Doug Parker's Letter to employees

[FrugalFlyerv2.0]

There are many PLTs & EXPs and many more that are international business travelers like myself that have chosen to fly American because of the U.S. airlines it has the best service, especially internationally. Many of us who don't fly Emirates or these other "better" service airlines because the mileage we accumulate on them are useless to us anytime we want to fly anywhere in the Americas, and their service from the U.S. always takes you to some out of the way stopover. We are the ones who spend our money because of the service we get from AA, both the service from the flight crews as well as ground and ticketing, as well as the service from the planes themselves. Granted, I think we are all looking forward to a new fleet of airplanes and upgraded amenities, but its still better than anything anyone else in this country offers. I mean UnitedContinental doesn't even offer a true first class on many international flights ----> their international BusinessFirst is a joke, especially at the price point.

I view US Airlines as an expensive low-cost carrier. I view it as another southwest but assigned seating. I have flown US AIR and I mean NO DISRESPECT TO ANY OF THEIR HARDWORKING EMPLOYEES but to me this is just a step down for AA as far as service.

Hear, hear!

The current US is not the classy US of the Stephaen Wolf era. It may still serve a lot of cities up-and-down the east coast, but the valuable business has long abandoned US in favor of DL and CO (now UA).

 

[FrugalFlyerv2.0]

... ... ...
I see is TPG and BA luring US out of Star and into One World But make no mistake DP is a more of money man and has the resources to gather a merger

Oh yeah, BA really wants US in 1-world so that its business travellers can connect onto a US flight so they can experience cheap wine in plastic party cups to wash down that tuna burrito.

 

[nycbusdriver]

Hear, hear!

The current US is not the classy US of the Stephaen Wolf era. It may still serve a lot of cities up-and-down the east coast, but the valuable business has long abandoned US in favor of DL and CO (now UA).

You're right. The AWA mindset made a conscious, determined effort to dumb-down US Airways service to the gutter arrangements in place at AWA. And, predictably, the high-yield traveler now only flies US when there is little other choice.

We could not figure out why the Tempe brain trust constantly sprinted past the C-note in the grass to grab a nickel in the gutter. The answer: They have no clue how to run anything other than a leisure oriented carrier. Their hubs were PHX and LAS for cryin' out loud. Another example of the Peter Principle at work.

And, since they still have no clue as to how to operate an airline with premium service and amenities, they will do the exact same thing at AA given the chance.

Say goodbye to coat closets forever.... And that's just the start.

 

[DCaf]

I view US Airlines as an expensive low-cost carrier. I view it as another southwest but assigned seating. I have flown US AIR and I mean NO DISRESPECT TO ANY OF THEIR HARDWORKING EMPLOYEES but to me this is just a step down for AA as far as service.

US AIRWAYS WANTS YOUR SOUTH AMERICAN AND INTERNATIONAL ROUTE STRUCTURE. US Airways brings NOTHING to the table. You are all being used.

With regard to service, I think you're right. AA's in-flight service has always been well thought of. US's, on the other hand, is basic no frills. But I would be surprised if the merged company took the basic no frills route. AA's service levels should be the standard, because the enhanced revenue potential post-merger would support that. So I don't think the service you love on AA would go away.

As for your last line, I think foreign route structure is secondary to Parker's thinking. Bigger domestic hubs are the most crucial things he wants.

And AA has been trying to develop a hub in the east for years. US brings that to the table.

Many twists and turns to follow.

 

[southwind]

US will merge with anybody and not saying it would be a bad idea but , they're like the girl at the prom that nobody wanted to dance with !

 

[USFlyer]

but you really don't know that, do you? You also don't know if the rest of the creditors (non-labor) believe a US merger is in AMR's best interests?
And I can assure you that if US speaks to the creditors regarding a potential merger, so will other parties... because the creditors will consider every option and choose the best one.
And it is far from certain that US would end up as the best option at that point.

And your point is? I was stating my opinion. I'm not sure what your reply is meant to convey.

 

[WorldTraveler]

And your point is? I was stating my opinion. I'm not sure what your reply is meant to convey.

my point is that you are assuming that AA and US mgmt are talking just because US mgmt is talking to AA labor... but there is no evidence that both mgmt groups are talking.
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Parker says he is avoiding the mistake of not getting labor onboard in the DL takeover attempt but he still has to come up with a viable business plan -something he did not do for DL since the creditors decided that DL would be better off as a standalone entity... history shows they are right.
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Parker is trying to win AA labor's vote because it is far easier to do that than to do deal with the larger issue of developing a superior business plan, something the creditors will require before they agree to a merger - and the evidence is pretty strong that just about any other potential acquirer could come up w/ a better business plan than US could, based largely on US' OWN track record.

 

[wings396]

US will merge with anybody and not saying it would be a bad idea but , they're like the girl at the prom that nobody wanted to dance with !

Wow, that's an original statement. It seems that I have heard this ugly girl line a few hundred times before.

 

[wings396]

my point is that you are assuming that AA and US mgmt are talking just because US mgmt is talking to AA labor... but there is no evidence that both mgmt groups are talking.
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Parker says he is avoiding the mistake of not getting labor onboard in the DL takeover attempt but he still has to come up with a viable business plan -something he did not do for DL since the creditors decided that DL would be better off as a standalone entity... history shows they are right.
.
Parker is trying to win AA labor's vote because it is far easier to do that than to do deal with the larger issue of developing a superior business plan, something the creditors will require before they agree to a merger - and the evidence is pretty strong that just about any other potential acquirer could come up w/ a better business plan than US could, based largely on US' OWN track record.

You are a real card WT. Don't you think that APA and the other unions wanted to see a business plan prior to endorsing Parkers offer?
Take a rest from posting, and read some of the APA letter to the membership before dooming US & AA. Do I have to paste the link for you here?

http://www.airlinepilotforums.com/major/66828-us-airways-agrees-apa.html

Scroll down, and read Dave Bates letter..

 

[Frank Szabo]

<_< ----- I'm wondering what is going through AA's management's collective minds now? If they're not careful, they may lose the whole thing! That's one of the chances you take when you take it into BK! -------- What will their store bought advisors tell them to do now?

It depends on what one believes re: the purpose of this bankruptcy - is it truly to reorganize the company or is it designed to produce large payoffs for Horton & pals and at the same time becoming the darling of airline "management" for engineering a cram-down of wages and benefits for the rank and file with no regard to the company's survival?

The friendship of the workers never was a sought-after commodity at American as, for example, at Southwest Airlines - neither was actual leadership from those being paid to do so.

The newly formed alliance between the unions amounts to a scorched earth policy - present policy will destroy the company and the unions seem intent on reserving said destruction for themselves. I can't remember that I've ever applauded that kind of policy as I do now. At least the unions intend to ensure Horton and pals don't rape the company as their final act of sociopathy.

 

[FWAAA]

It depends on what one believes re: the purpose of this bankruptcy - is it truly to reorganize the company or is it designed to produce large payoffs for Horton and pals - at the same time becoming the darling of airline "management" for engineering a cram-down of wages and benefits for the rank and file?

You mean it can't be both? I honestly believe that Horton wants to reorganize AA (which, by necessity, involves tremendous pain on the part of some employees and a bunch of pain inflicted on all the other employees). And of course, nobody does that for free; if he's successful at reorganizing AA, there will be a large payday consisting of at least several percent of the new stock for the executive team.

 

[johnny kat]

It looks as if the "Ugly Girl" makes good soup ! WT and all the other snattering nabobs of negativity on the thread need to take a powder and go lie down.

I think labor does indeed matter regardless of those (WT) saying labor doesn't. AA employees are indeed saying "MAKE US MY US! as are the US employees saying Make American OUR American. This messsage cannot be ignored by the other creditors, management, courts and the regulators.

The 13 B in revenue plus the needed east coast network complete with the coveted slots in DCA and the congested east coast airports combined with US modern fleet of A/C makes this a no brainer despite all the talk from competitors. DL has the most to lose from a succesful merger of AA and US. From a competitive standpoint a strong AA is the best way to ensure greater choice for consumers as well as ensuring a better motivated workforce. I don't think there are many more arguments a person can make against this merger.

So, if DL is going to show its hand it needs to come up with something better than a breakup of AA just to benefit DL. Better get a round to breaking out the check book.

 

[AA89]

You mean it can't be both? I honestly believe that Horton wants to reorganize AA (which, by necessity, involves tremendous pain on the part of some employees and a bunch of pain inflicted on all the other employees). And of course, nobody does that for free; if he's successful at reorganizing AA, there will be a large payday consisting of at least several percent of the new stock for the executive team.

Frank said it all and I agree. For the Horton types its all about themselves. He won't be around long enough after BK to care. The executives seperated themselves after 2003 and showed their true character.

 

[WorldTraveler]

no, Kat, it is about knowing what it takes to turn AA around - and knowing that pretend solutions won't solve real problems.
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and attempting to use half-baked solutions will only result in a higher price having to be paid down the road.
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But no one, including Parker, have given any indication that US can provide what the other creditors need to have in order to agree to a deal...
or show any proof that US can effectively compete against other bids that most certainly will arise because US' bid will not be the only option considered.
That is a fact.

 

[southwind]

Wow, that's an original statement. It seems that I have heard this ugly girl line a few hundred times before.

OK...............US is like the prostitute at the prom and will take on any and all takers at the end of the night !

Is that original enough for you ?