Quoting XFSUgimpLB41X (Reply 190): it should be no surprise that employees getting raped aren't particularly motivated to help move along an already poorly run operation. |
No, it shouldn't be surprising. A lot of people are suffering a lot of economic hardship and dislocation as a result of AMR's bankruptcy. No question about it, and it should never be forgotten.
But it also shouldn't be surprising, or for that matter forgotten, that many of these changes are, indeed, necessary. The unions may question the necessity for the
severity of some of the cuts, and I think they have some fair and reasonable points. But regardless, many of these changes are simply, to one degree or another, matching the cuts and concessions that Delta, United and USAirways were able to achieve during their bankruptcies. AMR's inability to gain these competitive efficiencies and flexibilities is no small part of why they are in bankruptcy today to begin with.
And as for getting "raped," let us not forget that the pilots chose to vote down a
TA that was vastly better than the terms now being imposed upon them unilaterally. I'm not criticizing pilots for the way they voted. Indeed, I think many of the troubles pilots had with it - its lack of specificity, etc. - were fair and well-founded. And of course, it's their contract, and they have to live under it. Nonetheless, it is important to keep in perspective that pilots had a very clear choice between (1) a horrible contract, or (2) an even more horrible term sheet.
Some pilots seem to have believed, and apparently still believe, that either through negotiation at the bargaining table or through destroying the company's finances in the field they can get a third option, better than (1) or (2). They may well be right. We'll see.
Quoting XFSUgimpLB41X (Reply 190): Without the little above and beyond nudge.... it just comes grinding to a halt, which shows that there is a systemic problem. |
That's obvious. That's called optimization. Any company that optimized its operation for the worst case scenario would soon be out of business. I'm not disagreeing with you that
AA may well have been optimizing their operation for too optimistic a scenario, planning poorly, understaffing, etc. All that may well be true. But nonetheless, it's rather meaningless since that isn't by and large what's going on here, and the
APA has essentially acknowledged that.
AA's operation didn't go from "poorly run" with 70-75%+ on-time arrivals to sub-50% on-time overnight because of any material changes in the way management ran or optimized the business. Contrary to the comical missives of the
APA President attempting to explain what is happening, any alleged understaffing, poor planning, aging aircraft, etc. didn't all magically occur on September 4. Management didn't simply wake up on September 5 and say "let's lay off 1,000 AMTs and magically make every one of our MD80s 10 years older."
This is, by and large, because of the intentional behavior of pilots. The union claims it is because if pilots do not write up every non-critical, non-safety-of-flight maintenance issue, they fear the company will fire them. I suspect it is because they want to make sure that if they can't have anything else, nobody else can either. Whether you agree or disagree with the actions of these individuals, let's at least dispense with this ridiculous pretending that this isn't what's really going on.
Really? Have you seen their margins lately? And - I guess more importantly - have you seen their CEO's recent letter hinting at the inevitable?
Quoting XFSUgimpLB41X (Reply 190): Take care of your employees and profitability "magically" becomes a lot easier. |
I'm all for treating people well. It's also all about balance.
People should be fairly compensated, and publicly-traded companies should deliver competitive returns to shareholders.
AA and the
APA - both - have gone to the absolute extremes in the last decade. Balance needs to be restored on both sides. To that end, I will be interested to see what the results are of the
APA's "survey" to gauge the membership's "priorities" for the next contract that airline and the union are theoretically going to "negotiate." If the
APA comes back and says "Delta or United's current contract or nothing" (a la "restore and more" circa 2008), I will be curious to see how that turns out.
Quoting XFSUgimpLB41X (Reply 190): And yes, passengers do pay more for those various carriers as that cost is in the ticket. |
Right - and does Airline X get away with charging more for their ticket as result of their higher-paid pilots? Of course not. Consumers are willing to pay Airline X more than Airline Y for a wide range of things - including product and service experience, schedule frequency, frequent flyer program, etc. Labor cost is most definitely not one of them for the vast majority of travelers.
If Airline Y could get away with charging a fare $5 cheaper as a result of lower labor costs, many price-elastic consumers would book with them without giving it a second thought. It happens every day, and to suggest otherwise strikes me as a bit delusional.
Yep they do. Some
AA pilots are now negotiating through sabotaging the operation, driving away business, destroying value, and implying that
AA is unsafe.
I wish all sides the best.
[Edited 2012-09-21 19:56:09]