AA to announce they are cutting between 10,000 and 15,000 jobs

Discussion in 'American Airlines | AAdvantage' started by John777, Feb 1, 2012.  |  Print Topic

  1. John777

    John777 Silver Member

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  2. cliburn
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    cliburn Gold Member

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    One of my impressions of the OWMegado was how impressive the AA employees were..... really sad.
     
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  3. DestinationDavid
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    No surprise, we all knew it was coming. Very sad news for AA employees. The MegaDO AA staffers were impressive, but so are the every day ones I meet when I fly. It's part of the reason I've stayed loyal.

    I have several friends who work at AMR. I'm hoping they are not included in this reduction. :(
     
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  4. chanp
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    chanp Silver Member

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    Very sad. I hope that the employees being let go will find something quick.
     
  5. tondoleo
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    tondoleo Gold Member

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    This is unfortunate. However, it is necessary for AA to get their balance sheet in order. If the current AA did not do this whomever purchased the company would wield the axe. It is a scenario we have seen very often in American business.
     
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  6. RestlessLocationSyndrome
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    RestlessLocationSyndrome Silver Member

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    On my recent MR from LAX-ORD, I heard the flight attendants talking about the bankruptcy and speculating about what was going to happen. One of them brought up how overstaffed and bloated they were and the other completely agreed.

    The goal is to have a sustainably run company so if this is what it takes to ensure AA's competitiveness in the future, then it's for the best.
     
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  7. sobore
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    sobore Gold Member

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    Bad for employees. Bad for customers.
    Let the longer lines begin. :(
     
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  8. Pizzaman
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    I don't necessarily agree this is bad for customers. It depends where they cut. AA recently announced a larger self service check-in facility at LAX. Items like that en masse will almost certainly yield staffing cuts that, IMO, have very little impact on me personally. As others have said, if AA doesn't do it, someone else will do it for them.
     
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  9. sobore
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    sobore Gold Member

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    UA had a similar situation a few years back. Even though they provided plenty of self service check-ins, many folks wanted human assistance. The self service machines are fine for the younger more tech savy person, but many older folks just want a person to help them. At ORD I assisted several travelers due to the lack of UA staff at this time. If AA travelers can assist each other when needed it may help the situation, but I still think this will impact a fair amount of people.
     
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  10. kyunbit
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    kyunbit Silver Member

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    As much as I hate to say this, cutting 10K jobs is better than going totally under and affecting 100K
     
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  11. Pizzaman
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    I don't want to sound like, "This doesn't affect me, so I don't care."

    But, this is something the rest of the world did years ago. EZPass (paying a toll without stopping) has been around for just shy of 20 years. The state of NY figured out a great way to implement it. They made virtually all the lanes on the major thoroughfares EZPass, and left only one or two cash lines.

    Self service lanes at the grocery store for those that want to use them. Self-service gas (unless you're in NJ).

    Continuing to provide services that, IMO, most passengers can do without is not cost effective. Would I rather the people who checked bags have to stand in line longer, or would I rather AA went bankrupt?

    They need to update. New planes, new systems. That's going to mean lower costs, and in some cases, less people. I don't want anyone to lose their job, but as kyunbit said, I'd rather 10K lose their jobs than 74K.
     
  12. garyst16
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    garyst16 Silver Member

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  13. mundosurfer
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    mundosurfer Gold Member

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    They are also closing a maintenance base in Fort Worth as well as moving their pension plan to 401K and the Pension Benefit Guaranty Corp may have to pay out the existing plan.
     
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  14. milchap
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    milchap Gold Member

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    NEW YORK (CNNMoney) -- American Airlines told its unions Wednesday it plans to cut 13,000 jobs from the staff of 88,000 at the nation's No. 3 airline.
    The cuts will fall most heavily on the airline's maintenance operations, which will lose 4,600 jobs. More than 4,000 additional ground worker jobs will be eliminated, as will 2,300 flight attendant jobs.
    Management will be reduced by 1,400 employees, with the most narrow cut coming among pilots and first officers, which will only see a reduction of 400.
     
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  15. DestinationDavid
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    Email posted by OWDevotee on TOBB from Tom Horton to employees: LINK.

    Dear American Team:

    Several weeks into our restructuring process we continue to make progress on a comprehensive plan to restore American to industry leadership, profitability, and growth. From my travels around the system and talking with so many of our folks, I know the fierce commitment we all share to making American a winner again. Today, I want to share with you the framework for the next steps on our path to transform American – not just to compete, but to win.

    Change – a necessity, not a choice

    As you know, our major competitors have used the restructuring process to overhaul their companies and become more competitive in every aspect of their business. Last week, these airlines announced their financial results, which highlighted, once again, a widening profit gap. Network carriers have benefited from investing their restructuring-driven profits in products and services that have helped drive revenue growth. And low cost airlines continue to benefit from the cost efficiency that has made them a force in our industry.

    Now it is time for American to move forward on a decisive path. We are going to use the restructuring process to make the necessary changes to meet our challenges head on and capitalize fully on the solid foundation we've put in place.

    Success – achievable goals, profits and growth

    The key to our successful restructuring is a business plan with a clear objective. And that is to make American a world-class global airline – America's flag carrier – that is competitive, profitable and growing. To do this, we must consistently deliver:

    A superior customer experience that earns loyalty and drives revenue
    A work environment that recognizes excellence and rewards success
    Attractive financial returns for our investors and stakeholders
    With financial and operational flexibility and an improved cost and capital structure, we plan to:

    Renew and optimize our fleet by investing an average of about $2 billion per year in aircraft, so that by 2017 American's mainline jet fleet will be the youngest in North America, with the versatility to match aircraft size to the markets we serve. This step is central to our transformation and means more profitable flying due to markedly improved fuel and maintenance costs, and higher revenue generation.
    Build the scale of our network and alliances by increasing departures across American's five key markets – Dallas/Fort Worth, Chicago, Miami, Los Angeles and New York – by 20 percent over the next five years, capitalizing on our loyal customer base and world-class alliance partners, and increasing international flying.
    Modernize our brand, products and services by investing several hundred million dollars per year in enhancements that will, once again, make American the premier airline of high-value customers.
    Our business plan demonstrates that we can achieve and sustain our objectives. Ultimately, we plan to achieve a $3 billion annual improvement, including:

    Revenue improvements of $1 billion per year through network scale, fleet optimization, and product improvements.
    Cost savings of over $2 billion, from restructuring debt and leases, grounding older planes, improving supplier contracts and other initiatives, and necessary employee-related changes.
    Importantly, these financial improvements not only support our planned investments in our fleet, product and brand; they also enable us to further reduce our debt, becoming financially stronger so that American will be resilient and able to withstand future unforeseen events.

    Success requires tough changes

    The restructuring process allows us to spread the effects of cost savings as broadly and evenly as possible, but there is no avoiding the fact that the cost reductions will be deep. And there is no sugarcoating the effect on our people. Three principles will guide our approach:

    Commitment to success – We have thoroughly analyzed the competition and the industry and what we must achieve is crystal clear. Competing and winning requires a financial improvement of more than $3 billion, and that, in turn, requires significant savings in employee-related costs – of more than $1.25 billion per year.
    Fair and equitable – All workgroups will have total costs reduced by 20 percent, including management. While the savings from each work group will be achieved somewhat differently, each will experience the same percentage reduction.
    Performance is rewarded – At American, everyone should be recognized for their contributions, aligned with overall company performance, and sharing in American's success. That is why we envision a Profit Sharing plan that, beginning with the first dollar of pre-tax income, would pay awards totaling 15 percent of all pre-tax income.
    I take full ownership of our business plan. It is very important, too, that we are all sure that the proposed changes are appropriate for each part of the company. In developing this plan I asked each business leader – Jim Ream, John Hale, and their colleagues in Operations, Tom Del Valle and his team in Airports, Craig Kreeger and Lauri Curtis in Customer Experience, and others – to take responsibility for the specific changes necessary to make American competitive and successful in each of their respective areas. I know you are concerned about how all of this will affect you. I have also asked each of these leaders to actively and directly communicate those changes to you. You will hear more detail later today as we share it with our union workgroups, and we will have more information for our non-union groups in weeks to come as we address feedback from them.

    While we are now firmly on a path to a successful growing future, we must acknowledge the near-term pain these changes will require. That's especially true because we will end this journey with many fewer people. But we will also preserve tens of thousands of jobs that would have been lost if we had not embarked on this path – and that's a goal worth fighting for. As I've said before, our objective is to create the best outcome for the greatest possible number of people.

    Renewal – risks and challenges

    We have an extraordinary opportunity to create a new world-class airline, but we are also at great risk during this time. You have likely read or heard reports that there are those who wish to shrink our airline, close hubs or acquire our company or assets – all for the benefit of their own stakeholders. Still others may favor a breakup of American. I do not believe any of these outcomes are in the best interests of American, our people, or our stakeholders. But as I have said since the start of this process, there will be many parties with input into the outcome of our restructuring. The best way for us to assure that we are in control of our own future is to make the necessary changes, complete our restructuring quickly, and continue working hard to position American as a world-class competitor.

    Another risk comes from within. Divisive and destructive rhetoric of the past has not served American or its people well, and indeed has only served to strengthen our competitors. Believe me, our competitors see an opportunity to take advantage of any internal uncertainty or instability. This is a moment when such discord can have profound consequences. It is time to turn the page and open a new chapter for American.

    The world has changed around us and this is our moment to adapt or lose the opportunity forever. Our industry is now defined by the changes our competitors made in restructuring to secure their futures, and the landscape is littered with those airlines that failed to change. Only a successful, profitable, and growing American can provide a secure future and opportunity for our people.

    We are moving fast and it will take all our dedication, focus, and energy to get this done – and I will give it all of mine. I thank you again for standing tall and doing a fine job for our customers during this especially challenging time. That winning attitude is why I believe we have what it takes to put American back on top.

    Sincerely,

    Tom
     
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  16. kansaskeith

    kansaskeith Gold Member

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    Awkward and strained familiarity, I fear.

    He ("Tom") had little choice. . . , but the employees, while they knew it was coming, are probably not disposed to feel much better because he is saying "call me Tom." Many of them probably are using other names for him tonight.
     
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  17. uggboy
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    uggboy Gold Member

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    Ultimately they gonna to rationalize themselves away.......' nough said!
     
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  18. uggboy
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    uggboy Gold Member

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    Oh Tom, " our boy " what are you doing....any chance you know!??!??!??:oops:
     
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  19. garyst16
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    While "Tom" penned (ok, his team did...) the correspondence sent to the employees, the actions by no means are a result of his actions or inaction alone...the resulting re-organization of AA has many contributing factors...many are the same that led to the BK filing at all of the other domestic majors...it is truly an unfortunate situation for all involved and effected
     
  20. rwoman
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    rwoman Gold Member

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    I debated where to put this since BK threads tend to multiply quickly...hopefully, people will see it here. :)

    AMR's Unique Plan: Grow, Don't Shrink

    Much like UA and DL...grow international biz. That said, haven't there been a lot of int'l cuts over the past few months...beyond seasonal cuts?
     
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  21. DestinationDavid
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    DEL of course and going back further DME, NGO, etc. They've also cut many flights in the last year or two to destinations, but very few have actually seen all service stop. BRU and FRA service was cut but still has AA service from DFW/JFK for example.
     
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  22. chrislacey
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    I see this (and offer assistance) regularly when I travel. UA's reliance on self check-in machines is a bit over the top. That said, the couple times I've flown DL in the past year or so...they basically employ people to bark at you to use the self check-in machines. I'm pretty sure I was flying out of CHS (but could be wrong) when I was flat out told that my only option was a machine and that the 3 counter agents would not check me in. This, unfortunately, seems to be the standard now.
     
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  23. jbcarioca
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    jbcarioca Gold Member

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    They have increased service to some very profitable areas. No cuts in the Southern Cone for example. I understand completely cutting services that have low or inconsistent yields, and moving to new aircraft with better operating characteristics will reduce maintenance requirements. Almsot every area was bloated, with flight crews the least. I do not want to applaud these moves but I must. Efficiency helps improve quality, the lack of it destroys quality.
     
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  24. garyst16
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    Maybe someone can explain to me why they chose to completely shutdown service at BUR? Almost all of their flights were full or oversold! I want my BUR back! LAX sucks!
     
  25. DestinationDavid
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    Full flights doesn't mean they were profitable, though. If you sell all the seats for less than it costs to operate the flight....:confused:
     
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