Amr Proposes New Costs Cuts

[The Dissident]

American Air CEO aims for 17 pct 1st-qtr cost cuts

Reuters, 02.05.04, 7:54 AM ET


DALLAS, Feb 5 (Reuters) - The chief executive of American Airlines parent AMR Corp. (nyse: AMR - news - people) said on Thursday the world's largest airline is aiming to cut unit costs by 17 percent in the first quarter of 2004 compared with a year ago.

Gerard Arpey told a transportation conference broadcast via Webcast that the airline's cost performance in 2004 "will be strong."

Arpey said the carrier will face some cost headwinds in the year which include health care, airline fees and maintenance on planes. Copyright 2004, Reuters News Service
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Hmmmm.....that sure gives me a warm and fuzzy

 

[Ken MacTiernan]

Mr. Gerard Arpey wants another 17% cut in the 1 st quarter? Where in maintenance is he looking? Maybe we can have Greg Hall come back and create the "No NO Check". After all the "No Check" policy is working such miracles now. What was our MEL count on the MD80 fleet last month? It was over 3000! Maybe Mr. Arpey can take 17% of the pens, computers and chairs from the officies. Nice how he can come out with a statement like this and not inform the employees how he plans on implementing this.

 

[Checking it Out]

Is this in conjunction with the cost cuts of last year? It seems to me that during the talks it was said that the effects of the cuts would take several quarters to see the full affect. So don't twist the rhetoric from the news.

 

[Buck]

Yes listen to the expert on rhetoric and twisting. Way to go CIO

 

[The Dissident]

Is this in conjunction with the cost cuts of last year? It seems to me that during the talks it was said that the effects of the cuts would take several quarters to see the full affect. So don't twist the rhetoric from the news.

Hey RETARD. Its seventeen percent above last years figures. read the article again and if you search Reuters its in there.Ill pst it again for you in big red letters so you can see it.






Thursday the world's largest airline is aiming to cut unit costs by 17 percent in the first quarter of 2004 compared with a year ago.


That means 17% more than last year in the first quarter. :blink:

 

[Hopeful]

CIO, you of all seem to base your opinions on facts. The article says that Arpey is looking to lower costs 17% for 2004 1st quarter. Has nothing to do with 2003.

 

[Bob Owens]

Dont mind CIO fellas. He is just a company union man doing what company unions do-defending the company at the expense of the workers.

 

[fix_airplanes]

Guys; Instead of using your energy to shout at each other, you guy's should use your energy to worrying more. Worry more about the "health care" cost referenced by Arpey. It is a national trend by United States industry to pass along increased health care cost directly to the employee.

 

[Buck]

It is my understandung that the area that the company is looking at for the next round of savings is the pensions. Has anyone heard of this?

 

[UAL_TECH]

CIO, you of all seem to base your opinions on facts. The article says that Arpey is looking to lower costs 17% for 2004 1st quarter. Has nothing to do with 2003.

Hopeful,

CIO opinions based on facts?

Good Shot!

Take Care,
UAL_TECH

 

[Hopeful]

UAL:

CIO is TWU brainwashed, that he writes without thinking!


BUCK:
There hasn't been any official discussion on the pensions. But with Congress passing the pension relief bill, I think it is safe to say that it gives AA and other corporations two years to get the plan converted to the cash balance based formula. Delta alreay has it in place. AA owes about $3 billion with a $500 million installment this year alone. It's the next major controllable expense aside from fuel.

 

[Buck]

Workers expect cuts in pensions, survey says
By ADAM GELLER Associated Press
2/5/2004

View in Print (PDF) Format


NEW YORK -- Workers expect employers to cut more of their retirement benefits -- and three-quarters of companies have either done so or plan to, a new survey says. More than 40 percent of the employers queried have reduced medical benefits for workers who will retire in the future and an additional 35 percent said they are likely to do so, according to the survey released Wednesday by personnel consulting firm Towers Perrin. More than two-thirds of the employers said they have shifted more medical costs to their current retirees. In addition, more than 40 percent of the employers with traditional pension programs said they have converted to cash-balance or other hybrid plans. Such plans have drawn protests from older workers who contends the change cuts their expected benefits by as much as half. "I think the study confirms the reality of retirement," said Kathleen FitzPatrick, a senior consultant in Towers Perrin's Dallas office. The new reality is not lost on workers, with 78 percent saying they expect to continuing working in some capacity during retirement. About 35 percent of those said they would do so for financial reasons, with 43 percent saying they would do so to stay active.
Most workers expect employers to continue offering retirement benefits, but at lower levels. More than 6 in 10 said they expect employers to shift more retiree medical costs to workers. Forty-one percent of those surveyed said they expect reductions in Social Security benefits, too, with the program itself remaining intact. But 28 percent said they expect the government to end Social Security. About 60 percent want to see Medicare replaced with a national health care system. The survey tapped more than 2,000 randomly chosen workers and 365 personnel officers at 340 medium and large companies last fall. It is the first such survey done by the company, but many of its findings coincide with those of surveys done by other organizations.
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www.towersperrin.com