Dear Eastern Employees,

As you know, the company has gone through an incredible reorganizational effort as we’ve worked to re-trench our operations and move toward profitability. We followed up our meetings in March with the return of N280EA in April, the cancellation of unprofitable customer contracts (Guyana, Puerto Rico) and projects (Amadeus, new hangar) in May, and are in the process of returning both N279EA and N278EA in the next two weeks. We have made some difficult decisions regarding staff levels, bringing our total headcount from 240 to 103……about the level that we expect to maintain for the foreseeable future. We continue to measure, monitor, and improve everything we can every day……..and truly hope that all of you are doing the same.

At the meeting in March we also discussed the fact that our shareholders have received several offers to buy or merge the airline and while none were imminent at the time, I promised to keep you informed to the best of my ability about the future of the company. After careful review by our board and several outside advisors, one opportunity stood out as the best option among many. As of 5:30PM today, we have signed definitive documents with Swift Air and I wanted you all to hear it from me first.

In the broadest sense, the deal will make us part of a 20 aircraft airline that will allow us to serve our customer base with exponentially increased economies of scale and flexibility, gives our shareholders the opportunity to participate in the rapid growth of a very profitable company,
and ensures the Eastern brand not only survives, but grows.

Swift is in the process of certifying to operate 800s, and it is contemplated that our aircraft and business will move over to them in late August or early September – once the transition is complete, all of Swift’s 800 fleet will be branded with the Eastern name and logo.

Clearly this decision impacts all of us, and between now and the end of August when the closing is expected to occur, I will keep you informed every step of the way. In the next few weeks Nick and I will be working closely with the Swift executive team to determine the infrastructure requirements of the newly combined company – at preliminary meetings this week, it became
clear that the combined entity will be fast-growing and will need more space, equipment, and talent.

This transitional planning effort will undoubtedly result in offers for some employees to join the new venture, and financial retention incentives for those who do not. I can assure you both executive teams will work diligently to ensure the best possible outcome for everyone, and will
communicate accurately and timely as decisions are made.

I realize this news may be disconcerting to many of you, but I hope you will join me in viewing this as a very positive development; it is simply the next exciting chapter of the Eastern Air Lines story.

I want to take this opportunity to thank all of you for everything you have done and will continue to do. You all have remained steadfast in the face of an enormous amount of difficult organizational change, and I ask you to stay the course – we have a great team, and we need to remain diligent, work efficiently, and fly safely………

All the best,

Jim
James R. Tolzien
Chief Executive Officer
Eastern Air Lines Group, Inc.

 

Make sure to keep those 36th street astronauts on check, swift air guy's.

 

I would make a bet that Swift might not be taking the people with the planes. I would guess you will be free to apply and start at the bottom. I do think Swift will be hiring a lot, where will they find people, well, that will difficult. Go read on the SWA forum how many they will hire in the next three years. I see them gobbling up as many 737 drivers as they can.

If Swift is serious, and it APPEARS they are, the package will have to come up is all, WAY UP. The EAL thing has potential but has to be addressed early on.

Now, taking any of EALs management team could be the killer of EAL/Swift.

Fingers crossed.

 

What I'm told is the eastern name will stay on those planes until contracts are redone via swift. Till then it will be a eastern operated by swift air type thing.

We have not been told anything about eastern pilot recruitment. We've been hiring a lot of xtra guys lately.

 

Who are the the guys at Swift that are running the operations DFO, CP ?

 

It will be interesting how this all plays out no matter what. Just between Xtra, Swift and Miami Air, there will be a big demand for crews and this means the packages will have to come up (no pun intended). Xtra is not that big, so it will get their attention before too long. And Miami Air is even smaller. Swift, getting 6-8 more aircraft, will mean a big need and are there enough out there?

Good times either way as 737 time/rating will eventually get you called by the Wonder Bread airline.

 

Conf call this afternoon confirmed. Pilots will get a guarantee interview, training pay while in training etc. Basically on the bottom of the list and newhire.
If I was any of them, I would walk right out and park the planes. No EAL management moving over and thats the only plus.

 

I agree. Give them your two weeks and leave. Why continue to fly if that's how you're thought of. Swift just wants cheap labor.

 

Then you might upset the Swift group. Mergers, or aquisitions, are never perfect as someone always get screwed. I feel for the Eastern folk but it's not Swifts fault. I would think that the EAL group would, at this point, be happy to have a job. You need to stay current and upgrade will be quick anyway. Again, LUV needs lots of people and being out on the street will put you at the back of the que. This is true for any of the majors. That is of course that's what you want.

Swift needs as many 737 drivers as they can get and I would think that that pool is very very shallow, and will be empty, shortly. Everyone is hiring right now and the regionals have even better packages with great travel bennies something none of the "supplementals" have at all. And there is also some with flows.

All the charter outfits are going to have increasing difficulty attracting, and more so, retaining crew. The majors do not like the pesky charter airlines so what's the best way to hurt them, steal their crews, pilot's and FAs!

Mr Hoover, you won a golden ticket to the Wonka factory no? Am I off base?

 

Yeah it's a hard pill to swallow when you feel your not being appreciated, but your right, if your goal is to move on to a major then that's what you have to do. Suck it up. Keep applying and telling yourself it'll be worth it. If you have no desire or ability to go that route then why bother staying there. As you said a regional pays better first year and has some benefits. Plus you get your resume out of the supplemental black hole. No one in HR and the majority of pilots have no idea who swift is. Or Xtra, Eastern? Wow that was a long time ago...
It's hard to get recognized with these on your resume. However, a regional has instant recognition and a known quantity. I'd put most supplemental guys up against any regional pilot or major for that matter as to who knows how to get the job done and who has done more wrt overall operations.
Cpt on my commute flight on Delta, I mean endeavor, was at Vision. Couldn't get called. Left for endeavor. Upgraded in a year and now has interview with WN. So I'd think if you believe it'll be a year or more till you get that golden ticket why not go to a regional? Better pay, some benefits, name recognition and networking.
FWIW I don't think I would have willingly gone to a regional from my position, but if I had to re apply to the company acquiring mine and start all over. I'd give it a lot of thought.