Boston?

[cubs_in_2012]

Any speculation as to how BOS will be affected by the restructuring?

 

[IORFA]

Yeah, NO plans to increase flying by 20%. Unlimited codeshare with Jetblue a possibility.

 

[tom barry]

Boston.... AA Cargo to close/be outsourced. .............. Not GOOD !

 

[AANOTOK]

Boston.... AA Cargo to close/be outsourced. .............. Not GOOD !

All cargo to be closed and outsourced..... Naw, Jimmy won't let that happen!

 

[tom barry]

All cargo to be closed and outsourced..... Naw, Jimmy won't let that happen!

Not exactly sure, but I think JFK/MIA/DFW/ORD/LAX cargo is staying AA.

 

[miamifrank13]

Not exactly sure, but I think JFK/MIA/DFW/ORD/LAX cargo is staying AA.

all AA cargo is set to be outsourced unfortunately

 

[AANOTOK]

all AA cargo is set to be outsourced unfortunately

Frank is correct. The unions position is that all "cornerstone" (MIA/DFW/JFK/ORD/LAX) stations be staffed with AA/TWU members and
let them outsource the rest, including Boston. AA under their "ask" term sheet for Fleet wants ALL cargo/mail outsourced.
I can almost guarantee you that cargo/mail is on the back burner and will be lost for the TWU with AFW etc...being their focal point.

 

[eolesen]

There's a lot more to the Cargo story than just the TWU.

If AA outsources all of cargo, they can also outsource the replacement of the systems which support cargo sales & booking, tracking, revenue management, revenue accounting, demurrage, etc... That's a liability for AA right now as they take FOS apart. There's also all of the real estate and equipment involved at the warehouses. AA's got the opportunity to dump all those leases, and there are plenty of other companies who can do this.

I suspect what AA is looking for is someone to step in and own the entire process like they did with AA Vacations. All AA seems to want to be responsible for is the load/unload process on the gate, and carrying it onboard. Let someone else deal with all the rest, maybe even including ULD ownership & repair....

 

[FWAAA]

In 2011, cargo revenue was $703 million, or 2.9% of total AMR revenue. While $703 million is nothing to sneeze at, in the grand scheme of things, it's nowhere near as important as some make it out to be. And that $703 million isn't pure profit, as every pound of cargo increased the fuel burned and required plenty of handling at both ends. Fuel that cost AMR an average of $3.013/gal in 2011. It's not a high-margin business.

 

[AANOTOK]

There's a lot more to the Cargo story than just the TWU.

If AA outsources all of cargo, they can also outsource the replacement of the systems which support cargo sales & booking, tracking, revenue management, revenue accounting, demurrage, etc... That's a liability for AA right now as they take FOS apart. There's also all of the real estate and equipment involved at the warehouses. AA's got the opportunity to dump all those leases, and there are plenty of other companies who can do this.

I suspect what AA is looking for is someone to step in and own the entire process like they did with AA Vacations. All AA seems to want to be responsible for is the load/unload process on the gate, and carrying it onboard. Let someone else deal with all the rest, maybe even including ULD ownership & repair....

You are correct E, as the repair was on the term sheet. They WILL outsource it all. I personally don't even think it is up for negotiation.