Finally - The Outsourcing Truth From American

[FWAAA]

Turns out that AA keeps almost all maintenance in-house after all. Couple of weeks ago I asked whether anyone really knew the correct percentage. Looks to be 80% to 90%. Not too shabby.

American Airlines and the Transport Workers Union Correct Media Report on Outsourcing

Wednesday March 30, 5:39 pm ET

FORT WORTH, Texas, March 30 /PRNewswire-FirstCall/ -- A media report today indicated that American Airlines outsourced 42 percent of its maintenance work in 2004 -- which is misleading. American has worked closely with the Transport Workers Union to keep the majority of its maintenance work in-house, as long as it can do so and remain competitive. The company does all of its heavy maintenance work and 80 to 90 percent of its total maintenance with American Airlines mechanics.

Today's report is based on Department of Transportation (DOT) data, which includes work done through Texas Aero Engine Service Ltd (TAESL), a joint venture formed in 1998 between American Airlines and Rolls-Royce. TAESL does engine repair and overhaul work on the RB211 engine, which American has on its Boeing 757 fleet, and the Trent 800 engine, which powers American's premier Boeing 777 aircraft.

The TAESL repair facility is staffed by more than 530 American Airlines employees and has generated more than 200 additional American Airlines jobs specifically tied to the growth of engine maintenance work performed for new customers.

http://biz.yahoo.com/prnews/050330/daw048.html?.v=4

Finally. Any other major airline doing this much maintenance in-house?

 

[Hopeful]

AND what will happen if TULE doesn't meet the $500,000,000.00 target?

 

[Connected1]

parity?

 

[Bob Owens]

Turns out that AA keeps almost all maintenance in-house after all. Couple of weeks ago I asked whether anyone really knew the correct percentage. Looks to be 80% to 90%. Not too shabby.
http://biz.yahoo.com/prnews/050330/daw048.html?.v=4

Finally. Any other major airline doing this much maintenance in-house?

[post="259487"][/post]​

Any other major airline have AA's low labor costs with no holidays, no double time, no shift premium and as little as one week of vacation per year??

That was a PR newsline bit, not a story from an unbiased reporter nor are they the figures from the DOT. Besides as far as we are concerned "in house" means under our agreement and AA has employees overseas doing work on AA aircraft.

80 to 90%, no way. Just figure the amount of outsourced tires, Matsushita and Rockwell Collins and you already have a few points.

 

[PRINCESS KIDAGAKASH]

TAESL is basically an engine teardown and reassembly shop. ALL blades,vanes,combustor liners,fuel nozzles and accessories are shipped to outside vendors for rework. I would have to say at least 50%+ of TASEL's work is outsourced!

 

[local 12 proud]

If American Airlines wishes to truly Capitalize on being the only Major who keeps the majority of their Maintenance "In House" they should start an all out campaign advertisment stating such. outsourcing may be the new trend of the carriers but, it WILL be short lived! funny how Southwest has been bringing more and more work in house because of the downside of third party soon all the others will see why.

 

[AMFAMAN]

Turns out that AA keeps almost all maintenance in-house after all.  Couple of weeks ago I asked whether anyone really knew the correct percentage.    Looks to be 80% to 90%.    Not too shabby.
Finally.    Any other major airline doing this much maintenance in-house?

[post="259487"][/post]​

That's interesting, I've been tracking parts lately and have yet to find one worked on inhouse. That's right parts don't count according to AA. I guess engines outsourced after teardown don't count either.

The 42% is much more like it but AA and the twu are scared of the truth.

If AA was telling the truth about the 80-90%, why do they refuse to produce the documentation? It's been put on a grievance and they refuse to answer it. Per the contract, I am entitled to these numbers, why would they hide them?

Why would you, FWAAA, who relies on facts and figures always, suddenly believe the joint twu/AA(lovers) undocumented press release as compared to government documents?

 

[Wretched Wrench]

In addition to the above, consider the wage rate of OSMs. I believe they strt at $8-something per hour. That is less than US Air starts baggage handlers. It is tantamount to in house outsourcing. We have such cheap labor "in house" that there is no financial reason to outsource.

 

[Boomer]

1) Q) Is TAESL a subsidiary of AMR?

A) No, TAESL is a joint venture between Rolls-Royce and AMR.

2) Q) What are the contractual stipulations in the TAESL joint venture that require the work to be performed by AA M&E AMT's; under the direction of the Rolls-Royce Management that migrated from AA Maintenance & Engineering?

A) Over the last seven years, that question has met with stone cold silence: OTL7Y:STS.

3) Q) If the work being performed on AA engines and/or OAL engines, by TAESL, is being done by AA Maintenance & Engineering AMT's, without a contractual guarantee that this work MUST be performed by AA AMT's, is that "in-house" work or "in-sourced" work?

A) OTL7Y:STS.

4) Q) Are there certain "thresholds" of profitability under which TAESL can be fully aquired by Rolls-Royce from the joint venture and under which AMR would be compensated by a long term fixed rate for services rendered, but, which do not require the retention of AA AMT's?

A) OTL7Y:STS.

5) Q) Does TAESL have a Part 145 FAA certification apart from AFW even though those employees are able to "cross-over" bid?

A) OTL7Y:STS.

It all comes down to what the meaning of is: is.

 

[Checking it Out]

What part are you (we) doing to ensure our long term survival at AA in overhaul maintenance?

It takes all of us working together to survive in today's competitive environment.

 

[TIME FOR CHANGE]

What part are you (we) doing to ensure our long term survival at AA in overhaul maintenance?

It takes all of us working together to survive in today's competitive environment.

The "us" has no benefit for the line AMT. Implement the COLA and I will hop on board

 

[Hopeful]

What part are you (we) doing to ensure our long term survival at AA in overhaul maintenance?

It takes all of us working together to survive in today's competitive environment.

[post="259595"][/post]​

Let's work together and give the high cost of living area mechanics an adjustment so we can live as good as the MCI and TULE boys

 

[Hackman]

What part are you (we) doing to ensure our long term survival at AA in overhaul maintenance?

It takes all of us working together to survive in today's competitive environment.

[post="259595"][/post]​

We know what you're doing, buying into the 18 month/$500 million savings farce for Tulsa, which when it fails, you in the twu Bubba Club will be blamed for failure to meet this nearly impossible hurdle.

Of course, concessions will be the new "break through goal", at least for everyone but Do-little and the gang in the unelected, unaccountable twu International.

 

[Hopeful]

We know what you're doing, buying into the 18 month/$500 million savings farce for Tulsa, which when it fails, you in the twu Bubba Club will be blamed for failure to meet this nearly impossible hurdle.

Of course, concessions will be the new "break through goal", at least for everyone but Do-little and the gang in the unelected, unaccountable twu International.

[post="259630"][/post]​

Let's do some simple numbers. The TWU gave the company $620 MILLION dollars on our behalf in the name of concesions. This amount did NOT include layoffs.

Do you really think it is feasible to achieve $500,000,000.00 in savings over 18 months where it is taking 6 YEARS to achieve the greater than $620,000,000.00?

 

[Vortilon]

Our biggest problem on the line is Dennis B. of local 514. Here we have a guy that resides in probabaly the lowest cost of living areas in the country, dictating what our wages and benefits will be system wide - by virtue of his role-call vote power. He stays in power by promising jobs to low sen AMTS, and OSMs in Tulsa - then toss a few threats towards some class two line stations about closing, and budda bing - you have the formula for control. Does Dennis B. really have our best interest as a priority ? C"mon, I have never seen a guy so self impressed. I'll give him this much, he is an exceptional BSer! <_<