Aa's Road To Profits

[eolesen]

Hedging is most definitely driven by economies of scale --

WN hedged at 100% would be the equivilent of AA being hedged at about 60% if not less.

B6 hedged at 100% would be equal to AA being hedged at about 15%.

 

[flyhigh]

A couple notes...

Most legacy carrier mgmt is paid far below WN mgmt at the top level.

As for the 757 in LAS. With the exception of those carriers who are significantly hedged at low prices, what is called utilization or DOC flying doesn't make much money. With fuel running at the levels it is, it makes launching planes at low demand times a guaranteed loss.

 

[Borescope]

It's called the point of diminishing returns...

Maybe if we were the size of WN we'd be profitable, too.

[post="263028"][/post]​

Domesticaly WN is not a whole lot smaller than you and they are closing the gap rapidly. AA's domestic operations in RPK from Jan to Nov were 130,000,000 where WN's was 80,000,000. It won't be long before they pass you in RPK also. They already carry the most pax's of any major.

 

[Bob Owens]

It's called the point of diminishing returns...

Maybe if we were the size of WN we'd be profitable, too.

[post="263028"][/post]​

Maybe if the company didnt have so many layers of management we could be profitable and earn a good wage.


Didnt SWA fly more people than AA last year and earn a profit? Do we realy need a VP for every single title that you can think of? Do we really need to keep hiring Supervisors as workers are getting laid off?

Would it not make more sense to pay the people that produce the product more instead of cutting their pay then hiring more management to try and squeeze out more from them?

 

[AA717driver]

I know STL Flt. Ops. has three "chief pilots". Considering the size of the base, why are three people needed?

Also, I was amazed at how many "suits" were running around the terminal talking into their radios but they never seemed to have time to help with boarding... <_< TC

 

[1AA]

American posted another quarterly loss. In the millions of course.
Now what I can not figure out is that Americans reserve cash flow increased. ($3 billion plus)
I will try to find the exact numbers and try to post them unless someone here on this board has them to post.

Are we being taken for fools and idiots?
To add injury to insult I received a letter about AA's pension plan contribution.
They referenced the new act that the government passed to save the airlines from BK.

AA's contribution to the TWU represented employees for 2005 would have been $280.5 million. AA elected to make the minimum required by the government of a total of $65.9 million. A short fall of $214.6 million which is a 31.6% payment. A shortfall of 68.4% (underfunded). You would think that AA would make the full contribution with over $3 billion on cash reserve. This year it looks like our pension will be underfunded by 68%. Thanks TWU for challenging the company on our behalf and best interest.

I wonder if AA took the same path with the pension plans of the Pilots and Flight attendants. Anyone care to find out and post?

 

[DFWCC]

Heard rumor and I say rumor, AA will ask for $3.00/hr for all levels below mgnt. This is one that will probably come true.

 

[Connected1]

With fare hikes sticking, the price of oil stabilizing, and hedges growing, there is reason to believe that concession talks aren't necessary this year. The only thing on the horizon that could possibly trigger concession talks would be debt covenants. I am not familiar enough with the covenants to know what would need to be done to avoid technical default.