AA is trying to become more productive and survive without seeking more concessions from its unionized employees:
Remainder of article at http://yahoo.reuters.com/financeQuoteCompa...11470962_newsml
AA says it has obtained $200 million of increased revenue/cost savings at TULE toward the goal of $500 million by the end of 2006. Good news.
Concessions? As I have posted in other threads: Just say NO. Concessions have a place and that place was 2003 when AA was running out of money. Not in 2005 when AA has $3.5 billion of cash.
Now back to the regularly scheduled programming of "AA is gonna demand more concessions."
Bucking an industry trend toward slashing wages to offset soaring fuel costs, American Airlines is betting it has more to gain by courting its employees than by squeezing them.
The leading U.S. air carrier, fortified by a $3.5 billion cash pile, has embarked on the industry's greatest experiment in union-management cooperation since an ill-fated attempt at employee ownership at UAL Corp.'s (UALAQ.OB: Quote, Profile, Research) United Airlines ended up with United filing for bankruptcy in 2002.
"Our strategy is...focused on continuing to improve our competitiveness...by having a constructive, collaborative working relationship with our people," American Airlines' Chief Financial Officer James Beer said in an interview. "That approach has continued on a regular basis to yield fruit."
The airline has encouraged cooperation by forming "leadership teams" comprising rank and file as well as management, paying performance bonuses and fully meeting its pension obligations, among other moves.
Remainder of article at http://yahoo.reuters.com/financeQuoteCompa...11470962_newsml
AA says it has obtained $200 million of increased revenue/cost savings at TULE toward the goal of $500 million by the end of 2006. Good news.
Concessions? As I have posted in other threads: Just say NO. Concessions have a place and that place was 2003 when AA was running out of money. Not in 2005 when AA has $3.5 billion of cash.
Now back to the regularly scheduled programming of "AA is gonna demand more concessions."