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First of all, Laura Glading is the president of the APFA and not the AFA as stated in the article.
Secondly, if AA wants to apply flight attendant costs at other airlines to AA, then lets take other airlines operations, ie....hubs, aircraft type and costs, fuel hedging, and all other aspects of their structure and apply it to AA and see if AA would have made money this year. It is all too easy to just blame labor.
Perhaps AA could consider slashing NRSA privileges and reduce them down to commuting, deadheading and an annual limit of D2 and D3 Y-class only passes. Since NRSA privileges are non-contractual, AA should consider eliminating them with out going through the APFA/TWU/APA negotiating teams. This would quickly eliminate many expensive and disgruntled employees and allow new people on the property.
Josh
Perhaps AA could consider slashing NRSA privileges and reduce them down to commuting, deadheading and an annual limit of D2 and D3 Y-class only passes. Since NRSA privileges are non-contractual, AA should consider eliminating them with out going through the APFA/TWU/APA negotiating teams. This would quickly eliminate many expensive and disgruntled employees and allow new people on the property.
Josh
Great idea! So the new people would be joing AA for what purpose? No pension..No flight benefits, increased medical contributions, so-so- to low wages......
Yea..AA a great place to work!
Hmmm something called a J-O-B that pays a a very generous hourly wage and would provide health care benefits, 401K, flight privileges, and more. Perhaps unionists are immune to the marketplace and are living under a rock, but our nation has 9.5% unemployment currently and many states that AA has significant operations-namely CA, IL, MO are significantly above the national average and would easily attract workers to complete the 6 week training and work as FAs. When you have people with Wharton MBAs working as bank tellers at B of A, and 85,000 applications for 1,000 positions at Delta there are clearly folks actively seeking those jobs. Fortunately, I have a stable career and my employment and compensation haven't been effected by the economic downturn but I realize many have fared as well.
Josh
AA is already limiting non rev travel by default. You tried to non rev recently with the excessive load factors? There are not many seats available for D2-D3 travel on most flights.
Robert Crandall stated in a speech in the last 12 months that it is ridiculous to operate an airline with load factors this high. AA made record PROFITS in the 1990's with 67% load factors. The premise is simple: When this much product is already sold and you are in the business of selling product[seats] this means you do not have ENOUGH product available for sale.
So are you saying AA's profitability would INCREASE if capacity increased? All that would do is increase costs and likely drive down fares and make the airline worse off. Furthermore, adding capacity would likely depress fares further as AA will need to fill those additional seats. Nothing is forever, and just because AA can lead the industry in the 1990s-early 2000s doesn't mean it will work in 2010 and onward. In November 1998, a barrel of light sweet crude was $13 compared with $86 today, and $157.47 in recent history. Other costs have also increased since that time.
Regardless, per discussions with the purser on my recent flights, LAX-JFK had 6 NRSAs in F-class earlier this week; BOS-LHR had 7 in J-class last month. It seems many of my recent flights have gone out near full, but there usual seems to be room for some of the non-revs. Granted, NRSAs in F on 2-class flights is a rare occurrence but I have enjoyed a 757 on AA 223 7:25PM BOS-LAX with NRSAs. I only found this out because the kind purser approached another passenger and myself for meal orders (I was seated in 3D) and it was even flight #, LAX-JFK)
Josh
Fortunately, I have a stable career and my employment and compensation haven't been effected by the economic downturn but I realize many have fared as well.
Regardless, per discussions with the purser on my recent flights, LAX-JFK had 6 NRSAs in F-class earlier this week.
So that gives you the right to be patronizing and condescending toward airline employees? Should we all start debating your compensation package including your fringe benefits.
That is propriety information. Divulging such information or identifying oneself as a pass rider is a serious breach of company rules.
The mistake that was made by the unions was not getting snapbacks in 2003...but that is another story.
Telebenders premise is a little off. AA is not offering insufficient capacity they aren't charging enough. AS -823 points out all costs have increased since 2002 (expect labor). Revenue should increase in somewhat proportion instead of trying to fill every seat with rock bottom last minute fares.So are you saying AA's profitability would INCREASE if capacity increased? All that would do is increase costs and likely drive down fares and make the airline worse off. Furthermore, adding capacity would likely depress fares further as AA will need to fill those additional seats. Nothing is forever, and just because AA can lead the industry in the 1990s-early 2000s doesn't mean it will work in 2010 and onward. In November 1998, a barrel of light sweet crude was $13 compared with $86 today, and $157.47 in recent history. Other costs have also increased since that time.
For the umpteenth time, it was either give the company what they wanted...and they got it all....or they would file for bankruptcy. They would not agree to snapbacks for anyone...TWU, APFA, APA or non-union. It is as simple as that.