APA Issues Statements on New Executive Bonuses

[ILS2MINIMUMS]

ALLIED PILOTS ASSOCIATION DISMAYED BY CONTINUED AMR EXECUTIVE BONUS PLAN



'AMR executives file for another bonus plan while customer survey numbers plummet'



Fort Worth, Texas (July 25, 2007)—The Allied Pilots Association (APA), representing the 12,000 pilots of American Airlines (NYSE: AMR), responded to the announcement that AMR Corp.'s top executive bonuses will continue to be based on AMR stock.


"A service industry corporation should base management bonuses on the quality of the product provided to their customers," said APA President Captain Lloyd Hill. "Basing management bonuses on AMR's stock value does not serve the long-term interests of our stockholders, customers or employees."

AMR announced Tuesday that in April 2010, the company's top five executives will receive stock awards amounting to at least 258,200 shares.


“If the AMR Board of Directors and the senior executives had any understanding of leadership, they would base management bonuses on the same metrics that apply to the meager Annual Incentive Plan (AIP) that applies to regular employees. I liken this lack of leadership to parents lavishing themselves with Ferraris and fur coats, while forcing their children to mow their lawns for half an allowance under the theory that the cut in their allowance is necessary to keep a roof over their heads."

Hill noted that the comparator group for management bonuses is not the same as the AIP comparator group for the Survey America "Overall Travel Experience" and Department of Transportation on-time performance. Airtran, ATA, Delta and Northwest are competitors for labor, not management. American Airlines ranked next to last overall among major airlines in Survey America's most recent "Overall Travel Experience" measure of customer satisfaction.


"AMR management decisions have created an airline that is understaffed and a workforce that is uninspired," Hill said. "It is time for the AMR Board of Directors to realign their priorities and base management bonuses on the quality of the product we provide."

 

[MiAAmi]

What are the pilots going to do this time? Take off their hats again? That was so impressive the last time. The only thing it accomplished was it revealed how many bald pilots we really have working here.

 

[The Goose]

What are the pilots going to do this time? Take off their hats again? That was so impressive the last time. The only thing it accomplished was it revealed how many bald pilots we really have working here.

It would be nice if the pilots started a campaign to educate the shareholders as to the source of the execs' money.

The majority holders know, as they are probably receiving extra shares to prop up their NAVs, thereby not creating hate and discontent toward the BOD for this boneheaded move, AGAIN.

 

[Hopeful]

It would be nice if the pilots started a campaign to educate the shareholders as to the source of the execs' money.

The majority holders know, as they are probably receiving extra shares to prop up their NAVs, thereby not creating hate and discontent toward the BOD for this boneheaded move, AGAIN.

Itss the same old BOD directors who themselves are executives of other firms...Same old circle.

 

[ILS2MINIMUMS]

What are the pilots going to do this time? Take off their hats again? That was so impressive the last time. The only thing it accomplished was it revealed how many bald pilots we really have working here.

Well, at least they've done that...

What've you guys done besides rolling over and gutting your contract like all the other unions on the property? Oh and placing a pitiful ad in the USAtoday.

Over 80% of pilots voted in the last election. The incumbents were defeated by a 75% margin. You may think otherwise, but having a union leader who'll actually call these scumbags out in the media is a refreshing change from the management-wannabe leaders we had in office previously.

I wouldn't waste my effort throwing stones at pilots. Your chance in the AMR crosshairs will be coming very soon...

 

[StraaightTaalk]

Well, at least they've done that...

What've you guys done besides rolling over and gutting your contract like all the other unions on the property? Oh and placing a pitiful ad in the USAtoday.

Over 80% of pilots voted in the last election. The incumbents were defeated by a 75% margin. You may think otherwise, but having a union leader who'll actually call these scumbags out in the media is a refreshing change from the management-wannabe leaders we had in office previously.

I wouldn't waste my effort throwing stones at pilots. Your chance in the AMR crosshairs will be coming very soon...

I can't wait to see the company have a go at your lump sum benefit, personally. Try protecting that. You have a lot more to lose than us.

 

[ILS2MINIMUMS]

I can't wait to see the company have a go at your lump sum benefit, personally. Try protecting that. You have a lot more to lose than us.

Well, considering I'm married to a Flight Attendant, I personally hope you guys get everything you can.

By the way, no lump sum, no pilots. Not only are we going to protect it, if they try to "have a go at" it, we walk. I wonder if the thoughts of the pilots losing their retirements will still make you so giddy when you're temporarily unemployed because they're on strike?

 

[MiAAmi]

Well, considering I'm married to a Flight Attendant, I personally hope you guys get everything you can.

By the way, no lump sum, no pilots. Not only are we going to protect it, if they try to "have a go at" it, we walk. I wonder if the thoughts of the pilots losing their retirements will still make you so giddy when you're temporarily unemployed because they're on strike?

The pilots won't be allowed to strike, nor will the flight attendants. Maybe 5 minutes like last time, if that. Dont fool yourself, you don't have much leverage with the company anymore. Remember the Reno sick out.? You guys don't have a great track record in negotiations with the company now do you? You can huff and puff and take your hats off but in the end you will probably give the company what it wants.

 

[eolesen]

Pilots have always had high turnouts for elections, regardless of the circumstances, so I'm not sure I'd read a whole lot into the 80% turnout.

Likewise, APA has a habit of turning on its leadership every other election, so the 75% margin is also somewhat meaningless. In '94, they turned on Rich Lavoy and elected Sovich. After the failed strike, Sovich got booted and Lavoy was elected. Had Lavoy not resigned, he would have been recalled.

If history is any indicator, Lloyd Hill is just another one-term president who won't be able to accomplish anything substantial for the membership.

John Darrah said it best in his "farewell" letter in Flightline:

During APA’s early years, if pilots wanted information, they attended a domicile meeting.

Today, the Internet has changed all that, putting an entirely new face on communications. Now members can communicate with complete anonymity and no accountability, an unfortunate combination that has lead to a decrease in civility, and abuse by those that want to deceive and mislead.

My successor will face the same challenges of every post-Deregulation President — Captains Malone, Vogel, LaVoy, Sovich and Darrah. Read those names again and think what they all have in common. Each is associated with concessions or some other controversial contractual development, including B-scale, 1987 Scope exception, Fresh Approach and contract extension, 1997 agreement and Eagle RJs, and the 2003 $660 million concessionary agreement.

The next APA President’s decisions will also be continually second-guessed and criticized, and some of the most ardent critics will resort to character assassination. The latter has unfortunately become accepted as normal behavior.

Seriously, the pilots can bluster all they want to, but the reality is if it looks like a strike is inevitible, AMR won't need much more of an excuse to march into bankruptcy court with a pre-packaged debt restructuring to keep the banks and major creditors happy. Then, not only do you see your lump sum f***ed with, but AMR gets a chance to freeze your pension, eliminate scope, and who knows what else.

If past experience is any indicator, customers won't care if you're bankrupt, and the company will come out it somewhat unscathed. There are a lot of people who like to hang out the "we didn't declare bankruptcy" banner when it's convenient, but in private are probably still second guessing the decision not to file back in April 2003.

 

[ILS2MINIMUMS]

The pilots won't be allowed to strike, nor will the flight attendants. Maybe 5 minutes like last time, if that. Dont fool yourself, you don't have much leverage with the company anymore. Remember the Reno sick out.? You guys don't have a great track record in negotiations with the company now do you? You can huff and puff and take your hats off but in the end you will probably give the company what it wants.

Just keep thinking that if it makes you feel better. Why don't you do a little research and try to prove that we "won't be allowed to strike"... Just go look at the LMRDA. The White House and Congress can only DELAY a strike.

You guys kill me. We don't have leverage with the company? We have as much or more leverage than anyone else on this property. Our leverage is the ability to DIRECTLY and IMMEDIATELY have an affect on the bottom line of this corporation. And as far as our track record in negotiations, so what? What does our past negotiations have to do with what's occuring now? Because of the Reno Sickout, there is not another shell company flying our routes with large aircraft, and you still have a job...\

I guess you guys just don't realize what the change in our leadership means. But you'll find out.

Pilots have always had high turnouts for elections, regardless of the circumstances

Patently false.


Seriously, the pilots can bluster all they want to, but the reality is if it looks like a strike is inevitible, AMR won't need much more of an excuse to march into bankruptcy court with a pre-packaged debt restructuring to keep the banks and major creditors happy. Then, not only do you see your lump sum f***ed with, but AMR gets a chance to freeze your pension, eliminate scope, and who knows what else.

When the bankruptcy laws changed, so did the game of prancing off to bankruptcy court to rape your employees and gut contracts. Don't belive it? Just do a quick search on the number of bankruptcies immediately prior, and since the change in the law. AMR will not file bankruptcy with just over 6 Billion in cash.

 

[kirkpatrick]

the pilots can bluster all they want to, but the reality is if it looks like a strike is inevitible, AMR won't need much more of an excuse to march into bankruptcy court

I doubt if the situation would be allowed to get to that point. The government simply won't allow the world's largest airline to strike, period.

MK

 

[MiAAmi]

Just keep thinking that if it makes you feel better. Why don't you do a little research and try to prove that we "won't be allowed to strike"... Just go look at the LMRDA. The White House and Congress can only DELAY a strike.

You guys kill me. We don't have leverage with the company? We have as much or more leverage than anyone else on this property. Our leverage is the ability to DIRECTLY and IMMEDIATELY have an affect on the bottom line of this corporation. And as far as our track record in negotiations, so what? What does our past negotiations have to do with what's occuring now? Because of the Reno Sickout, there is not another shell company flying our routes with large aircraft, and you still have a job...\

I guess you guys just don't realize what the change in our leadership means. But you'll find out.

Ok Norma Rae! We shall see. Good luck to you and eveyone else.

 

[operaations]

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Just keep thinking that if it makes you feel better. Why don't you do a little research and try to prove that we "won't be allowed to strike"... Just go look at the LMRDA. The White House and Congress can only DELAY a strike.
You guys kill me. We don't have leverage with the company? We have as much or more leverage than anyone else on this property. Our leverage is the ability to DIRECTLY and IMMEDIATELY have an affect on the bottom line of this corporation. And as far as our track record in negotiations, so what? What does our past negotiations have to do with what's occuring now? Because of the Reno Sickout, there is not another shell company flying our routes with large aircraft, and you still have a job...\
I guess you guys just don't realize what the change in our leadership means. But you'll find out.
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The above comment by ILS2MINIMUMS is why so many people have so much hatred for Pilots. They walk around with this attitude of I can screw you and this airline if and when ever I want...just you wait and see...(we are the only work force than can put everyone one on the un employment line at a moments notice so you better bow down to us or else)

I sure hope that the comments made by (ILS2MINIMUMS) are the thought of only a few.

Pilots are just as bad as Upper management. Management went to high priced business schools to gain their education to become where they are today. Pilots went to the Military to gain a free ride to learn how to fly.

 

[ILS2MINIMUMS]

he above comment by ILS2MINIMUMS is why so many people have so much hatred for Pilots. They walk around with this attitude of I can screw you and this airline if and when ever I want...just you wait and see...(we are the only work force than can put everyone one on the un employment line at a moments notice so you better bow down to us or else)

I sure hope that the comments made by (ILS2MINIMUMS) are the thought of only a few.

Pilots are just as bad as Upper management. Management went to high priced business schools to gain their education to become where they are today. Pilots went to the Military to gain a free ride to learn how to fly.

WTF are you talking about? I said we have AS MUCH leverage, and I didn't say anything about you bowing down to us... I don't give a crap if you hate us. I used to feel bad about it, but then I realized that no matter what we do, you'll just come up with some other reason to feel animosity towards us. Attitudes like yours have been around since long before I got here, and they'll be around long after I'm gone. We're an easy target. I can live with that.

With regard to screwing the airline, just how much of a screwing are WE supposed to take before it's enough? Are you so much of a vagina that you don't think we should start fighting back? You can bet your bitter ass that when AMR comes after you, you'll have the support of the pilot corps of AA. My "you'll find out" comment above was meant to imply that you'll be seeing a different tact from our new leadership in it's dealings with AMR, not some veiled threat of a strike (which is what I presume you thought I meant).

Oh, and I am a civilian pilot, not military. I went to a high-priced university, then I used credit (loans) to pay for my flight training.

 

[eolesen]

Typical Skygod bluster. I guess it's time for "Feed The Pilots" to be dusted off....

You can bet your bitter ass that when AMR comes after you, you'll have the support of the pilot corps of AA.

Then why did planes continue to fly thru-out the entire APFA strike? If you guys are soooooooo supportive, why didn't you honor the picket lines?