The greatest sin of airline management of the last 22 years is to say, It''s all labor''s fault. -Don Carty, 08.02
With that quote Mr Carty has won me over. He is doing everything he can do to slash cost the right way by squeezing more efficiency out of AA. He knows that going after the employees for wage cuts starts a very slippery slide. Too many employees have been burn by pay cuts and offers of stock. Its much better to get the employees to work more efficiently. This can be done by working better with the rules already in place or with a little fine tuning. Mr Carty knows, like other businesses, that there is always fat in the middle that can be trimmed. The use of technology and less paper goes along way too. A massive change in the way an airline ticket is sold & used is another one. He already has the best fuel hedging.
Mr Carty has already made cuts that will save over $1 bil a year. Now the big question is were will the next $2 bil come from? Any ideas?
The downward spiral of AMR stock is not his fault, but that of outside forces he cant control, like Bush. I feel he is doing everything that is in his control to get us through the VERY tuff year ahead.
We can all help by doing the best job we can everyday and look how we can do it just a little more efficiently. If every employee could save AA $1 per day that would add up to a savings of nearly $40 mil a year. Think about it, every little bit helps.
Before I give DC any credit, first allow me to state the OBVIOUS.
EVERYTHING hinges on what the FEDS do as far as UAL, and potential bankruptcy.
Having said that,
DC needs to approach APA(who is a VERY smart and savvy organization, who is VERY aware of the perilous situation at hand), and reach an agreement on a new contract that unties AA's hands with A/E, protects the job of EVERY mainline pilot TODAY, and comes to a agreement on wages.
That my friends, is THE task at hand. If Don Carty is able to do this, I think that everything else will fall into place.
DC has, up to this point, done a respectable job.
With the (baseball) score tied, in the bottom of the ninth, with a runner on 2nd. AND 2 OUT, DC must come up with a clean base hit, that wins the game for the old home team
I just hope(like crazy) that AA does'nt try any funny stuff against APA, like shifting flying to STL, via trans states etc., in an end around play against APA's contract.
On 9/19/2002 1:05:20 PM s80dude wrote:
I'm confused 007. In this post you give Carty credit, saying he has won you over, and in the SELL AMERICAN post you call him a liar. Which is it?
We all know that in todays business world all CEOs lie. Its just part of the job. Just look at WorldCom Enron,Tyco, and others. We know that Carty sign a contract and swore before a Judge that he would personally appoint a facilitator and organize talks between the IAM and the APFA. Neither never happened. This fact cannot be disputed its in print. Carty is in breech of contract and perjured himself. A breech of contract is a broken promise and perjury is another word for a lie. This will all come out at trail in NYC.
That fact that he lied to the TWA people & a Judge doesn't mean he isn't running AMR well. Lying is just part of a CEOs job these days. Ethics have been thrown out the door.
As an investor I believe he is trying to do his best. As a former TWA FSM, myself and others, including Senators, believed he lied to us along with TWAs CEO Compton. The Courts will take care of the lie and Carty will take care of AMR. Thats all.
TWAFA007, maybe you could post the actual language that Carty used in court and before congress? If you have it, could you post enough of it that we can read the sum of the intent? I'm not saying he didn't say certain things, but I'd like to read the exact language.
You have used the words 'lied' and 'perjured' very loosely. It would support your contentions if you could back yourself up with direct quotes.
I agree that AMR made more affirmations about the integration than what actually came to pass, but I think we all agree that the world is a lot different place now than then. Keep in mind also several promises that AMR made that they have followed through on: Service to most AX destinations, STL hub, pay/benefits at AMR rates.
Section 28,29,&34 are of interest. Here is a copy of a letter sent March 9,2001 to the IAM from TWA LLC & Mr Carty:
For its part, American Airlines, Inc. (American) agrees to use its reasonable best efferts with its labor organizations representing the mechanics and related F/As craft or classes to secure a fair & equitable process for the intergration of SENIORITY. In that regard, American will engage a facilitator to organize meetings with the labor organizations representing the mechanics and F/As and American and TWA-LLC. American agrees to adopt the procedures that result from this process for seniority intergration of the mechanics and the F/As.
Section 28&29, says: American through CEO, Don Carty, agree and represented on numerous occasions that TWA-LLC employees would be provide benefits no less favorable than those applicable to similarly situated American employees. One such benefit was bid seniority benefit often referred to as Occupational Seniority.
I believe that one or more of those, numerous occasions, Don Carty represented was in court before the barkrupcy Judge.
We all know that the process and meetings never took place. Like I have said the courts will decide. Again, too bad it didnt have to be this way if Mr Carty had honored the contract and kept his word. I know that he got 2/3s of the way there, and that was good, but you cant just pick and chose. Its a total package.
As an investor, I still believe he is doing the best he can trying to figure out the future of aviation and how it will operate. The old school way is out. This is still the fall out from deregulation. It will take some bold steps by Mr Carty in the near future to make AA work in the years to come. I for one think he can do it. The BOS-LGA-DCA is one such bold move. We will see more like that soon. Im buying back in at $3. Just IMHO.