American Airlines’ parent company reports earnings of $292 million — and that’s just in July

no, it just says that there are some advantages of operating in BK and not all bills are paid the same way they are in a normal business environment.

As I have also noted, AA added a lot of longhaul capacity and it isn't hard to make money in the middle of the summer. A 7% increase in revenue is a significant accomplishment but we haven't seen what other carriers have done.

And also note that AA's labor costs were down by $74 million - in just one month, a 12.5% reduction. History shows that labor isn't willing to sit on the sidelines for long when companies make significant financial progress while labor is seeing its salaries cut.

It still doesn't change that if AA was really wanting this merger, they did a great job of sending the complete opposite message to the DOJ.

I'm happy for AA and its employees - but this isn't necessarily any indication of AA's long-term ability to do the same or compete as a standalone.
 
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It still doesn't change that if AA was really wanting this merger, they did a great job of sending the complete opposite message to the DOJ.

I'm happy for AA and its employees - but this isn't necessarily any indication of AA's long-term ability to do the same or compete as a standalone.

Which is why, AA can't stand still. If we can get the merger BS behind us, we can get back to competing.

I certainly don't know the perfect combination of strategies that will bring long term success, but I don't believe that a US merger brings us much closer to that long term goal. Especially...with HP managment in control.
 
These companies are making money on the backs of the employees. Pay your employees the correct wage and benefits,if you can make money then we can be impressed.
 
Wt, you said labor isnt willing to sit on the sidelines....... What has been happening at LLC for how many quarters now??
 
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no, it just says that there are some advantages of operating in BK and not all bills are paid the same way they are in a normal business environment.

As I have also noted, AA added a lot of longhaul capacity and it isn't hard to make money in the middle of the summer. A 7% increase in revenue is a significant accomplishment but we haven't seen what other carriers have done.

And also note that AA's labor costs were down by $74 million - in just one month, a 12.5% reduction. History shows that labor isn't willing to sit on the sidelines for long when companies make significant financial progress while labor is seeing its salaries cut.

It still doesn't change that if AA was really wanting this merger, they did a great job of sending the complete opposite message to the DOJ.

I'm happy for AA and its employees - but this isn't necessarily any indication of AA's long-term ability to do the same or compete as a standalone.

Of course BK has helped-I don't know why anyone would think it wouldn't. DL used the same strategy until it got its costs/revenues down properly. AA is doing the same.

AA has already signed a multi-year contract with labor, that's how its going to stay-whether you like it or admit to it.

Will AA cut down some long haul capacity during fall/winter? Maybe. That being said, unlike DL, AA has the ability and flexibility to add capacity to South America during those seasons. We'll see what happens.

These companies are making money on the backs of the employees.

This has been said so many times ad nauseum I guess its true then. :rolleyes:

You also forgot to add "while management has been giving themselves millions in bonuses".
 
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I know you are glad to see AA make money and they should... that's what a company is supposed to demonstrate it can do before it leaves BK.

AA's revenue grew by about 6%. I don't know the capacity that they added but it is probably about 2-3%; that is what they have been doing of late.

At that rate, AA's RASM is somewhere around 3%... which is right in line with the rest of the industry.

That means that AA's revenue increase is not much different from what other carriers would get if they added the same amount of capacity.

Just for comparison, DL's RASM when it was emerging from BK was 3-4 times the industry average... because DL was opening Africa and adding higher yielding destinations.

DL's RASM growth has been above industry average for several years and DL's RASM (absolute) is above industry average because DL receives a higher amount of money per mile than the industry average.

Again, it is great that AA is profitable but let's be clear that they have done it with average revenue growth and pretty significant labor cost cuts.
You can celebrate that AA has managed to cut labor costs but AA labor has said since they went into BK that the whole purpose of going into BK was to use the BK process to force labor costs.... so far, AA hasn't doing anything spectacular with revenue growth... that side of the equation ahs been average.

DL is indeed adding a lot of capacity to Latin America this year.... they just are focusing more on the Caribbean and Mexico, regions where the source of tourists is from the US and will not be as affected by the strong dollar as AA will feel in Brazil, the largest market for AA in Latin America. AA is also expanding in places like CZM as well.. but they are also adding routes to Brazil right as the currency is tanking.

Deep S. America is NOT where an airline wants to be adding capacity based on current economic factors.

And the Japan beach markets (Hawaii, Guam, etc) are where DL focuses its capacity during the winter. The Japan market shift capacity seasonally... less focus on the transpacific and more on the warm weather destinations.
 
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This is not relevant at all to the merger effort in my opinion . Yes AA and US can probably go at it alone in the near term . I won't argue that . But the point of this merger is for AA to be able to compete in the long term with UA and DL . AA in my opinion simply cannot do that by staying a stand alone Carrier
and def neither can US . This merger is necessary for both carriers . Some may not want to accept it but its what AA needs . The merger will strengthen AA's network and competitive position . Embrace it because it will happen one way or the other .
 
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These companies are making money on the backs of the employees. Pay your employees the correct wage and benefits,if you can make money then we can be impressed.

There is nothing new with the new AA. We are not more efficient. We are same old mismanaged airline now making money at employees cost. What is the future of s company with low morale employees and no motivation?
 
This is not relevant at all to the merger effort in my opinion . Yes AA and US can probably go at it alone in the near term . I won't argue that . But the point of this merger is for AA to be able to compete in the long term with UA and DL . AA in my opinion simply cannot do that by staying a stand alone Carrier
and def neither can US . This merger is necessary for both carriers . Some may not want to accept it but its what AA needs . The merger will strengthen AA's network and competitive position . Embrace it because it will happen one way or the other .

Don't try pulling off this nonsense. US is the one that needs AA, standalone alone US has a route network centered around insignificant, low revenue markets like CLT, PHL, and PHX. The airline is only profitable because the company has been able to enjoy labor costs far below their competitors by prolonging your bankruptcy concessions. Obviously US employees support the merger so the Ugly Sister can pay higher wages and employees can non-rev to more cities.

Josh
 
Once again you post misinformation.

Every group has a post chapter 11 CBA or transition agreement except the pilots.

All three IAM represented groups and the Agents are currently in the section 6 negotiation process.

And its not the employee costs that are low, US is making record profits and a lot of it was generated by ancillary revenue.

http://www.airlinefi...ine_Summary.pdf

http://www.airlinefinancials.com/uploads/LCC_Q3_2011.pdf
 
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I think the fundamental problem on this board and site in general is that the vast majority of the participants simply do not view *any* airline industry news through the prism of "How this relates to Delta" or "Yes, but Delta ______". No matter the topic, it always boils down to how by comparison,"Delta did it cheaper,better,faster and without harming puppies,kittens or the environment".
 
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