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AMR Needs $1Billion In Cost Cuts!  
User currently offlineUAL777UK From United Kingdom, joined Nov 2005, 3356 posts, RR: 1
Posted (8 years 2 months 3 weeks 2 days 1 hour ago) and read 3052 times:

Are the Pilots and Flight Attendants being asked to chip in again?

http://yahoo.reuters.com/stocks/Quot...4-46_N10426928&symbol=AMR.N&rpc=44

38 replies: All unread, showing first 25:
 
User currently offlineTimboflier215 From United Kingdom, joined May 2005, 1323 posts, RR: 1
Reply 1, posted (8 years 2 months 3 weeks 1 day 18 hours ago) and read 2902 times:

Thats a fair amount of cash! How will they achieve this? Job cuts? Cutting a/c or routes? The article doesn't say...

User currently offlineSLCUT2777 From United States of America, joined Dec 2005, 4028 posts, RR: 11
Reply 2, posted (8 years 2 months 3 weeks 1 day 15 hours ago) and read 2732 times:

Quoting UAL777UK (Thread starter):
Are the Pilots and Flight Attendants being asked to chip in again?

AA is top heavy with mid-level management, I think it is time they felt some of the pain. What AA really needs to do to save moeny is to spin-off theri "Eagle" division as everyone else is doing with theri network connection carriers. It isn't a good business case to hang onto the eagle division when a good network connection contract is all thatis needed to make both entities flourish.



DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
User currently offlineBigGSFO From United States of America, joined Jun 2005, 2915 posts, RR: 6
Reply 3, posted (8 years 2 months 3 weeks 1 day 15 hours ago) and read 2732 times:

Am I missing something or isn't $700MM in savings already calculated into this $1B figure?

Damn, but these airlines talk in millions and billions - just boggles the mind of us average folk living paycheck to paycheck.


User currently offlinePar13del From Bahamas, joined Dec 2005, 7075 posts, RR: 8
Reply 4, posted (8 years 2 months 3 weeks 1 day 15 hours ago) and read 2730 times:

How much money did Eagle loose for AA last year?
AA / Eagle are unique because they in large part share the name, colous
etc. nothing like flying one leg on Comair and the next on DL.
Consistency of service especially when passengers swtich carriers is easier to implement with AA / Eagle than with a "connection contract"

Outsourcing is a quick fix, which oft times have long term negative consequences, never mind "Menses", they are the exception rather than the rule, most take a year or two to show negative effects.


User currently offlineLaxintl From United States of America, joined May 2000, 24888 posts, RR: 46
Reply 5, posted (8 years 2 months 3 weeks 1 day 14 hours ago) and read 2719 times:

The Allied Pilot Association board a few months ago entered into discussions with AA to help provide economic savings to the company. While the APA is primarily pushing productivity improvements they are very aware some sort of concessions will be required.

This $1 billion company figure will likely add some urgency to the talks and encourage the union to come up with some savings on its own voluntary accord versus harsher forced cuts down the road.



From the desert to the sea, to all of Southern California
User currently offlineKen777 From United States of America, joined Mar 2004, 8191 posts, RR: 8
Reply 6, posted (8 years 2 months 3 weeks 1 day 14 hours ago) and read 2675 times:

Quoting SLCUT2777 (Reply 2):
AA is top heavy with mid-level management, I think it is time they felt some of the pain.

I think that's coming - AA will follow BA's lead and take a hard look at their management structure. There are many tasks that can be done at a lower level, and some that don't need to be done at all. How much money was spent figuring out that AA can save money by taking the pillows out of the planes?

The other airline for AA to follow is SQ, where they are cutting costs in areas that will not impact the customer. Now that is a unique idea!

I don't see the unions going for additional wage cuts, but I do see them working on improving productivity. The unions are aware that AA is working hard to keep the retirement plans in effect and that is the golden egg they have to work together on to protect. There have been several articles in the local TUL paper on turning the local maintenance center into a profit center for AA and the unions and workers there are working full speed to make it happen. The other unions need to take the same approach, generating profits that will maintain wages and retirement.


User currently offlinePolymerPlane From United States of America, joined May 2006, 991 posts, RR: 3
Reply 7, posted (8 years 2 months 3 weeks 1 day 14 hours ago) and read 2649 times:

Is AA planning to make $1bln profit this year? I thought last quarter it posted a loss, but less than $100mil or something. with $1bln cost cutting measure this year they will make about $1bln in profit considering last quarter is the weakest quarter in the year. That is a huge news.

Cheers,
PP



One day there will be 100% polymer plane
User currently offlineDALNeighbor From United States of America, joined Oct 2005, 598 posts, RR: 0
Reply 8, posted (8 years 2 months 3 weeks 1 day 14 hours ago) and read 2649 times:

How about stop the unprofitable flying they are doing out of DAL just like they stopped flying out of MDW. Then stop wasting $1+million and counting on fake grassroots organizations like Stop-and-Think.


Wright Amendment = Federally Engineered AA Price Gouging
User currently offlineJetdeltamsy From United States of America, joined Nov 2000, 2987 posts, RR: 8
Reply 9, posted (8 years 2 months 3 weeks 1 day 14 hours ago) and read 2587 times:

I interact with many AA employees, mostly flight crews. I can say that it is my impression that wage cuts are not going to be voluntarily forthcoming. Generally speaking, AA crews are a somewhat restless bunch.


Tired of airline bankruptcies....EA/PA/TW and finally DL.
User currently offlineDAYflyer From United States of America, joined Sep 2004, 3807 posts, RR: 3
Reply 10, posted (8 years 2 months 3 weeks 1 day 13 hours ago) and read 2556 times:

Quoting SLCUT2777 (Reply 2):
is top heavy with mid-level management, I think it is time they felt some of the pain.

A friend of mine who is in AA mgmnt said that they have had substantial RIF at mid-management leve already since 9/11. I wonder how much dead wood they have left......



One Nation Under God
User currently offlineTbird From United States of America, joined Oct 2001, 851 posts, RR: 19
Reply 11, posted (8 years 2 months 3 weeks 1 day 13 hours ago) and read 2507 times:

AA might be forecasting their expenses based on further increase in the price of oil, which is certainly not unrealistic. At this point the cuts they made in the past won't cut the rug if the price of fuel hits $100 a barrel as some predict. The airlines are going to have to go back and revaluate the business plans they made just a year ago.

User currently offlineBobnwa From United States of America, joined Dec 2000, 6449 posts, RR: 9
Reply 12, posted (8 years 2 months 3 weeks 1 day 13 hours ago) and read 2504 times:

Quoting UAL777UK (Thread starter):
Are the Pilots and Flight Attendants being asked to chip in again?

Why would you just ask about the pilots and flight attendants? Do you think they are the only groups that have "chipped in" in the past?

Quoting SLCUT2777 (Reply 2):
AA is top heavy with mid-level management, I think it is time they felt some of the pain

I think you will find that mid-level management has already contributed more than their share. Do you have other info?


User currently offlineBNinMSY From United States of America, joined Nov 2005, 332 posts, RR: 0
Reply 13, posted (8 years 2 months 3 weeks 1 day 12 hours ago) and read 2449 times:

Look for them to drop a major international route in the coming months.

What they NEED to do is stop farting around at DAL ... and get down to business at DFW and other hubs ... focus on their turf... and not WN's.
That is the stupidest move I've seen ... AGAIN!


User currently offlineBigGSFO From United States of America, joined Jun 2005, 2915 posts, RR: 6
Reply 14, posted (8 years 2 months 3 weeks 1 day 12 hours ago) and read 2445 times:

Quoting BNinMSY (Reply 13):
Look for them to drop a major international route in the coming months.

Such as?


User currently offlineCmk10 From United States of America, joined Feb 2004, 513 posts, RR: 3
Reply 15, posted (8 years 2 months 3 weeks 1 day 11 hours ago) and read 2342 times:

Perhaps AA needs to impliment some of the same fuel saving measures I've used to keep gas prices down in my 11 year old SUV.

- Don't use the AC, open the windows.
- Try gliding more, it saves gas and if those clowns at Air Transat can do it...so can American!
- Don't go so fast, that uses more gas, and accelerate gradually instead of rapidly...sure some passengers will be delayed but as AA is a legacy carrier in the US in 2006, it's not like they're doing that much to make passengers happy anyway.

 bouncy 



"Traveling light is the only way to fly" - Eric Clapton
User currently offlineLumberton From United States of America, joined Jul 2005, 4708 posts, RR: 20
Reply 16, posted (8 years 2 months 3 weeks 1 day 11 hours ago) and read 2311 times:

Could AA be setting the stage for the plunge into Chapter 11? I seriously doubt that their unions will give any more...I couldn't blame them.


"When all is said and done, more will be said than done".
User currently offlineAAden From United States of America, joined Jan 2006, 835 posts, RR: 0
Reply 17, posted (8 years 2 months 3 weeks 1 day 4 hours ago) and read 2160 times:

AA needs to stop wasting money in dal and put it where it belongs in the bank
as said above


User currently offlineHunUtazo From United States of America, joined Jul 2005, 235 posts, RR: 1
Reply 18, posted (8 years 2 months 3 weeks 1 day 4 hours ago) and read 2146 times:

they'll become more efficient and then merge with nwac


dude
User currently offlineQqflyboy From United States of America, joined Oct 2003, 2266 posts, RR: 13
Reply 19, posted (8 years 2 months 3 weeks 1 day 3 hours ago) and read 2141 times:

Quoting BigGSFO (Reply 3):
Am I missing something or isn't $700MM in savings already calculated into this $1B figure?

BigGSFO... you said it. People are just not reading the article that is linked in the thread starter. $700 million of this $1B is already accounted for, leaving the company to find $300 million more in cost reductions.

Pilots are currently working on some contract changes, but it is strictly involving work rule changes that will increase productivity. NO pay cuts have been discussed with any work group and they are not forth coming at this time. I agree with the idea that if additional pay cuts are considered they won't come easily... certainly not voluntarily. Things would have to take a serious dive at AA for that to happen. Fortunately, that isn't predicted. In fact, Wall Street predicts AA will make a full year profit for '06.



The views expressed are mine alone and do not necessarily reflect my employer’s views.
User currently offlineAA1818 From Trinidad and Tobago, joined Feb 2006, 3429 posts, RR: 4
Reply 20, posted (8 years 2 months 3 weeks 1 day 3 hours ago) and read 2129 times:

Perhaps the savings would be too miniscule, but how much extra does it cost to have AA printed on the napkins, cups and other little stuff on board? How about not giving a napkin with every single drink- one napkin with the drink and bag of corn chips is good enough! What about stationary, the boarding pass navy blue slips- any chance on cutting those out? just stick the boarding pass in the passport for the passenger. I'm sure we can think of 100's of little things that will save money. Obviously not reaching the 1bn on their own, but meaning less wage/ staff cuts.

I also agree that management is probably top heavy, as with most established organizations, it's only natural.

Let me know what you think and lets try to think of more tiny areas where AA could potentially save 1m each?

Cheers
AA1818



“The moment you doubt whether you can fly, you cease for ever to be able to do it.” J.M. Barrie (Peter Pan)
User currently offlineQQflyboy From United States of America, joined Oct 2003, 2266 posts, RR: 13
Reply 21, posted (8 years 2 months 3 weeks 1 day 3 hours ago) and read 2121 times:

AA1818... some of the things you've mentioned have already been done/considered. The ticket jackets AA uses today are much smaller and much less expensive than ones used in the past.

As far as printing 'AA' on the napkins and cups... this has been asked in the past and the company says it is necessary so that catering ensures the product AA buys is ending up on our aircraft, and our aircraft only. That is why nearly EVERYTHING from catering has an AA on it somewhere: carts, inserts, coffee pots, utensils... you name it, it has an AA on it. It'd be even more expensive for AA to be inadvertantly supplying other carriers with catering items. Of course, it wouldn't be intentional, but when catering boards other airline product on our flights, if we report it, AA doesn't pay for it.

Along these lines, AA is, however, making money on the napkins. For the past few years, AA has partnered with AMEX and Citi to print advertising on the napkins, providing the napkins at no cost to AA and bringing in some much needed revenue. Expect to see more of this in the future.



The views expressed are mine alone and do not necessarily reflect my employer’s views.
User currently offlineBNinMSY From United States of America, joined Nov 2005, 332 posts, RR: 0
Reply 22, posted (8 years 2 months 3 weeks 7 hours ago) and read 2000 times:

So, now that AA is dropping SJC-NRT, I do wonder where they will deploy that widebody to make more $$?

User currently offlinePSA727 From United States of America, joined Feb 2006, 974 posts, RR: 0
Reply 23, posted (8 years 2 months 3 weeks 7 hours ago) and read 1983 times:

I understand about streamlining costs and reducing expenditures,
but I think they should first attempt to raise more revenues by
dropping unprofitable and marginal routes as well as stop offering
ridiculously low fares on transcon and Florida routes before they
try to squeeze another dime out of their employees.

How would you even phrase the question?

"In order for us to still offer $198 NY-California R/T fares we need
to cut your pay to save money."



fly high, pay low...Germanwings!
User currently offlineLaxintl From United States of America, joined May 2000, 24888 posts, RR: 46
Reply 24, posted (8 years 2 months 3 weeks 7 hours ago) and read 1961 times:

Quoting PSA727 (Reply 23):
"In order for us to still offer $198 NY-California R/T fares we need
to cut your pay to save money."

To the regret of airlines, they do not determine fares. We the consumers are the ones that decide, with the air carriers having minimal pricing power. A true capitalistic supply-demand equation.

Only airline recent success has been a few small incremental price increases they have been able to pass on during this spring, largely as a result of moderating capacity in many markets. For the air carriers its a double edge sword to find that ideal middle ground where they don't loose more passengers than what any potential fare increase might provide in offsetting revenue.

Ultimately the consumer decides with our dollars whether we will accept for instance the transcon fare which was $298 round trip going for $498 all of a sudden.



From the desert to the sea, to all of Southern California
25 FURUREFA : I dont think so, they and CO are the in the best position. AA only lost $92 million compared with the much larger losses of UA, DL and NW. They have
26 Atrude777 : I had noticed that too!! I was extremely confused for a minute but figured it as advertising of some sort, thanks for clearing that up!! Alex
27 AeroWesty : AA can't buy authorities that the Brazilian gov't is only authorized by treaty to allocate to a Brazilian carrier.
28 Commavia : They have been doing that for years. It's called yield management, and AA has it down better than just about anyone else, seeing as they continue to
29 MDorBust : Cryptic answer: NT 4.0 server boxes
30 HunUtazo : Ultimately, the case has been made for consolidation, the price will be set by the airlines, and if they have to park alot of capacity or draw-down t
31 FURUREFA : Thanks for clearing that up, I heard that they had 1000 but I wasn't sure (maybe the person was confusing AMR/AA?). I hope AA becomes profitable soon
32 Par13del : A week or so ago, I read somewhere about AA doing things to reduce fuel cost, was either here or an article online. DFW is a hugh AA base with a major
33 Commavia : For management purposes, AMR = AA. AMR's officers are AA's top officers (CEO Arpey, EVP Marketing Garton, EVP Finance Horton, SVP Legal Kennedy, et a
34 BigGSFO : What...? Did I miss something?
35 Post contains images 2H4 : Well, at least they stopped the banner-towing... 2H4
36 Post contains links AeroWesty : AA Dropping SJC-NRT (by Dc10s4ever May 13 2006 in Civil Aviation)
37 Ckfred : A major problem is ORD. The weather has been crummy the last two days. Yesterday, I was on AA 1082. We were supposed to depart LAS at 9:41, and we pus
38 Commavia : There's one problem with asking Eagle's unions for concessions, though. Many of Eagle's employees are already at or near minimum wage, and even the u
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