RyDawg82
Posts: 833
Joined: Fri Sep 14, 2001 8:30 am

Alaska Airlines To Reorganize Management

Sat Aug 21, 2004 6:35 am

Well this is pretty interesting, will be interesting to see how it all works.... -R

Alaska Airlines to Reorganize Management
8/20/2004 1:48 p.m. (PT)

SEATTLE -- Alaska Airlines today began offering a voluntary severance package to management employees as a precursor to a reorganization that will eliminate about nine percent of its management positions between now and spring 2005.

Alaska anticipates a reduction of up to 150 employees resulting in permanent annual savings ranging between $5 million and $10 million.

"The reasons for the reorganization are to speed decision-making and to improve communication and accountability," said CEO Bill Ayer in a memo to all management employees.

Ayer said the aim is to improve execution by eliminating some of the layers of management that served the airline well in a different era, but now must meet a tougher standard in view of the changes and challenges facing the industry.

Ayer said an outline of the overall management restructuring has been mapped out. It will be adjusted in September prior to implementation depending upon how many management employees voluntarily choose to leave.

"We recognize the key role that employees have played over the years and, for those who leave, we want to make the transition as smooth as possible," Ayer said. "So we've crafted a generous severance package, one that compares favorably to any offered since 9/11 triggered 100,000 layoffs at other airlines."

The voluntary program is being offered to all management personnel. Acceptance of applications, as well as the timing of the departure of personnel, will be based upon the needs of the company's operations.

Among the features: Two weeks of pay for each year of service; a bonus of between $3,000 and $15,000 depending on length of service; one year of healthcare coverage; and travel benefits for the employee and eligible dependents.

"Since 9/11, and especially since we unveiled our broad-based Alaska 2010 repositioning plan last summer, we have looked – and will continue to look – at every possible way to strengthen this airline to compete successfully over the long-term," Ayer said.

The management reorganization will not affect any of the airline's current routes and services.

Alaska Airlines is the nation's ninth largest carrier. Alaska and its sister carrier, Horizon Air, together serve more than 80 cities in Alaska, the Lower 48, Canada and Mexico.
 
squirrel83
Posts: 1219
Joined: Mon May 24, 2004 12:28 pm

RE: Alaska Airlines To Reorganize Management

Sat Aug 21, 2004 12:05 pm

Update ~
Alaska Airlines, on Friday said it would cut about 9 percent of its management positions between now and spring 2005 to reduce costs and allow for better communication.

Alaska, the ninth-largest US carrier, said it was offering a voluntary severance package to management employees as part of a reorganization that will strip as many as 150 employees, resulting in annual savings between USD$5 million and USD$10 million.

"The reasons for the reorganization are to speed decision making and to improve communication and accountability," Chief Executive Officer Bill Ayer said in a memo to management employees, as released in a statement.

The company doesn't expect the cuts to affect any of the airline's current routes and services.

Employees who take the severance package could receive two weeks of pay for each year of service, a bonus of between USD$3,000 and USD$15,000 depending on length of service, one year of health-care coverage and travel benefits for the employee and eligible dependents.
A346, 7E7, 747, 777, Sonic Cruiser
 
Lono
Posts: 1136
Joined: Sun Apr 04, 2004 5:47 pm

RE: Alaska Airlines To Reorganize Management

Sun Aug 22, 2004 5:15 am

Preemptive management call to set the stage for union employee cuts..??

You know ...."WE all are in this together... look we even cut our management ranks... WE all need to work harder...We all need to make do with less in the new airline economy... blah blah blah....
Wally Bird Ruled the Skys!
 
AirframeAS
Posts: 9811
Joined: Thu Feb 05, 2004 3:56 pm

RE: Alaska Airlines To Reorganize Management

Sun Aug 22, 2004 4:48 pm

You know ...."WE all are in this together... look we even cut our management ranks... WE all need to work harder...We all need to make do with less in the new airline economy... blah blah blah....

But AS is nowhere near the levels that UA, DL and US are currently in. AS is FAR from them. They just want to save money and decided to cut costs elsewhere although they are and have been heading in the right direction anyway.
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