UAL777UK
Topic Author
Posts: 2107
Joined: Sun Nov 20, 2005 1:16 am

AMR Needs $1Billion In Cost Cuts!

Thu May 11, 2006 4:44 pm

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
 
timboflier215
Posts: 804
Joined: Sat May 21, 2005 7:54 am

RE: AMR Needs $1Billion In Cost Cuts!

Thu May 11, 2006 11:40 pm

Thats a fair amount of cash! How will they achieve this? Job cuts? Cutting a/c or routes? The article doesn't say...
 
User avatar
SLCUT2777
Posts: 3407
Joined: Sun Jan 01, 2006 12:17 am

RE: AMR Needs $1Billion In Cost Cuts!

Fri May 12, 2006 3:09 am

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!
 
BigGSFO
Posts: 2213
Joined: Sun Jun 12, 2005 5:27 am

RE: AMR Needs $1Billion In Cost Cuts!

Fri May 12, 2006 3:13 am

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 avatar
par13del
Posts: 6670
Joined: Sun Dec 18, 2005 9:14 pm

RE: AMR Needs $1Billion In Cost Cuts!

Fri May 12, 2006 3:27 am

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.
 
LAXintl
Posts: 20183
Joined: Wed May 24, 2000 12:12 pm

RE: AMR Needs $1Billion In Cost Cuts!

Fri May 12, 2006 3:38 am

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
 
Ken777
Posts: 9024
Joined: Thu Mar 11, 2004 5:39 am

RE: AMR Needs $1Billion In Cost Cuts!

Fri May 12, 2006 3:55 am

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.
 
PolymerPlane
Posts: 832
Joined: Thu May 11, 2006 1:12 am

RE: AMR Needs $1Billion In Cost Cuts!

Fri May 12, 2006 4:00 am

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
 
dalneighbor
Posts: 589
Joined: Mon Oct 03, 2005 12:04 pm

RE: AMR Needs $1Billion In Cost Cuts!

Fri May 12, 2006 4:02 am

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
 
jetdeltamsy
Posts: 2688
Joined: Tue Nov 14, 2000 11:51 am

RE: AMR Needs $1Billion In Cost Cuts!

Fri May 12, 2006 4:32 am

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.
 
DAYflyer
Posts: 3546
Joined: Wed Sep 08, 2004 9:35 pm

RE: AMR Needs $1Billion In Cost Cuts!

Fri May 12, 2006 4:47 am

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
 
Tbird
Posts: 801
Joined: Wed Oct 31, 2001 3:09 am

RE: AMR Needs $1Billion In Cost Cuts!

Fri May 12, 2006 5:11 am

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.
 
bobnwa
Posts: 4460
Joined: Fri Dec 22, 2000 12:10 am

RE: AMR Needs $1Billion In Cost Cuts!

Fri May 12, 2006 5:13 am

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?
 
BNinMSY
Posts: 217
Joined: Wed Nov 23, 2005 12:19 pm

RE: AMR Needs $1Billion In Cost Cuts!

Fri May 12, 2006 5:34 am

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!
 
BigGSFO
Posts: 2213
Joined: Sun Jun 12, 2005 5:27 am

RE: AMR Needs $1Billion In Cost Cuts!

Fri May 12, 2006 5:38 am

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

Such as?
 
CMK10
Posts: 1826
Joined: Sat Feb 28, 2004 10:56 am

RE: AMR Needs $1Billion In Cost Cuts!

Fri May 12, 2006 7:01 am

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
 
Lumberton
Posts: 4176
Joined: Fri Jul 29, 2005 7:34 am

RE: AMR Needs $1Billion In Cost Cuts!

Fri May 12, 2006 7:24 am

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".
 
aaden
Posts: 774
Joined: Mon Jan 09, 2006 9:49 am

RE: AMR Needs $1Billion In Cost Cuts!

Fri May 12, 2006 2:13 pm

AA needs to stop wasting money in dal and put it where it belongs in the bank
as said above
 
HunUtazo
Posts: 229
Joined: Sat Jul 23, 2005 9:17 am

RE: AMR Needs $1Billion In Cost Cuts!

Fri May 12, 2006 2:33 pm

they'll become more efficient and then merge with nwac
dude
 
qqflyboy
Posts: 1615
Joined: Sat Oct 25, 2003 1:47 pm

RE: AMR Needs $1Billion In Cost Cuts!

Fri May 12, 2006 2:44 pm

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.
 
aa1818
Posts: 1515
Joined: Sat Feb 04, 2006 2:03 am

RE: AMR Needs $1Billion In Cost Cuts!

Fri May 12, 2006 2:54 pm

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)
 
qqflyboy
Posts: 1615
Joined: Sat Oct 25, 2003 1:47 pm

RE: AMR Needs $1Billion In Cost Cuts!

Fri May 12, 2006 3:08 pm

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.
 
BNinMSY
Posts: 217
Joined: Wed Nov 23, 2005 12:19 pm

RE: AMR Needs $1Billion In Cost Cuts!

Sat May 13, 2006 10:46 am

So, now that AA is dropping SJC-NRT, I do wonder where they will deploy that widebody to make more $$?
 
PSA727
Posts: 845
Joined: Mon Feb 06, 2006 7:49 am

RE: AMR Needs $1Billion In Cost Cuts!

Sat May 13, 2006 11:01 am

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!
 
LAXintl
Posts: 20183
Joined: Wed May 24, 2000 12:12 pm

RE: AMR Needs $1Billion In Cost Cuts!

Sat May 13, 2006 11:12 am

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
 
FURUREFA
Posts: 635
Joined: Mon Mar 01, 2004 2:26 am

RE: AMR Needs $1Billion In Cost Cuts!

Sat May 13, 2006 11:22 am

Quoting Lumberton (Reply 16):
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.

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 also already saved $700 mln, and only need to save another $300 mln. They have A LOT of VPs (I think something like a 1000, thats what I heard and I may be wrong) and HAVE to demote, promote or lay off some. There are also issues with employee morale right now, they need to make a performance review of all the GAs and F/As (which would be hard because of APFA) and retrain or let go those which have a bad attitude (I dont blame them). I have heard that their CDG routes are unprofitable and they will be reducing those frequencies, I think they should control as much of South/Central America and the Carribean. I think they should try some more intra South American routes (buy RG's route authorities if they go BK and if possible).

Thats my 2 cents!

Matt
 
atrude777
Posts: 4258
Joined: Wed Aug 13, 2003 11:23 pm

RE: AMR Needs $1Billion In Cost Cuts!

Sat May 13, 2006 11:24 am

Quoting QQflyboy (Reply 21):
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.

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
Good things come to those who wait, better things come to those who go AFTER it!
 
AeroWesty
Posts: 19551
Joined: Sat Oct 30, 2004 7:37 am

RE: AMR Needs $1Billion In Cost Cuts!

Sat May 13, 2006 11:30 am

Quoting FURUREFA (Reply 25):
(buy RG's route authorities if they go BK and if possible).

AA can't buy authorities that the Brazilian gov't is only authorized by treaty to allocate to a Brazilian carrier.
International Homo of Mystery
 
commavia
Posts: 9651
Joined: Mon Apr 25, 2005 2:30 am

RE: AMR Needs $1Billion In Cost Cuts!

Sat May 13, 2006 12:00 pm

Quoting PSA727 (Reply 23):
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.

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 recognize double-digit increases in unit revenue each quarter. AA has done an excellent job of increasing their revenue, better than virtually any other airline, and now generally outperforms just about every other U.S. carrier in unit revenue, and certainly derives a substantial yield premium over many of its legacy competitors. It's easy for many (including labor) to say, "stop coming to us for costs, you have to worry about the revenue side to," but the reality is that -- in AA's case -- revenue has been a major focus, as evidenced by AA's astounding success in these markets.

On the issue of "ridiculously low fares," AA knows what it's doing with those "ridiculously low fares on transcon and Florida routes." They've been managing those low fares for 30 years, and they know a lot better than you or I how to manage them now. While you may see "ridiculously low" fares in certain markets these days (although in my recent experience, the days of post-9/11 "ridiculously low" fares are mostly gone) that is almost certainly applicable to only a few seats on the plane. Most seats on the plane sell for a much higher price, and the average fares in these markets are most likely not "ridiculously low," or AA and other carriers who didn't feel they could be economically competitive would already have left.

Quoting FURUREFA (Reply 25):
They have A LOT of VPs (I think something like a 1000, thats what I heard and I may be wrong

AA has nowhere near 1000 Vice Presidents. The company has a grand total of 43 corporate officers, including the CEO (Mr. Arpey), 13 senior officers (Executive and Senior Vice Presidents) and 29 Vice Presidents.
 
MDorBust
Posts: 4914
Joined: Fri Sep 30, 2005 10:10 pm

RE: AMR Needs $1Billion In Cost Cuts!

Sat May 13, 2006 12:11 pm

Cryptic answer: NT 4.0 server boxes
"I KICKED BURNING TERRORIST SO HARD IN BALLS THAT I TORE A TENDON" - Alex McIlveen
 
HunUtazo
Posts: 229
Joined: Sat Jul 23, 2005 9:17 am

RE: AMR Needs $1Billion In Cost Cuts!

Sat May 13, 2006 12:22 pm

Quoting Laxintl (Reply 24):
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.

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 to profitability they will, if as a necessary consequence of $75-100 oil, capacity will be parked.



Then of course low cost carriers won't be able to raise ticket prices enough to offset for fuel, discretionary traveler will stay home, incrementally, however the rest will travel as necessary on the full fare full service companies, even though and after the process of combination is finalized, the lcc will wither and then die, transfering even more pricing power.



Ticket prices have only just begun to rise, and rise, and rise and......etc.,.... you get the idea....



Quietly....



...the future is now, as we speak, we already have control,



shhhhhh,



more to follow.....



.....much, much more to follow.
dude
 
FURUREFA
Posts: 635
Joined: Mon Mar 01, 2004 2:26 am

RE: AMR Needs $1Billion In Cost Cuts!

Sat May 13, 2006 12:24 pm

Quoting Commavia (Reply 28):

AA has nowhere near 1000 Vice Presidents. The company has a grand total of 43 corporate officers, including the CEO (Mr. Arpey), 13 senior officers (Executive and Senior Vice Presidents) and 29 Vice Presidents.

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 because I am a HUGE AA fan and one day want to work for them (CEO hopefully!!).

Matt
 
User avatar
par13del
Posts: 6670
Joined: Sun Dec 18, 2005 9:14 pm

RE: AMR Needs $1Billion In Cost Cuts!

Sat May 13, 2006 12:27 pm

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 cost deficiency, long taxi "distances" and no I'm not talking about the slow taxi speed. What can AA do about that? How about re-starting STL, shifting flights over, basically I'm talking about reducing flights at DFW and I'm not talking about DAL.

I admit to not studying AA flights and schedules in detail to see how many it could be, but in this age of high fuel prices, a nickle saved is better than none.
I picked STL because AA got it when the absorbed TWA and they basically "killed it" my words, but they still have flights there, infrastructure already in place so adding capacity by shifting from DFW may not have much of a start up cost, say connection's not O and D traffic.

This workable?
 
commavia
Posts: 9651
Joined: Mon Apr 25, 2005 2:30 am

RE: AMR Needs $1Billion In Cost Cuts!

Sat May 13, 2006 12:33 pm

Quoting FURUREFA (Reply 31):
maybe the person was confusing AMR/AA

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 al).

Quoting Par13del (Reply 32):
DFW is a hugh AA base with a major cost deficiency, long taxi "distances" and no I'm not talking about the slow taxi speed. What can AA do about that?

I'd be willing to guess that while AA does face longer taxi times at DFW relative to other hubs that have closer-in airfields, it has a minimal impact on finances, as DFW also has far, far less delays than many other major U.S. hubs, due largely to its huge airfield, with 7 non-intersecting runways usable during virtually all weather situations.

Quoting Par13del (Reply 32):
How about re-starting STL, shifting flights over, basically I'm talking about reducing flights at DFW

AA will add flights to STL as the market warrants. Several STL cities have been dropped of late, while others have been upgraded, as the market is changing. Why would AA possibly want to reduce flights at its largest hub, where it enjoys more than 80% of the market share, with relatively modern facilities, arguably the best airfield layout in the U.S., and a huge operational infrastructure?

Quoting Par13del (Reply 32):
I picked STL because AA got it when the absorbed TWA and they basically "killed it" my words, but they still have flights there, infrastructure already in place so adding capacity by shifting from DFW may not have much of a start up cost, say connection's not O and D traffic.

AA has considerably reduced the former TWA infrastructure at STL. It dumped Concourses B and D, and has consolidated all flying in Concourse C. AA right-sized the market in the post-TWA, post-9/11 world, and apparently, has done the right thing, as STL is reportedly profitable now.
 
BigGSFO
Posts: 2213
Joined: Sun Jun 12, 2005 5:27 am

RE: AMR Needs $1Billion In Cost Cuts!

Sat May 13, 2006 12:39 pm

Quoting BNinMSY (Reply 22):
So, now that AA is dropping SJC-NRT, I do wonder where they will deploy that widebody to make more $$?

What...? Did I miss something?
 
2H4
Posts: 7960
Joined: Tue Oct 19, 2004 11:11 pm

RE: AMR Needs $1Billion In Cost Cuts!

Sat May 13, 2006 12:42 pm




Quoting BNinMSY (Reply 13):
What they NEED to do is stop farting around at DAL

Well, at least they stopped the banner-towing...

 sarcastic 




2H4


Intentionally Left Blank
 
AeroWesty
Posts: 19551
Joined: Sat Oct 30, 2004 7:37 am

RE: AMR Needs $1Billion In Cost Cuts!

Sat May 13, 2006 12:43 pm

Quoting BigGSFO (Reply 34):
Did I miss something?

AA Dropping SJC-NRT (by Dc10s4ever May 13 2006 in Civil Aviation)
International Homo of Mystery
 
ckfred
Posts: 4694
Joined: Wed Apr 25, 2001 12:50 pm

RE: AMR Needs $1Billion In Cost Cuts!

Sat May 13, 2006 1:43 pm

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 pushed back at 10:05, only to push back to the maintenance areas near Concourse D. We were supposed to sit for 45 minutes while waiting for our slot.

Then after 45 minutes, ORD went into a full ground stop; no flights anywhere were allowed to depart for ORD. Then led to another 50 minutes before engine start.

Meanwhile, the crew was on the clock, and the APU was running, so that the aircraft had electricity and a/c. So, a plane sitting on the ground was burning jet fuel and incurring labor costs.

Just out of curiousity, I checked on AA 1082 today, and it pushed back 50 minutes late and sat for another 35 minutes.

I'm not suggesting that AA try to move the ORD hub, but weather does create an operational bottleneck and incurs a lot of additional expenses. Some passengers missed their European flights, so AA was rebooking them on other flights. No doubt that AA was paying other airlines to get its passengers to Europe.

Yesterday, with winds of 25 mph gusting to 35 mph, ORD could only operate 2 arrival runways, and with the rain and low ceiling, the arrival rates for the actives were slowed considerably. Until ORD gets the 3rd east-west runway built, weather delays are going to be a problem.

Before even considering asking for more compensation concesssions for AA's unions, AMR should look into concessions from Eagle's unions. I know several AA employees who are union members. They are still irked that management never even considered, let alone tried to negotiate wage cuts at Eagle.
 
commavia
Posts: 9651
Joined: Mon Apr 25, 2005 2:30 am

RE: AMR Needs $1Billion In Cost Cuts!

Sat May 13, 2006 4:07 pm

Quoting Ckfred (Reply 37):
Before even considering asking for more compensation concesssions for AA's unions, AMR should look into concessions from Eagle's unions. I know several AA employees who are union members. They are still irked that management never even considered, let alone tried to negotiate wage cuts at Eagle.

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 union pilots and FAs are already fairly poorly paid. They make incredibly low salaries now, and they have a radically different benefits package than mainline. Eagle is not where the cost problems are, it's mainline.

Who is online

Users browsing this forum: alfa164, Balerit, Bing [Bot], Deltran757, Floppie, flyDTW1992, GGtai, hayzel777, ikolkyo, NZdsgnr, pugman211, reidar76, SPEEDJACK, User001, usflyer123, XLA2008 and 217 guests