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

[CremaDiLimone]

Maybe, but I think the intent of these packages was more akin to disaster relief than anything else. The 6 mos. of covering payroll gave carriers time for either the market to rebound or figure out what their recovery plan was.

i believe it was a bit more than that - you had trump, pence and mnuchin all say...well, you know the rest of the story.

if the market rebounds, all is well.

if the market doesn't rebound, it doesn't matter who has a better plan, there is no plan.

 

[CremaDiLimone]

I was referring to the time back when COVID-19 popped up on radar and the AA mechanics, fleet and other ground employees have yet voted on their contract offer. They were trying to get the final writings finalized and put out in writing, I even thought it was prior to the international voting for it to come out as well, and I was thinking that AA may pull the offer off the table before it gets finalized and all that. But was surprised to find AA was still going to allow the offer to stand as it was even after they new this crisis was going to get real bad real fast.

well, the T/A was reached on jan. 30. just a few days earlier, dr fauci went on tv and said that the virus was not a threat to the usa, at that time.

i believe trump was briefed, had that mind-set (no threat to usa at that time) and he conveyed what he was told, in ways that only trump can convey.

it may have been 1 day after the T/A was reached that trump shut down non-usa citizen travelers from china. this tells me that no airline was getting up-to-the-second updates about the world scene. aa had basically pulled out of china a year earlier. when europe got hit weeks later, i'm guessing aa mngt. wished they had stalled another month, after stalling for 4-5 years.

once the T/A is signed, i don't think aa could have pulled out. similar to our T/A with aa, just prior to 9-11. naturally, it got voted in. aa didn't pull it then. i don't believe they could have.

the ticket agents are up this year and it remains to be seen what will occur with them. not the best of times to be negotiating a contract.

 

[swamt]

Lower hours at DL are now in effect through 9/30. They have been pretty clear that they prefer hour cuts/leaves to cutting base rates. Whether that's due to the CARES Act or not remains to be seen.

Pretty sure it's b/c of the CARES Act. No layoffs or cuts in pay. But nothing in there about reduced hours. We all know it's a form of cut in pay, however, it was not addressed and some are using it as a loophole to reduce the amount of money being paid out. Dems raised all kinds of hell about it, but since then it's been crystal quiet from them as they were set straight. All the airlines are following the CARES Act to a "T" as they do not want to have to pay certain portions back that are forgiven if they follow the rules and regs of the CARES Act.

 

[swamt]

well, the T/A was reached on jan. 30. just a few days earlier, dr fauci went on tv and said that the virus was not a threat to the usa, at that time.

i believe trump was briefed, had that mind-set (no threat to usa at that time) and he conveyed what he was told, in ways that only trump can convey.

it may have been 1 day after the T/A was reached that trump shut down non-usa citizen travelers from china. this tells me that no airline was getting up-to-the-second updates about the world scene. aa had basically pulled out of china a year earlier. when europe got hit weeks later, i'm guessing aa mngt. wished they had stalled another month, after stalling for 4-5 years.

once the T/A is signed, i don't think aa could have pulled out. similar to our T/A with aa, just prior to 9-11. naturally, it got voted in. aa didn't pull it then. i don't believe they could have.

the ticket agents are up this year and it remains to be seen what will occur with them. not the best of times to be negotiating a contract.

Crem, The contract was not signed at the time it was going down hill fast. There was at least an AIP, not even 100% if it was voted on at the international level yet, but if it was it was not signed into a T/A as of yet merely only agreed to put it out as a T/A in which, YES they (AA) could have retracted it off the offer table at that time. i do remember discussing this with some of the guys in detail, and some were worried until the co. finally told the asso. that they would leave the offer on the table. And yes, it was voted in because of the C-19 fixing to hit even harder and they just wanted to be done with it or else all hell would have broke out and these guys would go another many years remaining in a BK contract until this crisis was past.

 

[swamt]

Hell, they can't even figure out an effective date.....

Maybe they'll fill that in later!

The Front Cover.....

View attachment 15319

Typical.
H.E.Y.???

 

[Rogallo]

Typical.
H.E.Y.???

Decades ago!

 

[CremaDiLimone]

YES they (AA) could have retracted it off the offer table at that time.

i don't believe that's true. we'd have to ask a big-shooter in the union. it also works both ways.

say aa became the exclusive airline to fly london-usa. this, announced 1 day after a T/A. aa is in line for big money, big profits.

the union or in our case, the assoc., can't say 'scrap the agreement' after initializing it. up to the membership to vote it down and then try again.

i could be wrong, but i recall a local president telling me this right after 9-11. he said, God help us if we vote the T/A down.

 

[robbedagain]

Per cnbc article AA plans 30% reduction in mgmt and admin. Plus offer new VLOA to front line staff such as FAs

 

[eolesen]

https://www.reuters.com/article/us-...agement-and-support-staff-by-30-idUSKBN23409R

Pretty much what Delta and United are already doing, but I found this statement interesting:

Once it has reduced its management ranks, the company will turn to frontline employees including flight attendants and pilots, who will receive fresh voluntary leave and early retirement options in June with the aim of avoiding involuntary furloughs.

Do they really think that cutting management will be an incentive for frontline workers?...

 

[Kev3188]

DL is offering both an enhanced retirement package and an early out. Specifics should be released later today.

 

[swamt]

i don't believe that's true. we'd have to ask a big-shooter in the union. it also works both ways.

say aa became the exclusive airline to fly london-usa. this, announced 1 day after a T/A. aa is in line for big money, big profits.

the union or in our case, the assoc., can't say 'scrap the agreement' after initializing it. up to the membership to vote it down and then try again.

i could be wrong, but i recall a local president telling me this right after 9-11. he said, God help us if we vote the T/A down.

Crem, again, re-read my postings. At the time I am referring to was "BEFORE" it was signed into agreement (T/A) and yes BEFORE a vote was started. Either side could have said their offer is off the table before anything is signed or out for a vote. What I do not know was if the international voted and signed off on it becoming a T/A. The international had to vote and sign off on it going from an AIP to a full blown T/A by a vote at the international and all nego cmte's, in order for it to be finalized and sent out for a vote by the membership.
Side note: Just the mere fact that the co. and or union put memo out stating they are leaving current offer on table to be voted on tells me they had the chance to remove it and this is what is triggering my thought process. Anyway, that is long behind us. Question is now what happens going forward with this?

https://www.yahoo.com/news/american-airlines-cut-positions-30-083724008.html

 

[UPNAWAY]

https://www.dallasnews.com/business...ny-and-staffing-levels-for-the-fall-and-2021/

Now children...pay attention to this post. You need to learn the difference between "right-size" and "down-size." This difference may make a HUGELY difference on your future at American Airlines.

The difference: Down-sizing (which is NOT what AA is proposing) is where some managers also lose their jobs.

Any questions? You need to ask now before it's too late.

Sample answer: [to AMT with less than 40 years seniority] "you're toast."
Sample answer: [to randomly selected manager] "Nothing to worry about. Let's do lunch next week."

Cynical? Moi? How could you say such a thing to me?

Well Jim turned out to be completely wrong..................

 

[jimntx]

Well Jim turned out to be completely wrong..................

And as I posted earlier, you are in serious need of a sense of humor transplant. Maybe we could all start a gofundme account for your surgery.

 

[eolesen]

Even I knew that was sarcasm.

 

[convair]

A timeline

May 1 - Evercore ISI analyst Duane Pfennigwerth reduced price target on AAL to $1.


May 2 - Warren Buffett disclosed that Berkshire Hathaway took a loss and sold his stock in 4 major airlines.


May 4 - it’s Monday morning. Chaos envelopes headquarters. Top brass were like deer in the headlights.


May 5 - United Airlines announced plan to terminate over 30% of its management and administrative employees.


May 5 - Time to contact the government through official (and unofficial) means. The airline trade group prepared (and leaked) a statement for an upcoming Senate hearing. The airlines were burning through $10 billion a month.


May 6 - Parker said United can’t cut pay and hours due to the Cares Act.

Nice way to sidestep the furlough issue.


May 7 - AA parked its remaining Airbus A330-200 aircraft for the next two years.

The banks wanted collateral. 360 cream puff MD-80’s weren’t enough for a high risk loan.


May 8 - There was a disturbance in the force. Some of our leaders began moving towards the tall grass.


May 12 - On the Today show, the Boeing CEO says a US airline bankruptcy is likely.

“Did he just say that? He knows airline CEO’s are all friends of ours. What’s the matter with him, making all this mess?”


May 14 - Boeing CEO tries to smooth over tensions with airline chiefs after saying a US carrier 'likely' to go bust.

Yeah - no s***!


May 18ish - It’s time to take control of the news narrative. Call the publicist!


May 19 - Dallas morning news article...AA looking to ‘right-size’ the company and staffing levels for the fall and 2021.

Just like they tried to right sized outstanding shares of common stock.


May 20th - AA CFO publicly rejects bankruptcy speculation.

GAAP is all relative, you know.


May 24 - Forbes says chatter about AA bankruptcy is nonsense.

That publicist is good.


May 27 - memo leaked about 30% reduction of management and admin staff.



Consider this. United acted quickly when the inevitable remained clear. AA management made sure they were protected before announcing cuts.