Bigger and better numbers
- Thread starter AAviator
- Start date
1AA
Veteran
Don't read the press releases. Just listen to your union leadership and the company propaganda. We are BK. We are not making money. Blaa, blaa, blaa.......
Well, a profit excluding reorganization expenses and special items. Nevertheless, bonusses all around at Centreport!
TWU informer
Veteran
- Nov 4, 2003
- 7,550
- 3,767
What is most interesting is that the huge increase in revenue could have been done without the Chapter 11 filing.
Bankruptcy courts are for restructuring cost not generating revenue, and now that the revenue at AA is bettering the competition it is rock solid proof that management had within their power to make these revenue generating changes without the BK, but apparently had no intention of implenting the revenue improvements until they screwed the employees into the ground first.
Bankruptcy courts are for restructuring cost not generating revenue, and now that the revenue at AA is bettering the competition it is rock solid proof that management had within their power to make these revenue generating changes without the BK, but apparently had no intention of implenting the revenue improvements until they screwed the employees into the ground first.
Agree completely. Bankruptcy doesn't typically result in higher revenue. In fact, bankruptcy generally results in lower revenue as passengers tend to book away from bankrupt airlines. AA's experience has been different. Analysts claimed that AA needed to shrink by 10% or more, and AA has not contracted.
AA's revenue is improving due, in part, to the AA/BA ATI, and management said last year that by the end of 2012, it would account for a $500 million annual revenue improvement. Smaller revenue bump but otherwise same thing with the AA/JAL ATI. The ability to stop competing with your friends and share revenue and plan schedules together permits higher fares. The promised revenue improvements are progressing on schedule (schedules that were made public a year ago).
Another reason that AA is thriving in the second quarter is because of what has happened over at UAL. Have you been following that? On March 3, UA cutover to a new reservation system (Shares, IIRC) and all hell broke loose. UA has melted down and has been experiencing numerous problems with its reservation system and poor training. AA began offering top-tier status matches to any UAL 1K that wanted it, and thousands have taken AA up on the offer. I suspect that AA has made some inroads with UA's corporate customers as well. UA's monthly revenue improvements have been much smaller than AA's improvements during the second quarter - do you think UA management is doing that intentionally?
AA filed for Ch 11 after years of recalcitrant "restore and more" stupidity by the union leadership that failed to reach new labor agreements. Ch 11 gives management a hammer to force cost reductions, and that's what is happening.
But to claim that AA management sandbagged on revenue? Uhh-huh. That smacks of black helicopters and tinfoil hats.
Locked in for 6 long years? YEAH its true. Read the scope clause in the new TA.
No change in working conditions, pay, and work rules until 2018 at the end of the contract.
Merger or no merger, makes no diff.
So if AA merges with US, our brothers over there will be making more than us with much better medical until 2018. But, hey, someone said that if a new union takes over, then they can file to reopen the existing contract in 6 months. Is this just a bunch of bolongna? And why would the co. OK any of that with the history making concessions which would gaurantee huge yearly profits for the new company?
They would just be using the same ol' foot dragging strategy of the past just to keep the staus quo alive and well.
Interesting that the pilots vote deadline is the same for M&R. Gee, I wonder who arranged that? So we can't use the pilots decision to help us decide. Great.
OK, if the judge abrogates, the co. slaps us with the terms, or anything else they can devise.
Then take the hit, and wait for merger mania. I wonder about the terms of the TWU/US agreement.
How many AMT's would like the idea of OSM in the hangar? Well, per TA, its 25% of total base Title 1 numbers, and do the math people!!!!! It comes out to about 1100 max. new OSM in the hangar, using today's senority list numbers. The new OSM will be making lots less for doing AMT work. Think of the millions in savings over the life of the 6 yr. contract, plus setting a new anti-AMT precedent in the industry. Vote YES and the new OSM will make $10,000 less per year.
Vote NO and the new OSM will make $22,500 less per year. Add huge increases to medical copays and coinsurance and we are talking about a HUGE paycut here!!!! But with continued negotiations and US waiting in the hallway, there is pressure on the co. to deal.
OK, now talking about 7 day coverage for whole maint. base. Takes more heads right? Will co. just increase headcount with new OSM's? 1100 is a huge number. What would you do if you were in the beancounter's shoes?
Food for thought. Someone said, if we give up benefits and they are gone forever. Its a hard decision to make. How would you convince a fence-sitter?
eolesen
Veteran
- Jul 23, 2003
- 15,988
- 9,428
Let's not overlook fuel prices, guys. Fares are up, fuel is down. For now, at least.
When 40% of your costs go down, it's going to have an uptick.
I'll be curious to see how unit revenue compares after everyone else reports. Perhaps AA has benefited from UA's IT woes or overall capacity discipline elsewhere.
When 40% of your costs go down, it's going to have an uptick.
I'll be curious to see how unit revenue compares after everyone else reports. Perhaps AA has benefited from UA's IT woes or overall capacity discipline elsewhere.
Fuel prices are currently down a little, but AA actually paid 12-13 cents more per gallon in 2Q12 over the price per gallon in 2Q11. AA burned 23 million fewer gallons than the year earlier (higher load factors and more fuel efficient 738s).
Buster CRC
Advanced
http://www.thestreet.mobi/story/11622365/1/american-cfo-just-wait-until-our-cost-savings-kick-in.html
," she said. "The target is $2 billion annually
," she said. "The target is $2 billion annually
Are the profits earned during bankruptcy calculated into our new profit sharing?
Or at least from the day our pensions are frozen....
Or at least from the day our pensions are frozen....
WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,721
AA is seeing unit revenue improvements for several reasons. The ATIs are kicking in for sure but AA is cutting capacity after years of not wanting to do so - and that is a big reason why AA is seeing RASM increases.
AA is willing to cut capacity because it can now cut costs, something it couldn't do outside of BK.
You can't discount the problems which UA has had... remember it wasn't that long ago that AA offered status match for UA elite flyers and AA had to shut it down.
AA is doing a lot of the things that other airlines have done to improve their revenue in BK... but others have indeed improved revenue in BK.
AA is doing what many of us believed they would do - and they are turning the company around which I thought they would do.
Toothy Grin
Advanced
- Mar 31, 2008
- 231
- 168
mmmm yes. Where would you like the statue of yourself placed in DFW?
Shall I wash your feet oh know it all???
Tool!
WT, why is it your posts are not really about AA or US, but about you? Why is that? Honestly, between you and smoke signals it does make reading the real content of the board quite difficult.
There won't be any profits or profit sharing during bankruptcy. AMR will lose a couple billion dollars this year.
