Frank Szabo
Veteran
It's fairly evident the company is doing quite well as evidenced by their unrestricted cash growing rapidly - even though it has thousands of VERY pissed-off employees dragging down the results.The term sheets proposed the following savings from each work group:
APA: $370 million
APFA: $230 million
TWU: $159 million (fleet, dispatch, instructors, sim techs)
TWU: $235 million (M&R, stock clerks, MCTs)
AA says that the above numbers represent 20% of the total labor cost of each workgroup and the numbers total $994 million. The other $256 million of the $1.25 billion will come from management, support staff and agents.
AA's mechanics may be paid the lowest hourly wage of any airline, but AA's maintenance costs are the highest, according to DOT numbers, because of the low level of outsourcing. For example, WN has 700 planes and just 3,500 maintenance personnel on the payroll. I don't know what Aeroman in El Salvador charges WN for a heavy C check on their 737s, but with the mechanics making a reported $5/hr and the helpers making a reported $2/hr, it's obvious that it's cheaper. Significantly cheaper.
Imagine how much better a position the company could be in if its employees weren't looked upon (and treated) as bricks in a backpack, per Jeff Brundage.