JAZZ CUTING 270 jobs !!!

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look on your back
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JAZZ CUTING 270 jobs !!!

Post by look on your back »

This morning we issued a news release, provided below, announcing initiatives underway at Jazz to combat the effects of the rising price of fuel and the resulting capacity cuts by Air Canada. Please understand that securities laws require us to issue these types of announcements via press release in advance of employee messages.



I realize today’s news of reductions in our workforce and to our flying activity cause anxiety. We’ve all worked very hard to return our company to profitability. We are strong today and must work to keep it that way. However, it is very difficult for me to announce job losses.



The airline industry around the world is struggling with the rising cost of fuel and Jazz is not immune to the effects. As you know, Air Canada announced on June 17th that it’s reducing network domestic and transborder capacity by 2% and 13% respectively in the fourth quarter 2008 and first quarter 2009 schedules. As a result, Jazz’s flying will be reduced by approximately 5%.



For 2009, we’re forecasting our flying activity to be at 380,000 block hours. This year, we’ll operate between 400,000 and 405,000 block hours – so the reduction is approximately 5% to 6%. With the reduction in block hours comes a reduction in revenues, and we need to match our resources and our operation to our new income level.



Unfortunately, this means that we need to reduce our workforce by approximately 270 employees. This includes frontline, management and ATS employees. This decision affects many lives and I regret that there is no alternative. Rest assured that this decision was not reached lightly and that we’ve utilized every possible resource to ensure our projections are as accurate as possible given the uncertainty of our situation
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daveg
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Re: JAZZ CUTING 270 jobs !!!

Post by daveg »

I am very sorry to hear this news. Good luck to all affected.
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Stinky
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Re: JAZZ CUTING 270 jobs !!!

Post by Stinky »

Is it normal to announce layoffs before offering LOA or reducing blocks, job sharing, etc.?
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twinpratts
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Re: JAZZ CUTING 270 jobs !!!

Post by twinpratts »

Anyone hear if the cuts will include pilot positions?
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TopperHarley
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Re: JAZZ CUTING 270 jobs !!!

Post by TopperHarley »

Im pretty sure theyve already reduced most of the blocking hours for pilots. Last month I was blocking 82+ hrs. This month Im blocked at 78 hrs. I noticed some pilots are still blocking up to 83 hrs however.

As far as pilot layoffs go, most people seem pretty optimistic. We're still losing a few pilots to WJ, EK and CX, and Im sure several would opt for a LOA. Another thing to consider is that most people from the final g/s in May hadn't even begun sims or IPT when AC announced the 2000 job cuts. Youd think that if pilot layoffs were imminent they would have at least not continued with their training, but they did.
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Squid
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Re: JAZZ CUTING 270 jobs !!!

Post by Squid »

Same scenario back in 2000. They hired right up till the end then handed out layoff notices, they still trained em too. I believe it will occur pretty soon since they need notice as per the collective. Then again if oil stays this way, which I think it will; this is only the start for both AC and Jazz.
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teacher
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Re: JAZZ CUTING 270 jobs !!!

Post by teacher »

It'll be interesting to see what will happen when people stop flying and driving, the Olymics end and less fuel is stock piled as well as the drop in consumer demand causes less goods coming from China and therefore less oil required. It'll mean less fuel is burned and our big oil shortage turns into an over suppply, add to this a US economy that will not be in the dumps forever which will bring a rising US dollar and therefore a drop in oil prices. Can someone say massive oil price correction? The days of cheap oil may be over, but the days of over priced oil will be too.

Companies may be panicing and cutting now but give it a year or less and things will come back down. In 2009, don't negotiate on the now, look ahead because in 2 years when this mess is over, you'll still be locked into a shitty contract while all the airlines out there will be laughing and bringing in the big bucks. Like someone mentioned in another thread, it's a cycle and it will change, give it time and it'll be gangbusters all over again.

Negotiate for the future, not the now.
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Kelowna Pilot
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Re: JAZZ CUTING 270 jobs !!!

Post by Kelowna Pilot »

I think the demand is more industrial than consumer orientated.

India and China want cities that look like western cities. And that's going to require a hell of a lot of oil.

The other thing to consider is this: What's holding up the Canadian economy? Alberta oil.

If oil tanks, then the one thing that is keeping the Canadian economy semi-afloat is gone.

So we're between a rock and hard-place:

Oil stays high, the economy gets hurt and aviation takes a real beating.

Oil tanks, and the economy (Alberta) gets hurt and Canadian aviation takes a real beating as our cash cow is suddenly gone.


Also, I wouldn't count too much on the Americans bolstering their dollar as a means to curb oil prices. For them to do that would require very significant interest rate hikes, and that'll really push the US economy over the edge.

We've had a really big party for the last 2 years, but as it goes, the better the party the bigger the ensuing hangover.
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piggy
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Re: JAZZ CUTING 270 jobs !!!

Post by piggy »

Kelowna Pilot wrote:I think the demand is more industrial than consumer orientated.

India and China want cities that look like western cities. And that's going to require a hell of a lot of oil.

The other thing to consider is this: What's holding up the Canadian economy? Alberta oil.

If oil tanks, then the one thing that is keeping the Canadian economy semi-afloat is gone.

So we're between a rock and hard-place:

Oil stays high, the economy gets hurt and aviation takes a real beating.

Oil tanks, and the economy (Alberta) gets hurt and Canadian aviation takes a real beating as our cash cow is suddenly gone.


Also, I wouldn't count too much on the Americans bolstering their dollar as a means to curb oil prices. For them to do that would require very significant interest rate hikes, and that'll really push the US economy over the edge.

We've had a really big party for the last 2 years, but as it goes, the better the party the bigger the ensuing hangover.
YA that is the interesting point going forward. Interest rates will rise around the world with inflation rising. Thsi will happen irrespective of what it will do to the US economy because inflation is more damaging. This happened in the 80's. When this policy change occurs, the commodity cycle will stop. given that food has gone up so much, and the price of every commodity, oil especially, I think inflationary issues will become a major concern. In fact , that concern seeems to be the major concern of the cad and us central banks rgt now. I listened to a fund manager who believes in 2-3 yrs, int rates will be double digits-it will be interesting to see what stocks and real estate do then
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Brick Head
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Re: JAZZ CUTING 270 jobs !!!

Post by Brick Head »

Inflation,

Almost everything we consume is either transported (oil) grown with fertilizers (oil) made with plastic (oil). The rising cost of oil will eventually fuel core inflation.

The following is by Mark Carney, the new Governor of the Bank of Canada.

This is very informative and easy read for the average joe. He compares monetary policy of the past to the present. Read his opinion on what his job is for monetary policy at the present. He has a big fat bulls eye on core inflation. Not on total inflation. He explains why.

Governor of the Bank of Canada
to the Haskayne School of Business

Remarks by Mark Carney

Capitalizing on the Commodity Boom: the Role of Monetary Policy


http://www.bank-banque-canada.ca/en/spe ... p08-7.html
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tsgas
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Re: JAZZ CUTING 270 jobs !!!

Post by tsgas »

Global oil demand is growing and new supplies are very expensive to develop.
China and India each have over a billion people and a lot of them are very well educated.
These well educated people are demanding to own their own cars and take overseas vacations and live a good life. That all takes more energy.
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