Aa - Money To Burn

Decision 2004

Veteran
Mar 12, 2004
1,618
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Pilots get 9.4%,
Planes and Passengers get Electrical Outlets,
Carry on's get Bigger Overhead bins,
Mechanics get the 1.5% shaft.

Reuters
American Air adds electric outlets to whole fleet
Wednesday May 5, 6:37 pm ET


DALLAS, May 5 (Reuters) - American Airlines said on Wednesday that in about a year all of its planes will be equipped with electrical outlets that allow customers to plug in devices such as laptop computers or DVD players.


The device, called a powerport, is already in many American planes, but the move to install it fleetwide marks a change from service cutbacks at the world's largest airline over the past two years.

Work will begin this summer to install powerports on 103 MD80 aircraft. This is expected to be completed by spring 2005.

The entire American fleet should have powerports in all sections of the plane by then, said Jacquie Young, an American spokeswoman.

Gerard Arpey, chief executive of American's parent company AMR Corp. (NYSE:AMR - News), has said the airline must carefully watch costs before adding any new service. The airline will give customers what they value, Arpey has said, but will not add services that detract from the bottom line.

In addition to the powerports, American will also have larger, overhead bins throughout its fleet in about a year's time.
 
More work for the AMT's, I also understand theyare going to finish furnishing the twa md 80's with the bin extention!

Seems to me the concessions we took is starting to help! We may see some profit sharing and will be in a better position to open talks in less than 2 years!! Thanks to the great job all the Uniions did to have the forsight for the long term survival instead of the short term goals the Amfa wannabes advocated!

As for the pilots, different concession package with a higher percentage of Layoffs and work rule changes! Its like apple and oranges in comparision!
 
And only if the membership had taken concessions equally?

17.5% for some 16% for others 17.5% and $5.00 in license premium for the rest.....

Are they too in a better position?
 
Checking it Out said:
More work for the AMT's, I also understand theyare going to finish furnishing the twa md 80's with the bin extention!

Seems to me the concessions we took is starting to help! We may see some profit sharing and will be in a better position to open talks in less than 2 years!! Thanks to the great job all the Uniions did to have the forsight for the long term survival instead of the short term goals the Amfa wannabes advocated!

As for the pilots, different concession package with a higher percentage of Layoffs and work rule changes! Its like apple and oranges in comparision!
CIO...could you please post the pilots concessions so I can make my own opinion on the matter?? What's apples and oranges to you may not be to me. Forgive me that I don't take your word for it. Your credibility is questionable.
What is apples and oranges is the diifference between what pilots make and what mechanics make. Must be the Craft Unionist coming out of me again. The membership will learn about the 9% pay raise the pilots got and we will see if they think it's apples to oranges. The work is great to see but it won't help the people on lay-off as long as the company has full rein of labor-loans!! Another twu blunder to add with the many others. Your misery will be over soon enough.
I hope Mr. McDonald is getting better from his twu wounds. At least you guys are keeping things interesting.

Keep the Faith.......VOTE AMFA!!!!!!!!!!!
 
Checking it Out said:
More work for the AMT's, I also understand theyare going to finish furnishing the twa md 80's with the bin extention!

Seems to me the concessions we took is starting to help! We may see some profit sharing and will be in a better position to open talks in less than 2 years!! Thanks to the great job all the Uniions did to have the forsight for the long term survival instead of the short term goals the Amfa wannabes advocated!

As for the pilots, different concession package with a higher percentage of Layoffs and work rule changes! Its like apple and oranges in comparision!
CIO,

Profit sharing? Profit sharing will not make up for my $ 1,500.00 a month pay concessions to name a few- (17.5, license pay, 2nd shift, wk ends, & meals) -for the last year. I'll let you do the math on that one!

Open Up talks? Come on, wishful-hopeful thinking, we are not guaranteed anything, nothing, nada, zero...OH please, please, please lets talk. The leaders in your union have no incentive in getting anything back because they lost nothing. Your leaders have no (dollar) tangible value to gain back.

foreskin? Oh, forsight! oops sorry

Apples and Oranges are skilled = career (higher pay) VS unskilled = entry level(lower pay)! That is a comparison-reality in the real world.
 
Stop the Bus..I Want Off! said:
The membership will learn about the 9% pay raise the pilots got and we will see if they think it's apples to oranges. Keep the Faith.......VOTE TWU!!!!!!!!!!!
The membership should first learn the Pilots took a one year cut of around 25%!!!
 
Decision 2004 said:
Pilots get 9.4%,
Planes and Passengers get Electrical Outlets,
Carry on's get Bigger Overhead bins,
Mechanics get the 1.5% shaft.

Reuters
American Air adds electric outlets to whole fleet
Wednesday May 5, 6:37 pm ET


DALLAS, May 5 (Reuters) - American Airlines said on Wednesday that in about a year all of its planes will be equipped with electrical outlets that allow customers to plug in devices such as laptop computers or DVD players.


The device, called a powerport, is already in many American planes, but the move to install it fleetwide marks a change from service cutbacks at the world's largest airline over the past two years.

Work will begin this summer to install powerports on 103 MD80 aircraft. This is expected to be completed by spring 2005.

The entire American fleet should have powerports in all sections of the plane by then, said Jacquie Young, an American spokeswoman.

Gerard Arpey, chief executive of American's parent company AMR Corp. (NYSE:AMR - News), has said the airline must carefully watch costs before adding any new service. The airline will give customers what they value, Arpey has said, but will not add services that detract from the bottom line.

In addition to the powerports, American will also have larger, overhead bins throughout its fleet in about a year's time.
Dave did you just find out that they are increasing the size of the overhead bins? Have you ever considered what differentiates AA from SWA or Ryan Air for that matter?

It's known as amenities. Some work some don't. But if the customer asks for it you try it.
 
Yes American does give away the amenities while not charging for them.

So AA tries them at the concessionary expense of labor.
 
The membership should first learn the Pilots took a one year cut of around 25%!!!


And when you factor in all of our concessions how much of a cut did we see? Its over 20%! When you factor in the loss of one weeks vacation and holiday pay etc we gave a lot more than 17.5 %, in fact its closer to 25% than 17.5%. In fact its around the same as the pilots but the pilots have already regained over 30% of their concessions plus the $25 million for the fine and the $23 million for the SCOPE violation. With the TWU we got a measly 1.5 % increase-it does not even cover inflation, and nothing as far as benifits that we lost.

The pilots union also modified Sect 25 of their agreement requiring membership.

The pilots went for the straight pay cut, this was brought up by Chuck at negotiations but the International claimed the he was being obstructionist and presenting something they could not sell the membership.

The truth is that the TWU cut everything else as much as possible so its International officers could get pay raises. A straight 25% pay cut would have cut dues revenue by 25%. I would have rather had the 25% cut, with a 9% snap back a year later, 1026 options instead of 432 and kept the opportunity to make up the rest through Double time, easy hours, working night shift, Ot on training, holidays and the week of vacation.

The pilots, in one year, already recovered more than we will over the life of the agreement.

The pilots got a 9% increase in the first year while we will only see a 7.5% increase over the next five years.

At 1.5% a year, we will in fact be losing ground every year due to inflation which historically runs at 3% per year. That means by the time this contract becomes renewable we will be making around 7.5% less than we were following the concessions. Thanks to the TWU we can look forward to another five years of declining living standards even if the company goes on to make 500 million a year in profits for the next five years.

The pilots bought their concessions because they were getting it back before the contract becomes renewable, we will be making over 30% less in 2009 than we were in 2001.

Here is what the pilots will see. This is for 777-300 Captains and does not include mileage premiums, Gross weight components, the $5 per hour night shift differential, International overrides or travel expenses.

Day hourly pay component;
05-01-03 142.91
05-01-04 159.85 $16.94 increase
05-01-05 162.80 $2.95 increase
05-01-06 165.80 $3.00 increase
05-01-07 168.84 $3.04 increase
05-01-08 171.93 $3.09 increase

Over the life of this agreement the pilots will see thier pay recover by $29.02 an hour. Their increase is more than a TWU represented top paid mechanics base pay.The pilots will be getting an increase of 20% over the life of this contract. They will have recovered nearly everything, we will not even recover what we gave up in wages, never mind all the benifits, vacation, Holiday pay, shift differential etc.

Arent the pilots in a "stand alone union"?

Without AFL-CIO affiliation they sure did a hell of a lot better than we did with the TWU.

The pilots smallest yearly increase is $2.95, our total increase is only $1.95. The pilots have already recovered more than we will this entire contract. And the pilots got more than 2 to 1 on the stock options compared to us. The pilots got 1026 options compared to our 432.
 
Keep on trying to tell us how a 25% cut is better than a 17.5%. I'm eating it up!!!
 
Buck said:
Yes American does give away the amenities while not charging for them.

So AA tries them at the concessionary expense of labor.
Then why is SWA and JetBlue doing so well with lower ticket prices?

Voodoo economics?
 
AA's mainline jet yield for Q1 was 12.14 cents, almost 50% more than at B6, which only got 8.29 cents (and yield was down 6.2% at B6 from last year, while off slightly at AA).

AA's RASM was 8.64 cents, compared to only 6.63 cents at B6 (and RASM at B6 was down 7.9% while at AA it was UP 2.5%).

JetBlue's numbers suck. AA's numbers, on the other hand, are improving.

Tell us again why passengers will keep paying AA a revenue premium over that of B6, especially if you call adding the necessary amenities proof that AA "has money to burn."

What next? Will you criticize the wine and meal selections in First and Business Class as "throwing away money"??
 
AAmech said:
The membership should first learn the Pilots took a one year cut of around 25%!!!
We'll see if that's right. CIO's working on the info as we speak. All total I'm sure our cuts are comparable to the pilots. What the pilots did do is NEGOTIATE a 9.4% snap back on their wages after only one year!! What a novel idea!! You can try to polish the twu all you want............It's still a twu!!!! It has to be flushed, no if's ands or buts!!!!!!!
Where is our safety net/snapback????????????????
Why do we have to pay someone to tell the company YES all the time???????????
Any first grade class could have negotiated the piece of crap we're going to have to live with till 2009!!!!!!!
I do hope the AMFA/twu vote falls right after Memorial Day when everyone has the twu on their minds!!!!!!!!
Everyone I told about the 9.4% raise the pilots got did not think it was apples to oranges!!!!!!
twu......your misery will end soon enough!!!!!!

Keep the Faith......VOTE AMFA!!!!!!!!!!!!
 
J7915:

Are you stating that the concessions had no effect on AA's economic end?
 

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