operation."

Commenting on furlough mitigation negotiations with the pilots' union, American Airlines said:

"We are also pleased that we were able to work with the APA to move up the furlough date by one day to achieve eligibility for subsidized COBRA medical benefits for the first group of furloughed pilots.

"American values and respects the professionalism, commitment and contributions of our pilots and regrets having to make this difficult decision."

American last furloughed pilots in 2005.

[Photo Source]

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

by B. N. Sullivan

Japan 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.

NetJets to lay off 495 pilots in the U.S.

by B.N. Sullivan

Fractional jet operator NetJets, Inc. has announced plans to cut 495 pilot jobs in the U.S. The layoffs will become effective on January 15, 2010.

Earlier this year NetJets had offered pilots early retirements and voluntary unpaid leaves of absence in an effort to downsize without having to resort to involuntary furloughs. Apparently those measures were not sufficient to relieve overstaffing.

NetJets pilots are represented by the NetJets Association of Shared Aircraft Pilots (NJASAP), an independent union. Today NJASAP President Capt. Mark Luthi said, "After several months of continuous efforts to mitigate a pilot furlough, we have reached a point at which the economic realities that challenge our employer can no longer be offset by the ground-breaking initiatives implemented earlier this year."

From a news release issued by the NJASP Executive Board:

Recognizing the seriousness of the economic crisis early on, Association leaders sought to supplement its furlough mitigation efforts by forming the NJASAP Furlough Working Group, which was tasked with preparing a robust pilot assistance initiative should a reduction in force take place.

"Hoping a working group's efforts prove unnecessary is hardly an appropriate mindset for a responsible leadership group; however, I freely admit the Board and I would have preferred the group's year-long preparations been for naught," Luthi said.

Almost one year of planning has positioned the Association to offer immediate access to information and resources designed to assist each furloughed crewmember and his or her family. In addition to a series of informational teleconferences, the Union has launched a web-based Furloughed Pilot Resource Center and has prepared a comprehensive resource guide that outlines financial, unemployment, and worker retraining benefits as well as alternate insurance options and various assistance grants.

The Executive Board has also approved a seven-month dues refund and the immediate cessation of dues collected from affected pilots and has purchased a year-long subscription to two aviation job sites for each pilot. Additionally, the FWG is finalizing an outreach program that will keep furloughed pilots in touch with their peers by paring them with active pilots.

In a statement to the press, NetJets CEO David Sokol said, "This difficult decision resulted from a comprehensive analysis of current and projected flight demand. As we move forward, we will continue to adjust our operations to meet customers’ needs and act in a fiscally responsible manner."

Union leader Capt. Luthi says that the NJASP "remains willing to engage in mutually beneficial talks intended to hasten our pilots' return to the flight line."

Job cuts in the works for bmibaby pilots and cabin crew

by B. N. Sullivan

BMI 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.

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

by B. N. Sullivan

US 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]

Perp walk: Pace Airlines CEO arrested for not paying employees' health insurance

by B. N. Sullivan

William C. Rodgers, the CEO of charter carrier Pace Airlines, was arrested today at Piedmont Triad International Airport, Greensboro, NC. He has been charged with one count of willful failure to pay group health insurance premiums. According to North Carolina news station Fox 8, Rodgers "knowingly canceled his employee group health insurance without providing the required 45-day notice to his 337 employees." The Fox 8 video, below, shows Rodgers being led into the Forsyth County Magistrate's office.

If the video does not play or display properly above, click here to view it on Fox 8.

Today's arrest of Rodgers, while dramatic, is only the latest event marking the downward spiral of Pace Airlines. On August 21, 2009, the North Carolina Department of Labor began investigating claims that employees of the carrier were not being paid. Nonpayment of wages for a month or more put those employees in a a cruel limbo: they were not getting their paychecks, yet if they simply quit, they would not be eligible tot file for unemployment benefits.

In early September, some unpaid employees spoke about their plight with reporters outside Pace headquarters in Winston-Salem, NC. The Winston-Salem Journal quoted an unpaid employee from Pace's parts department:

"Most of us live paycheck to paycheck, so when the paychecks stopped coming, we've had to drain whatever savings we had," he said. "I feel like I can't walk (from Pace) because I'm afraid I won't get paid what I'm owed and they'll fight me getting unemployment."

Employees showed journalists a July 1 memo from Rodgers that said one reason for Pace's financial struggles was that Continental owed Pace $1 million for work it had already completed. A spokeswoman for Continental said that "Continental was current on its payments to Pace." Continental ultimately canceled its contract with Pace.

On September 8, 2009, Fox 8 reported that "roughly 200 employees were told they were being 'furloughed without attachment,' a technical way of saying the company has no plans of hiring them back."

Fox 8 quoted a Pace employee who said, "The letter says furlough, but we asked about callbacks and they said there will be no callbacks. We will have to reapply if the company decides to hire again."

"At least we will have some type of guaranteed pay, but now everybody's question is, 'What about the four, five weeks they owe us?'" he said, referring to unpaid back wages.

A few days later, the Winston-Salem Journal announced that the U.S. Department of Labor had become involved as well. In an article dated September 11, Journal reporter Richard Carver wrote:

The company learned today that it is the subject of an investigation by the U.S. Labor Department's Wage and Hours Division, which is investigating issues of nonpayment of hourly and overtime wages as related to the Fair Labor Standards Act.

That same day, another 75 to 100 Pace employees were shown the door. By that time, according to the Journal, employees were owed three two-week paychecks.

Meanwhile, employees discovered that in addition to not receiving paychecks, their health insurance was no being funded either. This allegation prompted an investigation by North Carolina's Department of Insurance, which ultimately led to today's arrest of Rodgers.

Last week Pace Airlines advised the Federal Aviation Administration (FAA) that it had "temporarily ceased operations" for a period of up to 90 days. On September 17, Fox 8 quoted a spokeswoman for the FAA who said that the agency had "increased its surveillance of Pace." (Ya think??)

UPDATE Sep. 28, 2009: Fox 8 is reporting today that the Forsyth County Airport Commission has asked Pace Airlines to vacate its space at Smith Reynolds Airport by Sep. 30, 2009. According to Fox 8, the Commission "cites unpaid September rent and and other overdue rent payments as the reason for the request," and notes that Pace Airlines is the airport's largest tenant.

Japan Airlines restructuring includes loss of 6,800 jobs

by B. N. Sullivan

Japan 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."

American Eagle Airlines to furlough 75 pilots

Pilots at American Eagle Airlines have been notified by management of plans to furlough 75 pilots during the next few months, due to "over-staffing" in conjunction with reduced flying.  The regional carrier plans to furlough a group of 35 pilots on May 1, 2009, followed by an additional 40 on June 1, 2009.

American Eagle pilots are represented by the Air Line Pilots Association. Their current contract was ratified in late 2008.

American Airlines to furlough 323 flight attendants

American Airlines (AA) notified its flight attendants' union yesterday that 323 cabin crew would be furloughed as of April 1, 2009. Last month the carrier notified the Association of Professional Flight Attendants (APFA) of plans to reduce the flight attendant work force by 410, however dozens of AA flight attendants volunteered for leaves and reduced flying options since then, thereby reducing the total number of involuntary furloughs that would be necessary.

APFA president Laura Glading said in a Hotline message to the union membership:

The most senior Flight Attendant who will be furloughed has a current DECS seniority number of 16900. These members were only recently recalled back to active status and of course this will be most devastating for them. Our heart goes out to our members who will soon be without income, active coverage for health benefits and the career they love.

This furlough will have a further negative impact for all APFA members as it will prolong the period of stagnation which results in increasingly senior reserve lists and limited transfer opportunities.

Assistance information for those about to be furloughed is available on the APFA website.

410 American Airlines flight attendants face furloughs

The Association of Professional Flight Attendants (APFA), the union representing cabin crew at American Airlines, has notified its membership that 410 of its most junior members are subject to furlough effective April 1, 2009. According to a message on the APFA Hotline, the union was told today by Lauri Curtis, American’s Vice President of Flight Service, that "despite the attempts over the last several months to accommodate the Flight Attendant manning overages caused by schedule reductions and reduced passenger loads, the company has been unable to sufficiently absorb the expected additional Flight Attendant headcount."

APFA said to its members, "We are extremely disappointed that the company has had to resort to this action, though are hopeful that through the contractual procedures of Overage Leaves and Partnership Flying proffers, and the re-offering of the Travel Separation Program, the overage will be reduced or eliminated through voluntary means and will thereby reduce, or eliminate, any layoffs."

The APFA leadership has been working with the airline on mitigation efforts ever since last summer when American first announced a need to reduce its flight attendant head count in conjunction with its planned capacity reduction.

The union says that Overage Leaves and Partnership Flying will be proffered again, in accordance with the contract between the flight attendants and the airline. In addition, the airline is renewing the offer of the Travel Separation Program to eligible flight attendants. The union leadership retains the hope that the number of potential furloughs can be significantly mitigated through the various voluntary methods.

On the subject of current furloughees, the APFA Hotline message goes on to say:

We know that, as uncomfortable the prospect of potential layoff is to our most junior members, it also further delays the hoped-for return to work of those presently furloughed. Recognizing this, and the ongoing uncertainty faced by our furloughees, the APFA Board of Directors has achieved and unanimously approved an extension of the recall rights of those currently furloughed Flight Attendants by an additional two years, and an offer to them of a special Travel Separation Program. These Flight Attendants will receive a letter from the Company soon with more information and instructions.

Meanwhile, contract talks between the APFA and American Airlines, which began in May of last year, are set to resume on March 10, mediated by the U.S. National Mediation Board.

UPDATE Mar. 11, 2009: American Airlines to furlough 323 flight attendants

SAS Set to Cut Work Force by 40%

Scandinavian 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."

Layoffs for 345 more Air Canada flight attendants

Air 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.

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Bad News and Some Good News for Atlantic Southeast Airlines Pilots

Pilots 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]

United Airlines Flight Attendants: No New Furloughs After All

There was some good news this week for flight attendants at United Airlines. The United Master Executive Council of the Association of Flight Attendants (AFA), the union representing United cabin crew, sent a message to its membership yesterday to tell them that discussions between the Company and the Union have eliminated the need to furlough additional flight attendants as previously planned.

The message from the union to the flight attendants explained:

Instead of furloughing additional Flight Attendants and conducting a complete furlough rebid, the Company will increase staffing on certain international flights and maintain discretionary time off such as daily and 30-day ANP. This will provide some additional international flying opportunities while maintaining a level of schedule flexibility.

Greg Davidowitch, President of the United Master Executive Council, said, "We are encouraged by the resolution to this potential furlough and appreciate the efforts of [United Senior Vice President - Onboard Service] Alex Marren and United senior management in working with us on the issue. We have avoided the need for additional Flight Attendant furloughs and a rebid of the current furlough that would have potentially disrupted the lives of Members. We believe this resolution will also help to address the lack of flying reserves experienced in the fall through the staffing additions and opportunities for discretionary time off."

United Airlines reduced its flight attendant work force by 1,550 last year, through voluntary furloughs and an 'Early Out' Program for senior crew members.

United Airlines expected to furlough 250 more flight attendants in early 2009

United Airlines management has notified its flight attendants' union that additional furloughs are expected in early 2009. The United Master Executive Council of the Association of Flight Attendants (AFA), the union representing United cabin crew, was told by the airline's management that 250 flight attendants may be laid off in this round of furloughs. Earlier this year, United reduced its flight attendant work force by 1,550.

Union officials were told that an acceleration of the TED aircraft reconfiguration, coupled with further reduction in capacity, is leading to schedule changes. Management is reviewing the aircraft schedule and has stated they will not make the final decision about flight attendant furloughs until January 9, 2009.

In accordance with the terms of the contract between the AFA and United, flight attendants will be offered voluntary furloughs first; involuntary furloughs will be imposed only if an insufficient number of flight attendants bid for voluntary furloughs. The earlier reduction of United's flight attendant work force was accomplished by voluntary furloughs and an 'Early Out' program offered to senior crew members, obviating the need for involuntary furloughs.

Job Cuts Announced by Air New Zealand

Air 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."

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