When I was looking at the 10Ks I noticed that despite capacity reductions Landings fees went up, not down.
Well the other day in a discussion with the company the issue of landing fees was brought up. Well it seems that what most of the airports are doing is jacking up rates as airlines reduce flights. Their reason? Because their costs are fixed, the real reason, because their profits are fixed.
So on average airport landing fees have increased by at least 30% I use that figure since thats around what the number of flights have been reduced by yet the costs went up.
So when the industry rebounds will the rates decline? Doubtful. Instead the Airports (or should I say the owners of those airports) have lined themselves up for a windfall, (less the windfall taxes of course) when the economy rebounds.
Why havent we heard any public pronouncments from AA, or the ATA (since everyone is being exposed to these increases)? Why arent they testifying before Congress about how they are being extorted by these Airport authorities?
A 30% increase during times like these!!! When workers who lost 40% of their pay ask for those types of increases they are called all sorts of things, none flattering.
But its the greedy employees that want their wages restored that grabs the attention of the media!! Labor costs , labor costs , labor costs, you would think that we were all pulling in millions like our executives!!
These airports are putting the economy at risk because they are making it impossible for the airlines to make money! $4000 just to land a 777 at JFK, and thats not including other fees, thats insane! How do they justify that? They dont have to and the Airlines and the ATA dont even try to make them. Why is that?
Why dont we hear any protest from these carriers and the ATA?
Maybe its because the same interests that collect the double digit interest rates on all the cash these carriers borrow own the bonds that are paid through airport revenues. The airports arent alone, apparently parts providers are doing the same thing.
Back in the 90s Crandall bragged that he had a $500 million dollar war chest and he could beat the pilots if they struck, back in 2003 the company was "broke" if they had less than $1 billion in cash, now they claim they need at least $3billion, my guess is before long they will have to be sitting on(and paying the banks double digit interest on) $10 billion in cash.
No matter how much we give up it wont "save the airline", all it will do is give everyone else more to grab. We have to stop believing that our concessions will help this company become consistantly profitable, it never will because the Money Masters know if it does they will end up having to share it with us, and thats the last thing they want to do.
Well the other day in a discussion with the company the issue of landing fees was brought up. Well it seems that what most of the airports are doing is jacking up rates as airlines reduce flights. Their reason? Because their costs are fixed, the real reason, because their profits are fixed.
So on average airport landing fees have increased by at least 30% I use that figure since thats around what the number of flights have been reduced by yet the costs went up.
So when the industry rebounds will the rates decline? Doubtful. Instead the Airports (or should I say the owners of those airports) have lined themselves up for a windfall, (less the windfall taxes of course) when the economy rebounds.
Why havent we heard any public pronouncments from AA, or the ATA (since everyone is being exposed to these increases)? Why arent they testifying before Congress about how they are being extorted by these Airport authorities?
A 30% increase during times like these!!! When workers who lost 40% of their pay ask for those types of increases they are called all sorts of things, none flattering.
But its the greedy employees that want their wages restored that grabs the attention of the media!! Labor costs , labor costs , labor costs, you would think that we were all pulling in millions like our executives!!
These airports are putting the economy at risk because they are making it impossible for the airlines to make money! $4000 just to land a 777 at JFK, and thats not including other fees, thats insane! How do they justify that? They dont have to and the Airlines and the ATA dont even try to make them. Why is that?
Why dont we hear any protest from these carriers and the ATA?
Maybe its because the same interests that collect the double digit interest rates on all the cash these carriers borrow own the bonds that are paid through airport revenues. The airports arent alone, apparently parts providers are doing the same thing.
Back in the 90s Crandall bragged that he had a $500 million dollar war chest and he could beat the pilots if they struck, back in 2003 the company was "broke" if they had less than $1 billion in cash, now they claim they need at least $3billion, my guess is before long they will have to be sitting on(and paying the banks double digit interest on) $10 billion in cash.
No matter how much we give up it wont "save the airline", all it will do is give everyone else more to grab. We have to stop believing that our concessions will help this company become consistantly profitable, it never will because the Money Masters know if it does they will end up having to share it with us, and thats the last thing they want to do.