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I give it a year before AA takes back the RON''s
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We pay half as much for outsourcing and, according to Continental, the quality is comparable or better in some cases. There is a lot of power in holding your vendors accountable for the quality of job that they do. I doubt that we have the same kind of power among our own employees.
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What about all the station''s where AA fsc''s handle eagle flight''s? What about stations where AA fsc''s handle other airlines RON''s on the nite shift?
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In AA-handled AA/AE stations it does not make sense to run dual AA/AE-staffed operations. By running a single operation, our reduced overhead costs more than offset the cost of handling everything at AA''s higher rates. When outsourcing to a vendor, we do not bear as much overhead and the labor is paid far less.
In stations where we handle OA RONs, we''ll be able to provide a more competitive ground handling cost quote. We may even be able to win an extra contract or two because of it.
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None of that stuff was considered during the rush to get the new contract worked out.
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We did think of all of the things that you have mentioned and more. Our estimates for the number of jobs affected are reliable.