AMR''s Real Problem !

JBLU007

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Dec 19, 2002
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***Deleted by Moderator*** Please don't post copyrighted material
Thanks,
Todd
I think the point of that Carty has not made any changes in management while losing Billions shows he is just going to stay the course into disaster!
ALOHA, 007
 

WingNaPrayer

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Aug 20, 2002
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[blockquote]
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On 3/16/2003 9:07:10 AM JBLU007 wrote:

I think the point of that Carty has not made any changes in management while losing Billions shows he is just going to stay the course into disaster!

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You have to remember one basic truth...he has no incentive. When all is said and done, CARTY walks away with pockets full of millions, and screw the mess he leaves behind.

Can you imagine the irony at those family reunions? Two brothers both bankrupting airlines, and walking away fat and happy. I'm not a family member or even an employee and I'm ashamed of this man. I'm equally ashamed of the employees at AA who can't seem to get their collective asses together enough to rise up and put this man out on the street where he belongs!

There is no incentive for any employee at American Airlines to even consider wage concessions let alone take them, and Don Carty and his 50 cronies have seen to that!
 

AAmech

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Aug 22, 2002
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Another wacky Holly theory! Corp Culture is the reason AA's losing 5mil a day? Has she completly lost her mind? I guess its easier than actually reaseaching the problems. I won't be surprised if she joins the crowd blaming the arena sponserships next.
 

FrugalFlyer

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Aug 20, 2002
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[blockquote]
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On 3/16/2003 9:58:49 AM WingNaPrayer wrote:
Can you imagine the irony at those family reunions? Two brothers both bankrupting airlines, and walking away fat and happy.
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Blaming Doug Carty for Canadian's demise is a little bit of a stretch - he was only the CFO (for the last few dying years if I'm not mistaken). Besides, American is not in bankruptcy (yet?}.

If you compare the shape that CP was in for the last 10 or so years prior to its demise and AA today, well AA looks golden.

CP failed due to many reasons:
1) acquisition of Wardair. Sure Wardair was a pain in the neck, but it would have eventually collapsed. Instead CP bought it and its problems.
2) Government interference. In helping to maintain ACs dominant domestic position pre Canadian airline deregulation as well as prolonging CPs existance [tax breaks, aircraft purchases, etc.)
3) old inefficient fleet (DC-10s, 737-200s, F28 compared to ACs A320s and CRJs)
4) arcane workrules
5) Westjet - or a lack of a response to Westjet. It's been written that one reason why Westjet is so successful today is because CP was too complacent to respond to it when it began operations in western Canada.
6) alliance with AA. Contrary to popular belief, AA actually made money from CP courtesy of Sabre, and AA's USA hub/route structure was not that best for CPs USA strategy/expansion.
7) Air Canada. A formidable competitor, ACs goal was was always to inflict as much financial damage to CP as possible. Even though AC lost money in the process it had deeper pockets and knew it could outlast CP.
8) Failure to take advantage of Canada-USA Open Skies. See ACs expansion and presence in the USA (also see point #6 above).
9) Too much dependence on Asia routes. Thanks to government intervention, the Pacific route authorities were mostly CPs. But its domestic network was weak (too much in western canada), flawed US strategy, insuficient coverage to Europe (except for LHR).

Doug Carty is far on the list of the reasons for CPs demise. BTW, CPAir was profitable when Don Carty was there (i.e. pre Pacific Western's acquition of CPAir).
 

Winglet

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Aug 20, 2002
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The reason that AA is in trouble is the same that UAL is . . . . . gross overcapacity. Even if all the airlines were SW or JB type clones (adjusting for the huge differences in route system, service, and required equipment), EVERYBODY would be losing money. The only reason JB and SW are doing well is the same as it always is . . . the lower number of customers migrate to the cheap carriers in times of downturn.

With the double whammy of the severely depressed economy and terrorist attacks, a highly capital intensive national system just can't react to such wild swings in demand.

The American public isn't going to like what the national transportation system is going to look like 2 years from now . . . . high prices from our so-called LCCs and severely depressed national capacity.
 

ual06

Senior
Aug 30, 2002
331
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[blockquote]
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On 3/17/2003 7:34:27 PM Winglet wrote:

The reason that AA is in trouble is the same that UAL is . . . . . gross overcapacity. Even if all the airlines were SW or JB type clones (adjusting for the huge differences in route system, service, and required equipment), EVERYBODY would be losing money. The only reason JB and SW are doing well is the same as it always is . . . the lower number of customers migrate to the cheap carriers in times of downturn.


With the double whammy of the severely depressed economy and terrorist attacks, a highly capital intensive national system just can't react to such wild swings in demand.


The American public isn't going to like what the national transportation system is going to look like 2 years from now . . . . high prices from our so-called LCCs and severely depressed national capacity.
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Winglet, You hit the nail on the head. And yes, The Amercian public is not going to like what they find.
 
Oct 14, 2002
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Deleted*****


I think the point of that Carty has not made any changes in management while losing Billions shows he is just going to stay the course into disaster!

ALOHA, 007


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That is just the tip of the iceberg!
Don"t forget they also eat their young.
AMR ENRON AND W
What dreams are made of..
 

TWAnr

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Aug 19, 2002
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On 3/16/2003 9:07:10 AM JBLU007 wrote:

***Deleted by Moderator*** Please don't post copyrighted material

Thanks,

Todd

I think the point of that Carty has not made any changes in management while losing Billions shows he is just going to stay the course into disaster!

ALOHA, 007

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