Special Eaglewire 09/12/2012
 

Special Eaglewire

WEDNESDAY, SEPT. 12
2012
A Message from President and CEO Dan Garton
Dear Eagle and Executive Colleagues:
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Today, American Airlines announced the addition of two new regional carriers to its network – SkyWest Airlines and ExpressJet Airlines. These companies were awarded contracts as the successful bidders in the RFP process American announced and initiated earlier in the year. American has awarded flying for a total of 23 50-seat regional jets to be operated out of Los Angeles and Dallas/Fort Worth. This development is consistent with American’s plan to diversify its regional feed as part of its business plan to emerge from restructuring as a much stronger airline. Additionally, for the first time, this flying will be done by non-affiliate regional partners under the stronger American Eagle brand and livery – not the AmericanConnection brand and livery.
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For us, this is again, more change. And change is never easy.
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As a result of the awarding of this bid, we will no longer provide American with 44-seat regional feed out of Los Angeles (LAX). SkyWest will now do this regional flying for American at LAX, beginning Nov. 15. This will unfortunately mean the closure of the LAX pilot and flight attendant domiciles, as well as a reduction in the number of M&E, stores and management positions at LAX. However, American has asked us to continue to provide regional feed with the CRJ-700 out of LAX, with Eagle’s Chicago crews. We will also continue to provide ground handling services for all of American’s regional operations at LAX, including ground handling of SkyWest. We do not anticipate any furloughs as a result of the downsizing at LAX, as there are vacancies throughout the rest of the system for employees in all workgroups.
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As part of the bid, ExpressJet was also awarded a small portion of 50-seat flying out of Dallas/Fort Worth (DFW). This flying will begin with the Feb. 14, 2013 schedule change. As is the case at LAX, American has asked us to continue providing ground handling services for all of its regional operations at DFW.* We don’t know how other aspects of the ExpressJet flying will affect our operations, but some impact to our employees and our schedule should be expected. However, we do not anticipate any furloughs, and will offer positions throughout our system to any employee who may be impacted.
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And, as previously announced, American has negotiated the early return of the ATRs. This fleet is old, and there are very high maintenance and leasing costs associated with these aircraft. This action will result in the closure of the Miami (MIA) Executive pilot and flight attendant domiciles on Nov. 15. However, all Executive pilots and flight attendants will be able to use their seniority to bid for positions at American Eagle – including positions at MIA. We do not foresee any furloughs as a result of this displacement. We do anticipate that American Eagle will be providing more regional jet flying out of MIA to replace some of the discontinued ATR flying. Additionally, all MIA and Key West Executive employees will become American Eagle employees as of Jan. 1, 2013.
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So, why is all of this change happening at once? Judge Lane’s decision to allow American to reject its pilots’ contract means that American will be relieved from certain scope provisions that only allowed American Eagle to provide regional feed. American sent out an RFP earlier in the year in anticipation of the return of the ATRs, but couldn’t act on that RFP until now. Additionally, over the last few months American has indicated that it is going through a rebranding exercise. As a result of this, American will soon discontinue the use of the AmericanConnection brand and will use the American Eagle brand for all of its regional flying. Although we all share a pride with the American Eagle name, the name and the brand belong to AMR, and it is not surprising that American would want to have a consistent brand for all of its regional flying – just as all other mainlines have one brand for their regional partners. So, for now, we will continue to be American Eagle Airlines, but over the coming months we will be looking into creating a new name and identity for our company and our people. I’ll let you know the progress of this rebranding effort as it continues to develop.
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I do not want to diminish the impact these changes may have on us, but with a successful restructuring, we can have a bright future. We will still continue to be the main provider of regional feed for American in Dallas/Fort Worth, Miami, Chicago and New York. Later today, we will begin the process of recalling all of our furloughed pilots, and we anticipate hiring pilots soon. We currently are hiring flight attendants, mechanics and hundreds of ground employees needed to staff the new ground handling contracts.
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Now, more than ever, it is critically important that we complete our restructuring.* This includes achieving consensual, ratified agreements with our labor unions in order to be in a position to participate in any large regional jet flying that American will be seeking in the future. Likewise, it is more important than ever that we maintain our performance and prove every day that we are a worthy partner for American and other mainline carriers.
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This is an extraordinary company with extraordinary people. There is no doubt in my mind that even though these changes are challenging, we will be in a better position to win more business from American in the future.
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Thank you for your continued hard work.* Together we will redefine our company and continue to build a successful future by incorporating the values and culture of our proud past.
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Regards,
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Dan

Well... Here we go.

Wow , sorry to hear guys , isn't lax very senior ?

Divide and conquer is the name of the game in this industry. I don't take pleasure in saying that. Well, on the verge of this apocalyptic "pilot shortage" several pilot groups are still getting used and abused like replaceable widgets. :mad:

The only thing consistent in this industry is change and this is a big one. Sad day.

Amazing that you can establish a brand over decades and overnight it becomes something entirely worse. This is just the begining im sure. Amr may own the brand and they can call their feeders whatever they want but I would never want to tell anyone i worked for "american eagle" because i dont..

http://cdnet.myxer.com/tn/c/566700/b...20081219200946

Sorry to hear the news. Welcome to the suck that is regional competition.

AMR has made their intention clear about returning to the whipsaw model of multiple feeders for well over a year now, so this should be of no surprise. This is only the first move of several. Interesting how the positive is spun about future hiring for Eagle is put in this communique tied along with the need for a consensual agreement. It implies Eagle pilots need only do two things for a bright future. 1. trust managements statements and 2. ratify a consensual agreement. New airplanes will be coming to the former "American Eagle" (soon to be renamed) and thus a training bubble is needed to maintain the operation. It will take several years to bring aboard the hundreds of larger RJ's AMR wants and overall, those will be spread about several carriers to ensure a balanced whipsaw model.

To make a pie, you must first support it with the crust. Today, AMR announced some of the crust and likely more crust to be included in the near future before the pie filling (large RJ's) is purchased.

So it has begun :(

Yup, AMR seems to be saying to Eagle pilots clearly in this Eaglewire, "sign our deal or be outsourced". Now, whether it's a bluff or not, they will have to decide.

Will AE pilots stand firm and not capitulate to a bad deal and assume risk like AA pilots did, or will they roll over and expose their bellies hoping for a rub ?

I think you know the answer to that? Ah let's see, the word would be.... spineless. Too many folks run around in fear around here. Tail between the legs running now.

No comment. :cool:

From another thread in the regional section. Still people hoping for AE pilots to suffer so they can benefit.

Quote:

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Originally Posted by spudskier (Post 1259563)

Hope it's true! That's gonna go ultra senior

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Quote:

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Originally Posted by SiShane (Post 1259581)

Is there any odds of a new hire class being started to fill the new dfw base?

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Eaglefly, what is the overall sentiment about this on the AA side? Or do they not seem to care as this is just one small problem of most certainly much worse to come?

Special Eaglewire 09/12/2012
 

at least our name is being shared with SKW and XJT, and not gojets.....yet

I'm just having a hard time figuring out how there won't be furloughs..with LAX and the MIA exec side closing, we surely aren't THAT understaffed..plus I'm sure this is just the tip of the iceberg as far as our flying being "diversified"

Outsourcing 23 50-seaters at AE ?

This is more of a message for AE pilots then AA. It is one reason AMR and the UCC needed some move on AA scope, i.e., to give them leverage to do when they need to at Eagle including pressure to force a pilots agreement.

The major outsourcing of our flying will take years to accomplish and the number and size of RJ's along with code-sharing are more important, so this isn't the primary focus.

Just my .02, as always.

Happy with our company's success and "hoping" Eagle pilots suffer aren't one in the same and it's pretty simple minded to think otherwise.

Your name won't be "American Eagle" anymore, so get used to that. Just like UAL has multiple carriers as "United Express" soon everyone will have little "DBA" printing on the front by the nose, that's all.

Get used to sharing gates and facilities as well.

It's also referred to as "rationalization". You see, the future regional industry is doomed to a model whereby any success will have to be at others expense. Rats put in a cage to feed on each other and with that there isnt any long term survival unless you're willing to be the most ruthless rat (work the cheapest).

"And, as previously announced, American has negotiated the early return of the ATRs. This fleet is old, and there are very high maintenance and leasing costs associated with these aircraft. This action will result in the closure of the Miami (MIA) Executive pilot and flight attendant domiciles on Nov. 15. However, all Executive pilots and flight attendants will be able to use their seniority to bid for positions at American Eagle – including positions at MIA. We do not foresee any furloughs as a result of this displacement. We do anticipate that American Eagle will be providing more regional jet flying out of MIA to replace some of the discontinued ATR flying. Additionally, all MIA and Key West Executive employees will become American Eagle employees as of Jan. 1, 2013."

Do we have Key West Executive employees or was that supposed to be San Juan?

The same thing happened to ASA, now XJT, with losing aircraft and contacts to Pinnacle and GoJets. Nothing new. Don't hate the player, hate the game.

Which is also why I am baffled whenever I hear somebody say they plant to stick it out at their regional indefinitely. I'm at SkyWest, and am already looking for the next step. Our time will come, as it has for everybody else.

If any Eagle pilots loose their job, then I consider that suffering. Your companies success comes with a price. That, my friend, is not simple minded thought IMO.

I am just pointing out that there are people that are ready (and hoping) to benefit from this news.

Well, it IS more then just "loosing" your job. Damage in the form of stagnation can occur without anyone "loosing" their jobs.

of course people want to benefit, that's human nature. however, seeing or hoping for suffering is not. my argument was that in this case they are not related.

True. Job loss seamed to be the worst of the repercussions.

What IS the next step ?

If you're thinking legacy, it might be awhile. We may be contracting at the rate of retirements for quite a few years as more of our domestic ops goes to feed the regional airline large RJ kabuki dance.

Your legs may be very sore for a long time. Who knows, perhaps AA will start hiring off the street after they get through 1500 pilots still out there with recall rights and flow thru ?

Perhaps that $40/hour new-hire slot WILL become available in 5 years or so ?

ATR flys into Key West. That was my first turn when I was at Eagle.

K Marx said similar 150 years ago... welcome to capitalism.

If AA merges with US Airways, flow through will be like a wet dream. More like vapor.

Have yet to hear the analysts weigh in on this "big move" by AMR, but I'll bet some won't be impressed. Look for Boyd to be especially critical. Delta is being lauded for removing large numbers of 50-seaters and replacing them with 717's building up their mainline product and then this mouse fart in opposition occurs. Most have been very critical of AMR's stand alone plans and I don't see this bolstering any plan much.

i'm sorry to hear that eagle will be closing its domicile in lax. i know that will be terribly disruptive in people's lives. it sounds like no one is losing their jobs, but it is still going to create a lot of headaches and ongoing pain for people who have been based at home.

like others have said, we are all pawns in this chess game. our gain is your loss, and someday soon it will be our turn to have more loss than gain. believe me, we don't like getting things at the expense of others that had no say in the matter. but we won't have any say in the matter when it's our turn, either.

good luck to all displaced crews and ground personnel and their families.

I'm interviewing for a large cabin corporate gig today. I agree with what you've said above.

Very well said.

You seem to think this, I disagree. We are approved for CRJ 700s, and the 900 is easily added. We could get 50 700s fairly fast, and another 50 900s. That still leaves room for another 100 more of those larger RJs. I would expect some sort of announcement of those coming soon. Its why I think we are not furloughing, or else they are bracing for some kind of Exodus.

Senior to most of Eagle's aircraft. I'm not kidding.

You and I both know that isn't going to happen.

!IF! nothing else is announced for feed by March, this honestly is just a replacement for the CHQ flying. 15 CHQ planes, 23 Skywest, who cares. 125 MORE RJS will be coming.

We are losing pilots right now, with guys coming from the ATR operation, I am still moving up seniority numbers. Since the system wide list has not been updated since June I am not sure how much I am moving, but I should be moving backwards 100-200 numbers, but I have gone up about 30.

I do think AE will be getting some of the above, but will NOT be the primary feed provider, simply one of many. 100 CRJ's would take awhile at a max rate of 4/month. The training bubble alone would be 1500 pilots and were talking a couple of years. In the meantime, no need to shock the pilots with furloughs before a contract vote. I'm told AE is over staffed by 400 or so and this would seem to add another 250. Once PBS is implemented, then how may over staffed then ?

I may be wrong, so my advice is to short the stock again. ;)