Has anyone seen or heard of THE PLAN yet?

MiAAmi

Veteran
Aug 21, 2002
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Besides everyones focus on BK. What is Don''s big plan after all the dust is settled. What are the great ideas of getting AA back on the road and making AA the profitable carrier it needs to be again. I can only take so much of a cut in pay before Don needs to get his big plans underway. How small must AA be to be profitable? Since the big expansion idea didn''t work what are we going to do now? Yes I know he must get our contracts gutted first but whats next? He must have some plan for us.
 
The ''Plan'' is that UAL will lquidate before AMR.
The ''Plan'' does not include passing higher costs to the consumer.
There is no ''Plan'' other than breaking the backs of labor unions.

IMHO...

Take Care, and Good Luck to us ''ALL''!!!,
UAL_TECH
 
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On 4/13/2003 4:50:04 AM UAL_TECH wrote:


The 'Plan' is that UAL will lquidate before AMR.
The 'Plan' does not include passing higher costs to the consumer.
There is no 'Plan' other than breaking the backs of labor unions.

IMHO...

Take Care, and Good Luck to us 'ALL'!!!,
UAL_TECH

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UAL_TECH is right. We are in a race to the bottom. And we are being led by our Unions. AA has always been the weak link in the Labor chain. We were the first of the big ones to give in to B-scale, give up work, the paid lunch, company paid medical benifits etc.
Our unions have made out well on the deal as the membership and dues swelled. The APA and APFA are independant unions but the TWU is affiliated. Even though "raiding" is not tolerated within the AFL-CIO the TWU has successfuly raided other unions better than any independant union, and not through democratic means either. Rather the TWU raided the IAM and other unions through economic means. By undercutting everyone elses labor costs the TWU enabled AA to undercut competators to the point of driving them out of business. Once the competator went out, AA picked up many of their routes and expanded, thus expanding the dues base. The rapid expansion of the dues base made up for the decreased real revenue per member. The best part for them is they turn around and say "You voted for it" "We followed the will of the membership", they never accept the blame. So on the one hand they claim that they are leaders but they fail to lead. They dump out all the negative info without providing ANY plan of resistance then blame the members for not wanting to resist. As leaders what options were they offering? NONE. They basically say to vote YES without actually saying "vote yes" by not offering a plan should it get voted down and constantly repeating what the company will do if it gets voted down. The fact is companies have always made threats, unions usually make counter threats. Thats how it goes.
The IAM which has traditionally been a more militant union has found that it is being run out of the industry by the TWU. Its lost more carriers to the TWU than to AMFA. None of its members that were lost to the TWU were lost through a Democratic process but rather economic necessity. Here we see where our Union is promoting a plan that once again concentrates on the bottom line of the Union instead of the long term economic well being of the membership. Not only is the paycut massive, which will reduce dues income, but the language cuts that do not effect dues are even more massive. The 17.5% cut in dues would be made up by putting UAL out of business. You have to figure that if UAL goes out AA would probably expand by at least 25%. That would increase the dues by 25%, making up for the cut and making the TWU the biggest AFL-CIO union in the industry. By gutting the language they give the company the economic edge over its competators without decreasing the dues base. Its another WIN- WIN deal for the Company and the TWU, its a losing deal for the workers. But hey, if they were stupid enough to vote it in,,,
 
Come on Bob, we know that these industrial unions do not care about dues.
They are only trying to take care of us in our time of trial, and tribulation.
Maybe if we were a little smarter, they would tell us their plan.

(Just Pulling Your Chain!!!)
Take Care, and Good Luck to us ''ALL'',
UAL_TECH
 
Bob,
If you keep this up, we''ll have to rename you to ''Bad Bob''....
(Judge Roy Bean???)

Take Care,

UAL_TECH
 
Joe hits a good point once in a while, but most of his columns come off being no better than a Dennis Miller rant. Great soundbyte, little substance.

  • Air Lingus operates fewer than 40 aircraft
  • Air Lingus serves about 30 airports
  • Ireland as a country has fewer people than the City of Chicago

It isn''t hard to run a quality airline with a small network, and relatively small customer base...
 
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On 4/14/2003 7:48:36 AM Resman1 wrote:

I don''t think there is a "plan". The plan is to do whatever the DIP financing people tell them what to do.

Check out this article about an airline that did have a plan. http://www.usatoday.com/travel/columnist/r...ckquote>
The article makes some great points, Brancatelli has lots of great simple answers for all that ails the airlines; too bad that it would take co-operation from all. As we have a free market economy that co-operation will not be either forthcoming nor seen as collusion.

Irish airlines is making its money on the trans-Atlantic routes which are regulated.

The simplified fare structure sounds very much like what AA tried wayback when it was called value pricing, and it failed to gain acceptance industry wide, as I recall NWA, was the first to break ranks to garner cash flow any any price.

As for the cutting cost, labor etc, that is what AA is trying or going to do very, very soon.

So Joe Brancatelli''s simple and easy solutions may not really be either, they may in fact be like most obvious and simple solutions the wrong ones.

Barron''s had a great article about Cathay Pacific recently, and yet now they are threatening to cut all passenger travel because of the Iraq fighting and SAR. As always things in the airlines change very rapidly, just like the profit and loss situation, a few passengers more or less and you are either loosing your shirt or rolling in dough.​
 
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On 4/14/2003 10:43:09 AM eolesen wrote:

Joe hits a good point once in a while, but most of his columns come off being no better than a Dennis Miller rant. Great soundbyte, little substance.

  • Air Lingus operates fewer than 40 aircraft
  • Air Lingus serves about 30 airports
  • Ireland as a country has fewer people than the City of Chicago

It isn''t hard to run a quality airline with a small network, and relatively small customer base...

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While thats all true and EI''s size made it easier for them to quickly fix their problems, there is nothing stopping AA (or any other US airline) from adopting a simpler and more rational fare structure. I thought AA was testing that out... what ever happened to that?
 
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On 4/14/2003 11:24:34 AM whlinder wrote:

While thats all true and EI''s size made it easier for them to quickly fix their problems, there is nothing stopping AA (or any other US airline) from adopting a simpler and more rational fare structure. I thought AA was testing that out... what ever happened to that?
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As it turns out, cutting the price on an inelastic product is a really terrible idea. Now we have proof.
 
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