No FA layoffs at AA as 2,205 AA FAs take buyout

Discussion in 'American Airlines | AAdvantage' started by stuartfla, Sep 21, 2012.  |  Print Topic

  1. stuartfla
    Original Member

    stuartfla Silver Member

    Messages:
    166
    Likes Received:
    273
    Status Points:
    450
    http://www.wfaa.com/news/business/2...-flight-attendants-take-buyout-170716426.html

    "DALLAS – More than 2,000 flight attendants have opted to leave American Airlines, meaning the company won’t have to furlough or fire any others as it continues to recover from bankruptcy.
    American Airlines spokesman Bruce Hicks said 2,205 flight attendants took the company’s ‘Early Out’ incentive, which offered $40,000 to anyone who voluntarily left the company...."
     
    _kurt, Jett Rink and Mike Reed like this.
  2. uggboy
    Original Member

    uggboy Gold Member

    Messages:
    50,172
    Likes Received:
    133,424
    Status Points:
    20,020
    Isn't this the same in practical terms?
     
  3. Mike Reed

    Mike Reed Gold Member

    Messages:
    2,414
    Likes Received:
    3,574
    Status Points:
    2,025
    No. It's accounted for differently - a one-time charge vs. a recurring expense (though they can likely amortize the charge against the expected longevity of the forfeited tenure).
     
  4. DestinationDavid
    Original Member

    DestinationDavid Milepoint Guide

    Messages:
    6,846
    Likes Received:
    12,715
    Status Points:
    11,770
    Not to mention those who are leaving are likely a very different demographic than the ones who would have been laid off.
     
  5. Wandering Aramean
    Original Member

    Wandering Aramean Gold Member

    Messages:
    28,214
    Likes Received:
    61,742
    Status Points:
    20,020
    Indeed. As I understand it layoffs start at the bottom, with the most recent hires affected first. With the buyouts the most senior get first priority.
     
    LETTERBOY likes this.
  6. Mike Reed

    Mike Reed Gold Member

    Messages:
    2,414
    Likes Received:
    3,574
    Status Points:
    2,025
    So we might actually get FA's to Japan that don't use walkers now? :D
     
  7. DestinationDavid
    Original Member

    DestinationDavid Milepoint Guide

    Messages:
    6,846
    Likes Received:
    12,715
    Status Points:
    11,770
    Works the same in the government, so I'm intimately familiar with the process since for a long time I was the youngest person in my office by about 20 years. ;)

    I love some of those "senior mamas" as I've heard them call themselves! :D

    But I do understand the allure of a younger FA team for some passengers, though it's not something that would work for me for a few reasons.
     
  8. Wandering Aramean
    Original Member

    Wandering Aramean Gold Member

    Messages:
    28,214
    Likes Received:
    61,742
    Status Points:
    20,020
    I care much less about how old the FA is than about the service they provide. My hope is that the ones who don't really want to be working but who are going through the motions anyways will be the ones who take the buy-out as it is better than nothing.
     
  9. Photonerd71

    Photonerd71 Silver Member

    Messages:
    762
    Likes Received:
    973
    Status Points:
    770
    Well call me a sexist pig, but all things being equal I'd much rather have an attractive FA to look at while stuck in a metal tube a 35k feet for hours on end. :)
     
    LETTERBOY likes this.
  10. Mike Reed

    Mike Reed Gold Member

    Messages:
    2,414
    Likes Received:
    3,574
    Status Points:
    2,025
    Sexist? You didn't say male or female, so that's not sexist!
     
    LETTERBOY likes this.
  11. Photonerd71

    Photonerd71 Silver Member

    Messages:
    762
    Likes Received:
    973
    Status Points:
    770
    Good point. :)

    For the record I enjoy attractive female FA's. ;)

    (for the PC people out there it's a joke)
     
    LETTERBOY likes this.
  12. NYBanker
    Original Member

    NYBanker Gold Member

    Messages:
    32,725
    Likes Received:
    191,901
    Status Points:
    20,020
    There would be no amortization of this charge, or motivation to try to amortize it. It would be a one-time expense, typically called a restructuring charge. The goal is to rid the financials of the expense in a clean shot, not bleed it in over time.

    When an analyst values a company, they typical ignore these non-recurring expenses.

    That said, some companies have a funny habit of having non-recurring charges every year! ;)
     
  13. kansaskeith

    kansaskeith Gold Member

    Messages:
    2,486
    Likes Received:
    5,786
    Status Points:
    4,070
    _kurt, Mike Reed and Jett Rink like this.
  14. Jett Rink
    Original Member

    Jett Rink Silver Member

    Messages:
    1,223
    Likes Received:
    1,405
    Status Points:
    910
    kansaskeith likes this.
  15. FlyMe Marc

    FlyMe Marc Active Member

    Messages:
    8
    Likes Received:
    7
    Status Points:
    80
    When I was a stewardess my seniority was around 55ish on the list and I was a senior mama! I can only imagine having 54 years seniority, I have to give credit to those gals for those years of service. I think they will truly enjoy the buyout and usually with those buyouts they still get travel benefits for some time.

    (I only few for about 2 years, it was fun, had a blast, but knew I could not do it for ever...it is hard as crap, TRUST ME!)
     

Share This Page