whats the plan -please?

A

AC AA LA FA

Veteran
Aug 21, 2002
630
22
mars
Is it just me but has there been any clue to what AA plans to do-when-these concessions are gained from labor?
I HAVE SEEN/HEARD NOTHING SOLID-in the way of any business plan for the future....am I missing something here? I will take ANYTHING just this side of speculation an this point-I CAN NOT see throwing back cash to this company-and furthermore can not beleive they are asking me to do so, with NADA on the table as pertatins to future plans of operating AA....I must be missing the forest of the trees-anyone care to help me out here?
 
"......American Airlines today asked its labor leaders and employees for $1.8 billion in permanent, annual savings through a combination of changes in wages, benefits and work rules."

Don Carty didn't exactly come out and say it in the press release but it's there for everyone to see. Work rules (more productivity) are typically manpower negative. No surprise here. A bit shocking to some and I'd expect that once the wailing and negotiating is over you'll see a sizable furlough number announced in addition to the $$ cuts.

Crews will want to increase their flying time to make up for lost wages. More hours/pilot/month = more furloughs. It's really pretty simple. I'm expecting to see our monthly schedules here at UAL to soon to be built to 85hrs/month or more (they presently can build to that Internationally). We'll be putting some more people on the street as well. It won't be pretty and this is just a word to prepare for it.

Don't get me wrong. I'm hoping for the best as my fiance is pilot with AMR and I have lots of good friends there as well. I've flown you often and have always enjoyed it. You're a great bunch. Keep your chin up!!

Cheers,
Z
 
I think half the plan is already in place. The SWA style "rolling hub" can greatly increase profitability with the right work rules. Hopefully AA can boost the utilization of the MD-80's,737's and 757's up to around what SWA and JB fly theirs.
 
[blockquote]
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On 2/5/2003 1:44:56 AM AC AA LA FA wrote:

Is it just me but has there been any clue to what AA plans to do-when-these concessions are gained from labor?
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[/blockquote]

In order to achieve savings of this magnitude, there will have to be SIGNIFICANT changes to the work rules in unionized labor groups. It is the work rule changes that will drive the change in the way our company operates. The work rule changes are up to you, so why don't YOU tell US what our company's plans are?

If you were expecting a "Song", then your expectations have been set too high. AMR is apparently not of the opinion that the key to survival is increased complexity, new capital expenditures, and unproven acts of desperation.
 
Here's the "PLAN". While WN offers Ford-Chevy type service and pays its workers a livable wage, AA's "plAAn" is to offer Mercedes type service and pay its people min wage.

Keep in mind the min wage will not apply to HDQ bec. "We must pay our leaders the best pay to get the best".
They have the most difficult job of hiding their perks and salaries while getting the producers {Pilots,FAs,AMTs,Agents and FSCs} to accept min wage.
 
I know it offends many people's sensibilities, but we really do need to retain skilled senior management level employees. UAL's downfall is going to be lack of knowledgeable senior management.

Similarly, do we really need rampers that make in excess of $50,000/yr?

I'm not trying to flame, I'm just trying to think critically about getting the most bang for our labor buck.
 
Should we expect to see an executive retention bonus paid out after they get us to take cuts? U did it and UAL is in the process of rewarding and trying to retain the people who help get them where they are today.
 
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On 2/5/2003 11:06:27 AM FA Mikey wrote:

Should we expect to see an executive retention bonus paid out after they get us to take cuts? U did it and UAL is in the process of rewarding and trying to retain the people who help get them where they are today.
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[/blockquote]

They already did it yesterday. While everyone was busy freaking out over the 1.8 billion dollar figure, on the very same day they shifted an average of 3,000 shares of stock into each of their accounts to "make up for the waiving of meeting fees and other payments" for the month of January. At yesterday's prices, that had a value of about 9,000.00, a 9K "bonus" for January, and it's been going on every month since the end of 2001 when they made the big PR stink about "waiving" their monthly meeting fees.
 
[blockquote]
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On 2/5/2003 12:12:53 PM WingNaPrayer wrote:

[/blockquote]

They already did it yesterday. While everyone was busy freaking out over the 1.8 billion dollar figure, on the very same day they shifted an average of 3,000 shares of stock into each of their accounts to "make up for the waiving of meeting fees and other payments" for the month of January. At yesterday's prices, that had a value of about 9,000.00, a 9K "bonus" for January, and it's been going on every month since the end of 2001 when they made the big PR stink about "waiving" their monthly meeting fees.


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[/blockquote]


wing-
not doubting you about this....where, when, and how did you come about this info? I'm an occasional reader here so pardon my ignorance.
 
thanks wnp, although i still have no idea what I was looking at. would appreciate a crash course if u don't mind.
i did see Carty's transanctions last 1/3/03, 4 of them at 37,000 each. does this mean he shifted or sold dividends (it was a D, as in disposed of) for a total of $148,000 cash?
 
D as in disposed of, means it was stock options that were taken away for failing to meet objectives. They all took a hit on that one.

When it's A as in add, it's stock that was given in lieu of compensation. They are given phantom stock, Phantom stock units ("PSUs) are deferred compensation. During the deferral period retainers and meeting fees are converted into PSUs based upon the average market value of AMR common stock during the deferral month. In other words, instead of being compensated for attendance at a board meeting, a director may be given an equal value amount of stock instead of cash. Basically, the stock costs the company nothing, but if performance is good, the stock given can increase in value and be worth more than they would have gotten had they taken the compensation instead. In an ideal economic environment, it could be a win/win situation.

The stock given on February 4th was given at a common stock value of 2.84 per share. Today, February 5th, that same stock value closed at 3.02 per share. For say a director that was given 2540.65 shares of stock in lieu of compensation, they were instead given stock valued at $7,215.44. Today, 02/05 that same 2540.65 shares of stock is worth $7,672.76 so in one day, by waiving compensation and taking stock instead, they earned $457.32 on the stock already. So this time it was a win/win. Had the stock not gone up by 18 cents a share, and had instead fallen, they would have lost money by taking stock rather than compensation.

Basically, it's incentive for all involved to bust their hump to do right by the company and get that stock price to go up.

Visit www.amrcorp.com and click on Investor Relations, there is a wealth of information in there about how the company is run, it's financial situation and so forth.

One of the things you'll find in there, and might find interesting, is that in 2002 the company projected it would need to come up with a fixed amount for 2003 to continue with capital improvements. That amount just happens to be.... $1.8 billion
and you can find that statement in the annual reports.

Enjoy!
 
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