Jetwire Setting Us Up For Concessions?

[Skymess]

SPECIAL JETWIRE FOR WEDNESDAY, SEPT. 28, 2005
PLEASE POST ON ALL BULLETIN BOARDS


--- JET FUEL PRICES SURGE AFTER REFINING SHUT-DOWNS ---


As a result of Hurricanes Katrina and Rita, refining capacity along
the Gulf Coast has been significantly impacted. The current combined
impact of Hurricanes Rita and Katrina is the loss of approximately
3.6 million barrels per day of refining capacity, or about 20 percent
of the total U.S. refining capacity. The refineries in the Houston
area are slowly resuming operations.
Refineries in Port Arthur/Beaumont/Lake Charles, Tx., -- the area
most impacted by Rita -- are still assessing damage caused by the
hurricane. This area accounts for 1.7 million barrels per day of
refining capacity. Four refineries in Louisiana and Mississippi
representing .9 million barrels per day remain closed as a result of
Katrina.


American's Fuels Management group is working closely with suppliers,
pipelines and airport operators to manage our jet fuel supply through
this situation.

This impact on refining capacity has caused a significant increase in
the price that American pays for turning crude oil into jet fuel
(commonly referred to as the "crack spread"). The price tag for
refining crude oil into jet fuel has risen from an average of about
$11 per barrel in the first six months of 2005 to an all-time high of
$47.01 per barrel. Based on that spread and a crude oil price of
$65.07 per barrel, the cost of a U.S. Gulf barrel of jet fuel
exceeded $112 per barrel yesterday.


This increase further highlights the need to do everything possible
under the Lower Cost to Compete tenet of the Turnaround Plan.

 

[PRINCESS KIDAGAKASH]

"CRACK SPREAD" This is the new AA/TWU code word for the "early contract openers in 2006" :mf_boff:

 

[Kev3188]

That is one "unfortunate" common term.

Talk about double entendres....

 

[Oneflyer]

This was the first thing I thought of when I read the "Special" Jetwire. I think its coming for management employees as soon as Friday and as late as Dec. 1. Unions, I'm not so sure. I'm guessing it will be billed as a "temporary" pay cut or 7-9%. Pure speculation on my part.

 

[B.O.B.]

Just watch how many flight attendants AA will loose if the concessions pass.


NO CONCESSIONS!!!

 

[FWAAA]

Just watch how many flight attendants AA will loose if the concessions pass.

[post="306886"][/post]​

But how many FAs would AA lose?

Lord knows it's impossible to replace FAs. It's not like any FAs are currently furloughed in the USA.

 

[aafsc]

Just watch how many flight attendants AA will loose if the concessions pass.
NO CONCESSIONS!!!

[post="306886"][/post]​

If they lose a lot of junior ones near the bottom of the payscale they will have to recall some of the topped out ex-TWA F/As. So I would think concessions would actually increase their labor costs.

 

[nbmcg01]

Just watch how many flight attendants AA will loose if the concessions pass.
NO CONCESSIONS!!!

[post="306886"][/post]​

Perhaps if as much effort was spent by senior mangt. lobbying our corporate friendly government for interim fuel subsidies, instead of looking for ways to abrogate CBAs and pension plans, there would be more credibility when openers actually happen. What seems to have been forgotten by the AA unions (at least the APFA) is the "value" of any contractual item is established at the time it is negotiated. It is absurd to allow the company to put an undervalued price on any potential concession. I hope all of the AA unions are being proactive and are line item costing their CBAs. There are always ways to "move around money" to make work rules more cost effective without destroying decades of negotiated enhancements. And there are ways to offer cost neutral or no cost "quality of life" enhancements to offset the concessions. Just because AA has ALWAYS done it a certain way doesn't mean that now isn't the time for a major paradigm change in the way labor contracts are negotiated. Harda** will not work anymore. The survival of AA as a legacy carrier will depend on how serious AA is about remaining "on top". True partnership in being able to hammer out new agreements is possible and it will be interesting to watch if AA is serious about what is best for the company, (labor peace ), while being able to effectively compete in todays market. Certainly is a long coaster ride, no?

 

[Skymess]

I hope all of the AA unions are being proactive and are line item costing their CBAs. There are always ways to "move around money" to make work rules more cost effective without destroying decades of negotiated enhancements. And there are ways to offer cost neutral or no cost "quality of life" enhancements to offset the concessions. Just because AA has ALWAYS done it a certain way doesn't mean that now isn't the time for a major paradigm change in the way labor contracts are negotiated. Harda** will not work anymore. The survival of AA as a legacy carrier will depend on how serious AA is about remaining "on top". True partnership in being able to hammer out new agreements is possible and it will be interesting to watch if AA is serious about what is best for the company, (labor peace ), while being able to effectively compete in todays market. Certainly is a long coaster ride, no?

[post="306914"][/post]​

Oh, I am sure they are being proactive and ready to chuck wads of my money at management for nothing in return. Don't forget what kind of union brains we're dealing with here. Just as management has the same cast of characters minus the leader, so does the APFA. I'm fully expecting to have all the rest of the things that the membership doesn't have to vote on given away by the APFA before they come and ask for concessions.

 

[Skymess]

"CRACK SPREAD" This is the new AA/TWU code word for the "early contract openers in 2006" :mf_boff:

[post="306875"][/post]​

:blink: How I missed that term last night is beyond me. I must've been really tired. Thanks for the laugh this morning. Truer words may never have been spoken. Looks like they REALLY are setting us up for some bad news.

 

[Hopeful]

This is the perfect opportunity for AA to come after us for more concessions!

They can say, "we were on the right track with earlier concessions, but, sorry, the price of fuel changed the game."

At this rate, I don't think they can wait for 2006 contract openers.

 

[TIME FOR CHANGE]

KISS MY ASS no more concessions
They should have hedged more fuel. :huh:
Early openers for 2006 now thats funny
How about BK for AA in 2006

 

[AAStew]

Just watch how many flight attendants AA will loose if the concessions pass.
NO CONCESSIONS!!!

[post="306886"][/post]​

My guess would be between two and five, period.

Flight attendants are already flying higher time to make up for our last wage concessions. The pilots union only allows them up to 83 hours if they bring time into the month (fly-through) they can keep more pilots flying. This translates into higher costs for the company. HOw about our pilots starting to fly hightime and stop this cap? If this is inevetible as you all are saying, this saeems like one small thing the pilots workgroup can do.

I think flight attendants have no illusions as to how expendable we are, so the sarcasm up above is uncalled for. Be Nice!

 

[FWAAA]

My guess would be between two and five, period.

I think flight attendants have no illusions as to how expendable we are, so the sarcasm up above is uncalled for. Be Nice!

[post="307034"][/post]​

I agree that many FAs undertand that, but there are exceptions. Nevertheless, sorry about the sarcasm.

Concessions should not be be considered by the company or the employees at this point. No need for them.

The 2003 concessions were only necessary to keep AA from running out of money. Today, AA's got over $3.5 billion of unrestricted cash and labor costs that are low enough to easily compete with UA, DL, NW and CO. AA's employee expenses have been reduced enough, and AA isn't in danger of running out of cash. So concessions aren't the answer.

How to fix things if no concessions and jetA stays at $100+ per bbl? By reducing some of the industry-wide legacy domestic overcapacity. Somebody's gotta shut down so the remaining seats will finally attract sufficient revenue to cover the costs. Further concessions aren't the way to fix things; higher revenue is the path to success. And higher revenue will happen when there are fewer legacy seats chasing the smaller pool of butts willing to pay legacy fares.

 

[Mach85ER]

My guess would be between two and five, period.

Flight attendants are already flying higher time to make up for our last wage concessions. The pilots union only allows them up to 83 hours if they bring time into the month (fly-through) they can keep more pilots flying. This translates into higher costs for the company. HOw about our pilots starting to fly hightime and stop this cap? If this is inevetible as you all are saying, this saeems like one small thing the pilots workgroup can do.

I think flight attendants have no illusions as to how expendable we are, so the sarcasm up above is uncalled for. Be Nice!

[post="307034"][/post]​

AAStew,

Does the company force you to fly 100+ hour months?

Also, how does the hourly rate for a 12+ year AA FA rank in respect to other US airlines.

FYI, pilots are limited by FAR's to 1000 hard hours (85 month avg) per year. Vacation and training would change the monthly average, but we still have a few guys hitting the yearly limit I believe.

Personally, you may think it is a "small thing", but if pilots in this country on average end up flying 110-120 hour months like some FA's, I will be moving into the Cheyenne Mountain NORAD bunker for my own safety. :blink: