ARC NEWS
American expects this week to notify pilots of layoffs
July 14, 2020
American Airlines intends to notify pilots this week of potential layoffs, a move coming after executives estimated the airline may need to cut some 1,500 pilot jobs. In a 10 July weekly message to pilots, American managing director of flight line operations Chip Long said layoff warnings will come in the form of notices required under a federal law. “Our expectation is that… notices will be sent next week. Our hope is to very soon engage with [the Allied Pilots Association] and explore every opportunity to take care of our pilots while taking care of our airline,” Long said. Under federal law airlines must notify employees at least 60 days prior to a pending mass layoff. The Allied Pilot Association (APA), which represents some 15,000 American pilots, tells FlightGlobal it has not held formal discussion with American’s managers about layoffs. However, the union worked with the airline this year to implement voluntary leave and early retirement programmes. About 800 pilots have retired early and some 4,500 have taken temporary leaves, which come with partial pay, APA says. American’s ability to trim its workforce is limited until 30 September under the terms of financial aid taken via the US government’s coronavirus relief bill. The airline declines to comment about potential job cuts, which are suspected to hit a broad swath of employee groups. American has already said it was cutting 30% of management and administrative jobs. More information may be available this week, American adds. On 24 June, American chief executive Doug Parker gave employees an idea of the scope of cuts. American’s unionised workforce is “at least” 30% larger than the airline will need in October, and 15-20% larger than it expects to need in July 2021, Parker said during a monthly pilot meeting called “Crew News”. He called the 15-20% range relevant to American’s pilots because, due to training lead times, American must base pilot staffing on long-term workforce projections. Specifically, Parker and another executive said American may need to cut 1,500-1,600 pilot jobs. It doesn’t make much sense at all to reduce pilot staffing by 50% if you… need to be at 80% in six months,” he says. Dennis Tajer, head of APA’s communications committee, cautions that airlines that cut too many pilots could struggle to rebound when the industry rebounds. “Every airline… has to be very careful not to trim the ranks too aggressively,” he says. “Airline management teams who focus on where the puck is versus where the puck is going will risk being put on ice during the recovery.”


​JAL and Malaysia Airlines to launch joint business
July 13, 2020
Japan Airlines and Malaysia Airlines expect to launch a joint business partnership on 25 July, through which the two national carriers will co-operate commercially on flights between Malaysia and Japan JAL says the airlines will "take on new challenges to further enhance convenience between Japan and Malaysia and allow customers to benefit from more flight choices". Malaysia Airlines is resuming flights to Japan this month, and the two airlines combined will then offer four weekly services between Kuala Lumpur and Tokyo Narita in July and August, adds JAL. "This initiative will enable MH and JL to enhance their capabilities, and leverage on each other's strengths," says the Japanese operator. "The carriers shared best practices and responsibilities are in line with a sustainable business model in the long haul. "With JL's renowned precision in service and offerings, combined with MH's signature Malaysian hospitality, customers are promised of the best travel experience." The two airlines will also implement measures to prevent the spread of Covid-19. "MH and JL are committed to uphold the highest standards in aircraft safety and hygiene procedures to protect their passengers and employees," JAL says. "With the significant shift in consumer expectations on air travel post Covid-19, they have adjusted to the new norm with modifications to offerings on ground and on board as well as processes and procedures from check-in, boarding and arrival to uphold the highest safety and health standards."

Source: Cirium


SAA pilots seeking ‘unaffordable’ staff retention: government
July 13, 2020
South African Airways pilots have sought to more than halve the proposed number of employee retrenchments, and instead retain almost 3,100 personnel for the carrier’s relaunch, according to the country’s government. But the proposal has been dismissed by the department of public enterprises, which insists it is “not prepared to accede” to the demands. Pilot union SAAPA has not joined other employee groups in accepting the voluntary severance packages offered as part of the effort to restructure the carrier – a decision which has been criticised by the government. The department of public enterprises claims that pilots would account for half of the R2.2 billion in funding set aside for severance. SAA’s 600 pilots, it says, make up 45% of the payroll expenditure despite only representing 13% of personnel.

Source: Cirium


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