AA's Plan

[usa1]

Part of that requires American to increase the number of large regional jets it can have regional partners operate, a proposal that runs afoul of limits set in its contract with its pilots' union, the Allied Pilots Association. American is seeking to reject the APA contract, and a primary reason is to negate the contractual limits on out-sourced flying.

http://aviationblog.dallasnews.com/archives/2012/04/american-airlines-executive-de.html

 

[AA-MRO.COM]

American can bring in $1 billion in more in revenue if it is allowed to execute its plan as proposed.
The increased revenue will be in the form of union concessions and a flawed business plan :angry:

 

[TWU informer]

I think the AA Plan is to extract the concessions, get emergence from BK approval from the court, and then become the agressor instead of the victim in the hostile take over industry consolidation movements.

AA wants to bring the others into their new cost structure instead of the employees receiveing a better pay/benefit from an offer made while they are in BK.

This is why Horton keeps saying he is not opposed to consolidation, just not right now. The employees will fair better in the consolidation game by excepting a deal before emergence than they will get after.

Just like the "early option" offered by the Unions was not out right rejected by Horton and AA Management, they just said "when the time comes". Management did not want the savings associated with an early out to be part of the negotiations, they want their cake and eat it too on all fronts.

 

[MCI transplant]

I think the AA Plan is to extract the concessions, get emergence from BK approval from the court, and then become the agressor instead of the victim in the hostile take over industry consolidation movements.

AA wants to bring the others into their new cost structure instead of the employees receiveing a better pay/benefit from an offer made while they are in BK.

This is why Horton keeps saying he is not opposed to consolidation, just not right now. The employees will fair better in the consolidation game by excepting a deal before emergence than they will get after.

Just like the "early option" offered by the Unions was not out right rejected by Horton and AA Management, they just said "when the time comes". Management did not want the savings associated with an early out to be part of the negotiations, they want their cake and eat it too on all fronts.

<_<------ Everything you say may be true, but ------ a merger is not going to happen until AA comes out of BK. If at all! Parker is no fool! He's looking for the best deal he can get, And that involves more than just bailing out the employees. It will mean taking on less of AA's dept if he waits. Which he will! The only way a merger may start before AA comes out would be, if there were some sort of bidding war going on by two,or more, Airlines for AA's assets! But as you always like to point out, as was the case with TWA, that wouldn't be a true "merger"! Now would it?

 

[Bob Owens]

AA says that it needs to make a profit of at least $3billion a year to "attract sufficient investment". Its one thing if a company jumps into BK when they are running out of money and are locked into deals that hold them under uncompetative positions, its another when a company has plenty of money in the bank and simply wants to courts to set them up not to survive, but earn more than any company ever by forcing their employees to subsidize those profits.

In 2010, a "good" year for the industry the top eight carriers only earned $2.3 billion for the year, AA's plan would have them earn around $3 with $1.25 of that coming directly out of the pockets of its union workers.

(The Lawyer said that under their business plan the company will have $360 million for the unionized workforce, they make up 80% of the company and the Profit Sharing is 15%.)

 

[wrencher]

AA says that it needs to make a profit of at least $3billion a year to "attract sufficient investment". Its one thing if a company jumps into BK when they are running out of money and are locked into deals that hold them under uncompetative positions, its another when a company has plenty of money in the bank and simply wants to courts to set them up not to survive, but earn more than any company ever by forcing their employees to subsidize those profits.

In 2010, a "good" year for the industry the top eight carriers only earned $2.3 billion for the year, AA's plan would have them earn around $3 with $1.25 of that coming directly out of the pockets of its union workers.

(The Lawyer said that under their business plan the company will have $360 million for the unionized workforce, they make up 80% of the company and the Profit Sharing is 15%.)

Sounds like a good time for a Job action, you know to help our worthless union out when they go to court on our behalf

 

[dfw gen]

according to the companys recap of bankruptcy proceedings yesterday on jetnet. the biggest mistake that the other carriers made was to not screw the employees enough and they had to come back and ask for more. the companys piece of s**t expert "jerry glass" who i hope rots in hell also states that aa (lower case on purpose) benefits package is to generous. i wonde how much thios expert is fuc**ng us for.

 

[FWAAA]

http://aviationblog.dallasnews.com/archives/2012/04/american-airlines-executive-de.html

How does AA's plan for increasing the number of large RJs permitted at commuter rates compare to the scope clause at US (or other competitors)? Is Horton asking for substantially more outsourced jet flying or is he seeking approximate parity with what US, DL and UA pilots gave up years ago?

 

[eolesen]

How does AA's plan for increasing the number of large RJs permitted at commuter rates compare to the scope clause at US (or other competitors)? Is Horton asking for substantially more outsourced jet flying or is he seeking approximate parity with what US, DL and UA pilots gave up years ago?

If AA increased seats on its RJ's by 50%, it would still be outsourcing fewer seats than what's done at the other network carriers:

Cxr   Main    Reg     Mseats    Rseats       %deps  %Seats
AA    1948    1859    326280    94188        49%    22%
DL    2610    3299    448454    201490       56%    31%
US    1296    2062    198250    104419       61%    34%
UA    2236    4449    375820    199104       67%    35%

Eagle/Connection increase seats x 1.5:
      1948            326280	141282	            30%

 

[topDawg]

How does AA's plan for increasing the number of large RJs permitted at commuter rates compare to the scope clause at US (or other competitors)? Is Horton asking for substantially more outsourced jet flying or is he seeking approximate parity with what US, DL and UA pilots gave up years ago?

So because Delta and United did it AA should too?

ah the race to the bottom is so amazing. 🙄

 

[Phoenix]

So because Delta and United did it AA should too?

ah the race to the bottom is so amazing. 🙄

Put another way, since ALPA unions did it, non-ALPA unions are screwed. Ergo, the ALPA unions are the opposite of what they all claim to be. 🙂

 

[TWU informer]

So because Delta and United did it AA should too?

ah the race to the bottom is so amazing. 🙄

If there was really a plan to what others do, AA would be making money on third party engine work like Delta Tech Ops.
I see Delta now has over 150 Customers. AA has a bunch of idiots that cannot even do AA work in a effecient manner.

We have management that cannot stop fighting fires long enough to implement fire prevention measures.
Even when we give them the solution, they bury their heads in the sand and protect empires. Management politics always trumps doing the right thing and advancing our success. They are all currently lining up on teams out of fear of job loss. It is not based on ability, it mostly based on where they went to school.

When I first hired in it was the Masonic Lodge Brothers running the place, then the Golfers took a ride, then the Wife Swappers, and now we have the Oklahoma State grads running the show. Friggin unreal.

And we continue to pay for this via concession, after concession, after concession.
From my view we could all work for under $15.00 per hour, and the Tulsa Base would still be unable to match the competition that has management that executes solutions instead of protecting each others empire of ingorance.

There are enourmous Capital Resources, there is enormous Skill and Talent, there is even the Want To.
But between Management Politics and Union Job saving, we don't stand a chance.

 

[FWAAA]

So because Delta and United did it AA should too?

ah the race to the bottom is so amazing. 🙄

It's no longer a race if your competitors crossed that finish line years ago. They weren't willing to stand together and fight for the profession.

If the competition slashes fares, you don't have much choice other than to meet them. Standing tall on princiiple means you'll fly a lot of empty seats until you run out of money. Economic rent is difficult to extract over the long term.

Yes, AA management has made some stupid mistakes, but you can't have it both ways. You can't tie one hand behind their back (like more restrictive scope than the competition enjoys) and then #### and moan that management has no plan to compete. Sure, scope is about saving jobs. History at AA has shown that trading pay for jobs hasn't been very successful. Perhaps it's time to trade a few jobs for some opportunity at better pay for those who remain.

 

[Rogallo]

It's no longer a race if your competitors crossed that finish line years ago.

Unless that line keeps changing!!

 

[FWAAA]

True. And the UA-CO pilots have attempted to turn back the tide in their negotiations as CO pilots gave in on the 50 seat issue many years ago but didn't surrender the larger RJ issue like UA's pilots did. I don't predict success for them, as DL and US are both able to fly lots of 70 seaters.