True Or False ?

Taipan

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Aug 20, 2002
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Is this rumor making the rounds true our false, it goes like this
Alpa financial experts did an apples to apples study of united airlines compared to american airlines,concerning our overall cost not counting labor, again labor cost were not counted and americans cost was 25% less than ours,I have heard this from more than a few pilots.
If true that would be the first thing I would ask judge weidoff about?
 
That was probably before all the concessions started. UAL had newer contracts. Carty at AA had been dragging out negotiations ad naseum. UAL's compensation was WAY better than AAs (like 30% better). Then the AA pilot union surrendered a 23% pay cut (off the old contract scale). AA pilots are poorly compensated in relation to SWA now.
 
I am saying there is no labor cost involved whatsoever, just everything else (management controlled I might add) and american is 25% more efficient?
 
I have heard the same thing. Other costs must come down before asking employees for more. Once every other penny is found, then they can justifiably come to labor if the ends still don't meet. I think they are working on this front, as well as finding the revenue where they can. (ie: international markets.) ALPA has insisted on it.

As for labor costs, UA pilot costs are less than AA.
 
Taipan said:
I am saying there is no labor cost involved whatsoever, just everything else (management controlled I might add) and american is 25% more efficient?
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Ya Taipan...I remember the quote from ALPA...".Uniteds maintenance and airport operations are significantly higher than American...."
gee...I wonder what they were getting at????? :ph34r:
 
When I was at WHQ for that 3 day last month where we got to do 3 days of Q&A with a bunch of VP's at UAL, this question was asked of McDonald, who I think is the VP of Operations. Don't shoot the messenger, I'll just paraphrase what he said.

He basically said that the comparison ALPA made in some sort of publication to its members about UAL's non labor costs vs AMR's non-labor costs were absolutely wrong, and that as soon as he read that publication, he immediately called our Chairman to point out the error. He said that the comparison ALPA made was wrong. He used as an example maintenance. He said that AMR does much more maintenance in house than UAL. This fact is reflected in that AMR's non-labor costs seem lower because they pay their labor to do the work, while UAL's non-labor costs would seem higher because it is outsourced and our labor doesn't do the work. So if you looked directly at UAL's vs AMR's non-labor costs, it wouldn't be a fair comparison. He gave another example but I forgot what it was.

Anyway, that's what he said. I don't know if it's true, but I would assume that all the unions have finance people looking at that sort of thing.
 
Well, let's not forget that United leads the airline industry in sick time. By a wide margin I might add! :D

Least we're first in something!
 

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