Flying less and chaging more

[Bob Owens]

At last, the airlines set an example that the workers should follow. Work less and charge more!

Since 2003 AA has shed over 30,000 workers, 300 airplanes yet their revenue is up over $4 Billion.

http://www.msnbc.msn.com/id/41238482/ns/travel

Sorry for the typo, just got back from Boston,should be "Charging"

 

[bigjets]

Another good example of how well the executives are running this company, other then employee relations.

 

[eolesen]

Bob obviously fails to see the real corollary: flying less and charging more = employing fewer workers and getting paid more.

This article just underscores what I was saying on the "new widebodies" thread --- AA really doesn't need to grow to be profitable. They just need to keep capacity and demand in balance with each other.

 

[Barfbag]

Bob obviously fails to see the real corollary: flying less and charging more = employing fewer workers and getting paid more.

This article just underscores what I was saying on the "new widebodies" thread --- AA really doesn't need to grow to be profitable. They just need to keep capacity and demand in balance with each other.

300,000 jobs losses industry-wide and 10 of billionss of dollar in red-ink, you don't have to be a brainiac to have seen this coming.

The big picture:

Are the British ( BA/IB ) steering AMR in the right direction regarding capacity ?

 

[FWAAA]

Another article today mentioning the possibility of further capacity cuts by AA, DL and US if fuel costs continue to soar:

http://www.marketwatch.com/story/airlines-consider-capacity-cuts-as-fuel-costs-soar-2011-01-26?siteid=yhoof

 

[Bob Owens]

Another article today mentioning the possibility of further capacity cuts by AA, DL and US if fuel costs continue to soar:

http://www.marketwatch.com/story/airlines-consider-capacity-cuts-as-fuel-costs-soar-2011-01-26?siteid=yhoof

Could be they have to cut capacity because they cant find enough workers to keep what they have flying. No matter whats happening in the economy people continue to age, that means they retire or die and need to be replaced. We have an older workforce and the airlines have done such a good job at cutting wages that young kids dont give Aviation a second look anymore. Cant say I blame them, none of my kids will be looking into this industry.

 

[eolesen]

Depending on what happens in Egypt, you may see those cuts start happening sooner than later...

Oil prices spiked 4% starting around 2pm Eastern on Friday, which was right about the time video showing tanks rolling thru the streets of Cairo and Suez started hitting the BBC & CNN. Only about 1% of the global oil supply transits the canal, and Egypt doesn't export anything meaningful, but don't expect traders to let a good crisis go to waste.

DL pulled out of the JFK-CAI market "indefinitely" and it looks like BA, LH, Kuwait and others are suspending flights as well.

http://travel.usatoday.com/flights/post/2011/01/cairo-flights/140725/1

Good thing this happened on a Friday. Prices might settle out over the weekend. Or they may continue to climb north of $90 come late Sunday when the Asian markets open up.

 

[Bob Owens]

Only about 1% of the global oil supply transits the canal, and Egypt doesn't export anything meaningful, but don't expect traders to let a good crisis go to waste.

Or Airline Executives, they need something to counter the news from UPS.

 

[eolesen]

Who needs UPS? Fedex pilots just announced a tentative agreement. 3% raises. Sound familiar?....

 

[FWAAA]

Could be they have to cut capacity because they cant find enough workers to keep what they have flying. No matter whats happening in the economy people continue to age, that means they retire or die and need to be replaced. We have an older workforce and the airlines have done such a good job at cutting wages that young kids dont give Aviation a second look anymore. Cant say I blame them, none of my kids will be looking into this industry.

Can't find enough workers to keep what they have flying? Don't think that's currently the case at AA, where 800 FAs and 1,900 pilots remain on furlough. No, Bob, these potential cuts in capacity are because of oil prices, which, if high enough, will eventually cause all flying to be unprofitable no matter the airline.

I wouldn't encourage my kids to consider aviation as a career either, but not because of the lackluster pay.

Kids don't give aviation a second look anymore? How in the world have B6 and VX and FL and WN grown so much over the past decade? Are all their job functions performed by robots?

In your corner (aviation maintenance), I'll concede that kids have not chosen to become trained as A&P mechanics. As nearly every legacy airline has shed maintenance jobs and sent most heavy overhaul to off-shore locations, it makes perfect sense that young people have not pursued education as A&Ps. The looming shortage of supply is good for you, as it will eventually lead to wage increases. That what happens when there aren't enough workers to get the job done - wages go up. Haven't you posted that your wife is a recently-minted nurse? She's a beneficiary of a job situation where demand for new workers has outstripped supply in recent years, leading to much better pay than in years past.

 

[Bob Owens]

Can't find enough workers to keep what they have flying? Don't think that's currently the case at AA, where 800 FAs and 1,900 pilots remain on furlough. No, Bob, these potential cuts in capacity are because of oil prices, which, if high enough, will eventually cause all flying to be unprofitable no matter the airline.

Perhaps, but as long as airlines can pass those increased costs on to the Consumer its not a problem. If the alternative is driving its still usually cheaper to fly. Like I've pointed out before, the extra revenue and savings far outpaces increased fuel costs, its not just the oil companies sucking out all the capital, others have their fangs planted deeply in the airlines as well.

I wouldn't encourage my kids to consider aviation as a career either, but not because of the lackluster pay.

Kids don't give aviation a second look anymore? How in the world have B6 and VX and FL and WN grown so much over the past decade? Are all their job functions performed by robots?

They hired people who were either laid off or quit other carriers. Overall there has been no growth in airline employment since 2002. Go to any of those carriers and you will find ex workers from AA, UAL even EAL.

In your corner (aviation maintenance), I'll concede that kids have not chosen to become trained as A&P mechanics. As nearly every legacy airline has shed maintenance jobs and sent most heavy overhaul to off-shore locations, it makes perfect sense that young people have not pursued education as A&Ps. The looming shortage of supply is good for you, as it will eventually lead to wage increases. That what happens when there aren't enough workers to get the job done - wages go up. Haven't you posted that your wife is a recently-minted nurse? She's a beneficiary of a job situation where demand for new workers has outstripped supply in recent years, leading to much better pay than in years past.

Yes , Government interference on behalf of employers has led to depressed wages and now shortages. In both fields the government still interferes which will lead to shortages becoming even more acute. The market for labor is not as free and open as you make it out to be and the government actively works to suppress wages by preventing workers to act in their best interests.