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Usps Dumps Aa Domestic Mail

Are you sure that no one among the combination passenger carriers can provide the level of service the USPS wants? Perhaps the issue may be whether AA and US wants government business. The US government has historically provided airlines with three types of revenues: mail, government employee contracted travel, and military charters. Over the past several years, AA has not been the top carrier in any of those categories despite being the largest airline and having the largest fleet. Delta and United have both been in the top couple of spots in each of those categories by actively bidding for government contract business. For both government contract travel and mail, using larger aircraft makes going after the business worthwhile since both are somewhat dilutionary if taken on smaller aircraft. DL and UA both operate significantly more widebody aircraft domestically than does AA, providing much more capacity for domestic cargo and mail as well as incremental government contract passenger business.

It may appear that the USPS wants to take mail carriage away from the combination carriers but I don’t think that is what they want at all. The last thing they want is a monopoly with Fedex or a duopoly if UPS is included. The USPS wants to have multiple carriers capable of and bidding on carrying mail.

The reality is that the post 9/11 mail restrictions have made mail much less attractive to combination carriers. While it was economically feasible at one time for combination carriers to sort mail, the economics no longer work to sort the relatively small volumes of connecting mail the USPS offers combination carriers. Although Delta has been one of the top mail carriers among the legacy carriers, it has decided it will only carry nonstop mail for the USPS. Just as with passengers, it is not possible for multiple airlines to make money providing connecting mail service. DL and other legacy airlines would welcome nonstop mail and the relatively easy revenue it provides but they probably all will start weaning themselves off more complex connecting US mail when they look at the complexities it adds to their system. Passengers can change planes by themselves at hubs and some airlines use automation to sort baggage at their hubs. Even though several combination carriers are using the automation the postal service requires not only for cargo but also baggage, that kind of complexity is far more easily handled by the cargo carriers than the combination carriers.

While AA probably doesn't want to lose the mail revenue now, it probably will help simplify their operation. NW and DL have shown that it is possible to turn down mail revenue if you consider the lost revenue in your business planning.
 
Are you sure that no one among the combination passenger carriers can provide the level of service the USPS wants?


YES!!!!!!!!!!!!!! All of the carriers are about the same, within a few % points. What the USPS wants is not attainable. Look, AA does about 100 million in business with the USPS. 50 domestic, 50 international. The international contract is far more lucrative to AA and the other passenger carriers, because it is still regulated and the rates are dictated by the DOT. The USPS has been asking AA and others to change the international contract for several months without any success. Taking away the domestic mail is a vendictive way of showing AA who is boss.

Realisticly AA doesn't need the domestic mail business, but they don't want to have to RIF 500 people, this is entirely about saving union jobs. If ever there was a time that management is going to bat for the little guy, now is it.
 
Oneflyer said:
All of the carriers are about the same, within a few % points. What the USPS wants is not attainable.
[post="248392"][/post]​

Anecdotally, most carriers are running around 52-58% "ontime" with the USPS's rating system. AA and US were said to be at 52%. So Oneflyer is correct that there's not a huge variance.

Who says that USPS doesn't want a monopoly on the mail? They gave pretty much all of the express mail (overnight) to Fedex.
 
"YES , I know Bob Crandall is no longer at the helm of AA"(DAMMIT)

If he was, does anyone think he would have "kow Tow(ed)" to the PO, over the domestic mail, under the existing (usps) conditions.

ANSWER; A resounding "NO" !!!!!! (INTL, YES)

Crandall NEVER had a problem telling government agency's to "go pound sand" !!

Everyone take a deep breath, and RELAX !!!!!!!!!!!!

Remember, Arpey IS Uncle Bobby's(hand picked, a groomed) BOY. AND, RLC is no longer spending time with AMTRAK, which means he's got a lot of extra time on his hands.

Crandall(like Herb Kelliher) is retired in "name only"

Anybody REALLY think that he's just hanging around the house, listening to his wife Jean "Break his balls" ????

NH/BB's
 
NewHampshire Black Bears said:
Crandall NEVER had a problem telling government agency's to "go pound sand" !!

Which has also bit us in the ass quite a few times, Bears.

We lost a few route award cases, and scared off a few alliance partners. When KLM was first looking for an alliance partner, we were their first choice, but they didn't want to be subordinate to AA's wants and desires. NW was willing to treat them as an equal. We could have been one of the founding partners of the Star Alliance had LH chosen us, but they chose not to align with AA for pretty much the same reason KL chose NW -- UA was more willing to play nice with others...

NewHampshire Black Bears said:
Remember, Arpey IS Uncle Bobby's(hand picked, a groomed) BOY. AND, RLC is no longer spending time with AMTRAK, which means he's got a lot of extra time on his hands.

Crandall(like Herb Kelliher) is retired in "name only"

Uh, Herb isn't retired. He's still the Chairman of LUV for now.

Arpey was definitely a Crandall favorite, but I think you're missing the reason he ascended where he is. Arpey is a lot like Baker was -- very genuine and able to speak with the front line folks as equals because he'd worked the ramp, albeit for DL. He can speak to pilots at their level because he is a pilot. Carty never was able to do that, which may be why he was perceived as being out of touch...

As much as you and others would like to believe otherwise, Crandall has never taken an active role in anything related to AMR since leaving the building in '98. He's appeared for some lectures at the CR Smith Museum and Flagship U, but that's about it.

But you're right that he isn't retired -- he's still working with Don Burr (founder of PeoplExpress) on his micro-biz-jet startup. That's taking up quite a bit of time I'm sure.


But back to the USPS...

Even Crandall wouldn't be getting in the USPS's face on this because there's no disputing that our performance was among the worst of the majors.
 
http://www.usaviation.com/forums/index.php...3&hl=mail&st=30

Oneflyer Jan 26 2005, 12:40 AM Post #45
QUOTEIn 1999, I said that AA should go after a lot more freight and mail because people were angry at the high airfares and I said it would not last. AA's position is "we are a passenger airline". Although AA is a passenger airline they should have substantially diversified their revenue base.In 2004, AA had around $700 million in freight and mail revenue with a several hundred million dollar profit. That number will be growing this year, unfortunately cargo can only grow at about the same rate as wide body departures grows.


http://www.usaviation.com/forums/index.php...3&hl=mail&st=45

FWAAA Jan 26 2005, 02:09 AM Post #46
QUOTE(Oneflyer @ Jan 25 2005, 05:40 PM)In 2004, AA had around $700 million in freight and mail revenue with a several hundred million dollar profit. That number will be growing this year, unfortunately cargo can only grow at about the same rate as wide body departures grows. Didn't cargo take a big hit after September 11? IIRC, heavy mail is no longer allowed on passenger aircraft; only lightweight first class mail is allowed. FedEx has been picked to fly much of the USA mail volume.The good news: AA is a very large cargo carrier. From a press release today:QUOTEAbout American Airlines CargoAmerican Airlines Cargo provides more than 100 million pounds of weekly cargo lift capacity to major cities in the United States, Europe, Canada, Mexico, the Caribbean, Latin America and Asia.

http://www.usaviation.com/forums/index.php...8&hl=mail&st=15

Oneflyer
"we can become an LCCNo AA can not. As much as employees like Local 12 say they want AA to be a low cost carrier, their actions prove that they are really unwilling to do what it takes.Let me relay a story about our friendly TWU union. Recently AA in PHL has been experiencing a surge in mail volumes, primarily because of some great work by both management and union FSCs in Cargo. The post office actually gives us the mail to send to LA instead of putting in on USair's direct flights, because AA can actually get it there. The volume is so high that cargo has run out of man power, even with OT, to accomodate all the mail the post office wants to give us. Now since this a relatively new phenomeon and largely seasonal mail volume, cargo ops is unwilling to immediately increase headcount, just to see if the trend continues. So the TWU was asked if ramp FSCs could be offered OT to help with the mail. The TWU flately refused to consider that option, they would rather watch AA turn away revenue than help out. Now tell me how we're going to be like Southwest airlines if two different parts of the SAME WORK GROUP can't even work together? The unions are so hell bent on getting their jobs back, meaning more union dues, they're unwilling to even offer OT to their own members! The good of the company be damned. I wonder if SW would have found a solution?

http://www.usaviation.com/forums/index.php...8&hl=mail&st=15

Boomer Oct 27 2004, 10:53 AM Post #19
Oneflyer,I beleive your story about PHL is a total fabrication.Anyone with any experience dealing with TWU contracts KNOWS that there is ample language CONTRACTUALLY justifying the ability of the company to manage their business and the legal requirement that the TWU enforce the contract.Ask the Mechanics at JFK about going to Court over an alleged job action and how quickly the company was able to obtain an Injunction, even though the Company was later shown to have fabricated the entire affair and the Injunction later lifted.

http://www.usaviation.com/forums/index.php...8&hl=mail&st=15

Oneflyer Oct 27 2004, 11:06 PM Post #22
QUOTEI beleive your story about PHL is a total fabrication.

I don't really care whether you believe me or not. I don't believe a damn word that comes from someone in a union, so I guess I shouldn't expect some union guy to believe me. Distrust is part of the problem, and one of the reasons AA could never work like southwest.

Bagbelt: Southwest guys are in the same union. Also, if it was that big a deal the co. would just do it and deal with the grievance later. You could'nt work here or you would know that. Just because someone doesn't agree with you

Oneflyer Oct 28 2004, 03:27 AM Post #24
QUOTEJust because someone doesn't agree with you does not make them a liarI didn't accuse anyone of being a liar.

Its amazing that if something doesn't fit into your preconceived idea of the way the company does business you don't believe its possible. It once again proves my point that change is impossible at AA because the union membership wouldn't accept the changes they themselves suggest.

Bagbelt: it's not that I don't think we could do things different, why did we get out of flying freighters? It's just in my experience that there is plenty of management who couldn't run a lemonade stand without calling Dallas every time a decision needs to be made. It works both ways. When I started here you had managers who didn't care if they were liked or not. This isn't all management currently, but there are far too many.


Boomer: The PHL story just doesn't pass the smell test. In fact, coupled with your statement about not believing anything from a Union member, it's increasingly obvious that the story is simple Union Bashing based on stories that are either wholly fabricated or water cooler myths.

Under the TWU Ramp and Maintenance contracts, the company expressly retains the right to manage the affairs of the business.

Article 28-b: Statement of Management RightsThe Union recognizes that the Company will have sole jurisdiction of the management and operation of its business, the direction of its working force, the right to maintain discipline and efficiency in its hangars, stations, shops, or other places of employment, and the right of the company to hire, discipline and discharge employees for just cause, subject to the provisions of this agreement...

Article 31: Do it, then Grieve itAn employee who beleives that he has been unjustly dealt with, or that any provision of this agreement has not been properly applied or interpreted...

Article 33: No Strike, No Lockout...Neither the Union or Employees will engage in a strike, sitdown, walkout,...

Article 21: Change of Employee Shifts With 7 Days Notice...Except in an emergency, an employee will be given at least seven days notice of all shift changes...

Article 4: Cross Utilization Guidlines

Article 6: Double Time Eliminated, Proffer of OT...overtime will be proffered within the appropriate classifications and work units prior to offering it to other classifications under cross utilization.

This is all TWU language in current contracts. The company can change shifts and bids, by seniority, with seven days notice (or sooner, so long as the affected employee is paid ot for the first day only).

The company can extend part time after proffering ot to full time.

The company can white-slip.

If all the above is not working: just get on the phone and call Little at he TWU-ATD, he'll change the contract to whatever the company wants.

The simple fact is that the current contracts are worded in a way AA can do pretty much anything they need to. The problem from where many of us sit is that not enough is being done quickly enough and we are suspicious that the reason behind the inaction is round two of concessions and we all know where the TWU stands on concessions. \
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Oneflyer Oct 29 2004:
Boomer: The PHL story just doesn't pass the smell test. In fact, coupled with your statement about not believing anything from a Union member, it's increasingly obvious that the story is simple Union Bashing based on stories that are either wholly fabricated or water cooler myths.

OneFlyer: "1. What do I have to gain by lying? none.2. Why use PHL, mail, and OT? I must be pretty creative.3. With all of your contract knowledge you don't seem to understand how the shift bid works. Cargo and the ramp work on different bids. Like I said before the Cargo ops wasn't allowing PHL to increase headcount, doing a shiftbid and bringing more people over from the ramp, adds headcount. In fact, ramp workers can't work in Cargo without taking certain DG classes first, that is unless they only work with the mail. So the cargo manager can't just grab a random ramp worker and tell them to get to work. The fact is, that you want to think I'm lying, therefore you come up with reasoning that just your desire.


http://www.myplainview.com/APTexas/parsed/...D88958OO0.shtml

Post office suspends use of American Airlines
The Associated Press
The U.S. Postal Service has stopped using American Airlines and US Airways to deliver domestic mail because the carriers failed to meet performance goals, including on-time delivery.
The post office said the suspension took effect Saturday and covers first-class mail and some small packages shipped priority class.
Jim Quirk, a Postal Service spokesman, said Tuesday the agency notified the airlines in December that "we needed a plan from them to meet the goals" for on-time delivery. He said the post office was optimistic that the two airlines could make corrections and soon be carrying mail again….

Oneflyer and FWAA,
We discussed the issue of mail handling in October of 2004. At that time, you guys laid the problem at the feet of the TWU while I told you both that it was a problem that AA should address given the latitude they enjoyed within the context of the CBA between AMR and the TWU.
On a factual basis, Oneflyer asserted that cargo personnel handling the mail had to pass a special set of qualifications: in fact, every Fleet Service Clerk employed by American Airlines is REQUIRED, AS A CONDITION OF EMPLOYMENT, to take and PASS all classes relating to the handling of Dangerous Goods and Hazardous Materials.
While not all Employees of American Airlines are Authorized to Manifest shipments: EVERY American Airlines Fleet Service Clerk is Trained and Required to challenge any shipment or activity not conforming to the requirements. EVERYONE is expected to be shown PROOF that all shipments conform to regulations, from SkyCaps, TicketAgents and GateAgents to the FleetServiceClerk at the MailDock.
We are now faced with a decision of the United States Postal Service, discontinuing shipments of USPS mail within the AMR System. The figure given for the value of that commodity is 6.5% of Total Gross Revenue or some $100 Million Dollars. Said decision being based on communication between AMR and the USPS on or about December of 2004 and effective February of 2005.
The Spinn from the CompAAny is that the contract is still in force but the USPS reatains the right to “allocateâ€￾ the volume between the carriers it chooses.
Will the head of AMR Cargo be forced out: or, are the futures of some 1000’s of TWU Represented Union Members being chummed as bait for a higher tolls for the public good?
Remember: the airways are owned by the US Taxpayer, as are the slots that have been allocated to individual carriers. Although the Carriers have been allowed to commoditize the slots as if they were actually owned; those slots could be reallocated by a vote of Congress. Much like the mail.
Arrogance breeds bliss, the maiden of ignorance.
 
Boomer said:
We are now faced with a decision of the United States Postal Service, discontinuing shipments of USPS mail within the AMR System. The figure given for the value of that commodity is 6.5% of Total Gross Revenue or some $100 Million Dollars.

Point of order.... it is 6.5% of the Cargo Division's total gross revenue. The total contribution to Cargo's P&L is 3.25% for domestic mail, and 3.25% for international mail.

We're still handling the international mail. What's in question is the 3.25%

Boomer said:
Will the head of AMR Cargo be forced out: or, are the futures of some 1000’s of TWU Represented Union Members being chummed as bait for a higher tolls for the public good?

There are around 500 jobs tied directly to domestic mail handling, not thousands.
 
Former ModerAAtor said:
Point of order.... it is 6.5% of the Cargo Division's total gross revenue. The total contribution to Cargo's P&L is 3.25% for domestic mail, and 3.25% for international mail.

We're still handling the international mail. What's in question is the 3.25%
There are around 500 jobs tied directly to domestic mail handling, not thousands.
[post="248738"][/post]​


Well past experience has proven that they lie. My bet is that when you include those indirectly tied to mail the numbers will be much higher.

If they claim its 500 jobs then more than likely 1500 will be eliminated.
 
There are currently 134 FSCs employed at the mail facility here at DFW.
8 to !0 may be absorbed into Freight the rest wil bump back to Ramp. They definately are needed. With AA going up about 50 flights its like pouring water on a dry sponge in the Sahara.
 
Oneflyer said:
YES!!!!!!!!!!!!!! All of the carriers are about the same, within a few % points. What the USPS wants is not attainable. Look, AA does about 100 million in business with the USPS. 50 domestic, 50 international. The international contract is far more lucrative to AA and the other passenger carriers, because it is still regulated and the rates are dictated by the DOT. The USPS has been asking AA and others to change the international contract for several months without any success. Taking away the domestic mail is a vendictive way of showing AA who is boss.

Realisticly AA doesn't need the domestic mail business, but they don't want to have to RIF 500 people, this is entirely about saving union jobs. If ever there was a time that management is going to bat for the little guy, now is it.



If they make their money on the international mail then why would taking away domestic mail be considered a vindictive move?

 
If they make their money on the international mail then why would taking away domestic mail be considered a vindictive move?

You really don't realize how stupid you are, do you?
 
Bob Owens said:
If they make their money on the international mail then why would taking away domestic mail be considered a vindictive move?

[post="248989"][/post]​

Let's see.... The post you responded to says USPS wants carriers to renegotiate the international contract rates.

USPS can't force them do it, but they suddenly invoke a loophole in the domestic contract to yank the domestic mail away from two carriers.

I can see how that might appear vindictive.
 
9:01am 02/21/05
U.S. Post Office stops using American Air, US Airways (AMR, USABQ, UAIRQ) By Robert Daniel
NEW YORK (MarketWatch) -- The U.S. Postal Service has stopped using American Airlines (AMR) and US Airways (UAIRQ) (USABQ) because frequent delays held up delivery of first-class mail, The New York Times reported. The USPS stopped using the carriers on Feb. 12, after giving them notice, the Times reported. The airlines told the paper that they were in discussions with the Postal Service to try to get back the business. US Airways shares rose Friday 3 cents to $1.16 while AMR shares added 5 cents to $9.03.
 
I find it amusing that some of the posts have the tone of " so what, it's just a measly 100 million of revenue" The excuse came right on the heels of a press release claiming a few hundred thousand were saved by dropping pillows.

I found the company excuse had the same pathetic tone and it had the same tone as the ORD ice fiasco excuse.

Just my 2 cents, I doubt the loss of revenue was computed in the decison to downgrade to our large fleet of weight limited $25 million leaf blower RJ's. The USPS fiasco is also a national embarrasment. We gave them the same treatment that we give the individual passengers, such as arriving on sched then sitting off an open gate for 45 minutes due to understaffing.

If we didn't want the contract, we shouldn't have signed it in the beginning or at least planned ahead with the USPS for a drawdown of service. One also has to wonder if this could also influence the DOT's decison on the China routes, along with giving ammo to our rivals.

A senior VP and the junior ones in charge to be directed off the property with all the same warm treatment they've given the others fired with the cutbacks.
 
Mach85ER said:
I find it amusing that some of the posts have the tone of " so what, it's just a measly 100 million of revenue"
[post="249534"][/post]​

Amusing it may be, but if it costs $50M in expenses to get $50M in revenue, it's probably not worth the trouble. Worse, mail revenue has been declining steadily for the past four years, so at some point, it's pretty likely that the expenses will start to exceed revenue.
 

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