atcboy73
Posts: 1084
Joined: Sat Sep 08, 2001 10:09 am

AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 9:26 am

http://wichita.bizjournals.com/wichita/stories/2004/04/05/daily42.html

The article states that AA is looking at making more cuts. Man, I would of thought they would of made all the cuts they could of in the mission they are on now, to cut what, 4 billion dollars from their operation.

What other cuts could they make now?
 
workbench
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 10:38 am

I strongly believe that there is no way AA can make enough cuts to survive. AA is dying a slow death and by this time next year they will be in bankruptcy and soon after only a memory. This is great news for all consumers and LCC!
 
Guest

RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 11:16 am

This is great news for all consumers and LCC!

You couldn't be more wrong.
 
KKMolokai
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 11:21 am

"I strongly believe that there is no way AA can make enough cuts to survive. AA is dying a slow death and by this time next year they will be in bankruptcy and soon after only a memory. This is great news for all consumers and LCC!"

Ignorance is bliss!
We are the people of American Airlines. And we know why you fly.
 
luv2fly
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 11:22 am

I am not sure it is all so doom and gloom at AA, I think they still have work to do, and which airline does not. Now with jet fuel prices what there are that is adding a new wrinkle to each and every airline flying.
You can cut the irony with a knife
 
ckfred
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 12:33 pm

Workbench

AA dying is bad news for shareholders like me, as well as its employees and vendors. The economy really needs 100,000 people losing their jobs simultaneously.

If AA were to go out of business, there would not be enough LCCs to pick up the O&D traffic at ORD

I notice that you like to badmouth AA frequently. Does someone in your family work for a competitor? Or did you simply have a bad experience flying AA?
 
FlagshipAZ
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 12:34 pm

Well since labor costs & fuel are the#1 and #2 expenses of running an airline, I say they could return the 24 leased A300s on that 30-day walkaway agreement with Airbus, but then you'll be cutting capacity & elimidating cargo revenue as well. It's a catch-22 situation there. The Fokkers are going, and the TWA 757s are on their way out as well. Perhaps start asking for volunteers to go from full-time hours to part-time hours without laying people off. All just my ideas only, to cut costs for a better chance of avoiding bankruptcy. Regards.
"Beer is living proof that God loves us and wants us to be happy." --Ben Franklin
 
chgoflyer
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 12:38 pm

workbench... your age is listed 13-15. What the h*ll do you know... go to college when you graduate you can re think your answer.
Will someone please wake me up in 4 years
 
atrude777
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 12:45 pm

I have a sad feeling that STL will be involved in the cuts if its airport and scheduleing wise.....but i sure hope not. I love AA and would love to see them survive, bankrutpcy would not be good, AA is the only airline we have left that will keep the TWA spriirt alive..

ok , ok enough about that lol, but AA claims DFW will get more service so what ARE they cutting back then?
Alex
Good things come to those who wait, better things come to those who go AFTER it!
 
AA787
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 12:49 pm

Workbench-
Even though I have not been on this forum for quite as long as you have, you only have made several anti-AA posts. I can remember when you posted a thread entitled something like "AA to meet its death!!!"
If you have a problem with AA that's fine. HOWEVER, making ridiculous comments like the ones I have seen are inappropriate. This forum is meant for aviation enthusiasts to share their knowledge. It is not about sharing your humble opinion and putting down people's airlines.
If AA were to go out of business, hundreds of thousands of people would go jobless. LCCs could not even come close to filling the gap left by AA leaving the consumer with LESS options!

This thread is about AA cuts...I think they will be forced to cut some flights out of their east coast gateways (quite unfortunately). I could be wrong, but I cant think of anywhere else to cut.

All information is welcome,
AA787
ET In NYC
 
MAH4546
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 12:53 pm

ok , ok enough about that lol, but AA claims DFW will get more service so what ARE they cutting back then?


The article has absolutley no found basis for this "down sizing" other than the author saying so.

Fuel costs are rising, which isn't a good thing. Luckily, it will not be a premanent trend. AA and other airlines will have to feel the pain, but don't expect to it to mean AA will be cutting back. AA plans roughly 15-20% growth at Dallas in the next few years and about 35-40% growth in Miami.

Hypothetically, however, if any city gets cuts, it will be St. Louis. Though don't look for cuts any time soon. The major cutting is pretty much over at AA unless another 9.11-like situation forces thing to change. You will mainly be seeing growth at AA this year, including three new stations: Halifax, St. Lucia Hewanorra, and Torreon (Mexico).
a.
 
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yyz717
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 12:54 pm

If the hourly rates of pay for all unionized staff are higher than the LCC's, that's where they need to cut further.

I dumped at the gybe mark in strong winds when I looked up at a Porter Q400 on finals. Can't stop spotting.
 
ordpark
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 12:59 pm

Workbench -

What an amazingly ignorant response!!
 
fourstripe
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 1:01 pm

I truly hope that AA will survive these difficult times. Luckily, AA has the fleet available to make cuts (largest airline). They can return their Airbus fleet (as previously mentioned).As far as pay for staff, it is the LCC's that pay their crews and agents crap salaries that are hurting the industry. I really hate saying this, but maybe its time the gov't goes back to regulating the airlines.

-David
“Aviation is proof that given, the will, we have the capacity to achieve the impossible.” - Edward Vernon Rickenbacker
 
ckfred
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 1:11 pm

Yyz717

I doubt that the unionized employees will accept further cuts.

The F/A union members were only a few votes short of getting rid of current officers.

The union that represents UA's and NW's mechanics are trying to oust the TWU.

And the pilots never got the pay raise that UA and DL pilots got prior to September 11th, so their pay scale is very low, relative to other legacy carriers. A friend who flies for AA told me that the hourly pay rate of AA pilots flying 737s is less than WN's hourly pay.

 
KKMolokai
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 1:11 pm

There is no imminent danger of AA filing for bankruptcy. AA currently has 3 billion in cash on hand. They're also expanding service, enhancing First Class meal service, and raises across the board are coming in May.

Hardly sounds like a United or USAirways, if you ask me ...

Sure, the rise in fuel costs will be felt, but then again, aren't we all feeling it when we head to the pump?
We are the people of American Airlines. And we know why you fly.
 
BH346
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 1:34 pm

"This is great news for all consumers and LCC!"
Not for smaller cities that are offered connections worldwide on American or some even smaller ones that rely on them for just having air service offered to them. Not to mention those communities can't sustain LCCs anyway.
Northwest Airlines - Some People Just Know How to Fly
 
warren747sp
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 1:37 pm

What about cutting out UA and USAir.?
747SP
 
aa757first
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 1:53 pm

This is great news for all consumers and LCC!

Also posted by Workbench:

4/22/03 It was already fairly likely AA would have failed since, since 9/11/01. Now since yesterday it is a fate sealed in stone. AA will likely be gone by this time next year. They may not even see 2002.

11/13/01 It was already fairly likely AA would have failed since, since 9/11/01. Now since yesterday it is a fate sealed in stone. AA will likely be gone by this time next year. They may not even see 2002.

AAndrew

Got the dates wrong -Edit



[Edited 2004-04-10 06:54:57]
 
qqflyboy
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 3:33 pm

Workbench... I thought we successfully gagged you, but it looks like you've come back from shop class and have joined the forum again. It's nice to see your ignorant, uniformed responses back on a.net. As you can tell, we're all thrilled to see you commenting about AA again. Perhaps class will begin again soon and we can leave the forum to more insightful responses, my own included.
The views expressed are mine alone and do not necessarily reflect my employer’s views.
 
Big777jet
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 4:52 pm

Workbench-

Why are you so negative about American Airlines? Every time I see your post is so negative about American Airlines. You always want to have bankruptcy for them. You shouldn't talk like this. Everyone in A.Net doesn't like your comments. You'd better be quiet and get a life. How do you feel if we talk about your favorite airline to be turn down bankruptcy? Eh? We don't do that!

Big777jet



 
workbench
Posts: 163
Joined: Wed Aug 11, 1999 3:22 am

RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 7:12 pm

Actually I am 18 now, have not updated profile. AA is finally getting a taste of its own medicine. Look at the airlines AA foreced out of business, EA, PA, Vanguard, WestPac, National. Now everyone is comming to AA's defense?
The average airline employee (except pilots and mechanics) is no more skilled or talented than a burger flipper at Mc Donalds. They could just get another job somewhere. I mean come on, does a ticket agent really need to make $20 an hour?????? The ticket agents at the movie theater make around $7.

I hate AA cause their service sucks for the price they charge! I mean come on over $1000 to fly SFOBOS???? WTF????
 
Guest

RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 9:38 pm

I mean come on, does a ticket agent really need to make $20 an hour?????? The ticket agents at the movie theater make around $7.

Most of what you've said is so ignorant that I doubt even the most detailed explanatory response would change your mind. Your level of ignorance is hard to overcome... perhaps it's genetic.

Without shooting holes in your numbers about ticket agent pay...
Tell me the last time a movie theater ticket seller did the following:
-Lifted overweight bags.
-Had to learn an extremely complex computer reservations system.
-Ticketed complex around the world itineraries.
-Worked on reroutes and provided hotel and meal accommodations.
-Any of the additional functions performed by agents at smaller stations who also handle the aircraft at the gate and on the ramp in addition to the front end.

Movie theater ticket seller just counts back change, pushes a button or two, and maybe slides a credit card if they're lucky.
 
AIR757200
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 11:08 pm


They could just get another job somewhere. I mean come on, does a ticket agent really need to make $20 an hour??????

First of all, what are you talking about?

What new hire agent is making $20.00/hr, please state what airline, Workbench. Check your facts. At AA, it takes 11 years to max-out. Starting pay is usually $9.00-$11.00 at the majors. That's in-line with many other industries.
 
LMP737
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 11:21 pm

Workbench:

Did someone from AA burn your house down or something? Because that's the only thing I can come up with that would explain your hatred of AA.

As for your claim that AA forced EA, PA, Vanguard, WestPac and National out of business please provide some proof of this. For some reason I think you can't.
Never take financial advice from co-workers.
 
AA787
Posts: 517
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 11:34 pm

They could just get another job somewhere

If people could just get a job that easily...please explain why thousands of people in this country are unemployed!

I don't care if you think the service suck, I don't care if you think AA charges too much. NOBODY CARES!!! So please please please please keep these stupid thoughts to yourself.

Please try and come up with good arguments that actually are helpful to this forum...It'll save you all of this ridiculing.

AA787
ET In NYC
 
ultrapig
Posts: 568
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RE: AA Might Have To Make More Cuts, But What?

Sat Apr 10, 2004 11:56 pm

Presumably the same number of people will fly with or without AA. If A goes out of business the other airlines will benefit. If US or UA fold first AA will benefit.

The biggest variable expense airlines have is labor-The AA Unions will determine if it survives-Is there a decent wage that their members are willing to accept with similar work rules which will give AA a cost structure that will allow it to make a profit-If the answer is yes it will survive.

Time and again consumers have show that as much as they bitch about service, and frills their number on concern is getting to their destination on time at the cheapest price.

I for one would prefer to do so on AA rather than WN on longer flights and will pay a Few more bucks to do so-but if I'm going to Chicago from STL its price and convenience.
 
blink182
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RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 1:15 am

Workbench,
Let's get things straight, AA did not force PA out of business. PA had been in bankruptcy for I believe(please correct PA fans) since the mid-80s. Pan Am went bankrupt because their attempt to enlarge their domestic presence with the National merger failed and Delta's proposed buyout and downsizing of PA was abandoned at the 11th hour.

Sure, AA probably did a lot to kill Vanguard, but you can't stick your hand into a beehive, grab some honey, and expect to not get stung. Vanguard entered the DFW market and AA only defended it's home turf.

WestPac: AA had NOTHING to do with their bankruptcy. As I recall, Western Pacific did a massive expansion in a really short amount of time. That failed, and they tried to move their operations from COS to DEN which failed completely. I believe Frontier abandoned a last minute buyout.

What did AA do to National? National had no cash period and expanded rather quickly and even then, they were no real threat to AA.

What did AA ever do to Eastern?

The only airline that AA(with WN's help) killed off was Braniff and I refer to that as the DFW War.

As far as I'm concerned, your arguments have no substance. This is not because of your age either(if you are as old as you claim you are, I am younger). Your facts are simply weak, because as LMP737 stated, you have no proof.

An AA bankruptcy would send shockwaves against the US(and potentially the world) economy. As previously stated, 100,000 lost jobs ain't exactly a good thing. Living in a major AA market, an AA bankruptcy would be Armageddon. Yeah, we might get some lower airfares, but is saving $50 on a flight to BWI worth the loss of 100,000 jobs?

-note, I have no relatives who work for AA.

blink
Give me a break, I created this username when I was a kid...
 
qqflyboy
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RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 1:40 am

Back to the thread...

I didn't take from the release that AA would be cutting service anywhere, but rather, performing more cost cuts.Things like using vendor B instead of vendor A because they are cheaper. Increase automation. Remove more unnessecary weight from aircraft. Reduce the number of paperclips purchased. AA has done a great job in reining in the captial expenditures, and needs to tighten them still a little more. It won't be easy, but there is surely more to squeeze. And I HIGHLY doubt they'd turn to labor. I do not think the company could make another case for more wage cuts. They were barely successful the first time.
The views expressed are mine alone and do not necessarily reflect my employer’s views.
 
Thrust
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RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 2:11 am

This could be trouble for STL...only this time AA might take the entire mainline fleet out of there...hope that does NOT happen, we've already suffered enough to ensure AA's survival.
Fly one thing; Fly it well
 
atrude777
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RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 3:17 am

Thrust- I agree, I have a big feeling STL will be involved in these cost cuts, no matter the type it is. I doubt they would go that far by taking the entire mainline fleet out because we would still get them to ORD/MIA/DFW, however, it would not shock me if they just simply reduced it to just MIA/ORD/DFW for connecting services. We have suffered enough, but I dont think we suffered ALOT. We just have to hope the economy reboundes, and quickly please.

Alex
Good things come to those who wait, better things come to those who go AFTER it!
 
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yyz717
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RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 3:25 am

And the pilots never got the pay raise that UA and DL pilots got prior to September 11th, so their pay scale is very low, relative to other legacy carriers.

That's not the relevant measure. If AA pilots are paid more than their counterparts at WN, Spirit, ATA, Sun Country, Frontier, AirTran, then AA pilots are overpaid.

LCC's are setting the standard for revenue and cost models. Legacy carriers must adapt to these models or perish, including AA.

I dumped at the gybe mark in strong winds when I looked up at a Porter Q400 on finals. Can't stop spotting.
 
atcboy73
Posts: 1084
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RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 3:36 am

I don't know how lease or union agreements would play into this situation but here are some thoughts.

Sell or lease the SF340 fleet to an independent operator and then code share with that operator, thus maintaining the cities that can only support the Saab yet reducing the fleet by one aircraft type.

Lease the 70 seat RJs to another operator outside the US and reduce the fleet with yet another aircraft type. There are only 20 of these right?

Sell or lease the A300 fleet and the entire Caribbean system based out of SJU to an independent operator and then code share, resulting in a third aircraft type taken out of the system.

Close the MCI maintenance base and move that work to Tulsa and the Dallas area.

It is my understanding that service to HNL and the other island destinations in not profitable. If this is correct, drop them and start a code share with Hawaiian airlines so that the frequent fliers could still get there.

I don't know how well these would go over with the unions but they would surly go a little ways at reducing cost even future.

 
milemaster
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Joined: Tue Mar 20, 2001 10:19 am

RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 3:55 am

While I'm not the biggest fan of AA, you cannot deny that it's nothing short of amazing what they have accomplished over the past 2 years. While UA, US, & DL are still vomiting serious cash years after the downturn of the industry.. AA appears to have stabilized.

AA is quite simply in a holding pattern until the economy rebounds... their costs are under control, the load factors are excellent, have an incredibly loyal FF following and still offer a superior domestic product in almost every way. Are they making money now? No, not really.. but they're not spiraling down the drain either.

I don't enjoy being gouged regularly for my business travels, but more often than not I'm on AA metal for a reasonable fare - earning miles that are actually worth something.

BTW workbench... you're an idiot.
 
ual777contrail
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RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 3:57 am

Workbench,
If anybody help put the final nail in west pacs coffin it was ual, they hubbed in COS and tried to go toe to toe with ual in DEN. Ed had the plan, they wanted to speed up the results, now out of business.

I also wouldn't say AA help put vanguard out of business either.


UAL 777 CONTRAIL
 
Guest

RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 4:21 am

Sell or lease the SF340 fleet to an independent operator and then code share with that operator, thus maintaining the cities that can only support the Saab yet reducing the fleet by one aircraft type.

Eagle is on a fee-per-departure payment system anyway.... makes them a fixed cost for AA and has given Eagle great incentive to keep their own costs low.

Lease the 70 seat RJs to another operator outside the US and reduce the fleet with yet another aircraft type. There are only 20 of these right?

Still operated cheaper at Eagle than they would be at mainline... and they are filling a hole in the fleet with the retirement of the 90-seat F-100s.

Sell or lease the A300 fleet and the entire Caribbean system based out of SJU to an independent operator and then code share, resulting in a third aircraft type taken out of the system.

The Caribbean is quite profitable for American... why sell it and then codeshare? This may cut costs, but it'd cut revenue as well.
 
UAORD
Posts: 84
Joined: Wed Nov 05, 2003 4:01 am

RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 4:36 am

AA's issue is not its fleet, it is labor like the rest of the airlines. I have no sympathy for the unions, they are eating the hand that feeds themselves.


This is the USA, a free-market economy where supply and demand should dictate the hourly wages and salaries. The manufacturing jobs are going overseas due to ridiculous wages being demanded by the unions, I recently toured a GM plan that is closing in Sparks, NV. This plan has fork-lift operators earning $60,000+ a year. GM is relocating to a newer buidling that does not have any mechanical racking systems, all parts will be handpicked by Union members verus the prior building in which a robot picked the part.


It is nice to finally see more check-in kiosks at the airports, this technology has been around for ever yet how come it has taken so long for airlines to slowly roll-out this kiosks and only in certain markets? The power of the Unions.

 
atcboy73
Posts: 1084
Joined: Sat Sep 08, 2001 10:09 am

RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 5:35 am

I hate to see people loose jobs and I hate to see people take pay cuts. I also hate to see people get replaced by technology.

But the kiosks are an awesome idea and seem to work fine. I was at MCI a few months ago and when I walked up to the ticket counter (NWA) to try getting a timetable I had a very funny feeling. Then I realized there were only two agents at the ticket counter doing nothing. One agent was standing at the kiosks watching and making sure passengers were getting everything taken care of. All the kiosks were being used, all 8 or so.

Personally I love the kiosks but hate the thought that people have lost jobs because of them.

---Staying on topic---

How else, besides pay reductions, could AA reduce costs?


 
Thrust
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RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 5:41 am

I certainly hope AA doesn't go down. For me, it's double the pain, because along with the downfall of AA will be the complete destruction of TWA, just like Pan Am and National. Don't get me wrong, it's not just TWA's presence in AA that makes me like them. I have learned to like AA as a whole...great service, great-looking airplanes, and one of the toughest airlines of the bunch out there. The fall of AA would take the most beautiful livery out of the sky the world has ever known. If AA goes down, STL is almost completely stripped of any airline service it has (need somebody like WN or Frontier here badly).
Fly one thing; Fly it well
 
LambertMan
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RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 5:47 am

While I do think the cuts will come at an expense to STL, I don't think it will be vast because
A. It's apparently performing very well, I don't get home enough nor do I hear financial stats, but rumor over spring break was that they were, "pleasantly surprised."
B. This time, it's not all low yielding, connecting traffic from Moline to Tampa (example). Now it's mainly local, higher yielding non competitive traffic with WN, like people going to BOS who pay an arm and a leg.
C. If they do come, so be it, you know they won't completely pull out their mainline fleet from STL as Thurst suggested, some routes to them are actually fairly valuable, STL-LGA/BOS/DCA/LAX/SFO/MIA. I can assure you that FL would be adding a new city in 2004 if another round of big cuts came, and we wouldn't be talking about the possibility of an F9 focus city. Big grin
D. Most of the routes that aren't profitable at STL have been cut already, i.e. PIT, LAF, PHX, TPA if it doesn't get the yield out of the dumper.

At the very worst, I think we're looking at 40 mainline/ 150 connection. Remeber....they need to keep those flights over something like 187 w/ the gate deal. Thrust, you sound so negative about STL in all of your posts, we still have a decent amount of service and you mention WN, they already have a sizeable presence but they aren't incredibly interested in STL.

[Edited 2004-04-10 22:52:09]

[Edited 2004-04-10 22:53:51]
 
ConcordeBoy
Posts: 16852
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RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 6:19 am

If people could just get a job that easily...please explain why thousands of people in this country are unemployed!

Not to digress, but the answer is quite simple:
because ego & pride in their lifestyle-means, during their former employment, won't allow them to.

I mean really, open a newspaper-- see how many Help Wanted ads are in the classifieds.

Sure the overwhelming majority therein wouldn't appeal to one who once made six figures while working less than 80hrs per month.... but XX number of degrees and YYY number of flight hours in no way guarantees you security in that lifestyle. And that applies to quite a few other high-tech and skilled labor divisions.
Faire du ciel le plus bel endroit de la terre c'est impossible sans Concorde!
 
LMP737
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RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 6:35 am

"It is nice to finally see more check-in kiosks at the airports, this technology has been around for ever yet how come it has taken so long for airlines to slowly roll-out this kiosks and only in certain markets? The power of the Unions."

Uaord:

Just to let you know, the gate agents/ticket counter people at a AA are non-union.
Never take financial advice from co-workers.
 
qqflyboy
Posts: 1615
Joined: Sat Oct 25, 2003 1:47 pm

RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 6:40 am

I am still surprised that everyone is focusing on flight cuts rather than expenditures. I personally don't think there will be any further cuts other than the minor tweaking AA does anyway. Despite popular belief, Hawaii has become a very profittable market in the past ten years, hence the build-up in the market. If they could be flying those planes to other destinations and making more money, they would be. Dan Garton, VP of Marketing, told me in a meeting about a year ago that Hawaiian is no longer the "junk market" it once was.

I doubt there will be more layoffs as there have been some recalls in the past few months. The flights are going out with record loads. It's the costs, not the flights, that need to come under more control in order to bring the cost per ASM down. And I doubt they'll go after labor again.
The views expressed are mine alone and do not necessarily reflect my employer’s views.
 
UAORD
Posts: 84
Joined: Wed Nov 05, 2003 4:01 am

RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 7:30 am

True the gate agents might be non-union members however the union still controls a vast majority of how the airlines operate and what jobs will be replaced by techology etc.


What do you think the skycaps get paid? and who pays them? the airline or the airport? maybe we should rely more on skycaps, on-line checkin, and kiosks.



 
tekelberry
Posts: 1309
Joined: Tue May 13, 2003 6:37 am

RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 8:00 am

Actually I am 18 now, have not updated profile. AA is finally getting a taste of its own medicine. Look at the airlines AA foreced out of business, EA, PA, Vanguard, WestPac, National. Now everyone is comming to AA's defense?
The average airline employee (except pilots and mechanics) is no more skilled or talented than a burger flipper at Mc Donalds. They could just get another job somewhere. I mean come on, does a ticket agent really need to make $20 an hour?????? The ticket agents at the movie theater make around $7.

I hate AA cause their service sucks for the price they charge! I mean come on over $1000 to fly SFOBOS???? WTF????


AA is getting a taste of its own medicine? AA, along with all businesses, are in the business to compete. The fact that an airline can't compete with another company results from pure capitlalism.

No one in an airline is talented except for pilots and mechanics? Anyone can get a job anywhere? Ticket agents make $20 per hour? Not only is that ridiculous, but it also has nothing specific to do with AA.

You're bitter about AA because the 1 or 2 flights you took with them was less than satisfactory? You're mad because a walk-up ticket on a trans-con is $1000? All airlines are guilty of this ridiculous pricing. All airlines are guilty of having a few bad employees that make your service less than enjoyable.

Do you really believe that all airlines are all hunky-dory besides for AA?

[Edited 2004-04-11 01:04:34]
 
BR715-A1-30
Posts: 6525
Joined: Thu May 30, 2002 9:30 am

RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 8:16 am

Workbench, I used to hate AA just like you, but then I opened my eyes, and saw what good they do the economy. Think about a world without AA, DFW would be DEAD pretty much, all those jobs lost, and all of the city's revenue cut back signifcantly. AA is trying hard to stay alive, they are an older company and they don't exactly have the advantages of today's LCCs. They are trying to hang in there. What AA did wrong was buy out TWA. At the time, they thought it good, and it was a good plan. AA was actually planning on a smooth transition, but then 9-11 happened, and it was like entering heavy wake turbulence. AA had to cut STL for economic reasons. THey didn't plan on killing all of the TWA jobs, it just kind of happened. They had to save themselves despite the horrendous outcomes. AA is hanging on a bridgerail right now, so please don't insult them. They are trying to please the passenger, but when the passenger is a complete asshole, they find it kind of hard to be sweet sensation back. Think of the 100s of thousands of people who have jobs because of AA and the other airlines. It is no wonder they fight off competition. So, I think you should actually root for AA. They may have some bad tactics up their sleeve, but without them, they would be dead and unemployment would be huge.
Puhdiddle
 
workbench
Posts: 163
Joined: Wed Aug 11, 1999 3:22 am

RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 8:26 am

Actually the carriers that have their act together such as B6, WN, HP, FL, F9 are all doing very well. It is only because of the majors own stupidity and treating their customers like crap and rapeing the hell out of them every time they fly that they are in this condition. The majority of the US population could care less if the major carriers (AA included) if they fail.
 
tekelberry
Posts: 1309
Joined: Tue May 13, 2003 6:37 am

RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 8:56 am

Actually the carriers that have their act together such as B6, WN, HP, FL, F9 are all doing very well. It is only because of the majors own stupidity and treating their customers like crap and rapeing the hell out of them every time they fly that they are in this condition. The majority of the US population could care less if the major carriers (AA included) if they fail.

That's actually not why. Any major that treats their customers like crap would not be a major. The major's cost is higher than a LCC, hence the name.

They don't rape the hell out of customers. Maybe if someone wants to fly on 1 day notice when all the low-fares are sold out, they may have to pay a higher fare than those who booked months in advance.

The majority of the population could care less if majors failed? If that were true, the majority of the US population doesn't care about the economy. Most people care about our economy.

[Edited 2004-04-11 01:58:11]
 
ltbewr
Posts: 12361
Joined: Thu Jan 29, 2004 1:24 pm

RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 11:04 am

AA and other airlines should consider cuts like this: I have wondered why may airlines operate some flights, on certain days to/from certain points when the demand for them is insignificant. For example, a 7 day a week 767 coast to coast in mid-afternoon could be operated 5-6 days a week not operating when usually have few passangers (although repositioning may be a need sometimes). Let the pax take another flight either in another point in the day or on another airline. Perhaps airlines need some flexabilty from anti-trust regulations in the USA to allow them to work out overlapping and underutilized flights. This way there would be fewer hours for labor, fuel and wear and tear and other reductions in costs.
 
ncflyer
Posts: 504
Joined: Tue Sep 05, 2000 7:03 pm

RE: AA Might Have To Make More Cuts, But What?

Sun Apr 11, 2004 11:18 am

ltbewr, you are on to some thing. CO is the only airline I'm aware of that severly cuts down schedules some days of the week. Here at CLE, the Sat. schedule is a shadow of the rest of the week. Sun, Tue and Wed are a smaller schedule than M, Th, Fr. CO is apparently focusing on highest yield business traveler days. Either CO knows something no one else does, or else CO is awfully dumb to have the multi-million dollar birds sitting for some days.

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