American Air Fuel Burden Spurs Cost-cut Quest

[Hatu]

FORT WORTH, Texas, April 8 (Reuters) - American Airlines faces possibly $400 million in added fuel expenses this year due to soaring oil prices, highlighting an urgent need for more cost cutting companywide, a top executive said on Thursday.

Beer said American will not be looking to its employees for more concessions, after they agreed to $1.8 billion in annual labor costs cuts last year to avoid the bankruptcy.

"We signed five-year deals and we plan to stick by those deals," he said. "I think we need to look everywhere else in the organization to find different ways to do business."

Beer said that American has no plans at the present time to follow rivals Delta and United and launch a low-fare airline within an airline.

http://biz.yahoo.com/rf/040408/airlines_am...american_2.html

 

[goingboeing]

Just another example of AA management keeping their heads buried in the sand.We could accomplish our jobs at TULE with 50% less management and never miss a beat.TULE is extremely top heavy with management and absolutely nothing is being done about it.

Examples: a Support Shop that for years operated with 1 supervisor on day shift and 1 on afternoon shift now has 3 supervisors on day shift alone!

An A/C Mod Line that has the same number of supervisors with 50 personnel that it had with 120 personnel.[5 supervisors]

Employees had to make sacrafices during the concessions and my Supervisor has the day off tomorrow [Good Friday]

AA Management wonders why the employees have an attitude towards them and no respect for them.

and yes,AA TULE could probably layoff another 500-1000 workers and never miss a beat.

 

[Wretched Wrench]

"a top executive said on Thursday, "We signed five-year deals and we plan to stick by those deals."

Yeah, right.

Just like they stuck by the contracts they unilaterally abrogated on in 2003 with their phony bankruptcy threat.

 

[NewHampshire Black Bears]

Yeah, right.

Just like they stuck by the contracts they unilaterally abrogated on in 2003 with their phony bankruptcy threat.

If AA and (their partners in crime), TWU, APFA, APA, keep their word, then the best guess for cost savings will probably come from the non union folks, who still have 10 paid holidays, and did,nt take wage concessions.

note : I'm NOT hoping that they get "hit", I'm just speculating.

NH/BB's

 

[flyhigh]

NHBB-

Non-union people did take pay and benefit cuts.

 

[PRINCESS KIDAGAKASH]

AA will not have to ask for more concessions,because the TWU has already told ARPEY that they will give him another $400,000,000 and there won't be any voting this time! So all you other employee groups ,relax the TWU will do what it is best at:GIVING AWAY THE FARM! :down:

 

[NewHampshire Black Bears]

NHBB-

Non-union people did take pay and benefit cuts.

fly high,

Perhaps I'm somewhat misinformed.
I do know that the folks a HDQ still have 10 holidays !!

NH/BB's

 

[flyhigh]

Not sure about that, but your quote was

"who still have 10 paid holidays, and did,nt take wage concessions." I was merely pointing out the wage piece. They did take cuts in both wage & benefits.

 

[Wretched Wrench]

There will be more concessions after the mechanics' representation vote this summer if the TWU remains in power. And they will be for everyone, not just mechs. AA doesn't want to rock the boat just now.