A question from an ASA furloughed pilot
 

So I've got a lot of time on my hands while on furlough. I decided to crunch some numbers when it comes to ASA's summer flying in relation to the decision to furlough last Feb. I realize that the summer flying wasn't known when the decision to furlough was made, but wanted to try and figure out financially what the furlough was going to cost.

I realize there are some numbers that I just don't know. I took very conservative numbers and tried to figure out how much the decision to cut costs by furloughing is going to end up costing them this summer. I figured about 1600 pilots with an average hourly rate of about $55 crediting 15 hours over guarantee a month. I think these numbers are a little conservative. I decided to not try to add per diem or any other contractual pay. The numbers above come out to 1.32 million per month. For June-Aug that is 3.96 million.

If the 80 furloughs were there, I used $38 as a conservative hourly rate because it's second year 700 FO. All 80 would still be on reserve, but possibly over guarantee so I used 85 hours of credit. Again I left per diem and contractual pay out. That number is $258,400 a month or $775,200 for the summer. I realize there are training costs, insurance, etc. that would need to be factored, but that would be a wild guess for me. As far as the numbers I'm using if ASA had not furloughed and kept us on for 12 more months to see what happens with the 20 200s, and remember my numbers are 85 hours of credit for the FOs it would have cost them 3.1 million. That number is still less than what they are going to pay June-Aug. because they furloughed.

I realize that the extra money made by ASA crews this summer is going to be a great help to them and their families. I am happy for all of you for that. However, I do wish that I was still at work as well as the other furloughees. I would also like to stress that this was meant to be a look at ASA's effectiveness in cutting costs. I welcome all of your responses and any input you may have.

Fly Safe,

hemaybedid

Nice post.

Simple numbers show the inadequate staffing for the summer. Roughly 10% more flying, 10 more airplanes, at least 80 less pilots (attrition) might make for a rough summer operationally speaking.

Fact is, could they have kept us around? Yes. Did they want to with the current projections? No.

All this is still water under the bridge, but more importantly that if/when there are plans for any of the airplanes and/or and increase in block hours for the fall/winter, they need to start owning up and bringing at least some back on property.

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It is also my understanding that when ASA continued to hire as late as the fall of 2007 they were still counting on more attrition that did not materialize and thus were almost immediatly over staffed even before the majority of the cuts took place in terms of block hours.

I also believe that the training costs for bringing back the furloughs will be extrememly expensive.

There is also the fact they may not want to put the furloughs through another round of furloughs in the fall after they are only back for a couple months. They may be needing to pay a little extra in terms of crew costs to simply avoid putting someone through a second furlough.

In terms of current staffing there are lines with 90 hours all the way to bunch of lines made at 75 hours only.

It looks like the current staffing is able to handle the increase in hours so far.........

I would love the get a few furloughs back though for sure I dont like hearing about people being extended and what not.

To me it makes more sense to have a few more folks getting paid the guarantee on reserve to cover some flights than paying a 4th year FO time and a half for an extra round trip, that cost adds up.

It would be very interesting to see the "actual metrics" used to give the go-ahead to furlough, and what those numbers look like now considering what they know now about the next few months, and possibly beyond. Is it at least moving in a positive direction or is it otherwise? I realize there is no crystal ball as to the future but I do wonder what priority is given to us behind closed doors on the management side...

BTW, anyone got a guess as to what the "ballpark figure" for re-training would be per pilot? Always wondered about that one...

A logical strategy to reduce cost in a market experiencing reduced demand is to cut workforce. I'm no businessman, but this is also not rocket science.

I really do feel for you guys on furlough. I got a nice surprise when I checked e-trip this morning. They took away my day off next Sunday and moved it to Monday. Don't get me wrong, I'm not whining, I'm very happy to have a job. If they do furlough again in the fall I will definitely be included. I just want you guys to know that we keep getting constant reminders that you aren't here with us right now.

Thanks for all the replies. I think what got me thinking about the furloughs and if they were effective in cutting cost was the thread about the SKW Inc. earnings call. When I read that they referenced the furloughs as a cost cutting measure was about the same time I got the email about the summer flying and bringing back everyone on leave and building the lines over guarantee. The fact that they referenced the furloughes at that time when they already knew what the summer had in store felt like a slap to the face. I realize they didn't know what the summer would look like in Feb., but if they're not saving money from the furlough they should own up to it. I guess we'll have to wait for the 2nd quarter earnings call, but I'm not gonna keep my fingers crossed that they'll own up to it then. Probably just say that the furloughs saved them money again.

BH told me, when I e-mailed him about the summer flying and us furloughed guys, that ASA has been looking into bring us back each month. The problem is just that Delta has told ASA there WILL BE A SIGNIFICANT reduction to our flying come September. He said that the summer flying is only for 60 days and ASA doesn't want to put us through another furlough come Sept. He did admit that ASA doesn't know what Delta means be significant and they are waiting to find out. To me that makes enough sense to hold off on recall because I don't want to go to ATL just to leave again in 30 days. He also did tell me that he is working on some extra flying out there and after reading the 1st quarter report they did mention that there is a rather large market for 200s in the United flying that Skywest INC. is trying to secure. If that goes to Skywest or ASA I don't know. (if Skywest Inc. gets it)