ADXMatt From United States of America, joined Jul 2006, 966 posts, RR: 1 Posted (7 years 2 months 4 days 1 hour ago) and read 8598 times:
Midwest Airlines seeks to cut pay of it's employees by 65%!
Are they on crack? Who would accept their paychecks getting cut 65%? I know some of you will say well you got a job or just quit. Well you will get what you pay for and ticket prices just need to go up to cover the higher fuel prices. Then let supply reduce to the new demand.
Just because expenses keep going up you can't keep taking from the employees. Our bills keep going up too.
It seeks pay cuts of up to 65%, says overhaul is needed to avert bankruptcy By TOM DAYKIN email@example.com Midwest Airlines plans to cut its fleet by nearly half, lay off hundreds of employees and negotiate pay cuts of up to 65% from union pilots and flight attendants to avoid a Chapter 11 bankruptcy filing, union officials said Wednesday. Photo/Jeffrey Phelps Passengers check in Wednesday at the Midwest Airlines ticket counter at Mitchell International Airport. Like other airlines, the company has been slammed by soaring fuel prices. Midwest Airlines passengers who have bought tickets for trips that later change as a result of the company's restructuring plan have several options, said spokesman Michael Brophy. If there's a schedule or aircraft change, passengers can take the trip if it still fits their plans. If...
F9Animal From United States of America, joined Dec 2004, 5320 posts, RR: 16
Reply 2, posted (7 years 2 months 4 days 1 hour ago) and read 8586 times:
It comes as no surprise here. Midwest is hurting, but who really is not hurting with these high oil prices. Paycuts are gonna happen with any airline right now. An FBO that I work for just cut our pay.... Why? Because of fuel. Demand for fuel at our FBO has dropped like crazy. I could have been angry about the cuts, but I also understand how bad it is right now.
I hope Midwest can avoid bankruptcy. But, if oil stays in the pattern it is in, many will join the bankruptcy band. The government needs to do something to help the airlines right now. They seem to do fine helping Amtrak and other forms of transportation.
N917ME From United States of America, joined Feb 2005, 730 posts, RR: 1
Reply 5, posted (7 years 2 months 3 days 23 hours ago) and read 8400 times:
Please do not turn this into a FL v YX thread. No one knows what would have happened if the takeover did happen with oil prices this high. So cut the bull.. And let's for once have a YX thread that doesn't include YX haters bringing FL into it. If you want to talk about FL, start a different thread!
ADXMatt From United States of America, joined Jul 2006, 966 posts, RR: 1
Reply 6, posted (7 years 2 months 3 days 23 hours ago) and read 8304 times:
I like YX.... They offer a nice product. I haven't flown them in a few years but always enjoyed them. (the full service 717's) I was never on the saver service MD80's
I think YX has serious issues and needs to re-think their business plan. They will not get their employees to accept a 65% pay cut. If they just impose it on them the quality will suffer big time as they try and replace attrition that will soon follow. The quality of their replacements will be sub par at that wage.
Great hook for a story, but it doesn't really provide a useful view of what's happening, does it? "Up to 65%" doesn't mean that most of the cuts or even the average cuts will be anywhere near that.
There's a lengthy thread here talking about some of the changes at YX. Difficult times, to be certain, and it will be hard on their staff. But starting a thread with such a statement pretty much blows things out of proportion and doesn't leave much room for a more balanced discussion.
AirTran737 From United States of America, joined Apr 2004, 3731 posts, RR: 11
Reply 8, posted (7 years 2 months 3 days 22 hours ago) and read 8175 times:
I think YX is screwed. Parking the MD-80's plus five 717's (not confirmed publicly yet) and asking for huge pay cuts shows how bad it is getting at YX. ALPA won't give them the numbers that they want, and if you slash the non-union wages too much you risk alienating those employees. I feel for the employees of YX and their families, I have many friends flying for YX but further consolidation is needed and this could help the industry.
Nice Trip Report!!! Great Pics, thanks for posting!!!! B747Forever
Uadc8contrail From United States of America, joined Sep 2003, 1782 posts, RR: 9
Reply 10, posted (7 years 2 months 3 days 21 hours ago) and read 8029 times:
Quoting Mke717spotter (Reply 9): Looks like I'll be heading in as one of the strikebreakers pretty soon.
might want to edit your profile and take your name out.....it could get ugly if what this thread is about actually happens......i was furloughed back in 1985 at ual when alpa went out on strike and the strike breakers took a bunch of heat and heat was a understatement, i still think some alpa guys carry the "book"
ImperialEagle From United States of America, joined Jan 2006, 2630 posts, RR: 20
Reply 11, posted (7 years 2 months 3 days 20 hours ago) and read 7990 times:
Survival-mode. Desperate times call for desperate measures.
IMO This kind of stuff is going to happen with a lot more carriers in the next few months as the industry re-sets its pay scales and airfares to what it takes to survive----period.
I think as this depression deepens the unions are going to be swept away---unable to have any uasble influence because the depths of the changes are going to be so severe----for everyone----and not just the aviation industry either. I'm talking about nationwide, all income stratae.
All costs of living are going to jump to alarming heights and our wages are going to progressivley decline. This is the stuff the politicians don't have the genitalia to tell us! You won't hear a peep from the Presidential contenders! Fasten your seatbelts!
Best wishes to the folks at YX.
Best wishes to everyone----------- as the airlines try to survive.
"If everything seems under control, you're just not going fast enough!"
Jlbmedia From United States of America, joined Jun 2002, 630 posts, RR: 0
Reply 14, posted (7 years 2 months 3 days 20 hours ago) and read 7916 times:
Quoting N917ME (Reply 5): Please do not turn this into a FL v YX thread. No one knows what would have happened if the takeover did happen with oil prices this high. So cut the bull.. And let's for once have a YX thread that doesn't include YX haters bringing FL into it. If you want to talk about FL, start a different thread!
I did not intent to make this a YX vs FL thread. I hope your reference to same dose not precipitate a fulfilment of your self proclaimed prophecy. I am only asking that given what the YX employees have been through and are now facing do they now wish that the airline would have chosen the FL choice rather than the stand alone option. Thanks, John.
NicoEDDF From Germany, joined Jan 2008, 1140 posts, RR: 1
Reply 18, posted (7 years 2 months 3 days 18 hours ago) and read 7722 times:
Quoting F9Animal (Reply 2): The government needs to do something to help the airlines right now. They seem to do fine helping Amtrak and other forms of transportation.
No, it absolutely shouldn't! Government should let fail the airlines with invalid business plan! That only will reduce supply to a point where reasonable fares will commence to cover airline cost!
I dare to say, that a company being so close to bankruptcy in the strongest air traffic market of the world just because one parameter of business changed, has an invalid business plan anyway. I know fuel has a huge impact but many airlines show how to be successful even in that environment.
Hence, accept the victims and restructure the whole business. If job losses are the case, well, then that is free economy.
Germany had a point few years ago when automobile industrie had to quit 100.000 (!!!) employees and close down several factories because the industry in this state was not competitive.
Maybe its the point for (some) US Airlines to got the same way.
Mikey711MN From United States of America, joined Nov 2003, 1418 posts, RR: 8
Reply 19, posted (7 years 2 months 3 days 11 hours ago) and read 7510 times:
Quoting NicoEDDF (Reply 18): No, it absolutely shouldn't! Government should let fail the airlines with invalid business plan! That only will reduce supply to a point where reasonable fares will commence to cover airline cost!
Typically, I'd agree with you on this, but I see two problems with it.
1. The price at which airlines would need to sell seats to make money will invariably diminish demand.
2. That diminished demand, e.g. business and leisure travel, residually impacts the viability of business from which the government earns their revenue.
In other words, the government stands to effectively lose revenue as businesses reliant on travel--either directly (e.g. tourism, shipping) or indirectly (e.g. meetings, exchanges, deal-making, project execution)--begin to fail. As such, it is in their(/our?) best interest to add investment into the system to protect that revenue stream.
Be that as it may, the execution or application of such investment is subject to heavy debate. I will certain concede that, and if I had the answers, I'd be paid tons more than I do and I'd be giving speeches around the country/world instead of reading a.net on a Friday morning.
But to myopically take the stance that "let failed businesses fail" in this industry--the movement of goods and services that facilitates capital and investment--is oversimplifying a bit.
That said, I tend to encompass the airline industry as simply a subset of transportation--and likewise, YX as a subset of the airline industry--which serves as the arteries that economically drive the country. I would also disagree ever so slightly that America may not be the "strongest air traffic market of the world", but more generally, it's the strongest transportation market of the world. Air traffic, as a component of moving goods and services within its borders, however, may not be as strong in the current and foreseeable business climate. The free market, then, will determine the veracity of other modes to compensate, e.g. rail, roadway, electronic, etc. for the inability to move said goods and services. And as such, companies like YX are wont to struggle.
EXAAUADL From , joined Dec 1969, posts, RR:
Reply 20, posted (7 years 2 months 3 days 11 hours ago) and read 7479 times:
I love YX, but unfortunately, I think they are gone by the end of the year. F9 will probably join them. This is part of the process unfortunately. Probably YX did FL a favor by refusing their offer as FL woudl be running short on cash now.
Boeing12345 From United States of America, joined Oct 2007, 131 posts, RR: 0
Reply 22, posted (7 years 2 months 3 days 10 hours ago) and read 7429 times:
Wonder why Tim H. and some of his staff have not offered to decline their salary or any bonus offers for the remainder of the year? The top two guys of another airline recently announced just that. I would think with their pockets lined after the sale they could afford to do this, plus this type of action goes a long way when trying to get employees to take concessions.