WorldTraveler
Corn Field
- Joined
- Dec 5, 2003
- Messages
- 21,709
- Reaction score
- 10,662
the whole point of BK is to reset costs and finances in order for the company to compete.
in less than a year, AA is no longer the lowest cost airline among the big 3 and has been passed by DL.
of course, AA is in the position of not being able to cut compensation so far below its peers at other airlines or face a rebellion among its workforce - that is a byproduct of AA filing for BK so far after the cycle of BK at other carriers
and AA still has yet to show the impact of greatly enhanced competition at its most profitable hubs - DFW due to the opening of DAL, Latin America (Azul is starting new flights from Campinas while WN and B6 both are growing FLL to Latin America), and DCA.
And DL/VS continue to expand its presence at LHR - one of AA's long-term historic profit centers.
and instead of doing this from the lowest cost structure in the industry, AA will do so from a cost structure that is actually mid-range right now between DL's and UA's (the highest in the industry).
BK has done nothing to change the long-time reality in the industry AA and UA are significantly higher cost airlines that the LFCs and DL has done a far better job of competing against the LCCs and ULCCs because DL is doing so from a lower cost structure.
all of the wage increases that AA is giving out will make it even harder for AA to compete and make the ability of AA's employees to hold onto high compensation much more difficult.
in less than a year, AA is no longer the lowest cost airline among the big 3 and has been passed by DL.
of course, AA is in the position of not being able to cut compensation so far below its peers at other airlines or face a rebellion among its workforce - that is a byproduct of AA filing for BK so far after the cycle of BK at other carriers
and AA still has yet to show the impact of greatly enhanced competition at its most profitable hubs - DFW due to the opening of DAL, Latin America (Azul is starting new flights from Campinas while WN and B6 both are growing FLL to Latin America), and DCA.
And DL/VS continue to expand its presence at LHR - one of AA's long-term historic profit centers.
and instead of doing this from the lowest cost structure in the industry, AA will do so from a cost structure that is actually mid-range right now between DL's and UA's (the highest in the industry).
BK has done nothing to change the long-time reality in the industry AA and UA are significantly higher cost airlines that the LFCs and DL has done a far better job of competing against the LCCs and ULCCs because DL is doing so from a lower cost structure.
all of the wage increases that AA is giving out will make it even harder for AA to compete and make the ability of AA's employees to hold onto high compensation much more difficult.
