"Decade Of Fail"
- Thread starter PhatSappy
- Start date
TIME FOR CHANGE
Veteran
But the airline fell flat on its face. When it came to union relationships, American completely destroyed any goodwill it had by defending lavish executive pay plans that weren’t tied to profitability but rather stock performance. Taking those outsized payments while the rank and file dealt with cuts did not sit well. Relations got ugly very quickly and they’ve never recovered.
In the end, there is tremendous opportunity here, but what’s to prevent American from squandering it, like it has previously? The last decade has been lost, so there’s no reason to think that’ll change unless there’s a major shift at the top.
:blink:
In the end, there is tremendous opportunity here, but what’s to prevent American from squandering it, like it has previously? The last decade has been lost, so there’s no reason to think that’ll change unless there’s a major shift at the top.
:blink:
WorldTraveler
Corn Field
- Joined
- Dec 5, 2003
- Messages
- 21,709
- Reaction score
- 10,662
wished your quotes had come through but here is one that is of value from the article
"Possibly the most frustrating thing about this whole debacle is that American continues to hammer on the issue being one of higher costs. Instead of accepting blame, it simply says it is hamstrung. In its release, the airline said it needed to file bankruptcy “in order to achieve a cost and debt structure that is industry competitive.” While costs clearly are an issue, as you would expect to be the case when all competitors have gone through bankruptcy, there is a bigger problem.
Time and time again, American has been chastised for its weak revenue performance. I talked a little about this back in July, but it’s not hard to find plenty of other mentions. The airline simply has not done what’s needed to get its fair share of revenue out of the operation.
Not that it needed an excuse, but it now has all the tools it could possibly need to make this airline run better, thanks to bankruptcy. It can cut its fleet, slash wages, restructure debt, etc. But if it couldn’t maximize its revenue opportunity before, what’s going to change now?f"
And it should be noted that BK does NOTHING to correct revenue problems... yes, you can reduce costs so that some markets/initiatives now have the potential to be profitable using lower costs but the revenue shortfall is still there... as are the competitive assaults which are also noted as a link to another article here in which it is noted that revenue problems won't be corrected one bit by a 460 airplane order.
http://crankyflier.com/2011/07/26/hey-american-ordering-a-billion-airplanes-is-good-but-theres-a-lot-more-to-do/
Bottom line is that AA's to-do list in BK is enormous and there are no signs that mgmt has a plan to stop the erosion of revenue in key markets or to grow revenues anywhere outside of Latin America which is still only about 20% of AA's revenue.
"Possibly the most frustrating thing about this whole debacle is that American continues to hammer on the issue being one of higher costs. Instead of accepting blame, it simply says it is hamstrung. In its release, the airline said it needed to file bankruptcy “in order to achieve a cost and debt structure that is industry competitive.” While costs clearly are an issue, as you would expect to be the case when all competitors have gone through bankruptcy, there is a bigger problem.
Time and time again, American has been chastised for its weak revenue performance. I talked a little about this back in July, but it’s not hard to find plenty of other mentions. The airline simply has not done what’s needed to get its fair share of revenue out of the operation.
Not that it needed an excuse, but it now has all the tools it could possibly need to make this airline run better, thanks to bankruptcy. It can cut its fleet, slash wages, restructure debt, etc. But if it couldn’t maximize its revenue opportunity before, what’s going to change now?f"
And it should be noted that BK does NOTHING to correct revenue problems... yes, you can reduce costs so that some markets/initiatives now have the potential to be profitable using lower costs but the revenue shortfall is still there... as are the competitive assaults which are also noted as a link to another article here in which it is noted that revenue problems won't be corrected one bit by a 460 airplane order.
http://crankyflier.com/2011/07/26/hey-american-ordering-a-billion-airplanes-is-good-but-theres-a-lot-more-to-do/
Bottom line is that AA's to-do list in BK is enormous and there are no signs that mgmt has a plan to stop the erosion of revenue in key markets or to grow revenues anywhere outside of Latin America which is still only about 20% of AA's revenue.
chris perry
Veteran
- Joined
- Sep 17, 2008
- Messages
- 544
- Reaction score
- 118
Our point exactly management never listens,learns or cares what anyone thinks....We are AArogant Airlines....just shut up and do what we say!
Similar threads
