American looking to "right-size" the company and staffing levels for the Fall and 2021

[Talos]

very true, the captain steering the ship believes that BK can be averted by buyouts..so, we'll see.

regardless, it's a great deal for those around 60, who have some money and a robust 401k. i would think they would take the chance and leave.

very true, the captain steering the ship believes that BK can be averted by buyouts..so, we'll see.

regardless, it's a great deal for those around 60, who have some money and a robust 401k. i would think they would take the chance and leave.

very true, the captain steering the ship believes that BK can be averted by buyouts..so, we'll see.

regardless, it's a great deal for those around 60, who have some money and a robust 401k. i would think they would take the chance and leave.

I agree Crema the deal is very enticing with the retiree medical. There will be some takers for sure. Giving people 2 weeks to decide is a tight window. I think management would say anything they want to get people out the door and then turn around later and stick it to everyone who left. Covid and not knowing the next govt response to airline losses make it hard to know if companies look to bankruptcy. I doubt Parker wants to use it as it may put him out the door and be an ugly way to go.

 

[dfw gen]

I agree Crema the deal is very enticing with the retiree medical. There will be some takers for sure. Giving people 2 weeks to decide is a tight window. I think management would say anything they want to get people out the door and then turn around later and stick it to everyone who left. Covid and not knowing the next govt response to airline losses make it hard to know if companies look to bankruptcy. I doubt Parker wants to use it as it may put him out the door and be an ugly way to go.

if you are seriously considering this, you probably considered the last one that came out so i would think you would have a step up on the two week window.

the sticking it to us a year later yes thats a concern. RHRA accounts are federally created and regulated. it would be hard to imagine then declaring bankruptcy and going thru the system that fast to beat the one year deadline. also convincing a judge to do that will take longer. is it a concern? absolutely.

 

[Talos]

It is a tough choice. If I was a little older it would be easy. I think this offer is as good as it can get. You know dfwgen you get screwed too many times for too long and you just don't believe anything from the union or company any more.

 

[dfw gen]

It is a tough choice. If I was a little older it would be easy. I think this offer is as good as it can get. You know dfwgen you get screwed too many times for too long and you just don't believe anything from the union or company any more.

that is a fact. there are some good guys in the union, but its usually the intl level that screws you.

 

[dfw gen]

It is a tough choice. If I was a little older it would be easy. I think this offer is as good as it can get. You know dfwgen you get screwed too many times for too long and you just don't believe anything from the union or company any more.

i agree its as good as it gets and if the company keeps their word it will put me where i would like to be.

 

[CremaDiLimone]

I agree Crema the deal is very enticing with the retiree medical. There will be some takers for sure. Giving people 2 weeks to decide is a tight window. I think management would say anything they want to get people out the door and then turn around later and stick it to everyone who left. Covid and not knowing the next govt response to airline losses make it hard to know if companies look to bankruptcy. I doubt Parker wants to use it as it may put him out the door and be an ugly way to go.

yup...parker and isom know a BK filing will end their airline careers at aa. i don't believe they want to file.

earnings in a few days, the new norm is listening to liquidity, cash burn rate, how much financing is available at what rates and what is current debt level.

i believe the quarter will be better than any other legacy carrier..doesn't prove anything going forward, may give the stock a bump up.

 

[CremaDiLimone]

I agree Crema the deal is very enticing with the retiree medical.

right. they want a certain niche (60+) gone and they'll get takers.

getting $150,000 tax-free into a medical insurance account is like getting a check for $210,000.

yesterday, talked to a cc with over 40 years. he is amazingly insisting that he'll only leave if he gets at least 9 months pay and not 6 months.

i told him $130k into his insurance fund is like 2 years pay...besides 6 months pay and 6 weeks vacation pay and the ability to draw on his full pension from rates between $2400 a month to $3200 a month (for 10 years, then drops to $2k a month).

some people just don't want to leave and look for any ridiculous excuse not to leave.

they'll get takers.

 

[Kev3188]

And if they bumped it to 9 mos., he'd likely say he wants 12...

 

[UPNAWAY]

A BK filing wouldn't impact the HRSA because once funded that's yours, it won't impact 6 months of pay as we are not filing that quickly no matter what, so the only issue would be 30 months of Ins/Cobra and I don't see any company going after that for a lot of reasons. They fear that BK could reverse any part of the deal isn't likely at all, less than 1% IMHO.

 

[swamt]

Sharing some final numbers:
28% or 17,000 employees taking some sort of leave at Southwest.
4,400 taking retirement.
12,500 taking one of three leaves 6-12-18 months with 1/2 pay.
They will look at using the month to month leaves on a as needed basis.
This will shrink employees from 60,900 down to around 44,000 not quite 1/3.

This article below is very accurate. The only changes that might change are the deadline for opting out is tomorrow the 22nd, but not really expecting much if any changes. The only other changes could be if the company wants to use the month to month to try and attain the 2% to reach 30%.

I know some of you still want the breakdown of groups but I don't have that as of yet, maybe after final numbers come after tomorrow's deadlines.
I will update again with final numbers as well as hopefully the breakdown of groups and how many.

https://finance.yahoo.com/m/e69ae67...17,000.html?puc=yahoo&cm_ven=YAHOO&yptr=yahoo

 

[CremaDiLimone]

doug started his earnings call by thanking the 'america west team'.

 

[CremaDiLimone]

i didn't get too much from earnings call.

company saying that aa will have $16.2 billion in liquidity going forward. company said on average it burned through $55 million a day in the 2nd quarter..down to $30 million a day by june. said cash burn will be less in 3rd quarter and 4th quarter cash burn will be less than 3rd quarter cash burn.

said that govt. money (cares act) paid for 76% of salaries in the 2nd and in the 3rd quarter and they can't use govt. money for severance packages.

company said 41,000 employees have taken a leave or a buy-out..i didn't hear a breakdown. they also said they let go of of 5,100 mngt. and support staff.

not much to say or interpret until a therapeutic or a vaccine for the virus comes along.

 

[usairways_vote_NO]

A BK filing wouldn't impact the HRSA because once funded that's yours, it won't impact 6 months of pay as we are not filing that quickly no matter what, so the only issue would be 30 months of Ins/Cobra and I don't see any company going after that for a lot of reasons. They fear that BK could reverse any part of the deal isn't likely at all, less than 1% IMHO.

They do not fund the HRSA account. They pay expenses as they occur. All they do is keep tabs of your balance. The money would be subject to bankruptcy ruling

 

[dfw gen]

They do not fund the HRSA account. They pay expenses as they occur. All they do is keep tabs of your balance. The money would be subject to bankruptcy ruling

Thats the conclusion im coming to. That its not funded but they keep tract of your balance. As far as subject to bankruptcy employee compensation would be #4 in line for compensation.

 

[eolesen]

Sounds like the HRSA claims are really self-insured up to that $150K or an amount that's capped per year.