jimntx said:
As an onlooker in this issue, what TopDawg (hey, guy note the spelling) says makes a lot of sense. For that matter, didn't AA used to do work for other airlines? Do we still? If not, why not? Paid work is paid work, and if it keeps the lines running and people on the payroll and profits on the books, why aren't we getting our share of it? Not judging, just asking.
Yes AA use to be a pretty big MRO when you added in TAESL. Not much smaller than TechOps IIRC (~500-600M a year in revenue TechOps is 100-200M higher than that now at best)
Why isn't Parker doing it? Few reasons
1) stupidity. Simply put Parker is the type that AA is an airline, not an MRO, not a flight kitchen, not a cargo airline, not a ground handling service etc. Its a dumb way to run a business where, for example, with MRO business you can capitalize on economics of scale. Its a very traditional way of thinking in this industry, problem is tradition is losing money and a business cycle all over the place.
2) 1960s way of thinking for union members. Again, Delta is able to do what it does because it offsets the costs of higher pay with better productivity. We are a very flexible work force and generally union shops don't allow that kind of flexibility. Also the IAM seems to have zero interest in doing more work than they have. As I have said before, for whatever dumb reason the IAM is going into negotiations wanting to improve the US scope and only mentioned airframe, line and component. Not a word about engines. (and why they are starting with the worth scope in the industry vs the best scope (AA, TWU scope) shows how little interest they have in doing work in-house
3) AA like DL is doing, is going to have to make a big investment in it s engine shop to run next gen engines like the GEnX and GE90. Also as Delta learned you have to invest in a marketing, sales and support staff for a MRO. This would take a big capital investment upfront and, with AAs high capex as it, it going to be harder to justify to wall street (who also thinks doing maintenance is stupid)
4) If AA starts to become a big MRO, adding its own work and other work then they add employees. Well the Line guys don't want that because they want Tulsa to be shut down(or at least a few around here, you know who you are) and the company doesn't want that because it increases the labor risk. At American it is very clear Parker is going to keep the us vs them attitude and if that is what you are going to do with the company than labor is a much bigger risk than at a company like Delta. Delta knows we aren't going union so they choose to work WITH the mechanics vs against them.
Some wont like what I said but that is what I see. Fact is there are huge markets in the US alone that DL hasn't touched and probably wont touch. For example DL/UA/AA alone have 100+ GE90 engines in the combined fleets but those big expensive engines must go to Asia or Europe for overhaul. GEnX is another example. AA and UA have a ton on order but will be shipping them over seas for overhaul. In the narrow body market there are enough V2500s and CFM56s in the US alone for AA and DL to share the market (and currently DL sends the V2500s out, but rumors have it that it might be coming in-house once the new shop opens). On the next gen engines like the PW GTF and LEAP-X, again the market will be large enough for two MROs. Same things for components(smaller stuff like LRUs and big ticket like APUs and landing gear)
and before anyone brings up TAESL, RR wanted out. They are overhauling the Trent TotalCare network and it made zero sense to add next gen engines to TAESL when AA has so few on order and very little potential to order more vs DL. AA is clearly moving to a CFM/GE airline while DL looks to be going to CFM/RR airline. The day AA went GE on the 787 is the day TAESL closed. It might have taken longer to shut the doors officially but that is really the final nail. (it also didn't help that AA shut down AFW, having an engine shop at a maintenance base half way shut down wasn't really logical)
Buck said:
I do not recall where I heard the 50% outsourcing remark, however it does not matter because they are non union.
sure it matters. you want Delta pay but your company is telling you that they want 50-60% outsourcing when DL is doing 35% (and its in the low 20s if you count all the MRO work)
Why in the hell is that logical to anyone?
Buck said:
The Association will probably look at what work percentages at Delta are to ensure they understand where American could go.
Top Dog you seem in the know thank you fore the correction.
You are welcome but it looks like the ass is trying to ship as much work out as they can, pretty sad when your own union is working against you.
and then they blame Delta? laughable.
