American Eagle flight attendants worried by merger

[Bob Owens]

American is starting to take the flow through pilots so that should significantly reduce the amount of topped out pilots shortly. Additionally part of the bankruptcy contracts for all work groups ( possibly with the exception of the FA's, I don't know) is that in a couple years we will be indexed to the average of the two lowest paying comparable airlines out there. So American is guaranteed to be paying below average wages to its employees. Since our benefits are below average also, they have no excuse to blame any high costs on the employees.

But they will. The future is bleak for workers at AA, there is no future at all for AE workers.

 

[will fix for food]

If the merger goes through the divestiture is off the table. In fact, there has been no talk of it for a lot longer than when the merger was announced.

I expect that Eagle will return to the pre 97 whipsaw model that worked so well for them. PSA, Piedmont and Simmons will all be played off against each other. "Sign the contract or we will shift flying to the other airlines" All the while AAG will depress wages and pocket all the profits. Larger RJs at the carriers will allow them to keep the same ASMs with fewer employees. I expect there will still be some other carriers, but the majority of feed will come from those three.

I hear that XJT is doing horribly out of DFW and Eagle has to cover it's flying. Republic isn't bringing its aircraft online as fast as promised either I am told. Skywest appears to be doing ok.

 

[eolesen]

US carriers are also competing with foreign carriers, esp. Asia, for pilots who can be paid as much or more to fly in Asia; Asia is not producing pilots fast enough to keep up with their rate of growth. I have been on more than one flight in Asia with an American (nationality, not airline) pilot.

True, but the Asians want guys who can sit in the left seat. Then there's the actual impact of living in Asia... Nice place to visit, and the food is great, but visiting and living here are mutually exclusive on the desirability scale... especially if you have a family.

If the FAA is increasing the requirements for new pilots at the regionals, which is causing a shortage of candidates, which is (as it should in a free market economy) pushing up the pay rates for new rj pilots, then does it not reach a point where the cost advantage/raison d'etre of regional jets goes away? For instance we have recently started (could be, resumed, but that would be before my time...9/2000) mainline flights to Lubbock and Corpus Christi. Is this cost increase in rj flying involved?

Last point first... both CRP and LBB had mainline employees in the mid 90's, as did MAF, AMA, SHV and BTR. They all got caught up in a wave of closings between 1992 and 1995, but I don't recall exactly which closed down when.

But to your first point... RJ economics... I think you're probably right. Buying capacity isn't going to be as easy between fuel and operating costs, and that in turn may make the A319 order work out to be a much smarter move than not. It's a lighter airframe than the 73NG, and can probably do the MAF/CRP/LBB type flying at a slightly higher cost, but can perhaps help drive utilization a little higher as well if they can tag them out of DFW and get another 2 hours of flying out of a crew who hasn't hit their limit. They're not exciting layover cities, but it beats sitting in a hotel being unpaid.

 

[WorldTraveler]

agree... but most American (nationality) expat pilots don't go to Asia because they want to but because they have either suffered so much economic harm in their careers that they have to work a few years at a high pay rate or because they don't have any other choices.

Most only stay for the minimum requirement anyway but it is enough to help correct their difficult financial situation.

Families face similar choices even here in the US.

Airline families are probably better off and better understanding of the necessity of a short-term commute in the interest of long-term financial stability than most American families.