Envoy Air continued to shrink on Friday as the regional carrier's chief executive told employees it will shutter its crew base and layoff about 50 employees in maintenance and management in Miami.
The move comes as American Airlines shifted its regional flying in Miami from the smaller 50-seat regional jets that Envoy operates to larger 76-seat aircraft.
Envoy chief executive Pedro Fabregas said the carrier will operate only 37 daily departures from Miami for American after December 18, down from 60 daily departures it currently operates. Instead of using Envoy, American is using other regional carriers that is has contracted with to operate larger aircraft.
"As American continues to optimize its network, there no doubt will be other changes that affect us," Fabregas wrote in a letter sent to employees on Friday. "I truly regret the adverse impact these changes will have on some of our people in [Miami]."
American's decision to shift some of its wide-body aircraft maintenance to Miami also means that Envoy will no longer have maintenance hangar space. As a result, employees may be moved to other Envoy facilities, Fabregas said.
The carrier expects to cut 50 positions in Miami, particularly in maintenance and management. It does not expect to layoff any pilots or flight attendants because of the reduced flight schedule but will close its crew base by April 2015.
Envoy operates regional flights for American Airlines under the American Eagle brand. American has 11 regional carriers that it contracts with to operate regional flights, including its three wholly-owned subsidiaries, Envoy Air, Piedmont Airlines and PSA Airlines.
Earlier this year, Envoy pilots rejected a contract earlier this year that would have guaranteed the deployment of larger regional jets with Envoy in return for pay band freezes. Without a revised pilot contract, American has decided to take the 47 large 76-seat regional jets from Envoy and give them to PSA while also retiring Envoy’s smaller 44-seat ERJ-140 aircraft. As a result, Envoy has continued to shrink its operations as it conducts less flying for American.
Keep reading for the full letter from Fabregas.
-Andrea Ahles
American to Adjust Regional Flying, Maintenance in Miami
Dear Envoy Team:
As part of American’s integration work to optimize its network with US Airways, American has informed us that it is adjusting its regional flying in Miami (MIA) to include fewer 50-seat regional jets, beginning in December. American also is moving some of its heavy maintenance operation for wide-body aircraft to MIA.
Envoy is the largest operator in American’s regional network and will remain so after these changes in Miami. However, American’s new schedule and maintenance plans in MIA mean we must optimize our operation and position our employees in markets where they can help us maximize profitability and provide the necessary regional feed for the mainline operation.
Following the Dec. 18 schedule change, Envoy will operate 37 daily departures from MIA, using 12 50-seat EMB-145 aircraft for scheduled and charter services. This compares to 60 flights at the hub as of Oct. 1, using 23 aircraft. The 50-seat EMB-145 aircraft that will no longer be needed in MIA will be used to backfill Envoy flying in other locations, covering the planned retirement of 44-seat EMB-140 aircraft.
As American continues to optimize its network, there no doubt will be other changes that affect us. We must adjust in a way that creates the most efficient and cost-effective operation for Envoy, so we are poised to capitalize on future opportunities. I truly regret the adverse impact these changes will have on some of our people in MIA. These decisions are never easy, but we will continue to make the necessary business decisions to ensure the long-term success of our company.
American’s introduction of large regional jets in MIA represents a growth opportunity for Envoy’s Customer Service employees, as our people will continue to perform ground handling services for all American Eagle branded operations at the hub. Because the EMB-175 aircraft seats 26 more passengers than the outgoing EMB -145s, Envoy will add ground handling employees to support the new schedule.
While no Envoy pilots or flight attendants will be furloughed as a result of this schedule change, we will phase out our pilot and flight attendant bases in MIA. This will begin in January 2015, with closure complete by April 2015. Envoy flying in MIA will be staffed out of our DFW crew bases, bridging that flying over cities served by both MIA and DFW. Displacements will be handled according to our collective bargaining agreements.
To accommodate American’s increased need for wide-body maintenance and following the schedule change, Envoy will no longer maintain hangar space in MIA. Following the schedule change, line maintenance tasks requiring a hangar will shift to other locations in the Envoy maintenance system. Envoy line maintenance coverage and certain overnight check work will continue at the terminal. All TWU-represented employees in MIA who are affected by the reduced maintenance staffing requirement will be advised of positions at other locations within the Envoy system, in accordance with the provisions of their collective bargaining agreement.
We will also work with other employees who are affected by the reduced flying schedule to assist them with applying for available openings elsewhere in the company. If these employees want to stay with Envoy, we believe there are opportunities around our system for them to do so. We are still working to determine the exact impact, but anticipate reducing approximately 50 Envoy positions among all of the impacted departments in MIA, including maintenance, management and support staff.
It is up to all of us to stay focused, believe in our future at Envoy and adapt to these changes in a way that makes long-term sense for our employees and company. We serve American’s customers well and we must continue to provide the same outstanding service that will convince American that Envoy is their best choice, now and in the future. If we work together toward this common goal, I know we will succeed.
Thank you for all you do – for our customers and each other.
Pedro Fábregas
President & CEO