scrubbedexpat091

Boeing to cut 12,000 jobs, mostly in/around Seattle area.

6,770 will be laid off involuntarily
5,520 workers have accepted buy out offers to voluntarily depart the company

Additional job cuts will also be coming to international Boeing locations.

Space & Defense Division is stable, so assume most if not all layoffs will occur on the commercial side.

From CBC News

caretaker

Space Force needs that X-37 patrol car.

zzrmark

...And PIA need a new crew (too soon?).

civilservant

It appears they prefer people who don't know how to pilot aircraft, or at least only know enough to pass the check ride.

audio

Or did he?

zzrmark

I'd hazard a guess that those that are being laid off by Boeing don't have that many hours between them flying commercial planes let alone A320's or the required paperwork to get that kind of job.

scrubbedexpat091

American Airlines is looking to cut more support staff and management.

Looks like AA is offering 2 options for voluntary leaves:

• 6 months at 1/3 pay and 250,000 frequent flyer miles plus 5 years of travel benefits (“pay priority” package) or
• 3 months at 1/3 pay, 21 months of health benefits, and 10 years of travel benefits (“Travel/Health priority” package)

Involuntary is 3 months severance, 1 year flight benefits.


https://viewfromthewing.com/american...support-staff/

https://www.cnn.com/2020/05/28/busin...uts/index.html


American and others are also contingency planning in the event service providers go belly up. (things like ramp handling, customer service, fueling, catering etc)

scrubbedexpat091

Talk about a short flight. I had no idea Fedex flew a Tijuana to San Diego flight.

https://flightaware.com/live/flight/...008Z/MMTJ/KSAN

scrubbedexpat091

United is will cut some executives effective October 1 once CARES ACT requirements expire.

Scott Kirby who took the reigns as CEO last week, says 0% chance they will file bankruptcy.

"“Zero percent, no chance,” Kirby said. “It’s worse for shareholders. It’s worse for creditors. It’s worse for employees. It’s worse for every constituent that we have.”

United expects July schedule to be down only 75% vs the 90% it currently is.

87% fewer passengers went through TSA check points Thursday vs same day last year.

https://www.cnbc.com/2020/05/29/unit...re-it-was.html

United also plans to cut 30% of its management and support staff in the coming months.

United has long been top heavy in management vs other airlines, so good time to thin management a bit.

They are also asking for employees to depart voluntarily.

zzrmark

Does he just mean that he will not file for Chapter 11 or Ch.13 or does his crystal ball extend to Ch.7 as well?

Pulaski

T'other way around - Ch 7 is the nuclear option - shut down followed by a fire sale. It sounds like he is saying no Ch11 either - as that would pretty much wipe out the shareholders as it would almost certainly lead to the conversion of debt into equity, thereby diluting the shareholders interest to a very large degree.

So long as there isn't a lark of cash neither bankruptcy route would apply, but that will require income to be increased and or cash outflows decreased until income equals or exceeds outflows, and I can only assume that the CEO has a plan to make that happen. We already know about lay-offs and the retiring of some aircraft will help, but the question is can the airline return to serving a significant number of passengers any time soon, or can further aircraft and their finance/ lease costs, be shed farily painlessly if customer numbers don't recover quickly?

The other route would be to increase availble funds, either by loans or selling more shares, but either would only provide interim relief until income and expenditure are berought back into equilibrium.

scrubbedexpat091

Scott Kirby is good at what he does, he is a smart man, I have no doubts if anyone can keep United from bankruptcy he can, there is a reason United poached him from American.

United is top heavy management wise so I would expect more management cuts in the coming months on top of the 13 VP positions cut, United has long been known to be heavy on the management compared to its peers.

zzrmark

My understanding were that Ch11 and Ch13 give a company a way forward and, thus, a CEO has the possibility of chasing either whereas Ch7 means curtains for the company and by the time it comes round it's happening whether the CEO likes it or not?

Pulaski

Yeah, pretty much. .... Ch7 often means curtains, though not recently for Sears, where the residual assets, including remainng operating stores, to Eddie Lampert, the only bidder in the auction sale .... who was the existing owner of Sears who "managed Sears into bankruptcy", and is now going to do exactly the same thing again, sucking cash out Sears until it goes bankrupt, again!

markonline1

I gotta say, looking at my LinkedIn page is pretty tough at the moment. It’s just post after post of people that have had to leave their jobs at Heathrow, many of who are friends of mine that have been there for years. This virus really has been a bloodbath when it comes to aviation, and all so quickly too.