WeAAsles
Veteran
- Oct 20, 2007
- 23,140
- 5,236
Hey buddy I'm not arguing with you at all. That post you captured of mine was completely facetious and VERY tongue in cheek.
New Pay Raises for Crews
- Thread starter UPNAWAY
- Start date
Hey buddy I'm not arguing with you at all. That post you captured of mine was completely facetious and VERY tongue in cheek.
eolesen
Veteran
- Jul 23, 2003
- 15,907
- 9,359
Of course the board would disagree - he's chairman and brought many of these people along for the ride.
Your "billions of profits" happened primarily for two reasons -- the honeymoon effect of flushing bad debt out of the system, dumping a huge portion of the Eagle 50 seat fleet, and low fuel prices.
WeAAsles
Veteran
- Oct 20, 2007
- 23,140
- 5,236
E. I have to ask if maybe you're a bit emotionally compromised on the subject of conversations about the financial performance of the new AA? All the other major airlines also went through BK court and flushed their bad debt as well, so do you have an issue with the old AA having done the same?
I'm also wondering if you disagree that when Parker became CEO they paid off or refinanced their left over high interest loans taking advantage of the current ongoing low interest borrowing rates?
It just seems to me that any good financial news that comes out regarding AA under the Parker leadership team you're going to continue to put down for maybe some personal reason?
Do you think you're a better judge in the future of AA than Warren Buffett? Are you a better investor than Hunter Keay?
http://www.wolferesearch.com/hunter-keay-cfa-0
WeAAsles
Veteran
- Oct 20, 2007
- 23,140
- 5,236
Not a fan personally of Jim Cramer but this does seem to go along with how things have been going the last few years on oil prices
Finally, a stronger dollar means cheaper oil because oil is denominated in dollars, and if the dollar index (STOXX: .DXY) continues to see strong upward momentum, it could keep a lid on oil prices.
"Here's the bottom line: the charts, as interpreted by Carley Garner, who has been dead right, suggest that oil probably isn't finished going down," Cramer said. "But once it gets closer to $40 a barrel, she expects crude will be able to bounce right back, as it's done so many times before. What can I say? It's been a see-saw. I see no reason why that should change anytime soon."
https://finance.yahoo.com/news/cramer-apos-charts-show-why-222220956.html
Finally, a stronger dollar means cheaper oil because oil is denominated in dollars, and if the dollar index (STOXX: .DXY) continues to see strong upward momentum, it could keep a lid on oil prices.
"Here's the bottom line: the charts, as interpreted by Carley Garner, who has been dead right, suggest that oil probably isn't finished going down," Cramer said. "But once it gets closer to $40 a barrel, she expects crude will be able to bounce right back, as it's done so many times before. What can I say? It's been a see-saw. I see no reason why that should change anytime soon."
https://finance.yahoo.com/news/cramer-apos-charts-show-why-222220956.html
WeAAsles
Veteran
- Oct 20, 2007
- 23,140
- 5,236
The last AA CEO I see to have been given this distinguished award was Robert Crandall back in 2001.
Not seeing Carty, Arpey or Horton on this list?
http://www.bizjournals.com/tampabay...can-airlines-executive-named-tony-jannus.html
A large portion of the 50 seats Eagle E145 is going to Piedmont Express and Trans States Airlines,
Last edited:
eolesen
Veteran
- Jul 23, 2003
- 15,907
- 9,359
Never heard of that award. Looking at who has won it in the past gives off the appearance they're giving out the award as a way to land a keynote speaker for their annual fundraiser.
UA and DL flushed a lot of their debt over 10 years ago, so while trying to compare where they are today sound goods, they've used up most of their loss carry-forwards and are again paying income taxes, and have been for a couple years already.
UA and DL flushed a lot of their debt over 10 years ago, so while trying to compare where they are today sound goods, they've used up most of their loss carry-forwards and are again paying income taxes, and have been for a couple years already.
WeAAsles
Veteran
- Oct 20, 2007
- 23,140
- 5,236
Ok E keep sowing those seeds of discontent. Again I guess Buffett and others are just completely clueless?
And I guess that last surprise news item doesn't mean a Hill of beans either.
WeAAsles
Veteran
- Oct 20, 2007
- 23,140
- 5,236
WeAAsles
Veteran
- Oct 20, 2007
- 23,140
- 5,236
Well even though you just want to poke at me for things I've said that bother you. I'm far from an expert in Aviation and far from looking to be one either. But I will look for, read and maybe follow those (outside) of this Airline Blog site who have the education to be experts.
Oh and dweeb would be anyone who lets a blogger who they don't even know get under their skin. Obviously I get under your skin there dweeb.
WeAAsles
Veteran
- Oct 20, 2007
- 23,140
- 5,236
eolesen
Veteran
- Jul 23, 2003
- 15,907
- 9,359
Weasels is apparently taking on the lead cheerleader void left by WT's forced departure.
The fact is that all of the Big Four succeed because of their market position. Parker didn't build that --- 20 and 30 years of previous activity did. HP's contribution to that compared to AA and even US? PHX, which is probably the least profitable of AA's hubs due to the 40-50% overlap AA shares with WN.
The biggest levers on profitability (i.e. variables) are the economy, oil prices, and natural events (e.g. hurricanes, winter storms, volcanos). The only true controllable factors are capital spending and labor costs. That's why you've seen the reaction from some on the issue of the raises. AA spent a lot of employee goodwill when they cut pensions and labor costs, and yes, it showed in their financials. WN, DL and even UA have been much smarter about this by sharing the company's good fortunes as they occur, vs. increasing overall costs for the foreseeable future.
The biggest place the CEO makes a difference is on setting the tone for how the company works with each other internally, and the product offering to its customers. I don't know anyone who will say that labor relations are all that much better today than they were before the merger. Maybe some of the pilots think so because USAPA is gone, but that wasn't something the CEO influenced.
Customers? Many of the people I know who were top tier on AA have fled, and the recent stories about cutting the size of the F cabin and going to 30" seats doesn't help matters.
Praise Parker if you wish, but being able to Google a few headlines isn't what analysts do. You look at all the data, and right now, AA is proposing to add to its permanent costs in a pretty big way. And it won't surprise me to see another bankruptcy filing within 5-10 years because they went for the labor equivalent of gastric bypass surgery in 2012 and then started eating everything in sight again...
The fact is that all of the Big Four succeed because of their market position. Parker didn't build that --- 20 and 30 years of previous activity did. HP's contribution to that compared to AA and even US? PHX, which is probably the least profitable of AA's hubs due to the 40-50% overlap AA shares with WN.
The biggest levers on profitability (i.e. variables) are the economy, oil prices, and natural events (e.g. hurricanes, winter storms, volcanos). The only true controllable factors are capital spending and labor costs. That's why you've seen the reaction from some on the issue of the raises. AA spent a lot of employee goodwill when they cut pensions and labor costs, and yes, it showed in their financials. WN, DL and even UA have been much smarter about this by sharing the company's good fortunes as they occur, vs. increasing overall costs for the foreseeable future.
The biggest place the CEO makes a difference is on setting the tone for how the company works with each other internally, and the product offering to its customers. I don't know anyone who will say that labor relations are all that much better today than they were before the merger. Maybe some of the pilots think so because USAPA is gone, but that wasn't something the CEO influenced.
Customers? Many of the people I know who were top tier on AA have fled, and the recent stories about cutting the size of the F cabin and going to 30" seats doesn't help matters.
Praise Parker if you wish, but being able to Google a few headlines isn't what analysts do. You look at all the data, and right now, AA is proposing to add to its permanent costs in a pretty big way. And it won't surprise me to see another bankruptcy filing within 5-10 years because they went for the labor equivalent of gastric bypass surgery in 2012 and then started eating everything in sight again...
WeAAsles
Veteran
- Oct 20, 2007
- 23,140
- 5,236
Oh no. Far from a cheerleader like WT was. I personally think all 3 big carriers, AA, DL and UAL are doing well and will continue to do well baring any major catastrophic events which can affect the entire Globe not just a single industry like Airlines.
I think AA bought back too many shares and should have had more of a mix of that and paying down some of the debt even if their debt is low interest. But maybe there's something going on behind the scenes that you and I don't know about as their reason for doing so?
I think (business wise) the AA BOD should have implemented far more variable at risk compensation than they do by comparison to their peers to Labor. But I prefer the direct wages over the Vegas ones myself. You're 100% right that if the need ever does arise it's going to be harder to gain that expense back absent a trip back through court like they were able to do in 03.
As far as happy employees. That's all just one big sham. I can point you to a dozen FB Group pages where employees of ALL the Airlines B and Moan about how horrible their employers are. You just focus on AA because a group like Delta doesn't have official voices (Unions) in most groups that can put out public displays of anger and discontentment. You have no pulse on any of the workers actual thoughts in the lower ranks if all you have to gauge it on is a few friends and this Blog site. And "people" rarely ever will come out publicly to say how Happy and Peppy and Bursting with love they are. It's human nature to gripe E.
And NO again you're 100% right that Parker didn't put together the network route structure that's in place today for all the majors. And he deserves no credit or praise if he made the claim he did. What Parker (and many others) DID do is finalize the industry consolidation that SHOULD have happened right after 9/11/2001 (Actually even before) instead of Government Loans and Bankruptcies keeping carriers afloat longer than they should have.
Your "friends" wanted to keep that S going for their OWN personal benefit to keep the status quo afloat. Maybe they would have merged over time with US anyway? (They didn't seem too pleased by that idea publicly) but THANKFULLY the secured Creditors (owners) didn't allow them to do it and the Employees (Unions) had enough of their BS and told them to go take a hike.
Again I think you hate it just because some of your friends (Maybe some decent valuable people) were told that their services were no longer required with the NEW AA?
And we'll see if over time maybe your Crystal ball is right or Mr Warren Buffet's crystal ball is?
Nothing personal E but I think I'll go with Buffet's ball myself.
Last edited:
