Envoy

[La Li Lu Le Lo]

American Eagle management called a meeting with several personnel to talk about "an exciting new venture". When employees asked about this "exciting new venture" they were told that the company was seeking to offer ground services in cities lost in American Airlines contracts, not just services for American Eagle but, services for other companies as well. They want to do what Delta did with DGS. They are promoting it as the world's largest ground handling operation. When the company GM was asked who would be signing the paychecks the response was AAG.
 
The rumored version of this is that the company will actually be called Envoy. I believe this is nothing more than a sneaky way for American Eagle to become its own customer. They will pay employees low wages with no benefits and charge themselves high prices for services. Tax manipulation at its finest. They will show the cost as a loss for a nice tax break even though it is a net gain for AAMRQ, sneaky little devils.
 
I wonder if Envoy will give employees a packet showing them how to sign up for government benefits?
 
If I were an American Eagle employee I would be on my toes. If I were an American Airlines employee I would see this as a sign of things to come.
 
Supposedly an announcement will be coming from "The New American" soon.
 
Again, please be advised this is an unconfirmed rumor.

 

[AdAstraPerAspera]

What's with your new signature, it makes no sense.
 
-astra

 

[eolesen]

Envoy has been rumored for a while. I don't doubt they'll offer a different pay/benefit package than what the airline would offer, but you're probably going a tad bit overboard on the rest of your speculation.

When AA had AMR Services, the pay and benefits were different from Eagle. They didn't all get travel (it was sunset after a certain date), and they had a lot more flexibility in what they offered in the higher & lower cost parts of the country, especially when compared to the unionized counterparts at Eagle. Some were actually paid better.

 

[La Li Lu Le Lo]

We shall see. I see another round of concessions and contractors under the AAMRQ umbrella.

I am sure the TWU will fight like hell...................

I would put money on ENVOY being minimum wage TWU members.

I would also put money on TWU international selling the Eagle employees out for a nice payday.

 

[nycbusdriver]

American Eagle management called a meeting with several personnel to talk about "an exciting new venture". When employees asked about this "exciting new venture" they were told that the company was seeking to offer ground services in cities lost in American Airlines contracts, not just services for American Eagle but, services for other companies as well. They want to do what Delta did with DGS. They are promoting it as the world's largest ground handling operation. When the company GM was asked who would be signing the paychecks the response was AAG.
 
The rumored version of this is that the company will actually be called Envoy. I believe this is nothing more than a sneaky way for American Eagle to become its own customer. They will pay employees low wages with no benefits and charge themselves high prices for services. Tax manipulation at its finest. They will show the cost as a loss for a nice tax break even though it is a net gain for AAMRQ, sneaky little devils.
 
I wonder if Envoy will give employees a packet showing them how to sign up for government benefits?
 
If I were an American Eagle employee I would be on my toes. If I were an American Airlines employee I would see this as a sign of things to come.
 
Supposedly an announcement will be coming from "The New American" soon.
 
Again, please be advised this is an unconfirmed rumor.

 
It's classic "Frankie Smooth Talk" Lorenzo!  He should be turning over in his grave that he's not involved and profiting.

 

[eolesen]

It's classic "Frankie Smooth Talk" Lorenzo!  He should be turning over in his grave that he's not involved and profiting.

Sorry to disappoint, but Frank is alive, and still quite wealthy, as is Carl Icahn.

 

[nycbusdriver]

Sorry to disappoint, but Frank is alive, and still quite wealthy, as is Carl Icahn.

 
That's why I said he SHOULD be turning over in his grave.
 
Think about it.

 

[RJcasualty]

The social compact that helped create the great American middle class of our parents is all but dead. Capitalism's understandable quest for efficiency has spawned two universes in american society. Those who struggle and those who don't have to. The strugglers are left to seek value that further compounds their struggle. Those who create value are the ultimate beneficiaries. If we transpose this on the airline industry in the post-consolidation era, the specter of a "virtual" airline emerges whereby all phases of the operation are out-sourced and the vendors are then left to compete among themselves for the out-sourced work. This general economic "un-winding" of sorts is well illustrated in a recent award-winning book by George Packer: http://www.amazon.com/The-Unwinding-Inner-History-America/dp/0374102414

 

[FWAAA]

American Eagle Airlines (MQ) will likely be changing its name soon, perhaps to Envoy.   That actually makes sense, since it's confusing to use the brand name "American Eagle" on all outsourced regional flights when the name of the certificated carrier providing the largest portion of that feed is also called "American Eagle."   
 
No other legacy airline outsources its feed to an airline that shares the same name as its regional brand.  

MQ has already begun providing outsourced ground handling in cities where AA/AE don't even fly, replacing UA ground personnel in some small stations where UA has been laying off ground staff not protected by the IAM.   
 
An article in today's DMN about the rumour:   http://www.dallasnews.com/business/airline-industry/20140103-american-eagle-will-unveil-new-name-soon.ece
 
The MQ pilots have been presented with a list of Parker/Kirby concession demands as a prerequisite to getting any more 2-class RJs.   The pilots of PSA already gave in, taken in by the lure of shiny new jets (CRJ900s).   

 

[La Li Lu Le Lo]

The social compact that helped create the great American middle class of our parents is all but dead. Capitalism's understandable quest for efficiency has spawned two universes in american society. Those who struggle and those who don't have to. The strugglers are left to seek value that further compounds their struggle. Those who create value are the ultimate beneficiaries. If we transpose this on the airline industry in the post-consolidation era, the specter of a "virtual" airline emerges whereby all phases of the operation are out-sourced and the vendors are then left to compete among themselves for the out-sourced work. This general economic "un-winding" of sorts is well illustrated in a recent award-winning book by George Packer: http://www.amazon.com/The-Unwinding-Inner-History-America/dp/0374102414

Pretty impressive analysis. I look forward to seeing your future posts. 

 

[RJcasualty]

We're forever lectured that we must aspire to greater things through sacrifice and hard work, but then are told that there's no place for you in this economy unless you submit to wages that will not let you get ahead. As a result, record profits aren't plowed back into the enterprise, instead they are typically used to buy back company stock or issue more dividends, all to appease Wall Street--- further enhancing value for those who don't have to struggle. At the same time, concern over debt and taxation has created neglect in the nation's basic nuts and bolts infrastructure. Extrapolating these problems over time, it would be easy to conclude that the social fabric that was once the envy of the world will come under increased stress. How it all gets resolved is a frightening thought to contemplate. 

 

[nycbusdriver]

Extrapolating these problems over time, it would be easy to conclude that the social fabric that was once the envy of the world will come under increased stress. How it all gets resolved is a frightening thought to contemplate. 

 
The French people had an effective solution in the 18th century.  It's called a guillotine.  Human nature has not changed enough to keep those machines from coming back into style.
 
Wealth needs to circulate, and those who hoard it really need to find ways to put their wealth to work or capitalism (and they) are doomed.  No reasonable person begrudges the wealthy from becoming and remaining wealthy, but when the wealth stagnates in accounts, mansions, etc., the elite are not living up to their part of a functioning capitalistic society.  
 
Thornton Wilder, in his play, "The Matchmaker," said it well: "Money is like manure; it's not worth a thing unless it's spread around encouraging young things to grow."

 

[FLYNFISH]

It does appear some kind of major annoucement is very near. I don't think this is a good sign for those hoping that their former cities will reopen after the combining of US and AA. It was mentioned recently that Parker was in favor of his own people working his own aircraft. Well I guess if this Envoy comes to be those employees will be the equal to contract vendors under the AAG umbrella. If EGS is successful every job is at risk of the outsourcing machine. But of course it will be sold as great opportunity for job growth. 

 

[PullUp]

This mgmt team has always aspired to create the 'virtual airline' where everything would be contracted out to the lowest bidder and the only employees of the 'airline' would be the executives.
Remember, YOU are just a "cost item" to Team Tempe, now Team AAG.
Cheers.

 

[RJcasualty]

I'm hearing DP is adamant about Legacy AE matching PSA rates. Apparently he's willing to crash AE into the mountain in order to get what he wants. Management appears to be blowing off any ramifications resulting from a massive disruption of feed.