United Airlines Plans To Lay Off More Than One Third Of Pilots

United Airlines has just become the first major US airline to concretely lay out how they plan on laying off pilots… and it’s not pretty.

United plans to “displace” 4,457 pilots

While United can’t lay off any pilots until October 1 (as a condition of accepting CARES Act funding), the airline has made long term plans clear.

This weekend United’s chief pilot sent a note to pilots outlining what the future will look like:

  • As of June 30, 2020, United’s bid for work slots will be displacing 4,457 of 12,250 positions, which represents over a third of pilots
  • While United will have to keep paying pilots through September 30, what this means is that as of June 30 there will be no opportunity for nearly 4,500 pilots to bid on a schedule
  • As of October 1 those will likely translate into job losses, unless travel demand rebounds much quicker than the airline is expecting in the short term
  • To give a sense of the scale of the issue, it’s noted that United has more pilots than daily passengers right now

United will be cutting nearly 4,500 pilot positions

How will United go about pilot lay offs?

Come October 1, presumably nearly 4,500 pilots will be laid off. This will be done strictly on seniority, meaning that roughly the bottom third on the seniority list will be laid off.

Why laying off pilots is complicated

The actual process of laying off pilots isn’t that complicated, since they’ll be going based on seniority.

What’s going to be ridiculously complicated is the process of retraining pilots in light of this. Generally pilots are only trained on one type of aircraft, or in some cases two types if there are enough cockpit similarities (like the 757 and 767).

When United lays off their least senior pilots, this means that the remaining pilots are going to be losing a lot of seniority (with the exception of those at the very top of the seniority list). After all, your seniority is all about how many people are underneath you on the list.

What this means is that:

  • Many captains will be downgraded to first officers
  • Many captains and first officers will be downgraded to smaller planes
  • There may be a lot of domicile changes, because seniority is different around the system; in other words, pilots may choose to commute so they can stay captain on one plane, since they’re no longer senior enough to hold their current position at their base

The process of getting certified on a new plane can take several weeks, and when you consider that there are limited resources and that a large percentage of pilots may be looking at plane changes, this is going to get mighty complicated.

It’s not like airlines have hundreds of simulators ready to go. Rather they have enough simulators to plan for usual training needs, not accounting for a third of pilots being laid off.

An Air Canada 737 MAX simulator

Hints of United’s future fleet & base plans

A couple of other interesting things were revealed as part of this note:

  • United doesn’t plan to fly 787s from their Los Angeles hub for up to a full year
  • United’s 777s will be focused solely on Newark and San Francisco for now, and at some point in the future we may again see them in Houston
  • Of 767s, United only plans to fly 767-300s in the foreseeable future, and not 767-400s

United is grounding 767-400s for the foreseeable future

United’s approach: ruthless or realistic?

Throughout this entire pandemic, United’s management has taken a doom-and-gloom approach, much more so than we’ve seen at American and Delta.

I’m not sure if I’m supposed to respect Scott Kirby’s honesty, or if the whole thing is just kind of disgusting. Suffice to say that United employees haven’t gotten any reassurance regarding job security or anything else.

The same day that CARES Act funding was finalized to keep employees at the company through September 30, the airline announced that we should expect layoffs on October 1. That’s not exactly the spirit of the CARES Act.

And that’s just how management has treated employees — suffice to say that they haven’t treated customers any better, from MileagePlus devaluations, to redefining the word “cancelled.”

Bottom line

United Airlines will be “displacing” over a third of pilot bid positions as of June 30. While pilots will continue to be paid through September 30 (in light of the CARES Act), we can expect a similar number of pilots to be laid off as of October 1, unless things change drastically.

How awful for those pilots who finally landed their dream job at a major carrier in the past decade, only to soon find themselves unemployed…

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Jon Berg Guest

I have always admired airline pilots as I have admired no other profession. The training, the skill, is unappreciated by the average Joe traveler. I got my private ticket in Miami in 1979 and likely would have tried to continue upward, had the situation been different at the time.......still a lot of ex-military around, hard to go forward without that background, and my eyesight was not perfect. So the dream died. I was an avgeek from about age 6, long before it was even a word; I have a black/white photo taken in a 707 on my first plane ride, at that time.......big smile on the face! By 1972 I had an English book with tail numbers/nicknames of planes, and would carefully note which one I had seen, at which airport, and when. In recent years I noted wistfully the demand for pilots.....the SHORTAGE, just months ago, and was envious of the young pilots I followed on YouTube. Now, I fear most of them will soon be without a job, after all the sacrifice, achievement. I feel for them and hope that somehow this is resolved and that more of them are able to proceed in their chosen profession.

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Roger Guest

@Lisa - I’ve succeeded at a great many things, economic analysis and recovery being one of them. That we’re in the midst of a self-inflicted pandemic is irrelevant. If there is one lesson that needs to be learned from COVID-19, it is that we move forward as individuals, as businesses, and as a society by overcoming adversity instead of succumbing to it. United Airlines needs to innovate, they need to get creative, and they need to start searching for new and innovative sources of revenue looking forward instead of backward. Perhaps a quote from the past will provide better clarity to your thoughts: <em>So, first of all, let me assert my firm belief that the only thing we have to fear is...fear itself — nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance. In every dark hour of our national life a leadership of frankness and of vigor has met with that understanding and support of the people themselves which is essential to victory.</em> Don’t fear the pandemic. Rise above it.

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Dave Guest

It’s interesting that there is no talk about Delta laying off 20,000 part time employees just before the CARES Act passed. The CEO was in DC and knew what was coming down the line so decided to cut all those jobs. American offered early outs for pilots and 700 or so took the out. Is that a violation of the CARES act? They asked to people to leave and some did. United asked people to take leaves and got blasted for it. They asked, didn’t tell them they had to. By United displacing all those 787 and 777 pilots to smaller aircraft and less CA seats, that will lower the overall payroll without violating the CARES Act because they are getting ready for what will be the new size of all airlines. It’s a bad deal for all of us getting cut at the airline but as someone said “we have to the airline for us to have jobs to come back to”.

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Mark Guest

I can't see that discounting tickets will be an viable option to recovery, if anything ticket prices will be more expensive going forward especially with reduced competition on routes. The fact is that the economic headwinds are simply too great. I'm sure United are crunching the numbers on projected passenger traffic broken down by business/leisure and prepared these preliminary layoffs, with an eye on further cuts later if necessary. Business travel will be down hard for the rest of 2020 as many companies will have financial constraints and well as liability issues for business travel. I'd be surprised if any conferences are scheduled for the remainder of this year. Leisure travel will be equally hard hit until a vaccine is readily available and that is also predicated on people having confidence in their own financial security. All in all, travel companies (including hotel and car rentals) are going to have to make major changes to weather this severe storm. United are at least giving their employees a heads up, which Delta and American have yet to publicly acknowledge. Truly sorry to all those affected through no fault of their own.

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Lisa Guest

Roger said, "Is the upper management at United Airlines completely stupid or what?!? Here’s a novel concept…lower your prices!!! This is Economics 101: Supply and Demand. When supply exceeds demand, lower the price point. This will drive demand, increase revenue, and eliminate the need to lay-off any employees." Roger, the word is dealing with a pandemic; therefore, you can drop airline tickets to $5 per person and the demand will STILL be DOWN. So, that leads me to ask you this question, did you pass Economics 101?

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