AA to reduce staff by 40K, invol furlough 19,000, 1 Oct 2020
#1
Original Poster
Join Date: Nov 2018
Location: DFW
Posts: 310
AA to reduce staff by 40K, invol furlough 19,000, 1 Oct 2020
Seems a new thread hasn't been started on this devastating news yet, so might as well jump.
Per JonNYC
My heart hurts for all my dear friends affected by this over at AA. However, there is still hope that the PSP extension will be passed when Congress reconvenes. We will see....
Per JonNYC
My heart hurts for all my dear friends affected by this over at AA. However, there is still hope that the PSP extension will be passed when Congress reconvenes. We will see....
#2
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This is terrible news that everyone knew was coming. American appears to be downsizing less than United or Delta. I think American is gambling with running at greater capacity than the two main legacy competitors on the assumption that if flying comes back sooner, they will be ready to take on the business. I read somewhere that American determined that after analyzing the opportunity cost of planes sitting parked while lease payments continued would be off-set by whatever flying American chose to do. Unfortunately, most analysts say the high cash burn will catch up with American in the first quarter of 2021. I really hope they are wrong!
#3
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Programs: American Airlines
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Wasn't this announced months ago that coming what October 1st? Either way so sorry to hear. I heard WN cutting down their daily flights by 60 at DAL. I don't know what UA or DL has in plan come 10/1.
#4
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This is terrible news that everyone knew was coming. American appears to be downsizing less than United or Delta. I think American is gambling with running at greater capacity than the two main legacy competitors on the assumption that if flying comes back sooner, they will be ready to take on the business. I read somewhere that American determined that after analyzing the opportunity cost of planes sitting parked while lease payments continued would be off-set by whatever flying American chose to do. Unfortunately, most analysts say the high cash burn will catch up with American in the first quarter of 2021. I really hope they are wrong!
Original announcement months ago was overage of 7k-8k. Now it has ballooned up to 14K (8100 furloughs + early outs and leaves)
Last edited by standbyalldtime; Aug 25, 2020 at 10:41 am Reason: add response to enviroian
#5
Join Date: Jun 2010
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You are probably right. I was going on a report in the morning news on Bloomberg a couple of weeks ago that was decrying Doug Parker for not downsizing fast enough. That report was anticipating what the carriers were going to do when the money ran out on Sept 30th. I hate to see anyone loose their job, especially the great people that have done such a wonderful job of getting me from point a to point b every week for all these years, but it also sounds like this was a tough decision that could not be avoided.
#7
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#8
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#9
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Exactly, I dont feel any worse then for any other employee in any other biz that has or will be losing their job. If anything I feel worse for alot of others who lost min wage jobs and were not even able to live paycheck to paycheck. Most employees in the airline industry made out extremely well money wise and to an extent way to well
It doesnt make sens for any biz to carry any employee/ that they simply have no work for or forsee work for. A Carrier is a biz and not a charity, that should also include cutting Execs and Exec pay and stock/options
#10
Join Date: May 2005
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Posts: 600
Tons of other industries are furloughing or laying off employees, but airline employees should somehow be protected?
#11
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In reality though, millions of people in most other industries did not get to enjoy an additional six months of payroll on behalf of the government and have been experiencing this since March/April.
#12
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Join Date: Nov 2018
Location: DFW
Posts: 310
Agreed. It's never great to see people being laid off or furloughed and my best wishes go out to those at AA who are in that situation.
In reality though, millions of people in most other industries did not get to enjoy an additional six months of payroll on behalf of the government and have been experiencing this since March/April.
In reality though, millions of people in most other industries did not get to enjoy an additional six months of payroll on behalf of the government and have been experiencing this since March/April.
It's also hard to argue that industries that rely on international travel have been disproportionately affected. I struggle to think of any other large company in which 50% of a major workforce is cut (13.9K leaves/early outs/furloughs against 26.5K total FAs at AA).
Perhaps aid can be restructured in a way that helps preserve the basic income of affected employees without funding the extravagant lifestyles of those making 6 figures at taxpayers expense. Then again, adding any thoughtful structure or complexity to a government aid program seems like a surefire way to get it killed/delayed to the point of being ineffectual.
In some ways, I actually applaud AA mgmt for making cuts this deep. It shows a commitment to reduce cash burn and maintain a sustainable business model, and as a (small) shareholder I appreciate their efforts to keep bankruptcy at bay and fulfill their obligations.
#13
Join Date: May 2019
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This was generally done by seniority, so those that did an excellent job were swept away with those who didn’t.
#14
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#15
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Since FAs aren't evaluated in the traditional sense how could AA separate the "good ones versus the bad ones" in any sensible manner. Sure the ones with warnings in their files but there's many a lazy FA out there that wouldn't have "warnings" in their file. It's just the nature of the job.
I don't understand this idea that all senior FAs are burnt out and don't care about their job anymore. That's certainly not been my experience with ALL senior FAs (and GAs, AC staff). I've been traveling every week in the F cabin (yea upgrades) since March and numerous times I've had a young F FA that would have nothing to do with the paxs playing with their phone instead. Most of them weren't around in the early 2000s when FAs were being fired in mass. Based on some of the loud conversations I've heard them have (instead of doing a service) many of them thought the government would continue to guarantee them a paycheck.
I don't understand this idea that all senior FAs are burnt out and don't care about their job anymore. That's certainly not been my experience with ALL senior FAs (and GAs, AC staff). I've been traveling every week in the F cabin (yea upgrades) since March and numerous times I've had a young F FA that would have nothing to do with the paxs playing with their phone instead. Most of them weren't around in the early 2000s when FAs were being fired in mass. Based on some of the loud conversations I've heard them have (instead of doing a service) many of them thought the government would continue to guarantee them a paycheck.