Jazz laying off

[Stinky]

Jazz just announced layoffs. 270 to start.

[wannabatp]

Care to source that?

[Stinky]

http://www.reportonbusiness.com/servlet ... iness/home

[Changes in Latitudes]

Jazz cuts back as fuel costs surge
VIRGINIA GALT

Globe and Mail Update

July 3, 2008 at 8:47 AM EDT

Jazz Air is cutting capacity by 5 per cent and slashing 270 jobs as a result of rising fuel prices and service cuts by its primary customer, Air Canada.

“The decrease in Air Canada's need for Jazz's services necessitates a reduction in staff,” Jazz said in a statement Thursday.

“These are difficult times for our industry and the decision to reduce our workforce was not reached lightly. It is with sadness that we'll see some of our employees leave our company,” Joseph Randell, president and chief executive officer of Jazz, said in announcing the job and service cuts.

Last month, Air Canada announced service reductions that would result in the loss of 2,000 jobs, primarily because of the high cost of aviation fuel.

Jazz has a commercial agreement with Air Canada under which Air Canada purchases substantially all of Jazz Air's fleet capacity and, therefore, is heavily affected by Air Canada's cuts.

“Airlines are currently operating in a very high-cost environment world wide,” Jazz said in its statement.

“In addition to soaring fuel prices, airlines in Canada must also contend with federal and provincial fuel excise taxes, security fees, NavCanada fees and airport charges that rank amongst the most expensive in the world,” Jazz said.

Mr. Randell said every effort was being made “to mitigate these job losses” at Jazz.

“We hope this downturn in our industry's cycle ends soon,” he said.

“We are in a period of great uncertainty and cannot predict where the price of fuel is going. We have taken immediate action to better match our resources with our new revenue levels. While Jazz is already a lean organization and is in a reasonable position to manage its current challenges, every effort is being made to reduce our costs and to prepare for what may lie ahead.”

In regards to the last paragraph...no one forecasted a hike in oil prices and a North American tightening of they belt? They've been hiring like gangbusters for the last how many years now they're cutting. Proactivity is a nice thing.

[wannabatp]

Crap, was hoping it might've been a hoax.

Good luck guys and girls, and to the rest of you, better hang on to that seat!

[teacher]

This is just a guess but I could imagine that the majority of these layoffs will be from closed routes like Comox and Hamilton. When you add up agents and ground handlers how many is that?

As for crews I'm thinking with the amount still moving on to overseas and western airlines other than a hiring freeze I don't see anyone getting a pink slip.

[Kelowna Pilot]

In regards to the last paragraph...no one forecasted a hike in oil prices and a North American tightening of they belt? They've been hiring like gangbusters for the last how many years now they're cutting. Proactivity is a nice thing.

Well, some people saw what was coming with oil.

But regardless, people should have seen this story coming a long time ago, because we've seen this story before so many times.

It goes like this:

Economy booms for a couple years... Airlines hire again like crazy and order tons of new planes... People bring out the famous 'pilot shortage' line that's been around since the days of the Wright Brothers.... People make bold predictions for the future of aviation, all rosy. It's a happy time and memories of the last down cycle are quickly forgotten.

Then, one day, the economy goes into a bust cycle, or something bad happens... Airlines layoff... orders for new planes get deferred or canceled... Movement stops... Pilots start working for free or paying to work for free again and endure all sorts of B.S.... New pilots go back to lurking and stalking... The mood is bad...

Then, one day, maybe a few years later, the economy picks up again and the cycle starts all over.

That's how it traditionally works in a nutshell.

But this time different because we're not in the 'driver's seat' anymore regarding oil prices... the emerging economies are. Otherwise oil prices would have gone down a long time ago.

Unless oil prices magically go down in a very big way, I don't think the normal cycles are all that relevant anymore. We're in a new era now...

[sanjet]

Unless oil prices magically go down in a very big way, I don't think the normal cycles are all that relevant anymore. We're in a new era now...

Really is true how aviation is always the first to slump and last to recover in crap economies. The problem with this... will it ever recover with oil being the largest operating cost of an airline with these prices?

Time to apply for med school

[silentivan]

Hmmm, well, so much for the pilot business of things. Maybe the Vory or the Yakuza are hiring. They seem to be able to flourish in times of economic shite.

[Flybabe]

In regards to the last paragraph...no one forecasted a hike in oil prices and a North American tightening of they belt? They've been hiring like gangbusters for the last how many years now they're cutting. Proactivity is a nice thing.

Well, managing an airline for the benefit of the staff would be NICE, but... those companies are few and far between. Jazz is in it to make a profit. If it means hiring and laying off, that's pretty much accepted for them.

Does nothing for the security of the employees, unfortunately.

[co-joe]

What happened to Jizz' burgeoning charter division?

[Treetops]

No word on if the pilots are part of the 270? I have a few friends that just went and would to see them out of a job already.

[Invertago]

I predict oil will come crashing down to the $100 barrel (love how I say down to...) It is just a big bubble like the dot com and housing etc. The emerging economies are reducing their fuel subsidies these days and their citizens will cut back big time once they pay realistic fuel prices. Watch this thread... I'll bump it in a few months to prove everyone my awsomeness!!!

Not sure if it will put aviation back on track much or not, but the $140/barrel is not here to stay.

[Czar]

With respect to the 'oil boom', as long as the US dollar remains weak, we won't be seeing any relief at the gas pumps anytime soon.
Unfortunately, with the upcoming election in US, I expect this situation to get worse.

[Kelowna Pilot]

Not sure if it will put aviation back on track much or not, but the $140/barrel is not here to stay.

Dream'n

[Changes in Latitudes]

In regards to the last paragraph...no one forecasted a hike in oil prices and a North American tightening of they belt? They've been hiring like gangbusters for the last how many years now they're cutting. Proactivity is a nice thing.

Well, managing an airline for the benefit of the staff would be NICE, but... those companies are few and far between. Jazz is in it to make a profit. If it means hiring and laying off, that's pretty much accepted for them.

Does nothing for the security of the employees, unfortunately.

I really don't feel that being proactive in your hiring and spending appropriately was considered to be "management for the benefit of staff". It's 4am, I am hungry, so under the Jazz philosophy, if there is a Chinese buffet open, I should go there now, eat until I can't see straight and then stick my fingers down my throat as soon as I feel discomfort.

Gotta love a manic-depressive approach to management!

[Stinky]

Jazz can't really tell Air Canada that their cancelling flights because the economy looks like it's going to slow down and they don't want to overhire. They get the job done and when things go to hell, they layoff. It's a corporation, they're in it for the shareholders, not the employees. Training a guy and using him for a couple of months might be worth it.
Sucks big time for the guy who quit a $50k+ a year job and will now be collecting EI on a $35K salary.

[TheEvilTwin]

I predict oil will come crashing down to the $100 barrel (love how I say down to...) It is just a big bubble like the dot com and housing etc. The emerging economies are reducing their fuel subsidies these days and their citizens will cut back big time once they pay realistic fuel prices. Watch this thread... I'll bump it in a few months to prove everyone my awsomeness!!!

Not sure if it will put aviation back on track much or not, but the $140/barrel is not here to stay.

You're right its not here to stay... its just going to get worse!

[TheEvilTwin]

I wouldn't think there would be much difference between EI on 50K vs 35K you can only collect up to a "maximum" amount anyways as far as I know... and it weighs on various factors such as wehn you last collected, have you worled enough hours to receive max benefits etc etc...

Jazz can't really tell Air Canada that their cancelling flights because the economy looks like it's going to slow down and they don't want to overhire. They get the job done and when things go to hell, they layoff. It's a corporation, they're in it for the shareholders, not the employees. Training a guy and using him for a couple of months might be worth it.
Sucks big time for the guy who quit a $50k+ a year job and will now be collecting EI on a $35K salary.

[Cap'n P8]

I wouldn't think there would be much difference between EI on 50K vs 35K you can only collect up to a "maximum" amount anyways as far as I know... and it weighs on various factors such as wehn you last collected, have you worled enough hours to receive max benefits etc etc...

Jazz can't really tell Air Canada that their cancelling flights because the economy looks like it's going to slow down and they don't want to overhire. They get the job done and when things go to hell, they layoff. It's a corporation, they're in it for the shareholders, not the employees. Training a guy and using him for a couple of months might be worth it.
Sucks big time for the guy who quit a $50k+ a year job and will now be collecting EI on a $35K salary.

Yeah but they wouldn't be collecting EI on the $50K, they'd still be making it!

[Lost in Saigon]

If they just left a good paying job to start at JAZZ, and then promptly get laid off, the EI will be be based on the past year's earnings I believe.

They stand to collect more on EI then they would make on flat pay at JAZZ

[dream chaser]

TheEvilTwin,
I think you're missing the point. Point is that buddy left a job [b]collecting[/b] 50k and now is going to be [b]collecting[/b] EI on 35k. BIG DIFFERENCE.

[xsbank]

Doom and gloom, the start of another 'bust' cycle - yes it looks bad now, but things will turn around as they always have. A few years of pain then more gain (although, how much actual 'gain' have we attained over the last 3 or 4 years besides full employment?).

It really is a cycle. The last one was caused by terrorists, the one before that, was it the stock market? I forget. Then before that there was inflation, wars, whatever. This too shall pass. The hard part is that Starbucks is closing 600 stores so where are we all going to work?

Its never as bad as you think it will be and it always goes on longer than you hope.

It will give you all a chance to get a second career that you can fall back on for the next time or for when you pooch your medical.

Don't pay any attention to the end-of-the-world predictors. The weak companies will go under, the strong will survive, the public will continue to fly, prices will stabilize and we will keep spinning off into space in our over-crowded planet.

[sanjet]

Don't pay any attention to the end-of-the-world predictors. The weak companies will go under, the strong will survive, the public will continue to fly, prices will stabilize and we will keep spinning off into space in our over-crowded planet.

The problem is... even with strong load factors, airlines are not making money with the current oil prices. Any rises in fares and revenue will actually drop. I don't know if we can call this one a cycle or just the beginning.

[xsbank]

The sky is not falling.

"I have suffered many catastrophes in my life, most of which didn't occur." Mark Twain

If the sky IS falling, why worry, you can do nothing about it anyway. If it is NOT falling, well, its not.

"...it has never been my way to bother much about things which you can't cure." Mark Twain again. Annoying, no?