The restructuring path will not be easy and will require difficult decisions. Our goal was to make fundamental changes to the Airport Services operation that are necessary for a long-term, sustainable cost structure.
Currently, we complete more Fleet Service functions in-house than any other airline. For example, every other major U.S. airline relies on lower cost independent contractors or their flight crews to clean aircraft for the dayline operation. The new agreement outsources all dayline cabin cleaning.
Some of the other changes include outsourcing all Fleet Service work at stations with fewer than approximately 15 departures per day, which allows us to focus resources on our larger markets; outsourcing some cargo and all mail handling Fleet Service work; and outsourcing the fueling work at the 11 remaining stations where TWU-represented employees complete this work.
The scope changes in the new agreement preserve approximately 1,300 jobs that would have been outsourced under the original term sheet conditions.