FedEx Express is encouraging its pilots to take jobs at a regional passenger carrier due to a decline in package volumes. The airline is overstaffed and cannot guarantee pilots more than the minimum number of hours set in their contracts [c23533ce]. Pilots who sign on with the feeder airline, PSA, will have the opportunity to move up to American Airlines in five years. However, some FedEx pilots are unhappy with the suggestion, stating that they could go straight to a larger airline [c23533ce]. FedEx is prioritizing cost controls and plans to eliminate $4 billion in structural costs by 2025. The company's mainline jet fleet has grown, but flight utilization has underperformed [c23533ce]. FedEx and the Air Line Pilots Association are scheduled to hold a bargaining session in November [c23533ce].
In a related development, American Airlines has announced that it will be laying off 656 employees who work in customer support roles as their jobs are consolidated into other teams. The change will affect 335 employees in Phoenix and 321 in Dallas-Fort Worth who work on American's customer relations, central baggage resolution, and AAdvantage loyalty program service groups. Some of the workers' responsibilities will be moved to a new, smaller 'Customer Success' team that will aid travelers with multiple problems in one trip. Remaining functions will be shifted to existing international contact centers. The laid-off employees will have the opportunity to apply for new positions within American Airlines or receive severance and job placement support [38f83203].
American Eagle is American Airlines' regional airline division, consisting of six separate carriers: Envoy Air, PSA Airlines, Piedmont Airlines, Air Wisconsin, Republic Airways, and SkyWest Airlines. Envoy Air is the largest wholly-owned subsidiary, operating 162 aircraft including Embraer E175 and E170. PSA Airlines operates 141 aircraft including Bombardier CRJ-700 and CRJ-900. Piedmont Airlines operates 53 aircraft including Embraer ERJ-145. Air Wisconsin operates 63 aircraft including Bombardier CRJ-200LR and CRJ-200ER. Republic Airways operates 205 aircraft including Embraer E175 and E170. SkyWest Airlines operates 544 aircraft including Bombardier CRJ-200, CRJ-550, CRJ-700, CRJ-900, and Embraer E175. These airlines collaborate with American Airlines and other major carriers, serving various destinations across the US [8804d7be].