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Alaska To Furlough Additional Pilots  
User currently offlineLAXintl From United States of America, joined May 2000, 26174 posts, RR: 50
Posted (5 years 4 months 2 weeks 6 days 3 hours ago) and read 4984 times:

The industry blood letting continues.

52 additional pilots to be furloughed effective October 1st, plus a bunch of captain downgrades.


From the desert to the sea, to all of Southern California
19 replies: All unread, jump to last
 
User currently offlineWedgetail737 From United States of America, joined Aug 2003, 5951 posts, RR: 6
Reply 1, posted (5 years 4 months 2 weeks 6 days 1 hour ago) and read 4812 times:
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That's too bad. Could that mean additional 737-400's will head for the desert and more 737-700's heading back to their lessors...above what has been mentioned?

User currently offlineAirport From , joined Dec 1969, posts, RR:
Reply 2, posted (5 years 4 months 2 weeks 6 days ago) and read 4760 times:

Hmm...but didn't Alaska make a profit this last quarter, one that was up from last year? Out of curiousity, what reasons would there be for further furloughing pilots if they're making money?

User currently offlineLAXintl From United States of America, joined May 2000, 26174 posts, RR: 50
Reply 3, posted (5 years 4 months 2 weeks 6 days ago) and read 4692 times:

They might have made money in Q2, however the jury is very much out for the remainder of the year.

ASM forecast for later in the year is down 11% over this summer while in the latest earnings call they had mentioned they were looking to withdraw/sell 4 737-700s.

Basically AS is taking a conservative posture with capacity, so less flying = less staff.



From the desert to the sea, to all of Southern California
User currently offlineWedgetail737 From United States of America, joined Aug 2003, 5951 posts, RR: 6
Reply 4, posted (5 years 4 months 2 weeks 5 days 22 hours ago) and read 4660 times:
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I think AS is going to find the Fall and Winter to be very challenging. All of the Seattle tourism will be all but gone...BUT...depending on the winter season, maybe Seattle folks (and Portland folks...sorry) will travel to warmer climates.

User currently offlineHatbutton From United States of America, joined Mar 2005, 1500 posts, RR: 14
Reply 5, posted (5 years 4 months 2 weeks 5 days 21 hours ago) and read 4660 times:



Quoting Airport (Reply 2):
Hmm...but didn't Alaska make a profit this last quarter, one that was up from last year? Out of curiousity, what reasons would there be for further furloughing pilots if they're making money?

Add that profit with the loss in the first quarter and you only have a net of $1 million profit on the year. The typical reduction in the fall schedules combined with the already lagging demand means that capacity this fall will not be nearly the same as it was last fall. Making money doesn't mean you are right sized to your operational needs.


User currently offlineEA CO AS From United States of America, joined Nov 2001, 13766 posts, RR: 61
Reply 6, posted (5 years 4 months 2 weeks 5 days 20 hours ago) and read 4660 times:
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Quoting LAXintl (Reply 3):
they were looking to withdraw/sell 4 737-700s.

"Were" being the operative word; AS was unable to find agreeable terms to sell those aircraft and have elected to keep them at this point.



"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
User currently offlineAirframeAS From United States of America, joined Feb 2004, 14150 posts, RR: 24
Reply 7, posted (5 years 4 months 2 weeks 5 days 20 hours ago) and read 4660 times:

Looks like the Alaska 2010 plan backfired, maybe?? I thought this plan was revolving around the pilots.....


A Safe Flight Begins With Quality Maintenance On The Ground.
User currently offlineEA CO AS From United States of America, joined Nov 2001, 13766 posts, RR: 61
Reply 8, posted (5 years 4 months 2 weeks 5 days 19 hours ago) and read 4660 times:
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Quoting AirframeAS (Reply 7):
Looks like the Alaska 2010 plan backfired, maybe??

It ain't 2010 yet.  Wink

But seriously, the cornerstones of Alaska 2010 were:

- CASM of 7.25 cents

- Pretax profit margin of 10%

- The "Seattle Strategy" to serve most O&D markets from SEA


Of those, the CASM goal was hit largely by reductions in ASMs due to the recession - AS was well on their way to that goal. The pretax profit margin was close, but fuel costs over the past few years, along with declining revenues and increased competition, made the margin lower.

The "Seattle Strategy" has been an overwhelming success, however - AS has a presence in something like 32 of the 35 largest markets from SEA, and Hawaii service has been the crown jewel of this expansion.

AS has arguably the strongest balance sheet and cash/revenue ratio of any airline right now and is positioned nicely to not only weather this storm but make strong moves as the weaker carriers pull back.



"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
User currently offlineAirframeAS From United States of America, joined Feb 2004, 14150 posts, RR: 24
Reply 9, posted (5 years 4 months 2 weeks 5 days 19 hours ago) and read 4660 times:



Quoting EA CO AS (Reply 8):

Understood. But.......

Quoting AirframeAS (Reply 7):
I thought this plan was revolving around the pilots.....




A Safe Flight Begins With Quality Maintenance On The Ground.
User currently offlineEA CO AS From United States of America, joined Nov 2001, 13766 posts, RR: 61
Reply 10, posted (5 years 4 months 2 weeks 5 days 19 hours ago) and read 4660 times:
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Quoting AirframeAS (Reply 9):
Quoting AirframeAS (Reply 7):
I thought this plan was revolving around the pilots.....

I'm not sure I understand your point. The pilots have an agreement...



"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
User currently offlineASFlyer From United States of America, joined May 2005, 1209 posts, RR: 6
Reply 11, posted (5 years 4 months 2 weeks 5 days 18 hours ago) and read 4659 times:



Quoting Wedgetail737 (Reply 4):
I think AS is going to find the Fall and Winter to be very challenging. All of the Seattle tourism will be all but gone...BUT...depending on the winter season, maybe Seattle folks (and Portland folks...sorry) will travel to warmer climates.

This is the way it happens every year. Summer is the busiet season for tourism in Seattle. That said, there are a lot of people in the Pacific Northwest that travel during the winter to get away from the rain/snow. Seattle also sees quite a bit of business travel with Microsoft, Starbucks, Amazon.com and several other large corporations based there and a host of other companies with large operations in Seattle. It doesn't die in the winter as much as you might think.


User currently offlineWedgetail737 From United States of America, joined Aug 2003, 5951 posts, RR: 6
Reply 12, posted (5 years 4 months 2 weeks 5 days 11 hours ago) and read 4659 times:
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Quoting ASFlyer (Reply 11):
This is the way it happens every year. Summer is the busiet season for tourism in Seattle. That said, there are a lot of people in the Pacific Northwest that travel during the winter to get away from the rain/snow. Seattle also sees quite a bit of business travel with Microsoft, Starbucks, Amazon.com and several other large corporations based there and a host of other companies with large operations in Seattle. It doesn't die in the winter as much as you might think.

That's good to know.


User currently offlineAirframeAS From United States of America, joined Feb 2004, 14150 posts, RR: 24
Reply 13, posted (5 years 4 months 2 weeks 5 days 9 hours ago) and read 4659 times:



Quoting EA CO AS (Reply 10):
The pilots have an agreement...

An agreement, yes. I remember there was a thread somewhere around here that explained specifically about what the Alaska 2010 plan contained.... and most of it benefited the pilots more than anything else.

Quoting ASFlyer (Reply 11):
It doesn't die in the winter as much as you might think.

 checkmark  True, but it does still get slow. I booked my next trip on AS to go to the UW game vs. California on Dec 5th and I'm gonna get to ride on the 73G again!  bouncy  I am hoping for N617AS and N607AS on either segment!



A Safe Flight Begins With Quality Maintenance On The Ground.
User currently offlineEA CO AS From United States of America, joined Nov 2001, 13766 posts, RR: 61
Reply 14, posted (5 years 4 months 2 weeks 5 days 6 hours ago) and read 3658 times:
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Quoting AirframeAS (Reply 13):
I remember there was a thread somewhere around here that explained specifically about what the Alaska 2010 plan contained.... and most of it benefited the pilots more than anything else.

The Alaska 2010 plan wasn't designed just for pilots, it was intended to benefit all employees - you create a virtuous cycle that benefits all employees, customers and shareholders at the same time.



"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
User currently offlineCessna172RG From United States of America, joined Aug 2000, 749 posts, RR: 0
Reply 15, posted (5 years 4 months 2 weeks 5 days 4 hours ago) and read 3545 times:

Maybe they found out that these particular 50 pilots were violating the Alaska Airline's anti-nicotine user policy.


Save the whales...for dinner!!!
User currently offlineRwSEA From Netherlands, joined Jan 2005, 3135 posts, RR: 2
Reply 16, posted (5 years 4 months 2 weeks 5 days 4 hours ago) and read 3523 times:



Quoting Wedgetail737 (Reply 4):
I think AS is going to find the Fall and Winter to be very challenging. All of the Seattle tourism will be all but gone...BUT...depending on the winter season, maybe Seattle folks (and Portland folks...sorry) will travel to warmer climates.

Maybe the 2010 Olympics will provide a quick, temporary boost this year too...


User currently offlineHatbutton From United States of America, joined Mar 2005, 1500 posts, RR: 14
Reply 17, posted (5 years 4 months 2 weeks 5 days 2 hours ago) and read 3250 times:



Quoting Cessna172RG (Reply 15):
Maybe they found out that these particular 50 pilots were violating the Alaska Airline's anti-nicotine user policy.

So those smokers just happen to be the bottom 50 of the seniority list eh?


User currently offlineEIPremier From United States of America, joined Sep 2000, 1550 posts, RR: 1
Reply 18, posted (5 years 4 months 2 weeks 4 days 8 hours ago) and read 3034 times:

Seems weird that they would reduce the number of pilots but not the number of aircraft in the fleet...would suggest that they have been running with a "surplus" of pilots, in spite of the furloughs last year.

User currently offlineHatbutton From United States of America, joined Mar 2005, 1500 posts, RR: 14
Reply 19, posted (5 years 4 months 2 weeks 4 days 5 hours ago) and read 2965 times:



Quoting EIPremier (Reply 18):
Seems weird that they would reduce the number of pilots but not the number of aircraft in the fleet...would suggest that they have been running with a "surplus" of pilots, in spite of the furloughs last year.

Well I think the problem is we tried to offload some planes, namely a couple -700s but nobody is buying. So we will keep them and probably not fly them as much.


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