http://www.alliedpilots.org/Public/PublicR...ine/hotline.asp
This is Gregg Overman, APA Communications Director, with the APA Information Hotline for Thursday, July 15.
FURLOUGH ANNOUNCEMENT: APA was disappointed to learn that 123 more pilots will be furloughed by the airline effective October 1. Although the furlough is a delayed result of the master seniority shuffle last year and not entirely unexpected, it is always a painful matter when our pilots are laid off from their jobs.
Since 9/11 2,470 pilots have been furloughed, including 1,356 furloughs as a function of the restructuring agreement in the spring of 2003. The final furlough associated with the restructuring agreement was to have been 350 pilots. This furlough was delayed eight months as American considered summer flying increases, fall schedule changes, and whether pilots would be recalled within the next year.
The decision to furlough less than 350 was based on projected flying increases and the company’s current outlook for pilot requirements. APA is working with management to exercise contractual provisions that will help mitigate the numbers further. Although 123 pilots will be receiving furlough notices, 24 pilots are already on either military or personal leaves of absence. Their status will change from leave status to furloughed status resulting in the net effect of 99 additional currently active pilots leaving the payroll.
The “Furlough Stand in Stead†provision in the contract offers any pilot the opportunity to take a voluntary furlough in place of a pilot scheduled for involuntary furlough. Information about the Furlough Stand in Stead is available under Contract 2003 “letters†on the APA Web Site at the following address (click on this link or copy and paste it into your Web browser):
http://www.alliedpilots.org/Members/Contra...and_Instead.pdf
The Spring issue of Flightline magazine contains a great deal of information for furloughed pilots including furlough pay, vacation pay, recall, non-rev travel, Supplement W Flowback, medical, loans and insurance. It also contains a pull-out reference card of contact numbers and e-mail addresses. All pilots included in this furlough announcement will be eligible for Supplement W Flowback to American Eagle CJ Captain seats. You can access a pdf version of the Flightline issue on the APA Web Site at (click on this link or copy and paste it into your Web browser):
http://www.alliedpilots.org/Members/Nation.../flightline.asp
PENSION FUNDING: In other news, United Airlines elected to miss a $72.4 million payment to its pension funds due today. In a filing with the Securities and Exchange Commission, United management said that putting off the payment “enables United to best manage its resources and preserve its options going forward.†Many airline industry analysts have speculated that United may choose to default on pension obligations to make the airline more attractive to investors.
This development at United may lead some of you to wonder about funding levels of AMR’s Defined Benefit plans. APA’s Pension Committee notes that AMR has contributed all funding required through the April 2004 quarterly contribution to its Defined Benefit plans. Pension and Investments, an industry trade magazine, reported that AMR earned approximately 25 percent on its Defined Benefit investments, versus an assumed nine percent rate of return, which further improves funding levels of all AMR Defined Benefit plans.
That’s it for today. Thank you for calling.