Lauri Curtis out, Denise Lynn in

[jimntx]

Does the phrase "rearranging the deck chairs on the Titanic" say anything to anyone? Lauri Curtis is moving to V-P of Diversity and Leadership Strategies. Denise Lynn is moving from that job to V-P Onboard Services.

As I understand it, Ms. Lynn's experience before coming to AA was another touchy-feely job (like Diversity V-P) with the US Dept. of Transportation. Like beancounter Horton replacing beancounter Arpey (probably), did it ever occur to them to get someone who had actually worked as a flight attendant within the past 10-12 years to be in charge of the Flight Attendants? (No, doing a DFW-DEN turn once a month that does not involve a 3-hour unpaid sit in DEN does not count as working as a flight attendant.)

At the risk of mixing topics--I'll be happy to start another thread if this becomes too involved--who knew we had a VICE-PRESIDENT of Diversity and Leadership Strategies. We need a corporate vice-president to go around and tell us "Don't use the N word. Don't talk about how fat someone is." (Diversity)
"And, if you are in management make sure you get those Attendance First Written Warnings mailed immediately."?????
(Leadership Strategies)

 

[Imjustsayin]

Does the phrase "rearranging the deck chairs on the Titanic" say anything to anyone? Lauri Curtis is moving to V-P of Diversity and Leadership Strategies. Denise Lynn is moving from that job to V-P Onboard Services.

As I understand it, Ms. Lynn's experience before coming to AA was another touchy-feely job (like Diversity V-P) with the US Dept. of Transportation. Like beancounter Horton replacing beancounter Arpey (probably), did it ever occur to them to get someone who had actually worked as a flight attendant within the past 10-12 years to be in charge of the Flight Attendants? (No, doing a DFW-DEN turn once a month that does not involve a 3-hour unpaid sit in DEN does not count as working as a flight attendant.)

At the risk of mixing topics--I'll be happy to start another thread if this becomes too involved--who knew we had a VICE-PRESIDENT of Diversity and Leadership Strategies. We need a corporate vice-president to go around and tell us "Don't use the N word. Don't talk about how fat someone is." (Diversity)
"And, if you are in management make sure you get those Attendance First Written Warnings mailed immediately."?????
(Leadership Strategies)

Ha, are all AA employees this cynical or just certain workgroups - or people?

 

[jimntx]

As I understand it, Ms. Lynn's experience before coming to AA was another touchy-feely job (like Diversity V-P) with the US Dept. of Transportation.

Mea culpa! Mea culpa! Mea maxima culpa! I misspoke Ms. Lynn's previous experience. She is originally from England, and came to Dallas as a consultant to the Dallas Area Rapid Transit. She assisted them with the redesign of their bus network.

Well, that makes all the difference in the world, doesn't it? Infinitely qualified to head up Flight Service at the 3rd largest airline in the U.S.

P.S. The above information comes directly from the Flight Service website.

 

[jimntx]

Ha, are all AA employees this cynical or just certain workgroups - or people?

Cynical? Moi? How could you say such a thing? I'm the most accepting, trusting-of-management flight attendant in the bunch. In fact, most of my flight attendant friends respond with the nickname, "Sucker", when I talk about how much I admire AMR management.

I spent over 20 years in the oil business. There is no more cutthroat business. Yet, I can honestly say that I have never seen a company in which the executives so openly display their contempt for the front line employees more than at AMR corporation.

 

[Imjustsayin]

Cynical? Moi? How could you say such a thing? I'm the most accepting, trusting-of-management flight attendant in the bunch. In fact, most of my flight attendant friends respond with the nickname, "Sucker", when I talk about how much I admire AMR management.

I spent over 20 years in the oil business. There is no more cutthroat business. Yet, I can honestly say that I have never seen a company in which the executives so openly display their contempt for the front line employees more than at AMR corporation.

Hey no, everyone is entitled to their own perspective, obviously. I'm just sayin, it seems AA employees dont' have it all that bad. And pointing at your managment just seems, well, a little worn out. The Oil business is booming, it could be time for another career change.

 

[jimntx]

Gee, I bet you look so cute in your little short skirt and pom poms in AA colors. Do you come out of your cubicle at Centreport and cheer Arpey every time he walks through, or just once in the morning when he comes to work? And, then on special occasions, of course, like when we announce another losing quarter, but he assures us that "we are well positioned for the future."

Would love to continue this fascinating repartee, but I need to go alphabetize my spice rack. I've just put it off as long as I possibly can. So, unfortunately, will have to follow The Goose's advice and put you on ignore.

 

[jersey777]

Jim,

Thanks for taking management to task. I guess all the outsiders looking in have all the answers but we employees should just shut up and obey orders and praise the ground that the "talent" at this company walk on. I am sure that we are not the only ones grumbling about our continued losses. I'll bet the board of directors and shareholders will soon have a say in this.



P.S. According to Arpey..we have a $600 million labor cost disadvantage to Delta...his numbers not mine. So that comes to $150 million a quarter. I guess they don't think the employees can add but why is that Delta made $500 million more this quarter and not $150 million? Where is the other $350 loss coming from? Silence!

 

[Imjustsayin]

Gee, I bet you look so cute in your little short skirt and pom poms in AA colors. Do you come out of your cubicle at Centreport and cheer Arpey every time he walks through, or just once in the morning when he comes to work? And, then on special occasions, of course, like when we announce another losing quarter, but he assures us that "we are well positioned for the future."

Would love to continue this fascinating repartee, but I need to go alphabetize my spice rack. I've just put it off as long as I possibly can. So, unfortunately, will have to follow The Goose's advice and put you on ignore.

Ok, Jim?, gotta admit the pom pom visual did make me laugh. Nope, not a desk jockey. Didn't mean to get you or anyone else worked up. It was just an observation. Good luck with the spices.

 

[FWAAA]

P.S. According to Arpey..we have a $600 million labor cost disadvantage to Delta...his numbers not mine. So that comes to $150 million a quarter. I guess they don't think the employees can add but why is that Delta made $500 million more this quarter and not $150 million? Where is the other $350 loss coming from? Silence!

You misunderstood what Arpey said. Here's a quote from SeekingAlpha (they transcribe the quarterly conference calls):

Based on our analysis of airline industry labor contracts, we estimate that we have an annual labor cost gap of nearly $600 million on average versus our network competitors. Since most of the industry’s major contracts are now amendable, we believe the GAAP will start to close as the industry works through this contract cycle.

http://seekingalpha.com/article/215737-amr-corporation-q2-2010-earnings-call-transcript?source=yahoo

Arpey didn't say that AA has a $600 million labor cost disavantage to Delta, he said AA has a nearly $600 million labor cost disadvantage on average compared to DL, UA, CO and US (that's the "network competitors" to whom he was referring). Given the huge givebacks by DL pilots and the low wages of the FAs, it could be that AA has a $1.0 billion or $1.5 billion labor cost disadvantage to DL and a much smaller labor cost disadvantage to CO or UA. But the average disadvantage of AA compared to the others is perhaps nearly $600 million.

What that means is that if AA had the labor costs of the average of its competitors, then AA would save about $600 million a year.

Still, you make a good point about DL's outsized quarterly profit. What has Delta had for years and years that AA just obtained earlier this week? That's right, antitrust immunity with its European partners. DL (and NW before the merger) has had ATI with AF and KLM for almost as long as AA has been trying to get it with BA. So what, you ask? According to AA, ATI and domestic network realignment will mean perhaps $500 million a year in extra revenue. From the same transcript as above:

We estimate that we’ll see an aggregate of over $500 million in revenue improvement and cost savings from network realignment and alliance activities. We expect to realize most of this improvement in 2011 and reach the full run rate by the end of 2012.

Perhaps DL's quarterly results were far more impressive because their labor costs are lower than AA's AND their revenue is helped by a long-standing antitrust immunity with their European partners. Maybe that's why DL reported a profit of $550 million this past quarter and AA almost just broke even. Other factors that may have contributed to DL's spectacular results include their well-timed purchase of NW. I have posted for years that AA should buy NW when the opportunity arose and I have consistently criticized Arpey for failing to do so. There may be other reasons why DL performed so well this past quarter, and perhaps those reasons can be laid at Arpey's feet also.