Air Transat layoff next year

[airboy1]

Anyone listen to the podcast conference call from today? The Q3 results are out and the CEO is pretty confident they will ground 3 aircraft next year and up to 9 grounded next summer if the conditions are the same regarding the market. Didn't they hire like a lot of f/a's and pilots recently? He didn't hesitate to mention he will layoff crew if required.

[rudder]

Sounded like CanJet flying reductions could be on the table as well.

[hogster330]

Wow!! It always amazes me how things can be understood so differently.When I listen to what the man says, it is clear to me that because Air Transat has 3 A310s on a power by the hour lease and because they are fully crewed, there is the ability to easily adjust capacity as the market fluctuates. In case of a "catostrophic event" he could even go as far as parking the other 9 as the lease payments are not that expensive compared to the A330s.I think you should take another listen.

[Sideshow]

http://www.theglobeandmail.com/globe-in ... le2157677/

According to the globe and mail

[sanjet]

There is definitely a double edge sword for Transat. Do they cut down capacity next year and allow emerging Sunwing and Air Canada to take over some market or do they operate at loss trying to get more or just maintain market share. Any of those two paths are big gambles for TSC. I still hear that they are hiring crews though.

[rudder]

Question - "How would you go about reducing capacity if necessary?"

JME - " I have 3 A310 that are power-by-the-hour. I can park them and only pay $50,000 per month per plane. I have a contract with CanJet. I can reduce aircraft as much as I like with penalties. The remaining A310 leases are about $125,000 per month so if I wanted I could park them as it is not expensive compared to running them at a loss. I would only consider that under catastrophic circumstances (i.e. post 9-11). The A330 leases are too expensive to park."

[CanadaEH]

Transat is in a tough position.

As with everything in this ever changing industry, Transat has been a victim of bad timing.

1. WestJet stopped flying for Transat and launched WestJet Vacation (WJV)
2. Transat partnered with Canjet
3. Signature bought into Sunwing
4. WestJet Vacations has grown at a pace that I don't think anyone expected (including WestJet)
5. Thomas Cook aggressively expanded into the Caribbean
6. Transat overestimated what people were willing to pay for "premium" travel packages last winter
7. Adding 330's and reducing 310's
8. Fuel prices

I'm probably missing a few things but I think all of the above has played a role in the challenges Transat is facing.

[Mig29]

what I don't understand is why all of a sudden Transat went on hiring bonanza (spring/summer), upgraded so many guys instead of remained cautious and played it safe, until their financial results were out? It seems to me one bad quarterly report, and their bosses are throwing in the towel and threatening lay offs?

Do these guys plan more then a week ahead or what!!?

[ahramin]

what I don't understand is why all of a sudden Transat went on hiring bonanza (spring/summer), upgraded so many guys instead of remained cautious and played it safe, until their financial results were out? It seems to me one bad quarterly report, and their bosses are throwing in the towel and threatening lay offs?

Do these guys plan more then a week ahead or what!!?

Lol. There's no threats of layoffs. They are axing senior management at head office, not at Air Transat. They may reduce capacity, but I doubt it will be Air Transat capacity. Still hiring pilots every month, and word came down yesterday to hire 350 more flight attendants. Transat holidays sells over 60% more tickets than Air Transat can fly with the current fleet size.

[Mig29]

Then that is good news, for pilots that is ....and F/As as well

Cheers

[ywg9]

I didnt want to start a new thread, anyone know how things are going at TS are they laying off or are they calling guys for interviews.

[ahramin]

Neither.

[TopperHarley]

They did just put out an ad for FAs though.

[scopiton]

as per company investor's website http://www.transat.com/en/investors/investors.aspx , cost reduction strategy will be known early December 2011 and 2012 / 13
http://www.transat.com/_pdf/en/media/20 ... 1.CIBC.pdf p.11 & 12

such a transparency is not common in the industry. good for them.

[Takeoff OK]

17 pilots will be furloughed as of mid-December. No LOAs or reduced scheds offered.

[Agrios Anemos]

Thats Shitty

MErry F,;..//.;king Christmas

[airboy1]

That's what I hear too. Had a friend who was just about to finish his PPC and now is about to get booted. Sad considering he just left a good company for this place...
Merry xmas indeed...

[rudder]

17 out of 400+ seems a little ridiculous. Perhaps this is just a shot over the bow to get AT ALPA into some form of concessionary discussions to save jobs.

Heard that AT is still hiring FA's. If there are flying reductions, why would they be hiring FA's? Something doesn't add up.

[watermeth]

why would they be hiring FA's? Something doesn't add up.

christmas rush may be.

[rudder]

why would they be hiring FA's? Something doesn't add up.

christmas rush may be.

In the sun destination packaged tour business, Xmas rush is from mid-December to mid-March. Laying off 4% of the pilots in mid-December makes no sense unless it is just the first wave of more pending pilot layoffs due to permanent flying reductions for 2012.

JME had originally stated in September that any initial reductions in fleet would be A310. Are these pilots that have received notices all A310? Due to a multi-type fleet, reductions and downgrades will trigger other costs.

[airboy1]

Knowing Transat, I think management really screwed this one up. I wouldn't be surprised if another 2 310 get grounded permanently. I think they will return to 18 aircraft fleet as they historically/financially were "stable" at.

[rog that]

ah shit...
Can anyone from TS confirm if this is true?
Hope not...

[Mclovin]

ah shit...
Can anyone from TS confirm if this is true?
Hope not...

Not at Transat but these guys are usually pretty accurate. Really sucks for the guys that went over recently, lots of guys from Jazz, lets hope that this is just temporary.

http://pilotcareercenter.com/Air-Carrie ... ir+Transat

[Lima Lima]

Yes as hard as it is to say, this is all true for what it's worth ... I am one of the Bus drivers who has just been furloughed along with 16 others. Huge shock and hard to deal with right now.

Just wanted to put some fact to the thread for everyone.

[airboy1]

What's unfortunate is that Canjet is subcontracted to do work for Transat using foreign pilots. Its the new reality I guess. This should be a clear sign to ACPA regarding the opening of a new low cost carrier.