3 Maintenance Bases - Not enough capacity

Ten years ago I took office for the first time. Most of the guys who took office at the same time were in their 30s. Of the seven top officers only two are still here. One passed away, one is on a leave, likely to be permanent, one quit and started his own business, one quit and went to another airline, one quit and became a lawyer.

So only two out of seven still work for the company. None of those who left were laid off or retired.

We may eventually see the Tulsa base go away over time, not because the labor costs are too high but because the mechanics will be needed on the line.

The AFW base is more modern and its proximity to DFW makes it more practical for field trips and Line Operations support. Capacity wise it would bring AA in line with its competitors.

The company is aware of the fact that when they lay someone off in a place like New York, there's now a 90% chance that that worker, along with the all the experience and training the company invested in, will refuse recall and never come back. They are losing their most motivated employees as well, if not physically then mentally. In other words maybe they didnt leave the company but they already quit. The desire to fix things for American Airlines is gone, they show up and do as little as they can for whats supposed to be a paycheck. These were the guys who would take the time to teach and instill the work ethic in the new guys that would eventually transfer throughout the system and helped AA earn top ranking for performance in the past. All one has to do is look at performance and how its deteriorated even with all the advances made in OH. Despite that, they are also aware that the odds are favorable that someone who is middle aged (and not motivated) will follow the work before looking for another job.

In the Spring of 2008 the company announced that there would be big layoffs in the fall of 2008, while there was a reduction the big layoff didnt materialize, in fact they recalled several, even had a few new hires and limited incentives to just a few stations because they feared a mass exodus. I would say that the fear was justified. A lot of guys have hung around hoping for a little bonus to go out the door. So this time they announce a reduction 11 months ahead of time, will there actually be a layoff? Well if they couldnt get it right two or three months ahead of time why would we think they got it right 11 months ahead of time? Who knows, like I've said before, if the economy rebounds, the rate of exodus will increase, the American (as in United States) workforce as a whole is getting older, bad economy or not people are getting to retirement age and vacancies will be created for those who posess troubleshooting skills. A lot could happen between now and September of 2010, they could even be looking to hire mechanics.

Right now we see MCI preparing for their reward. This is what they get for being so cooperative and helpful. Cant say they weren't warned. We were led to believe that MCI would be providing 3P maint work. This past June when the union came up with the concessionary package they presented to the company, the people pushing the package cited how we needed to show the 6th floor (Corporate HQ) that we were serious about filling those "white spaces" with 3P work. We actually underbid management at CAL! All our other competitors are either in negotiations or coming up to their amendable dates as well. We are already number five, by the time these other airlines go through their negotiations we will be dead last, still ahead of Timco but closer to them than we are to SWA or UPS.


AA isnt serious about 3P work. They are not going to expand or maintain capacity to do 3p work.

Sure they may use 3P revenue to offset their maintenance costs and fill in production gaps but even if they get Timco wages they arent going after that work, they are just going after those wages. They are trying to convince the base workers that since other airlines outsource much of their overhaul that they should not look at what SWA pays their mechanics for comparision but instead look at Timco, and they are trying to use the electoral leverage of the Tulsa base to drive down AA's total maintenance costs way below their competitors.

Their strategy has one fatal flaw. They may get their cost adavantage but as they sit back and look at the competitive cost advantage they have over SWA, CAL, UAL, USAIR, Delta, Jet Blue,and Air Tran they will wonder why their new fleet of quality overhauled planes sit at the gate or in hangars while everybody elses are out making money. New or not things will still break and we will not be in any hurry to fix them when we are at bottom of the industry in pay because no matter what the International says we will be comparing our wages to SWA, UPS, CAL etc.

I say give AA exactly what AA is giving-the very least they can possibly get away with. Our pride and professionalism has been our undoing. Why strive to make AA number one when they do everything they can to make you dead last?

Yes we still have "the promise" of a pension, but as even the pro-company posters here have cited AA-s Pension costs per capita remain low compared to some who have 401K matches. CAL has both, a DB and a 401K match, their match exceeds what what AA put in my pension as shown on the companys Total Value Statement. If you have many years ahead of you it would be foolish to think that AA will ever deliver on that pension, look at how they even break their little promises like retiree health and lifetime passes for perfect attendance.

We currently rank number five in pay and dead last on several other points such as Vacation sick time and holidays. We cant live on a TIMCO salary in high cost cities.

We can make the company as miserable as they've been making us. They got their six year grace period, its over. In the highly competitive markets where we live if AA cant make money and pulls out, those slots wont stay unused very long, and whoever takes over those slots will need mechanics to get their planes out, others would bump and roll, sell their homes and have a little bit of extra money for a change, but most of us would probably leave the industry for good, two years and exceeding where we are isnt as scary as what the Company and the International is offering.

Boeing has announced that they are building a factory in the Carolinas, that means increased competition for A&P mechanics along the east coast. I could see where younger mechanics in the Northeast would quit AA, give up working nights, weekends and Holidays to move down south where they could drive back to see family and be home on the weekends, at night and off the holidays, along with more vacation sick time and a much lower cost of living. A lot of Yankees relocate down there already. I could also see where guys from Tulsa or Kansas City would be willing to relocate there too. So while these new planes may reduce the need for mechanics at the airlines the manufacturers of those new planes will need those same skillsets to make them.

In reality we all lost our jobs six years ago. We had a job that paid a fair wage and in exchange demanded huge personal sacrifices, now we just have a job that demands huge personal sacrifices and doesnt pay a fair wage, those types of jobs are not that hard to find, even in this economy.
 
That post will likely have AA asking Jim Little to remove Bob from Office again.

One missed point though. If AA gets the unlicensed mechanic in the overhaul hangar, the A&P's might be moved from Tulsa to the line, but as long as the city and state keep up the corporate welfare handouts AA will remain in Tulsa.

I see Maintenance Manuals in espanol and migrant workers in Tulsa that will work their ass off for much less pay and benefits that we are making now.

Don't make the same mistake the AMT's at NWA made and believe you cannot be easily replaced.
 
I think you over-estimate the impact the CHS assembly line for Boeing will have on your contract and the market.

I'm sure they have AMT's for the flight test and delivery process, but what I recall is most of the guys working on the assembly floor are just well paid unlicensed technicians and machinists. That's a skillset they're just as likely to fill with former UAW workers as they will from the IAM or TWU....
 
One missed point though. If AA gets the unlicensed mechanic in the overhaul hangar, the A&P's might be moved from Tulsa to the line, but as long as the city and state keep up the corporate welfare handouts AA will remain in Tulsa.

Its my understanding that many of the OSMs are licensed, they just arent paid for them.

I see Maintenance Manuals in espanol and migrant workers in Tulsa that will work their ass off for much less pay and benefits that we are making now.

Its not that easy to do background checks on migrant workers.

Don't make the same mistake the AMT's at NWA made and believe you cannot be easily replaced.

The NWA sistuation was a little more complex. The other unions on the property assisted in breaking AMFA, they were probably embarrassed by the gains AMFA set for the industry in 2000. The IAM came back with paltry raises, the mechanics booted them out then AMFA came back with $35/hr, and it would have been higher if the NMB didnt interfere and demand that AMFA lower their demands. The rest of us followed. When we gave everything up without a fight in 2003 the rest of the industry followed, except the mechanics at NWA (and SWA, SWA has a good relationship with all their unions remained profitable and obviously had no desire to go to war with their mechanics), so the other unions on the property got together with the company and targeted the mechaincs. The question is where is NWA now? NWA is gone and their Ex-mechanics have survived, they held on to top pay till the last day and were able to handle the transition easier because of it, several visit these sites and say they are doing better now than they would have if they submitted and have no regrets on holding to full pay till the last day.

The NWA/AMFA struggle was five years ago, wages have continiued to decline and the pool of available A&Ps has shrunk faster than jobs have. More than half the A&P schools closed since then as well. Even back in 2005 it took NWA 18 months of scrounging and preparing to get half the mechanics they expected that they needed, and they scraped the bottom of the barrel at that. Just because NWA was able to break AMFA in 2005 it doesnt mean that AA or any other carrier can do the same thing today.

AA has already said that they cant afford to let too many mechanics go, thats why they didnt offer the VBR except in specific locations that were targeted for reduction. The VBR was basically paying workers the full value of their accumulated sick bank, it really doesnt cost the company much money and if you figure that they could replace these top paid guys that have 6 weeks of vacation and maxed out sick banks with new hires that earn half as much with only one week of vacation and only accrue five days a year of sick time then why wouldnt they? Because they aren't out there thats why.

You would think that since we lowered our capacity by 30% and a lot of the industry did the same thing that there would be a surpluss of mechanics out there but there arent. Most of the 4000 jobs we lost over the last six years were through attrition. As our real pay continues to decline the attrition rate will likely accelerate. We are seeing things now that we never saw before-a middle age exodus, guys who have secure jobs, in that they arent looking at a layoff, simply walking out and quiting. In the 30 years I've been in this industry I never saw that before.

When I was in my 20s I expected to retire from AA, now I'm not so sure, not because I may lose my job through a layoff or liquidation of the airline but because I may have to quit and get something that pays better and doesnt require what this job does.
 
Bob, my point was AA would stop for the requirement for the license in the hangar just like they do those OSM's in the shop now.

It would be simple to hire and train workers without the A&P requirement or pay. You obviously missed that point.

There sure are alot of "Probably" "Likely" "Maybe" and "I might have to" statements in your post.

Face it Bob, you need to quit congratulating those that have already left and stop measuring their time to wage recovery... and leave yourself. AA can get by fine without you just as they have gotten by without those that have already left.

AMFA/NWA: Complex or whatever you want to call it doesn't matter. Blaming the "other" unions when your own professions workers had 1000+ scabs line up to cross a picket line is ridiculous.

You sound just like Dell-Femine and the AMFA boys before that strike and how they were bragging about there was a major shortage of mechanics and how they couldn't replace them.

I think it is Human Nature to create justification like that to remain in a no win situation. It is just like the battered wife syndrome. You really need to step back and take a reality check.
 
Face it Bob, you need to quit congratulating those that have already left and stop measuring their time to wage recovery... and leave yourself. AA can get by fine without you just as they have gotten by without those that have already left.

Well if you look at AAs performance those who left did have an impact. A lot of those guys were their best workers.

AMFA/NWA: Complex or whatever you want to call it doesn't matter. Blaming the "other" unions when your own professions workers had 1000+ scabs line up to cross a picket line is ridiculous.

Well it would have been nice if they didnt get any scabs but all things considered, it took them 18 months to round up 1000 scabs, thats really not that bad.
How many do you think AA could round up today in 30 days?

You sound just like Dell-Femine and the AMFA boys before that strike and how they were bragging about there was a major shortage of mechanics and how they couldn't replace them.

Well they were partially right, they couldnt replace them, NWA shrunk their operations as a result and today they are out of business. So the mechanics worked for full pay till the last day and already have five years in their new jobs, where are the reswt of the NWA workers going to end up when Delta gets done shrinking?
 
Did everyone see the new letter out from weel? It says DWH will now be considered a maintenance base. They have signed an extension for that hangar thru 12-31-2010. This a week after they say they ar closing MCIE.
 
Did everyone see the new letter out from weel? It says DWH will now be considered a maintenance base. They have signed an extension for that hangar thru 12-31-2010. This a week after they say they ar closing MCIE.

This should not suprise anyone. Why do you think that hangar was obtained in the first place?
 
This should not suprise anyone. Why do you think that hangar was obtained in the first place?
Does anyone have any idea how much money the company spends on its posturing moves like this?
 
Posturing, or just working with the reality that 20% of the fleet is there on any given night, and it might be better to have a base where the aircraft are?....
 
If its going to be considered a mtnc base. Which local will it fall under? Who in there right mind would bump or transfer to a station with only a one year lease? I would imagine all the mcie,sfo and stl guys would stay away from that potential mess. All that being said though AFW is full and we usually have 2 or 3 aircraft a night outside for b-checks and what not. Its good to be busy.
 
I have to admit that having all these MX bases running with a smaller fleet is not necessary. I do understand the human factor in all this, but TULE and AFW are quite capable handling the work. Although the question of AFW's long term existence is being brought up, hence the DWH facility.
My criticism of management waste would be hypocritical if I said we really need the MCI base as the CURRENT fleet size stands. Had the A300 still be flying for AA and no MD80 retirements, MCI would me more than needed.
 
I have to admit that having all these MX bases running with a smaller fleet is not necessary. I do understand the human factor in all this, but TULE and AFW are quite capable handling the work. Although the question of AFW's long term existence is being brought up, hence the DWH facility.
My criticism of management waste would be hypocritical if I said we really need the MCI base as the CURRENT fleet size stands. Had the A300 still be flying for AA and no MD80 retirements, MCI would me more than needed.
We are closing one but opening another. We just opened a MX base in DFW. So at the moment we have 4 bases, at least till they close MCI.

When a comparasion was made back in July stating that we have X number of planes now and three bases and back when we had that same number in the past we only had one they left out some important facts.
1, Total headcount of all three bases was not much higher than Tulsa was on its own, I think they had 6500 AMTs at one time, now they have around 5000.
2 The changing fleet, we have more wide bodies than ever before, more widebodies more work.
 
2 The changing fleet, we have more wide bodies than ever before, more widebodies more work.

That's not right; since 2003, AA has retired 48 widebodies: 14 762s and 34 AB6s. In the same time, AA took delivery of what, four 777s? That's a lot fewer widebodies than AA flew in 1999-2002.