First 757 to outsourced MRO

[Overspeed]

$14K per day for a seven five? It is way more than that. Before they locked us out, anybody with a DECS sign in could look up the revenue for any given flight in the sys. The amounts varied; however, even a full Super 80 from say DFW to MSP would show revenue of over $10K. The DFW to FRA wiebody trip would often show revenue over $200K. A 757 makes more than 14K per day!

Back up. $14K assumes that using your figure $200K rev - $166K cost to operate. Your $200K has to be off. That would mean the average fare is $1,075 RT if the plane was full and that all the money went to AA. The average fare in 2011 is $370 RT according to the BTS so your revenue number would be unusually high but very desirable to AA if they could get that ticket price. http://www.bts.gov/press_releases/2011/bts063_11/html/bts063_11.html

Look at it like this, the revenue doesn't mean anything if you aren't making enough revenue to cover your operating costs. Watch the CNBC show Day in the Life - AA it is explained pretty well. Also, a spot cancel is more expensive than a planned cancel. You can rebook and cover if you know in advance. In a spot cancel it's a lot harder with limited time to rebook pax and cx. Now big picture, if AA has to work with a vendor that takes longer to turn aircraft that means you need more spares to run the same schedule that AA does currently with a shorter turn time. That definitely plays in to the argument that outsourcing is more expensive in the long wrong an negates the labor cost advantage of TIMCO.

The next part of the outsourcing question is what happens after the aircraft comes back. Does it fly flawlessly and is there a ton of write ups immediately following the aircrafts RTS. That remains to be seen.

So going forward, will TIMCO improve turn time? Will the quality be up to AA norms? We'll see.

 

[Overspeed]

I ask the Dock Manager the very same question. He reply was similar. 

What I asked was what is the cost/day for a completed 737 out
 of overhaul waiting for revenue trips. His reply was it was around 
$23000.00 and that is unlinked. Or in other words the aircraft
 still belongs to maintenance and not the airline. If the airline
 has no immediate need for the aircraft or has no aircraft for 
overhaul then the maintenance owned aircraft just sits. With
 the yields in jeopardy, I doubt that any aircraft sits very long.
 But the point is that the aircraft is owned by maintenance is
 not available to the airline. When the airline requires an aircraft
 to replace a timed out aircraft and the one they need is at
 TIMCO, delayed.

No I do not believe you did, however it would be nice if you had a source. $23000 is quite a difference from $14000 for an unlinked aircraft.

Buck, your manager should be able to show you. The number by fleet is in the M&E Plans Book. He has access to it and that's where I quoted the number.

Spot cxl is $23K per RT, planned cancel is $14K daily for 757.

 

[Vortilon]

Revenue does not mean income or profit.

Maybe revenue was a poor choice of words. Plug in the word profit then. Point was, that management took away the ability for us to view these figures because they were being used by the pilots for negotiating purposes against the company. The dollar figure was the profit for the flt number entered - after all related costs were applied.

 

[Overspeed]

5CK FCF

Several PIREPS, don't know if it is allowed to publicly post.

Alaback & Bean

I would take that info to the RO Committee or the Local. They should be able to use that info in BK court to help with the quality and its cost argument.

 

[Vortilon]

They don't get it!!
No wonder AA is in this position.

Maybe AA should consider sending ALL employees to business basics 101

Really, this comment coming from...... Nah, I'm gonna let that go.

 

[Buck]

Buck, your manager should be able to show you. The number by fleet is in the M&E Plans Book. He has access to it and that's where I quoted the number.

Spot cxl is $23K per RT, planned cancel is $14K daily for 757.

I have viewed the M&E Plans Book, RT Cancellation Cost for a 757 shows $32,165, on the SPOT CANCELLATION COST table. With a Daily Cost of 57,013.

 

[Overspeed]

Reverse engineer that number.
Shouldn't AA be making $14K per day per 757 then?

No, that's the increase in cost of missing schedule. Making schedule is the baseline cost, cancel cost is how much more it costs AA to cancel.

 

[Birdman]

Ground runs finally complete, FCF tomorrow.

 

[Overspeed]

I have viewed the M&E Plans Book, RT Cancellation Cost for a 757 shows $32,165, on the SPOT CANCELLATION COST table. With a Daily Cost of 57,013.

I think we are both wrong. $32K RT is the 737 cost, $37K RT is the 757 on spot. Planned is $15K and $23K on the planned 757. But I think we both get the story. It's a lot of money but not $200K.

I also think that is for line (i.e. the aircraft is linked) it may be lower for base if they do not have the aircraft linked immediately on the first day after check. Not sure if that's the way it works with the base.

 

[Bob Owens]

Look at it like this, the revenue doesn't mean anything if you aren't making enough revenue to cover your operating costs. Watch the CNBC show Day in the Life - AA it is explained pretty well.

A day in the Life picked one of the least profitable, most competative routes that AA operates. If someone is travelling from Rochester to LAX it would cost him more to fly from Rochester to NYC than it would from NYC to LAX. Maybe they should have picked one of our flights from MIA to Latin America instead.

 

[Gman10]

5CK on Test Flight. 0922 GSO

 

[Overspeed]

A day in the Life picked one of the least profitable, most competative routes that AA operates. If someone is travelling from Rochester to LAX it would cost him more to fly from Rochester to NYC than it would from NYC to LAX. Maybe they should have picked one of our flights from MIA to Latin America instead.

Cherry picking again I see. So you pick one route and say that makes enough money to outweigh all the other thousands of flights? Okay, let me know how that argument works out for you in BK.

I'll explain it so even you can understand Bob. There is money coming in versus going out in a business. Revenue is money coming in, cost is the money going out. The revenue has to exceed the cost. The $200K that was being quoted for a 757 was stated as money lost but that was not true. The CNBC example shows how revenue and cost are connected. That was the point being made.

 

[Buck]

Cherry picking again I see. So you pick one route and say that makes enough money to outweigh all the other thousands of flights? Okay, let me know how that argument works out for you in BK.

I'll explain it so even you can understand Bob. There is money coming in versus going out in a business. Revenue is money coming in, cost is the money going out. The revenue has to exceed the cost. The $200K that was being quoted for a 757 was stated as money lost but that was not true. The CNBC example shows how revenue and cost are connected. That was the point being made.

Yea, Bob, dues in nothing out............

 

[Bob Owens]

Cherry picking again I see. So you pick one route and say that makes enough money to outweigh all the other thousands of flights? Okay, let me know how that argument works out for you in BK.

I'll explain it so even you can understand Bob. There is money coming in versus going out in a business. Revenue is money coming in, cost is the money going out. The revenue has to exceed the cost. The $200K that was being quoted for a 757 was stated as money lost but that was not true. The CNBC example shows how revenue and cost are connected. That was the point being made.

Brother your reading comprehension is obviously limited. Note that I did not pick one route, I said that CNBC did, I cited Miami flights to the Caribbean ( there are many flights to many destinations down there) as an alternative example to NYC- LAX.

NYC to LAX is one of he most competitive routes out there, that's why the yields are low.

The concept of revenue vs costs is not lost on any of us who have been forced to deal with declining revenues in the face of increased costs, unlike us, AA has seen increasing revenues while at the same time paying much less for labor.

 

[paul1]

Brother your reading comprehension is obviously limited. Note that I did not pick one route, I said that CNBC did, I cited Miami flights to the Caribbean ( there are many flights to many destinations down there) as an alternative example to NYC- LAX.

NYC to LAX is one of he most competitive routes out there, that's why the yields are low.

The concept of revenue vs costs is not lost on any of us who have been forced to deal with declining revenues in the face of increased costs, unlike us, AA has seen increasing revenues while at the same time paying much less for labor.

what does this have to do wih timco and 5ck?