Consumer demand for travel isn't going to equal what it was before the Covid pandemic for awhile, so airlines will offer fewer flights and won't need as many employees. In general airlines have to keep employees based on seniority, but were prefer more junior employees who are paid less. So they're offering senior employees buy outs to voluntarily separate from their company.

American Airlines is offering flight attendants with 10 or more years of seniority six months' pay to leave the company plus additional health care funding. That's half the pay that Southwest Airlines is offering.

Southwest managed to get enough early retirements and voluntary leaves that they don't plan to furlough anyone this year. American's early retirement numbers so far as of Friday total just 401. Many are reluctant to the deal because,

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  • It's not that generous. If they take this deal and American ups the offer, they won't get the richer payout.
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  • It's not as much as the airline has offered in the past, or what competitors like Southwest are offering.
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  • They're afraid of bankruptcy risk, without health care funding especially at risk in a Chapter 11 filing.
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  • Six months' pay isn't that enticing in this economy for employees who still plan to work.

American is looking for a combination of retirements and voluntary leaves totaling around 8500 to avoid furloughs. So the airline appears to have switched tactics. Instead of talking up how great the offer is, they appear to be pushing that those who stay with the airline are going to be miserable.

Here's a note sent to flight attendants on Friday, telling them they aren't going to like their work if they stay:

July 24, 2020
All Flight Service team members
What to expect after October 1

Based on some of the questions we've been receiving, it's clear many of you have spent the past week considering whether the voluntary programs we're offering are right for you. While you are considering the details of these programs, I also want to make sure you fully understand the new reality of what your schedule and flying may look like. The reality is our business is going to change, moving forward and for the long-term. While we have talked about these ideas previously, it may be helpful to see it all together as you are deciding your future.

While we won't know details of reserve seniority until the voluntary options window closes and any furloughs are determined, we expect it to increase significantly At some bases, reserve seniority will likely exceed 35 years. This is because we'll likely have fewer junior flight attendants on the straight reserve or one-on, one-off rotation. Approximately 80% of flight attendants will be in the reserve rotation

Higher line averages will be prevalent as we build more efficient schedules with fewer flight attendants. You can expect line averages to be in the low to mid-80-hour range
70-hour paid VLOAs will be discontinued after Sept. and we'll no longer offer monthly PVLOAs.

We'll continue to meet all contractual obligations, but trips will look a lot different as we need to build a more efficient schedule. What do we mean? More four-day domestic trips Longer duty days with multiple legs per day with potentially longer sit times and shorter layovers

Fewer IPD trips and fewer positions on each IPD trip As we announced earlier this month, we'll reduce most widebody international crew complements to FAA minimum + one Transcons on the A321T will be operated with five flight attendants instead of six International flying will be down significantly through at least end of 2021

Displacements are possible as we right-size each base to operate more efficiently and in line with the airline schedule Currently, we're overstaffed in bases like Miami, Los Angeles and Phoenix - meaning we have to build less than optimal trips, which is costly.
The 40-hour monthly minimum stays in place This is not only a contractual requirement but also affects how our bidding and trading systems work. With fewer monthly leaves offered, you should expect to fly each month.

Masks are mandatory - without exception They will be part of our future for a while and you'll be expected to wear one when you come to work

We have some unique offerings that are on the table when it comes to alternatives to flying. That's why I wanted to paint a realistic picture of what life will be like beginning this fall. I know many of you have already decided that you are in this for the long-term because you still love this great profession and/or you need the financial stability this job provides. We are truly thrilled that you are staying part of the team, knowing what is ahead. With this decision, you're re-committing yourself to rebuilding our airline and everything the flight attendant job will entail moving forward.

This is an important decision for each of you and one I know many of you are wrestling with. For those who are still contemplating their future, we hope that our continued information about the voluntary programs and what to expect with your schedule is helpful. American is and will continue to be a great place to work, and I'm confident the steps we're taking now will position us for long-term survival.

On a straight seniority basis, after furloughs the average age of an American Airlines flight attendant will be in the mid-50s. The airline already has had a culture problem. Telling the more senior flight attendants who are left that their job is going to be miserable isn't a way to encourage happy employees who take care of customers going forward.

And without voluntary retirements of more senior employees, the airline will face higher average costs for each flights (that will be staffed by crews making the highest level of pay). That's going to make the airline even more cost-uncompetitive going forward, on top of having higher levels of debt and debt service expense than other airlines. They should consider more generous offers now because the payback from more junior, less expensive crew should be fairly quick as travel returns. Failure to do that could drive them into Chapter 11.

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