A look at AA

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chipmunn

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Last night I posted the following AA information on the US board so the US employees can see our airline is not the only carrier suffering. Earlier today this post was moved to the AA board presumably by a Moderator, which is fine, but I posted this material for US employees to view. Not everybody participates on every board and I would like this material to remain on the US Message Board Thanks. Chip
A look at AA
The U.S. airline industry is in an unprecedented financial crisis and I thought it would be interesting to evaluate the situation at AA, the largest US airline. Here are a few points:
AA job loss:
Q2 2001 – 128,000 employees
Q3 2002 – 111,000 employees
Q1 2004 projection – 94,000 employees
In two years AA plans to reduce its job force by 27 percent and 34,000 employees
AA fleet plan:
Q2 2001 – 893
Post September 11 reductions (unknown, aircraft like the B727s, B717s, & DC9s)
Announced reductions – 83 aircraft (74 F100s & 9 B767s)
Short-term storage – 42 aircraft (28 MD80s and 14 B767s)
Aircraft reductions – 125 aircraft + post September 11 reductions of older aircraft like the B727s, B717s, and DC9s.
AA Financial Loss
2001 Loss - $1.76 billion or $11.43 per share
2002 first nine month loss - $2.98 billion or $19.19 per share
In a prepared statement AMR said, “if the revenue environment remains depressed, the company expects to post a sizable operating loss in the fourth quarter, most likely exceeding the third quarter loss before special items.†If AMR posts an loss equal to or greater than its $525 million third quarter loss, the airline will lose at least $3.23 billion in 2003, an incredible amount of money.
In addition, earlier this month, AMR said it would record a $990 million charge to write off all goodwill on its balance sheet and on Friday said it could face a charge against shareholder equity of more than $1 billion to cover its minimum pension liability unless investment returns improve by year end.
Clearly these results are unsustainable and the industry problems are not isolated to US or its current management team.
Chip
 

IAM1776PHL

Advanced
Sep 1, 2002
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Chip ...
Wake up and smell the roses your starting to sound like Davie we were the first to downsize because we are the least capable to make it ..big small or at all... we will be the first to fall....I think your ideas are unrealistic to the average worker who has to look up rather than down...I take it from your responses your either a piolt or management.
 

Winglet

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Aug 20, 2002
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www.usaviation.com
When the economy was good and before 9/11 where United and American Airlines were specifically targeted, the other majors were making great profits. U's management couldn't even make money when things were booming.
 
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