Quote:
Originally Posted by Name User
I think this is good news but worry about the costs the corporation takes on and how it will impact its future. I estimate this will cost about $2b to pay just the retirees assuming 4,000 take it over three years. This is a large cost that won't allow the company to adequately compete against the ULCC's whom I fear will gain a substantial foothold after this. Spirit is by far my largest worry.
I guess what I'm saying is, I worry AA will become what US Airways was...a slowly dying carrier not able to compete due to overburdened costs.
I'm not trying to be negative but I think it's also important to take a bigger picture.
You think 4,000 will take the early retirement LOA???!!! I wish I shared your optimism when it comes to that, but I think too many guys/gals that age are in a panic to get every last dollar they can before retirement. I hope its a huge number but I would be thrilled with anything over 500....did you take into account the savings of not paying out sick time in lost production, or the savings of not paying these guys 80hr lines (avg) at top of pay scale through the end of their careers, lots of other stuff to consider so that $2B number of yours is very fluid I think. As always furloughing off the top is huge savings compared to doing it on the bottom...and yes during any recession or the beginning of economic recovery LCCs have always grown, this is nothing new and therefore somewhat preparable...but I really don't know anything, I am just a line pilot, no sarcasm, just my opinions.