I need a math expert for concessions.

RV4

Veteran
Aug 20, 2002
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AA says it wants to cut 22% or 1.8 Billion from the TWU payroll.
16% Paycut
plus
One week vacation unpaid = 2% Paycut
plus
Reduce 5 paid Holidays = 2% Paycut
That is already 20% and we have not even discussed the major medical benefit reductions.
Is there NO savings in RIF's, base shutdowns, and fleet reductions? Why don't we get credit for the pay of every head lost and their medical cost savings?
This is becoming the biggest scam of all time!
 

toroshark

Senior
Mar 12, 2003
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Why is nobody even mentioning the retirement package? Im a couple of decades away but that is a major dealbreaker on my NO vote.
 
OP
R

RV4

Veteran
Aug 20, 2002
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[blockquote]
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On 3/12/2003 4:59:41 PM toroshark wrote:

Why is nobody even mentioning the retirement package? Im a couple of decades away but that is a major dealbreaker on my NO vote.
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[/blockquote]

I am as concerned about this as anybody and please dont think that retirement is not important in my mind. I want to retire comfortably like everyone else and the sooner the better.

My point was simply, that before you even get to the retirement section of the concessions we appear to be getting hoodwinking numbers that exceed the specified company goals.

Do you think our leadership can add?
 
[blockquote]
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On 3/12/2003 7:05:36 AM RV4 wrote:

Is there NO savings in RIF's, base shutdowns, and fleet reductions? Why don't we get credit for the pay of every head lost and their medical cost savings?

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[/blockquote]

Dave, I might be wrong, but the RIF's associated with fleet reductions and schedule reductions appear to have been done within the terms of the existing contracts.

If so, those savings are probably being counted in the original $2B in savings that the Company identified before approaching the unions.

Management has seen over 450 people leave voluntarily or retire since October. That would be a pretty good start towards our goal, but since some if not all of that also makes up the $2B already identified, we don't get credit for it towards our $100M.

The closing of the NRO and LVRO -do- count towards the $60M target for agents/reps, but the reductions at the airports and res prior to that won't.
 
OP
R

RV4

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Fuzzy math is claiming you eliminated 2.0 Billion from cost and yet are still bleeding cash, not at a 50% reduced rate to match the reduction goal.

If AA has already eliminated 50% of the goal, cash drain should have been reduced by equal amounts. Instead FEAR is being propagated at higher than ever levels and the cash drain is not under control. There are ZERO reports of any improvement as a result of your claimed progress. Thus "fuzzy math" as been applied somewhere in this crisis.

That is of course, not coming from someone who has signed any confidentiality agreements to see the real books.
 

FWAAA

Veteran
Jan 5, 2003
10,251
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[blockquote]
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On 3/14/2003 5:57:04 PM RV4 wrote:

Fuzzy math is claiming you eliminated 2.0 Billion from cost and yet are still bleeding cash, not at a 50% reduced rate to match the reduction goal.

If AA has already eliminated 50% of the goal, cash drain should have been reduced by equal amounts. Instead FEAR is being propagated at higher than ever levels and the cash drain is not under control. There are ZERO reports of any improvement as a result of your claimed progress. Thus "fuzzy math" as been applied somewhere in this crisis.
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[/blockquote]

Is it within the realm of possibility that the current $5 million/day cash burn is about half what it would be if AA had not already implemented the $2 billion of other cost reductions?

Let's just say AA was burning $10 million per day (before the $2 billion in savings). Now maybe AA is burning $5 million per day. Give AA the $1.8 billion in concessions and viola - AA is cash flow neutral.

Is this really all that hard to understand?

Even I get it.

No wonder AA is probably going to crash and burn if you haven't gotten past this preliminary point.

Are you even convinced that AA has a negative cash flow or do you suspect the execs of stealing/hiding $5 million per day in order to screw you?? If you think they're hiding it - CALL CNN and NBC and FOX NEWS, 'cause they're gonna want to cover that story. [img src='http://www.usaviation.com/idealbb/images/smilies/9.gif']
 

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