Frequent flyer program should be terminated in BK

[chris perry]

This program should be terminated in BK,how can you expect to be made whole when the company as it claims can't pay it's bills?This is nothing more than a perk just like the executives receive.The plan should be zeroed out in BK. It's a commitment the company chose to pay,It should be required to pay pensions before any perks are honored.

 

[kirkpatrick]

One of the most ridiculous things I've ever seen on this board.

MK

 

[tech2101]

Alienating your loyal customer base is not a good way to reorganize under bankruptcy protection.

 

[Hopeful]

This program should be terminated in BK,how can you expect to be made whole when the company as it claims can't pay it's bills?This is nothing more than a perk just like the executives receive.The plan should be zeroed out in BK. It's a commitment the company chose to pay,It should be required to pay pensions before any perks are honored.

Chris, although I agree to the merits of your argument, I would have to say that terminating the FF plan would drive hordes of passengers away from AA permanently. This would truly hamper AA's efforts to get out of BK court in a stronger position.
I know it sux that employee pensions are either going to be terminated or frozen and yet FF miles honored, but unfortunately that's the BK court for you.

 

[TWU informer]

This program should be terminated in BK,how can you expect to be made whole when the company as it claims can't pay it's bills?This is nothing more than a perk just like the executives receive.The plan should be zeroed out in BK. It's a commitment the company chose to pay,It should be required to pay pensions before any perks are honored.

There once was a guy I worked with and he recently retired, but while working, everyday he would say "I'm surrounded by F'ing Idiots"
What do you think he meant by that?

Another question:
Do you think American Airlines is in the Passenger Service Business, or the Employee Entitlement Business?
Where do you think the money comes from to pay the bills? Employees or Passengers?

 

[blue collar]

Employee entitlements? HAH. You sure buy into the Fox talking points. That 'entitlement' is actually a part of your compensation. Anything over $7.25 an hour is an entitlement I guess?

 

[usa1]

There is no such thing as a free FF ticket .... the airlines sale points to the credit card companies etc and then "they" award them to their customers ..... the airlines sale the points though, therefore the tickets are paid for. The credit card companies make it up on CC interest fees collected.The direct FF points the passengers get from the airline require a large amount of cash purchases per award ticket .... the tickets are paid for one way or another .... nothing is free. Smoke and mirrors to fool the FF passengers ... They are paying for them .... it's embedded. 😛h34r:

 

[Bob Owens]

Alienating your loyal customer base is not a good way to reorganize under bankruptcy protection.

Neither is alienating your employees.

The fact is that customer loyalty is not that important when capacity is low. If AA was really that worried about customer loyalty they would not have the seats so close together and charge for every little thing. The airlines are getting so cocky they are treating customers with the same disdain as they treat their workers, and the planes are still full.

If AA downsizes in BK then capacity will be even lower, meaning that customers will have to compete for seats.

Frequent Flier miles are a liability, the company already spent the money they got for them and owes them the service. Just like any other creditor, these people all extended credit to AA and when you do that there is always risk associated with it. So if it's a choice between writing off that liability or something that we have worked for such as deferred compensation in the form of retiree medical or the pension then I say dump the FF miles. Sure it will piss off a bunch of customers but choices are limited,It will not have any considerable permanent impact on their lives unlike making changes to our deferred compensation would.

70% of the domestic market is controlled by four carriers. People also have short memories, sure they will say they will never fly AA again, until they find that's the only way to get there.

 

[Hopeful]

Neither is alienating your employees.

I agree, unfortunatley employee pay and benefits are the bane of corporate America...according to corporate America.....

 

[Bob Owens]

I agree, unfortunatley employee pay and benefits are the bane of corporate America...according to corporate America.....

And if they could put slavery back in place they would complain about how having to feed us is hurting their profits.

 

[TWU informer]

And if they could put slavery back in place they would complain about how having to feed us is hurting their profits.

I thought that is where we are at as working stiffs.
I never knew "slavery" was really done away with, they just changed the terms and included all ethnic backgrounds.

 

[Dalmd88#2]

Most FF programs are actually money makers from the sale of miles.

 

[chris perry]

The point being is bingo, ding ,ding ,ding,hordes of passengers are already Leaving in the corporate world. Alienating your employees has a double effect
it's been painfully going on for eight years plus. I hear all the bitching and moaning,"my FA was mean today"etc. sounds like a bunch of whiners. Then someone suggests take your miles,Oh god that's mine.....LOL Apparently The PBGC see things in a similar manner.

http://www.pbgc.gov/news/press/releases/pr12-11.html

 

[FWAAA]

The ignorance displayed regularly by employees of AA on this forum never fails to amaze me.

Citi and other partners buy more AAdvantage miles each year than AA awards for flights. In 2010, AA issued 185 billion AAdvantage miles; of that number, about 62% were purchased by Citi and other partners. The sale of AAdvantage miles brings in more than $1 billion per year, or more than 4% of total revenue.

 

[Veritas]

The ignorance displayed regularly by employees of AA on this forum never fails to amaze me.

It was only one employee who expressed this ludicrous idea. You should not lump all employees together any more than the employees stereotype all frequent flier posters as arrogant, condescending and patronizing DYKWIAs.