Alaska Air plans job cuts, fare hikes
07-24-2008, 09:31 AM
#1
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Alaska Air plans job cuts, fare hikes
What a difference two months makes. I don't recall any talk of job cuts at the shareholders meeting in May. At least there is no mention of pilot or FA cuts?
From Seattle Times:
Alaska Airlines will cut management staff by 5 percent and reduce passenger capacity as much as 10 percent to "help us survive what is shaping up to be the most difficult period in commercial aviation history," Alaska Air Group chairman and CEO Bill Ayer said today.
The Seattle-based parent of Alaska Airlines and Horizon Airlines also will raise fares and other fees, it said.
The moves were announced as Alaska reported that excluding special items, it had a second-quarter net loss of $14.1 million, or $0.39 per share, compared to 2007 net income of $47.2 million, or $1.16 per share.
Including special items such as a profit on its fuel-hedging contracts, Alaska had quarterly net income $63.1 million, or $1.74 per diluted share, compared to net income of $46.1 million, or $1.13 per diluted share, in the second quarter of 2007.
Alaska Air's regional carrier, Horizon, reduced its management workforce by 13 percent earlier this year and cut some flights. It will further reduce operational and management positions and make more capacity cuts, Alaska Air said in a statement.
The company said details of the planned reductions will be announced by Sept. 1.
"Skyrocketing fuel prices have eclipsed the improvements we've worked so hard to achieve in every area of our business," said Ayer.
Alaska Airlines will cut management staff by 5 percent and reduce passenger capacity as much as 10 percent to "help us survive what is shaping up to be the most difficult period in commercial aviation history," Alaska Air Group chairman and CEO Bill Ayer said today.
The Seattle-based parent of Alaska Airlines and Horizon Airlines also will raise fares and other fees, it said.
The moves were announced as Alaska reported that excluding special items, it had a second-quarter net loss of $14.1 million, or $0.39 per share, compared to 2007 net income of $47.2 million, or $1.16 per share.
Including special items such as a profit on its fuel-hedging contracts, Alaska had quarterly net income $63.1 million, or $1.74 per diluted share, compared to net income of $46.1 million, or $1.13 per diluted share, in the second quarter of 2007.
Alaska Air's regional carrier, Horizon, reduced its management workforce by 13 percent earlier this year and cut some flights. It will further reduce operational and management positions and make more capacity cuts, Alaska Air said in a statement.
The company said details of the planned reductions will be announced by Sept. 1.
"Skyrocketing fuel prices have eclipsed the improvements we've worked so hard to achieve in every area of our business," said Ayer.
07-24-2008, 09:41 AM
#2
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Position: 737 FO
Posts: 11
be prepared
One would expect some furloughs based on MD-80 retirement and reduced schedule by 5% this year and possibly 10% next year. One can only hope the over 60 crowd goes soon to prevent more angst than necessary.
07-24-2008, 10:48 AM
#3
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Considering how short we are of reserve pilots on the 737, I doubt there will be very many furloughs. Also, Horizon is talking about early retirement buyouts. Maybe the same thing can happen at Alaska to thin the heard.
07-24-2008, 10:56 AM
#4
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Originally Posted by mike734
Considering how short we are of reserve pilots on the 737, I doubt there will be very many furloughs. Also, Horizon is talking about early retirement buyouts. Maybe the same thing can happen at Alaska to thin the heard.
07-24-2008, 02:41 PM
#5
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Joined APC: Jul 2008
Position: 737 f/o
Posts: 299
reading the fine print.......
Ok, so this is my first post on here but the topic forced me to sign up and spout off. The following is just some frustration coming out so pleae feel free to tell me I'm screwed up or give me an amen whatever you feel like:
1. Management says: We're reducing capacity by 5% in the 4th quarter of 2008.
Really means: We were already reducing the capacity from MD-80 retirement, this has little or nothing to do with Oil prices (other than being a few months early)
2. Management says: Well reduce the airline by 5-10% in 2009 and capacity "on the higher side of that same range"
Really means: No way in hell are they going to reduce by 5-10% capacity next year....are they going to sell our 400s? NO = Bluff
3. Management says: We lost 14 Million in 2nd Q
Really means: We actually did quite well revenue and operating expense wise but we can advertise it as a loss, gain sympathy from the public about oil prices and it won't make charging more for 2nd bags etc seem so bad.
Our cash position has improved from 800ish million to 1 Billion from the beginning of the year. "Net income" is a number that means absolutely nothing to anybody that knows anything about Finance and company health. It's all about cash flow. When we can afford to spend 250 million on a stock buy-back and replace that cash whithin 2 quarters in a down economy and crappy industry, we're doing just fine. Do not, I say again, do not fall for management's attempt to make us think we are in such dire times. They are smart and using the press about oil prices to their benefit. If we furlough anybody, it will only be an attempt to get a contract negotiated at discount, NOT because we can't afford to keep 40 more (rumored number) pilots on payroll.
Again, this all just opinion and I apologize for spouting, but had to get this off my chest. Hang in there, we're healthy and we deserve more money from this company for the job we do!!!!!!!!!
1. Management says: We're reducing capacity by 5% in the 4th quarter of 2008.
Really means: We were already reducing the capacity from MD-80 retirement, this has little or nothing to do with Oil prices (other than being a few months early)
2. Management says: Well reduce the airline by 5-10% in 2009 and capacity "on the higher side of that same range"
Really means: No way in hell are they going to reduce by 5-10% capacity next year....are they going to sell our 400s? NO = Bluff
3. Management says: We lost 14 Million in 2nd Q
Really means: We actually did quite well revenue and operating expense wise but we can advertise it as a loss, gain sympathy from the public about oil prices and it won't make charging more for 2nd bags etc seem so bad.
Our cash position has improved from 800ish million to 1 Billion from the beginning of the year. "Net income" is a number that means absolutely nothing to anybody that knows anything about Finance and company health. It's all about cash flow. When we can afford to spend 250 million on a stock buy-back and replace that cash whithin 2 quarters in a down economy and crappy industry, we're doing just fine. Do not, I say again, do not fall for management's attempt to make us think we are in such dire times. They are smart and using the press about oil prices to their benefit. If we furlough anybody, it will only be an attempt to get a contract negotiated at discount, NOT because we can't afford to keep 40 more (rumored number) pilots on payroll.
Again, this all just opinion and I apologize for spouting, but had to get this off my chest. Hang in there, we're healthy and we deserve more money from this company for the job we do!!!!!!!!!
07-24-2008, 03:19 PM
#6
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Joined APC: Mar 2006
Position: 737 FO
Posts: 11
I understood that the cash position improved due to leveraging of assets.... 737-800's and Q400's that had previously been owned by AS and now used as collateral.... raising cash thru more debt load.... same thing other carriers are doing including SWA.
07-24-2008, 03:25 PM
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Welcome, Pelican. It's always good to see more folks from AS on the boards. I agree with your post that this whole thing is a ploy by Ayer and the boys. How can he say everything is just hunky dory on May 20, and now practically making the case that the airline is dying a slow death? As a shareholder and frequent passenger, I am offended by all this double talk. And if they think I am going to pay to check luggage in, then the only one who benefits is Fred Smith. [Actually, I'm shipping a big box home with UPS, but same thing].
Don't give an inch in negotiations. They have taken away more than enough. Good luck!
Don't give an inch in negotiations. They have taken away more than enough. Good luck!
07-24-2008, 03:47 PM
#8
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Joined APC: Sep 2007
Position: F/O on the Eskimo
Posts: 75
Originally Posted by Pelican
Ok, so this is my first post on here but the topic forced me to sign up and spout off. The following is just some frustration coming out so pleae feel free to tell me I'm screwed up or give me an amen whatever you feel like:
07-24-2008, 08:53 PM
#9
New Hire
Joined APC: Apr 2008
Posts: 3
Originally Posted by Pelican
Ok, so this is my first post on here but the topic forced me to sign up and spout off. The following is just some frustration coming out so pleae feel free to tell me I'm screwed up or give me an amen whatever you feel like:
1. Management says: We're reducing capacity by 5% in the 4th quarter of 2008.
Really means: We were already reducing the capacity from MD-80 retirement, this has little or nothing to do with Oil prices (other than being a few months early)
2. Management says: Well reduce the airline by 5-10% in 2009 and capacity "on the higher side of that same range"
Really means: No way in hell are they going to reduce by 5-10% capacity next year....are they going to sell our 400s? NO = Bluff
3. Management says: We lost 14 Million in 2nd Q
Really means: We actually did quite well revenue and operating expense wise but we can advertise it as a loss, gain sympathy from the public about oil prices and it won't make charging more for 2nd bags etc seem so bad.
Our cash position has improved from 800ish million to 1 Billion from the beginning of the year. "Net income" is a number that means absolutely nothing to anybody that knows anything about Finance and company health. It's all about cash flow. When we can afford to spend 250 million on a stock buy-back and replace that cash whithin 2 quarters in a down economy and crappy industry, we're doing just fine. Do not, I say again, do not fall for management's attempt to make us think we are in such dire times. They are smart and using the press about oil prices to their benefit. If we furlough anybody, it will only be an attempt to get a contract negotiated at discount, NOT because we can't afford to keep 40 more (rumored number) pilots on payroll.
Again, this all just opinion and I apologize for spouting, but had to get this off my chest. Hang in there, we're healthy and we deserve more money from this company for the job we do!!!!!!!!!
1. Management says: We're reducing capacity by 5% in the 4th quarter of 2008.
Really means: We were already reducing the capacity from MD-80 retirement, this has little or nothing to do with Oil prices (other than being a few months early)
2. Management says: Well reduce the airline by 5-10% in 2009 and capacity "on the higher side of that same range"
Really means: No way in hell are they going to reduce by 5-10% capacity next year....are they going to sell our 400s? NO = Bluff
3. Management says: We lost 14 Million in 2nd Q
Really means: We actually did quite well revenue and operating expense wise but we can advertise it as a loss, gain sympathy from the public about oil prices and it won't make charging more for 2nd bags etc seem so bad.
Our cash position has improved from 800ish million to 1 Billion from the beginning of the year. "Net income" is a number that means absolutely nothing to anybody that knows anything about Finance and company health. It's all about cash flow. When we can afford to spend 250 million on a stock buy-back and replace that cash whithin 2 quarters in a down economy and crappy industry, we're doing just fine. Do not, I say again, do not fall for management's attempt to make us think we are in such dire times. They are smart and using the press about oil prices to their benefit. If we furlough anybody, it will only be an attempt to get a contract negotiated at discount, NOT because we can't afford to keep 40 more (rumored number) pilots on payroll.
Again, this all just opinion and I apologize for spouting, but had to get this off my chest. Hang in there, we're healthy and we deserve more money from this company for the job we do!!!!!!!!!
07-24-2008, 10:53 PM
#10
Gets Weekends Off
Joined APC: May 2006
Position: 737 FO
Posts: 466
Where does management like this come from? The Wharton School of Misfits? SWA's Kelly said today in regards to the possibility of losing money in the 4th quarter...I will paraphrase...."Who cares. Herb is one the best CEOs in US history and he lost money over a few quarters. Who cares." I luv that! Our guy Billy Boy turns a $60+ million profit into a $14 million loss with BS write-downs and fuzzy accounting and then cries a river about our impending doom unless we furlough. What a ..... idiot. What did they do with that $200 million profit from the last two years???? What did they do with the $100 million the pilots gave them? What about the $1 billion in CASH in the bank? What about the mileage program? Do they (Ford and Harrison) think we are that stupid? I am ready to burn the place down. I don't care about my job anymore. Its not worth the humiliation of working for such a clown-show anymore. Seriously, Alaska, AirTran, United, USAir West and East, how can we hold our heads while working for the most incompetent, greedy and unethical managers in the history of aviation? To come out like Billy Boy Ayer, Tildon and Saretsky and threaten furloughs for contract concessions is pure BS. I hope if causes the opposite. I and many more are ready to see the place burn down.
Last edited by de727ups; 07-25-2008 at 06:23 AM. Reason: language
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