Posted on 05/06/2020 7:15:06 AM PDT by fluorescence
United Airlines plans to cut at least 3,400 management and administrative positions in October as the coronavirus pandemic crushes air travel demand, and has told pilots to brace for changes as well, according to two memos seen by Reuters.
Chicago-based United is among the U.S. airlines that have accepted U.S. government payroll aid that bans job or pay cuts before Sept. 30. However, United and other carriers have warned that demand is unlikely to recover to pre-crisis levels by that date, forcing them to shrink in the fall.
The United memos are the first indication of just how much major airlines might downsize due to the health crisis.
“We have to acknowledge that there will be serious consequences to our company if we don’t continue to take strong and decisive action, which includes making decisions that none of us ever wanted or expected to make,” Kate Gebo, Executive Vice President Human Resources and Labor Relations, said in the memo to some 11,500 management and administrative employees.
Affected employees will be notified in mid to late July for an Oct. 1 effective date, she said, while encouraging employees to consider a voluntary separation before that date.
In a separate memo seen by Reuters, pilots were told to prepare for a “displacement” that will affect roughly 30% of roughly 12,250 pilots.
One pilot union official said the group was interpreting the message to mean a 30% reduction as soon as Oct. 1.
United sent memos on Monday to a number of work groups about near-term changes and potential long-term implications, spokeswoman Leslie Scott said.
“Travel demand is essentially zero for the foreseeable future and, even with federal assistance that covers a portion of our payroll expense through Sept. 30, we anticipate spending billions of dollars more than we take in for the next several months, while continuing to employ 100% of our workforce,” United spokesman Frank Benenati said in an email. “That’s not sustainable for any company.”
United and other airlines, which only months ago were mapping out growth plans, have parked jets and drastically cut flight schedules in an effort to reduce costs and shore up cash until demand recovers.
Nothing to see here. Move along. Step lively.
Saw something last night that stated 50% of the planes are sitting and 4 of the major carriers flying are averaging 17 passengers for domestic travel and 29 for international travel. Sounds like you can really spread out now. If you felt like going somewhere that is.
I’ve been paid to travel all over the world and done everything the tourists do while also working at those places. Travel is overrated.
Potential huge cost savings!
/s/ (because some are incapable of recognizing humor)
Pilotless planes are coming.
No thanks, I've been in a few bad crosswind landings I wouldn't trust a computer to handle.
Nearly dipped the wing into the tarmac.
But the diversity staff will be untouched.
Both pilots have to keep their hands on the control. They only get paid when flying the plane. /s
My nephew works at United. He flys 767 or 777. He’s been there 27 years and he’s worried about his job. It will be a long time before those planes are back in service for international flights.
A the private sector makes massive cuts, cuts positions and salary, what do the leaders of the public sector do? Demand federal bailouts and keeps everyone on the payroll and makes NO budget cuts.
Only on problem, once you arrive at your destination you must self quarantine for 14 days.
Only if you’re a pansy. LOL! Or forced to at gun point. And, that favorite restaurant-——closed.
I was sitting out on my back patio here in southern NH this past Sunday late afternoon. I am about 10 miles from Manchester, NH airport and sometimes on the approach for Logan/Boston. I am also right in the flight path for the transatlantic flights going to NYC, Chicago, elsewhere.
I saw ONE jet take off from Manchester in the 2 hours I was outside on a clear sunny 75 degree day. Normally, there a jet trails all over the sky with the flights coming inbound from Europe. There were NONE of those.
It reminded me of the week after 911.
LOL! That was the first thought that crossed my mind.
#3 The seats are still too small!
“Pilotless planes are coming.”
Not with me in one. There are five basic causes of aircraft accidents:
Pilot error, mechanical defects, weather problems, ATC errors, and other factors that can contribute to a plane crash, including sabotage, bird hits, and poor runway maintenance.
And three of the five of them are a computer related problem and one of the others can be. When you take the pilot out of the flight deck you take out both the human error and the human determination of change. I will trust the human a lot more than the computer. (737-800’s)
It is estimated that half of the air accidents are pilot error. That leaves the other half to multi related incidents. But the pilots don’t fly the aircraft, the computer does. So is the pilot there to make mistakes or correct most of them. On each flight there could have been a lot of ways to stick it in the mountain the pilot corrected because the computer screwed it up. Pilot versus computer? Take your pick.
rwood.
Airlines are down to flying 5% of their flights. I know what you mean. I lived in NJ when 9/11 happened and it was eery to not see planes in the sky. Then when flights resumed I actually flinched when I saw a plane in the sky.
he’s in a tough industry - it doesn’t look bright for airlines for the next 1 year.
Same here. We have a view at the edge of a farming town near Sacramental Int’l (SMF) & usually see at least 5 planes.
Sky has been eerily empty, and it’s extra-quiet.
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