American to Shrink Regional Carrier
03-29-2014 | 03:09 PM
#22
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From: Citation XLS
American Airlines Group Inc. said it would sharply shrink its regional carrier American Eagle Airlines after its pilots voted down a contract proposal.
About 92% of American Eagle's 2,700 pilots voted, with 70% opposing the 10-year contract proposal, which would have frozen their pay scales until 2018, eliminated profit-sharing and increased health-care costs. In return, American Airlines would have put the Eagle pilots on firmer paths to jobs at American Airlines—which offers the chance to fly bigger jets for more money—and would have committed at least 170 aircraft to the Eagle unit.
Instead, after the contract rejection, American Airlines said it would contract other carriers to fly new regional jets it has on order and begin retiring some of the smaller, less efficient aircraft American Eagle currently flies. American has said it is considering reducing Eagle's fleet of 225 aircraft by more than 100 by retiring or moving those planes to other regional carriers, said Bill Sprague, head of the Eagle chapter at the Air Line Pilots Association. When those changes will occur is unclear, he said.
Pedro Fabregas, American Eagle's president, said in a letter to employees on Friday that he was disappointed with the vote, "but now is the time for us to collectively accept our pilots' decision and move forward." He said that American Eagle won't go away as an airline but that it will "need to make appropriate changes to our business to…ensure our costs are in line with our reduced fleet."
Mr. Sprague told reporters that the Eagle pilots generally couldn't accept such a long contract that locked in pay scales that "are clearly unacceptable." He said Eagle pilots haven't seen meaningful contract gains since 2004 and that new pilots begin at less than $23,000 a year. Keeping those compensation levels would threaten Eagle's ability to attract new pilots, particularly amid an increasing shortage of passenger-airline pilots in the U.S.
He said that as Eagle shrinks, its pilots should be able to find work at American Airlines or discount airlines that are growing, such as JetBlue Airways Corp. or Spirit Airlines Inc.
Eagle pilots voted on the contract proposal over the past three weeks. Voting concluded on Friday morning. American Airlines plans to rename its Eagle unit Envoy later this year, as it keeps the Eagle brand for its regional flying, which will increasingly be done by other carriers.
About 92% of American Eagle's 2,700 pilots voted, with 70% opposing the 10-year contract proposal, which would have frozen their pay scales until 2018, eliminated profit-sharing and increased health-care costs. In return, American Airlines would have put the Eagle pilots on firmer paths to jobs at American Airlines—which offers the chance to fly bigger jets for more money—and would have committed at least 170 aircraft to the Eagle unit.
Instead, after the contract rejection, American Airlines said it would contract other carriers to fly new regional jets it has on order and begin retiring some of the smaller, less efficient aircraft American Eagle currently flies. American has said it is considering reducing Eagle's fleet of 225 aircraft by more than 100 by retiring or moving those planes to other regional carriers, said Bill Sprague, head of the Eagle chapter at the Air Line Pilots Association. When those changes will occur is unclear, he said.
Pedro Fabregas, American Eagle's president, said in a letter to employees on Friday that he was disappointed with the vote, "but now is the time for us to collectively accept our pilots' decision and move forward." He said that American Eagle won't go away as an airline but that it will "need to make appropriate changes to our business to…ensure our costs are in line with our reduced fleet."
Mr. Sprague told reporters that the Eagle pilots generally couldn't accept such a long contract that locked in pay scales that "are clearly unacceptable." He said Eagle pilots haven't seen meaningful contract gains since 2004 and that new pilots begin at less than $23,000 a year. Keeping those compensation levels would threaten Eagle's ability to attract new pilots, particularly amid an increasing shortage of passenger-airline pilots in the U.S.
He said that as Eagle shrinks, its pilots should be able to find work at American Airlines or discount airlines that are growing, such as JetBlue Airways Corp. or Spirit Airlines Inc.
Eagle pilots voted on the contract proposal over the past three weeks. Voting concluded on Friday morning. American Airlines plans to rename its Eagle unit Envoy later this year, as it keeps the Eagle brand for its regional flying, which will increasingly be done by other carriers.
03-29-2014 | 03:39 PM
#23
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Remember to read your contract.
We have about 2100 pilots that fall within the furlough protection clause of our contract. The shrinking will come from the top as long as the flow through continues. No need to jump ship to low paying regional. I dont see them furloughing as we continue to loose a minimum of 20 pilots a month of the top. If they need less pilots at AE they will stop the metering to AA and metering changes to 50% of the AA newhire class.
We have about 2100 pilots that fall within the furlough protection clause of our contract. The shrinking will come from the top as long as the flow through continues. No need to jump ship to low paying regional. I dont see them furloughing as we continue to loose a minimum of 20 pilots a month of the top. If they need less pilots at AE they will stop the metering to AA and metering changes to 50% of the AA newhire class.
You are correct that the flow will continue at a minimum of 20 a month until the 824 are gone then the rest are I believe at 25 per month. So you are correct the shrinkage will be fromthe top except those that bail for other jobs.
03-29-2014 | 03:52 PM
#24
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From: forever fo
They will furlough or send home those in class no, about 100-150 pilots, why, to scare the rest of the pilots. It is business dont take it personal that is how AMR/AAG does work.
You are correct that the flow will continue at a minimum of 20 a month until the 824 are gone then the rest are I believe at 25 per month. So you are correct the shrinkage will be fromthe top except those that bail for other jobs.
You are correct that the flow will continue at a minimum of 20 a month until the 824 are gone then the rest are I believe at 25 per month. So you are correct the shrinkage will be fromthe top except those that bail for other jobs.
03-29-2014 | 04:43 PM
#26
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Oh please. Simply another tactic by management. They contacted the WSJ and told them the sky is falling for AE to get all the pilots in a frenzy. Then they'll go back to the union and say "OK, this is the best we can do" and they'll up the ante slightly. This whole process is like trying to buy a freaking used car. Stay strong Eagle pilots!
03-29-2014 | 04:53 PM
#27
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Oh please. Simply another tactic by management. They contacted the WSJ and told them the sky is falling for AE to get all the pilots in a frenzy. Then they'll go back to the union and say "OK, this is the best we can do" and they'll up the ante slightly. This whole process is like trying to buy a freaking used car. Stay strong Eagle pilots!
03-29-2014 | 04:58 PM
#28
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Oh please. Simply another tactic by management. They contacted the WSJ and told them the sky is falling for AE to get all the pilots in a frenzy. Then they'll go back to the union and say "OK, this is the best we can do" and they'll up the ante slightly. This whole process is like trying to buy a freaking used car. Stay strong Eagle pilots!
They will indeed anounce someone else getting the airplanes. They are probably trying to figure out what to do with those 60 already ordered airplanes.
For me, they can keep them.
03-29-2014 | 05:23 PM
#30
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From: 767er Captain
I'm sure you meant well however.......... Why would you want an FO making 40 or 50k to go to another regional and make half of that already pathetic wage? Management counts on this.
I for one would rather quit this ridiculous industry that take a massive pay cut for the same job elsewhere or even at my present employer. The legacies are making huge profits and executives are raking in massive bonuses. Why should any of us do the job for less? The cost of training is prohibitive for most would be pilots. Even the ones with access to the cash still have to wait until they get 1500 hours just to work for $20,000 dollars a year. I would say the ball is in our court as much as it ever has been or maybe ever will be. Concessions make no sense.
I for one would rather quit this ridiculous industry that take a massive pay cut for the same job elsewhere or even at my present employer. The legacies are making huge profits and executives are raking in massive bonuses. Why should any of us do the job for less? The cost of training is prohibitive for most would be pilots. Even the ones with access to the cash still have to wait until they get 1500 hours just to work for $20,000 dollars a year. I would say the ball is in our court as much as it ever has been or maybe ever will be. Concessions make no sense.
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