Let the Protests Begin!

WingNaPrayer

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Aug 20, 2002
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American Air Pilots Protest Against 'Failing' Carrier


CHICAGO -
Pilots at American Airlines on Tuesday blamed a series of operational problems on management failings as they staged a nationwide " intervention" to advance their case.

The protests in 10 cities by pilots at the largest U.S. carrier come as American tries to recover from problems with maintenance records that grounded hundreds of flights last week operated with its aging MD-80 fleet.

"The recent [MD-80] meltdown combined with our reliability performance tells us that we are an airline in trouble," said Dave Powell, a Chicago-based MD-80 pilot for American protesting in the city outside the headquarters of Boeing Co. (BA).

"The operation, by every available metric, is failing," said Powell, who said the concerns predated the MD-80 episode.

Powell said pilots had raised a catalogue of issues with management, including a shortage of spare parts after inventories were cut to pare expenses. "The problem is that narrows our safety margin, though we haven't crossed any lines."

American was unavailable for comment.

Pilots said the protests were unconnected to demands for a new contract, but labor relations at the carrier remain strained by a management compensation scheme that started paying out in 2006. Employees maintain that they should be rewarded for wage and benefit cuts that kept the carrier out of bankruptcy.

"This is not about contract demands. We are demonstrating for management to take our concerns seriously," said Powell.

American's flight crew, represented by the Allied Pilots Association, has sought federal mediation in their pursuit of a new contract.

Powell said he hoped the protests would put pressure on American's executives, but said pilots were not seeking the ouster of American's existing management team led by Chairman and Chief Executive Gerard Arpey.

The furor over the bonus plan attracted joint protests from American's pilots, flight attendants and mechanics, though cabin crew and engineers were not involved in Tuesday's protests.

More than 800 American executives are due to receive bonuses this week, and the mechanics and cabin crew have asked them to turn down the bonuses or resign.

American's management is expected to be questioned about its labor relations when it reports first-quarter earnings on Wednesday. Analysts expect the carrier to lose around $300 million - its worst performance in the quarter in five years - as it wrestles with rising fuel costs.

Executives also face speculation that it could be making early-stage preparations for a future Chapter 11 bankruptcy filing in a bid to lower costs, which remain among the highest in the industry.

American is the only major U.S. carrier to avoid bankruptcy during the latest downturn, averting the move in 2003 with support from labor concessions. Executives have not commented on the prospect of a filing, and analysts believe the airline has ample cash to weather the current downturn.

"I suspect they will use everything available to them if that's the avenue they want to go down," said Powell, when asked if pilot protests could provide leverage for a Chapter 11 filing.
 
Executives also face speculation that it could be making early-stage preparations for a future Chapter 11 bankruptcy filing in a bid to lower costs, which remain among the highest in the industry.

Just in time for contract negotiations
 
If the BOD and the shareholders are dumb enough to let the CEO and his pirates loot the company and dump it in the trash can, then they deserve to lose their money.
 
American Air Pilots Protest Against 'Failing' Carrier


CHICAGO -....

American's management is expected to be questioned about its labor relations when it reports first-quarter earnings on Wednesday. Analysts expect the carrier to lose around $300 million - its worst performance in the quarter in five years - as it wrestles with rising fuel costs.

Executives also face speculation that it could be making early-stage preparations for a future Chapter 11 bankruptcy filing in a bid to lower costs, which remain among the highest in the industry.

American is the only major U.S. carrier to avoid bankruptcy during the latest downturn, averting the move in 2003 with support from labor concessions. Executives have not commented on the prospect of a filing, and analysts believe the airline has ample cash to weather the current downturn.

"I suspect they will use everything available to them if that's the avenue they want to go down," said Powell, when asked if pilot protests could provide leverage for a Chapter 11 filing.

Excuse me while I re-inject some reality back into this discussion. This bankruptcy talk was because of ONE analyst's note issued weeks ago that speculated because American wasn't actively looking to merge with anyone and because their employees still had their pensions, the airline might be looking to file. It contained NO NEW INFORMATION and furthermore doesn't gel with the facts. They talked to ONE PILOT about this issue and he gave his opinion about the matter. There is nothing new here at all. Here are the facts

FACT:
-American Airlines has almost $5 Billion in Cash
-AMR has been cash positive with its operations for the past two years, earning operating profits for those years
-AMR just paid down $2.3 Billion in debt
-AMR has accelerated 777 and 738 delivery schedules
-AMR has funded employee pensions to 96%, well above the federally mandated minimums.
-AMR continues to be the only major legacy carrier with an extensive fuel hedging program in place (which eats up a tremendous amount of capital over the short term)

Why would AA be hoarding cash, paying down debt, funding their pensions and accelerating aircraft deliveries if it were planning or even dreaming of filing for Ch.11? Every single airline that has filed has carried out actions completely counter to what AMR management has done. They stopped paying off debt in advance, they stopped hedging fuel, they weren't hoarding cash, they were delaying aircraft deliveries and they weren't funding their pensions.

Earth calling for whoever thinks AA is declaring bankruptcy as a ruse during labor negotiations or to break new labor contracts isn't looking at the facts.
 
FACT:
-American Airlines has almost $5 Billion in Cash
-AMR has been cash positive with its operations for the past two years, earning operating profits for those years
-AMR just paid down $2.3 Billion in debt
-AMR has accelerated 777 and 738 delivery schedules
-AMR has funded employee pensions to 96%, well above the federally mandated minimums.
-AMR continues to be the only major legacy carrier with an extensive fuel hedging program in place (which eats up a tremendous amount of capital over the short term)


5 Billion they could burn through that in a month.

Cash Positive. Not after the MD-80 Fiasco. Look for a loss this quarter

Paid down some debt so what. They make a lttle more by paying less interest

Accelerated some orders. That is as optimistic as fuel prices coming down

96 percent funded pensions is great so long as they dont file Ch 11

If they hedged so much fuel then the price of oil shouldnt have to be a bargaining chip in the negotiation process yet thats all you hear about day after day


One can only wait for the outcome of contract negotiations. If it doesnt go the companies way. They all ways have the CH 11 card to play

JMO
 
5 Billion they could burn through that in a month.

Not even GM can actually burn through $5 Billion in one month in terms of actually losses (not counting right downs or revaluations of assests).

Cash Positive. Not after the MD-80 Fiasco. Look for a loss this quarter
Most airlines will post a loss for this quarter. American will not be unique in this regard.

Paid down some debt so what. They make a lttle more by paying less interest
Reducing interest payments helps to free up cashflow for operations. Furthermore, why would you be paying down debt if you were going to enter Ch. 11 protect and just get rid of all of it.

Accelerated some orders. That is as optimistic as fuel prices coming down
They have accelerated the timetables for 777 and 737 deliveries. This is a fact. This is not something an airline that is planning on reducing its capital expenditures (lack of product investment is warning sign before entering Ch.11). AA is also going to spend close to $1 Billion over the next two years to completely redo the interiors of every 757 in the fleet. Again, not something an airline planning on declaring Ch.11 would be doing.

96 percent funded pensions is great so long as they dont file Ch 11.
Airlines planning to file for bankruptcy protections don't fund their pensions because they are just going to dump the liabilities onto the Federal Government (see NW, UA, DL, US).

If they hedged so much fuel then the price of oil shouldnt have to be a bargaining chip in the negotiation process yet thats all you hear about day after day

Oil is a serious issue because even with all of their hedges they have only covered between 20-30% of what AA (counting Eagle its even less) needs to fly. Oil prices are a serious drain on the company's finances. They are even starting to hurt Southwest.

One can only wait for the outcome of contract negotiations. If it doesnt go the companies way. They all ways have the CH 11 card to play.

And then they would have a strike on their hands which would shut down the airline and cause liquidation.
 
The "Protests" and marches this week is like standing on a street corner screaming that your mother is a slut!

It doesn't matter if it's true, you just look like an idiot and people will line up to bash YOU, not your mother.

What an idiotic and juvenile scene with all the "Professional" pilots stamping their little feet and crying that they are sooooo underpaid.
 
The "Protests" and marches this week is like standing on a street corner screaming that your mother is a slut!

It doesn't matter if it's true, you just look like an idiot and people will line up to bash YOU, not your mother.

What an idiotic and juvenile scene with all the "Professional" pilots stamping their little feet and crying that they are sooooo underpaid.



Could not agree with you more. Whine, whine, whine. If they are so concerned with safety and on-time performance, why not work with AA to fix the problems? This is not about safety or on-time performance but only about the pilots paychecks. To say otherwise is to be dishonest.
 
The pilots are absolutely correct. Management, not the employees, has failed and continues to fail it's employees and customers alike, despite trying to "work with management." How much money was squandered by the executive in charge of maintenance in the latest maintenance fiasco? 100 million dollars??

At some point, enough is enough, and somebody has to save the company from incompetence and avarice . . . despite what the management shills on this BB would have you believe.
 
Earth calling for whoever thinks AA is declaring bankruptcy as a ruse during labor negotiations or to break new labor contracts isn't looking at the facts.
But it wouldnt stop them from threatening to. It worked well for them in 2003.
 
Bob, I thought you would know better than to make that analogy. The situation in 2003 was fundamentally different than the situation in 2008.

ual:

Many don't know about/understand the fundamental changes in the BK laws as of 10/2005 and many of those provisions as they may apply to airlines, pensions, etc., have yet to be tested. It was widely believed that NW and DL understood what could happen if they waited to file their chapter 11 petitions as it was believed NW and DL had planned to do exactly what was announced on Monday at that time because of the almost simultaneous filings. All that was lacking was the passage of an appropriate amount of time and a participant in the process for show (United).

It is doubtful that AMR will get around to threatening BK, however; our darling Little Jimmy (TWU Intl. Prez.) went to Federal Court in 2003 and got a ruling that basically stated that while the TWU International could not accept a contract without a first vote by the membership, he as the International Prez. could accept a contract that was voted down by the membership with no further voting by said membership.

Yes - the 2003 situation was fundamentally different, ual, and Bob - they needn't threaten BK again. Little saw to that.