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Now here's a good editorial on AA!

fltguymk

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http://www.beachstreetnews.com/2011/08/amr-under-4-00-buy-or-sell/
 
Editorial or blog? Huge difference. Editorials and Op-Eds are usually signed.

This one is anonymous. For all we know, you wrote it...
 
E.
STFU you have no clue this blog or op-ed piece is spot on. The problem is with you all that think you know it all, is we have lived and worked through this debacle at AA you have not. This group of executives are the gang that can't shoot straight and all of us who work at AA know this. It is high time for new blood or old blood (Crandall), hopefully the BOD takes action soon or AA will cease to exist as we know it soon.

Steve Goeyvaerts
SFO Line Maintenance
 
It doesn't matter who wrote it. The clarity of truth rings like a bell.
 
It's too bad this piece is a little short on truth. One of the accuracy-challenged paragraphs:

With a looming pilot shortage and pilot pay that is among the lowest in the industry, sources say that American is getting less than 20% of its furloughed pilots returning to work. Where does Mr. Arpey plan to get the 4000 plus new pilots to fly the 420 new airplanes?

Pilot pay that's "among the lowest in the industry?" Whoever wrote that paragraph doesn't deal in truth or facts. It's demonstrably false.

This puff piece was posted here almost two weeks ago (when it was written).
 
Spot on, except for all the errors...

1) The stock price didn't bottom out at $11 under Carty. It bottomed out under $3 (still an all-time low, IIRC).
2) The Reno pull-down happened under Carty's watch.
3) The money-making LGB operation? Fails to mention the fact that the LGB city council gave all the open slots to JetBlue years earlier.

I stopped looking at that point.

I agree that Arpey's done little to right the ship, but the blog entry referenced is no more credible than the rantings of anonymous posters on these forums.

If anything, most the rantings here are probably more informed than the blog author...

Oh, and Goey, I suggest you do some of your own fact-checking. I served my time. I used to work with your current GM. Go ask her.
 
... snip

It is high time for new blood or old blood (Crandall), hopefully the BOD takes action soon or AA will cease to exist as we know it soon.

Nobody seems to know if Uncle Bob has ever been contacted re: setting the airline he assembled back on the path of righteousness. There were rumors years ago that the board considered bringing him back but nixed the idea simply because he was wanting to send over half of the so-called "management" boys and girls packing. The BOD, being as it is, decided they needed the friends in order to maintain there positions and sent Uncle Bob back to his relatively obscure retirement. That was the talk, anway.

Making AA's business model work properly will require the model's architect to run it and not a few snot-nosed imbeciles from a CPA/MBA school. We need a real businessman.

He would probably make choices once installed that would curl toenails but, once the dust settles, those who got hurt in the process would at least have a job offering some stability to return to instead of what people are being called back to now and rightfully declining.
 
One thing is for sure, it's not working as planned now....It gets worse everyday and going to get worse, unless something changes....The people in charge now are just trying to reinvent the same old wheel.....Just like when Peggy Sterling was running DFW, it's the same mistakes over and over and over......It's like they are reading from a script from up above management,be our puppet and reap the bonus... Just my opinion ,but when you have an average of 16 plus OTS aircraft at all times at DFW,the impact is pretty severe.. DFW continues to be a dumping ground for aircraft....They get one more leg to DFW then its a no fix no fly....Doesn't sound like good business to me,but what do I know? just my opinion!!!!!!!!!!!
 
We certainly shouldn't let a little thing like the facts get in the way of a smear campaign, now should we?

This piece has so many errors it has lost all credibility with me.
 
Byhaps he thinks the same of you?
What he/she thinks of me is his/her privilege or problem, as the case may be.

This clown, by admission, has no vested interest in the industry, has never work in the industry, yet comes on here pretending to be a voice of authority when in reality all the rube knows about the industry is how to acquire a ticket.
 
Tom says:
August 14, 2011 at 10:16 am

As a 25 year captain for AA I have to say this piece was spot on.

Mr. Arpey has been a puzzling CEO to say the least. About 2 weeks ago the airplane that we were to use was taken by Mr. Arpey so that he could be on time for his flight to his vacation home to Providenciales, Turks and Caicos. Our passenger were delayed 2 hours and 58 minutes while we waited on a new aircraft, but Mr. Arpey got to vacation house on time.

Later, I spoke to the crew of that flight. Mr. Arpey did not acknowledge, speak to or even look at any flight attendant or passenger on that flight. A strange “leader” indeed.



It’s important to note, Editor, that Arpey was actually the architect of the company’s 2003 restructuring, he along with Jeffery Brundage.
The “Turn-Around Plan” was implemented in 2001, before 9/11, and executed in late 2002 after the company finished compiling date on a low-cost carrier labor comparison AMR did in an effort to align American with Southwest. The strategy behind it was outlined in Gerard Aprey’s 1982 Thesis. In it, Mr. Arpey theorized that the only way to get real concessions from organized employees was to get the unions to promote doom and gloom so that the employees would believe that all would be lost if they didn’t concede immediately. In American’s case, the threat of “imminent bankruptcy” was used to terrorize employees.

In short, court depositions showed that there was no bankruptcy threat; that the unions knew about the bonus plans for executives, but were sworn by letters of confidentiality from telling employees; that the $1.8B demanded from employees annually was nothing more than a plug-and-play figure from that low-cost carrier labor comparison; that the voting mechanism had a security flaw that allowed anyone with a Seniority List and knowledge of the loophole in security to vote for whomever they wanted; and that a senior attorney by the name of Anne McNamara, who resigned from AMR in January of 2003 but was re-retained as a consultant for the months of February-April, joined the Board of the AAA in January of 2003, the balloting company responsible for counting votes cast by employees during the Restructuring.

In closure, Crandall knew how to run a company. All this group knows is how to lie to employees and steal fro them. A house built out of crAAp will always remain crAAp.

http://wewantourmoneyback.net/newsletters/wwomb_rpa_complaint.htm

Editor says:
August 12, 2011 at 11:49 pm

Brian, All of us would love to hear some good news. The announcement that AMR will keep another $2.5 Billion of debt when it spins off American Eagle along with the expected $600 Million or more in losses this year keep us wondering. As analysts we can only look at the facts. There is no question that Mr. Arpey missed a fnatastic opportunity when he took over to bring labor to his side. Instead he continued with the bonus program that led to Mr. Carty’s departure and has failed to negotiate successfully with any of the three major unions from what we can find. If you have anything to contradict that information please share it with us, until then we have to stick to our analysis that AMR is still a “Sell” in our book.

See this article about the AMR Debt if you haven’t heard it. AMR wants eagle to fly at the expense of American is what we see.
http://www.tulsaworld.com/business/article.aspx?
 
Thanks for the post, Mr. Odie. Not sure who the writer is/was but I'd really be interested in getting some corroborating input from some other people.

The MBA thesis Arpey supposedly authored would, on the surface, make the SOB a target for job offers from other corporations, one would think, that had the idea to screw over their employees as if this is true, his thesis was applied and it worked. Could it be other companies aren't interested in the hard feelings that will inevitably accompany the management getting what they want along with the total loss of management credibility?

IF this is all true, management may well have gotten their way but at the cost of destroying the corporation credibility with its workers Once that is lost, all except for the most docile will push back and I'm even seeing that happening.

Where could one acquire a copy of the SOBs thesis? It may be something nice to "pass around the campfire", so to speak.

Another IF - perhaps this is why the BOD is "tolerating" Arpey's "screwups" ...
 

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