Read the link for more info:
http://www.usatoday.com/story/travel/flights/2013/06/19/american-airlines-us-airways-merger/2439297/
http://www.usatoday.com/story/travel/flights/2013/06/19/american-airlines-us-airways-merger/2439297/
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Read the link for more info:
http://www.usatoday.com/story/travel/flights/2013/06/19/american-airlines-us-airways-merger/2439297/
IN the regulated era, airfares were higher and so were airline employee salaries.
Deregulation has pushed airfares and employee salaries lower.
Value menu fares = "Would you like fries with that" salaries.
Welcome to the wonderful world of aviation in the 21st century.
Until you lead with your feet, expect less for more.
IN the regulated era, airfares were higher and so were airline employee salaries.
Deregulation has pushed airfares and employee salaries lower.
True but airfares declined more under the regulated era than they did during the deregulated era. Under the CAB with the introduction of WideBody aircraft and more efficient hi-bypass engines air travel became affordable. The problem was the Consumer and the workers were seeing most of the benefits. Deregulation allowed airlines to post higher profits (and higher losses due to favorable accounting practices) than ever before. The higher losses, most of which are false losses, losses that human persons can not claim ("Goodwill" etc) were used to leverage concessions from the workers which were quickly diverted to other corporations (oil companies, Airports, Vendors, Banks etc).
Last year AA brought in $25 billion ($416,666 per worker, an increase of approximately $200,000 per worker compared to 2003)yet, despite the fact that they shed 40,000 employees, slashed the wages and benefits of those who remained by at least 25% and 300 airplanes still operated in Bankruptcy.
In bankruptcy they not only kept the largest order for new aircraft in history in place but ordered more.
Something isn't right with the system some people send their sons out to die for.
Not even close to reality, but I'm going to focus on the rest of your post for now.
Not even close. Your numbers are off by a country mile.
Yes, last year AMR had revenue of $24.855 billion and 77,750 employees, for revenue per employee of $320,000. In 2003, AMR had revenue of $17.440 billion and had 96,400 employees, for revenue per employee of $181,000. AMR had 18,650 fewer employees in 2012 compared to 2003 (not 40,000 fewer, as you posted). As an aside, the 2003 fuel bill per employee was $28,750, which by 2012 had risen to $112,000 per employee.
Shed 300 planes? Nope. At 12/31/03, AMR flew 770 mainline planes and 271 regional planes for a total fleet of 1,041.At 12/31/12, AMR flew 614 mainline planes and 254 regionals for a total fleet of 868, or 173 fewer planes
http://www.rollcall.com/news/why_this_airline_merger_make_sense_for_consumers_commentary-226116-1.html
http://www.rollcall.com/news/why_this_airline_merger_make_sense_for_consumers_commentary-226116-1.html
http://www.rollcall.com/news/why_this_airline_merger_make_sense_for_consumers_commentary-226116-1.html