New early out offer coming?

[CremaDiLimone]

a pretty good one.

today, local president sent out an update:

- no more leaves granted
- those on leave will have 30 days to report back
- those who took the buyout, will be let go in waves (seniority)...ending around the beginning of june.

it's no surprise...loads are good...covid numbers going down, vaccination numbers going up...more flights, more pax; all hands on deck by june.

 

[Rogallo]

a pretty good one.

today, local president sent out an update:

- no more leaves granted
- those on leave will have 30 days to report back
- those who took the buyout, will be let go in waves (seniority)...ending around the beginning of june.

it's no surprise...loads are good...covid numbers going down, vaccination numbers going up...more flights, more pax; all hands on deck by june.

Fleet?

 

[swamt]

who could have foreseen the pandemic?

Which is why all airlines should put back the cash. We all know the airline industry has it's ups and it's downs.
Yes the gov did step in and helped. If the gov didn't do that, I firmly believe some airlines would already be in BK.

 

[swamt]

a pretty good one.

today, local president sent out an update:

- no more leaves granted
- those on leave will have 30 days to report back
- those who took the buyout, will be let go in waves (seniority)...ending around the beginning of june.

it's no surprise...loads are good...covid numbers going down, vaccination numbers going up...more flights, more pax; all hands on deck by june.

To me this is good news.
However, if they start calling back employees, doesn't that also mean they don't need any more further assistance with payroll from the gov.? Meaning that maybe they don't need the 3rd round of PSP??
Interesting info.

 

[CremaDiLimone]

Fleet?

yes

 

[CremaDiLimone]

To me this is good news.
However, if they start calling back employees, doesn't that also mean they don't need any more further assistance with payroll from the gov.? Meaning that maybe they don't need the 3rd round of PSP??
Interesting info.

the govt. has set aside $15 billion in payroll support for the airlines up to the 3rd quarter of this year - looks like this will be signed in a few days.

people are coming back in waves, but fares are low...it won't be milk and honey, for awhile.

i believe it's necessary.

 

[Kev3188]

i believe the offer was competitive with others..maybe the best. if united offered 18 months pay AND insurance money, then united may have had the best offer.

a positive 'loophole' was compensation for sk time.

for fleet, company offers an unfair value of $9/hr for every hour of sk time. if the employee leaving decided to put sk time money in the insurance fund, then it's $18/hr for every hour. since that money is tax-free, it comes to apprx. $23/hr for every hour.

most knew about this, some didn't.

again, i encounter co-workers terrified of retirement. it's their prerogative, but, it's sad to see. guys in their early 70s hanging around. ridiculous.

A lot of people don't have anything to retire to. This is it.

Which is why all airlines should put back the cash. We all know the airline industry has it's ups and it's downs.
Yes the gov did step in and helped. If the gov didn't do that, I firmly believe some airlines would already be in BK.

Demanding carriers stack their cash is easy to say. What we forget is that that's how shareholder revolts (and LBO's) start. I don't think anyone wants to see a return of Carl Icahn.

 

[Rogallo]

yes

Thx

 

[swamt]

the govt. has set aside $15 billion in payroll support for the airlines up to the 3rd quarter of this year - looks like this will be signed in a few days.

people are coming back in waves, but fares are low...it won't be milk and honey, for awhile.

i believe it's necessary.

Yup. Just saw on news it passed the Senate. As long as they don't lose 4 in the House it will go thru.
What timing huh? A new round of PSP (14-15 Billion for airlines) and then shortly after airlines collect their money they will call back all the employees on the temp leaves. And then all of a sudden the passengers start coming back in good numbers. Just a guess of mine, but, kind of funny on the timing of everything.

 

[swamt]

A lot of people don't have anything to retire to. This is it.



Demanding carriers stack their cash is easy to say. What we forget is that that's how shareholder revolts (and LBO's) start. I don't think anyone wants to see a return of Carl Icahn.

True Kev., but they should put back enough for the rough times. AA and United are having the toughest times during this one out of the big 4-5 airlines.
But now with the 3rd PSP looking like will go thru may really help to get thru it all and into the return of passengers which is great for all the airlines. Hopefully no one will have to go the BK route.

 

[Aretiree]

When I took the first VEOP, I was skeptical of waiting until March 15 2021 to receive the lump sum. AAL came through, I received a paper check in the regular USPS mail for 52 weeks of 50% base pay. Check cleared in my bank today. For that I am grateful. For anyone on the fence, if you can swing it, there is value away from AA.

 

[CremaDiLimone]

i'm glad you feel relieved...did you think the company tricked you to leave and then wouldn't pay you?

i'm sorry your 'class' of retirees didn't get insurance money. i still can't believe the number of those who rejected the buy-out, even after a 2nd bite of the apple last month.

i read that the average american male (female is higher) will spend $135k in out of pocket medical expenses AFTER the age of 65. the company knew exactly what they were doing with staggered amounts from $150k to $100k in insurance money.

POINTS

• Broken down by gender, the estimate is $150,000 for women and $135,000 for men, according to Fidelity Investments’ annual analysis.
• The amounts exclude things not covered by Medicare — dental, basic vision, over-the-counter medicines, long-term care.
• The nation’s health expenditure growth is anticipated to average 5.5 percent annually from 2017 through 2026, compared with 4.6 percent through 2028 for Medicare’s per-capita spending.

i would think the company is done with this. parker was on cnbc the other day and said aa will be 'cash-positive' in the back half of 2021. if business travel accelerates, will be sooner.

 

[Talos]

i'm glad you feel relieved...did you think the company tricked you to leave and then wouldn't pay you?

i'm sorry your 'class' of retirees didn't get insurance money. i still can't believe the number of those who rejected the buy-out, even after a 2nd bite of the apple last month.

i read that the average american male (female is higher) will spend $135k in out of pocket medical expenses AFTER the age of 65. the company knew exactly what they were doing with staggered amounts from $150k to $100k in insurance money.



i would think the company is done with this. parker was on cnbc the other day and said aa will be 'cash-positive' in the back half of 2021. if business travel accelerates, will be sooner.

I think a lack of trust in mgmt had a lot to do with people not taking the early out. If you were 65 and could get medicare it was great. You can purchase a supplemental insurance with Medicare and it is very dealable. It appears the company can avoid bankruptcy, but things can change. Just a lack of trust with how mgmt deals with things lingers on.

 

[dfw gen]

I think a lack of trust in mgmt had a lot to do with people not taking the early out. If you were 65 and could get medicare it was great. You can purchase a supplemental insurance with Medicare and it is very dealable. It appears the company can avoid bankruptcy, but things can change. Just a lack of trust with how mgmt deals with things lingers on.

That was my number one issue, that and the fact retiring at 57 i would be depending on the 150k RHRA. If they change their mind a year or two down the road that would be a problem. If they offered everything up front upon seperation i would seriously consider it. I also have a problem with RHRA being a "notional" account. Notional is a promise to pay, and their promises arent very good.

 

[swamt]

When I took the first VEOP, I was skeptical of waiting until March 15 2021 to receive the lump sum. AAL came through, I received a paper check in the regular USPS mail for 52 weeks of 50% base pay. Check cleared in my bank today. For that I am grateful. For anyone on the fence, if you can swing it, there is value away from AA.

Happy for you. Glad you were able to do it. Congrats on retiring...