460 jets ordered

[WorldTraveler]

Quotes from the article:

Airlines have been trying to change this perilous dynamic. In recent years, they’ve been joining forces to cut costs and improve their competitive positioning. Delta’s (DAL) merger with Northwest and Continental’s merger with United Airlines (UAL), for instance, have clearly created stronger airlines, better built to withstand the inevitable hurdles the industry faces during economic downturns.

Then there’s AMR (AMR). We’ll never know whether the parent company of American Airlines wishes it had found its own partner,

Labor and fuel costs are only part of the problem. The recent massive wave of industry consolidation has put rivals on much better footing, and they are pressing their advantage. “Scale matters in the airline industry, and we fear that AMR’s share of corporate travel may be falling as mergers have created competitors with broader networks,” noted Merrill’s analysts. This may explain why AMR has lost market share in every region it serves (domestic, trans-Atlantic, trans-Pacific and Latin America) so far in 2011.
(As I've been noting for quite some time)

The decision to lease so many new aircraft simply makes a very weak balance sheet even weaker. Capital spending is now on track to exceed $3 billion every year beginning in 2013. This is a lot of dough for a company that hasn’t generated free cash flow since 2007 and carries nearly $9 billion in long-term debt (not to mention the $8 billion in pension underfunding).

In effect, AMR is hoping and praying that broader industry conditions remain in check, highlighted by reasonable jet fuel prices, strong demand for air travel and stabilization in market share. But is this a realistic set of expectations? This approach may work if all falls into place, but AMR is “precariously positioned should things go awry,” note analysts at UBS.

....

AMR waited so long to execute a turnaround that they now cannot afford for anything to go wrong that would derail their plan - and they also assume that they can hold onto what they do have - despite indications that airlines are stepping up their competitive assaults to pick up the premium revenue that has long been a part of AA's business model - and is necessary if AA is to remain a viable airline.

 

[Overspeed]

I hate to be the one to provide you breaking news, BUT

the place was more tolerable and the guys actually had more pride and integrity in their work.....i.e. We gave a sh&t!!!

2003 was a game changer for the worse, and the concessions ripped the integrity and pride right out of the AMT.

AMT's will always do what's necessary to protect their A&P, but I can CARE LESS if AA "flies at dawn", high noon or dusk.

It can all change for the better if AA get's off it's high horse for concessions and starts rewarding the front-line employees, so WE can "take care of the customers", again.

Accountability for all would be a good start. If anybody - management or union - doesn't do their job get rid of them. The ones that do perform, pay them.

 

[Ken MacTiernan]

Accountability for all would be a good start. If anybody - management or union - doesn't do their job get rid of them. The ones that do perform, pay them.

So, how do we go about having the membership hold appointed twu int. officers accountable? You mean like when they run for office we simply do not vote for them?

 

[Frank Szabo]

So, how do we go about having the membership hold appointed twu int. officers accountable? You mean like when they run for office we simply do not vote for them?

"When they run for office" - indeed.

To paraphrase Mel Gibson as the charater William Wallace: "When angels and lightning bolts fly out of me arse ...".

Now - that WOULD be a sight, wouldn't it? Probably more likely, also.

Aside to Ken - you forgot to turn of the sarcasm - I'll do it for you.

[/sarcasm]

There.

 

[Overspeed]

So, how do we go about having the membership hold appointed twu int. officers accountable? You mean like when they run for office we simply do not vote for them?

Ken, if you know of a chargeable offense then you have a duty to bring that up.

Were you a delegate to the TWU Convention? Do you know of anybody in your Local who was at that convention? Did you hold them accountable for not voting on your behalf the way you had wanted them to? Maybe you should start at the local level first.

There is a good environmental slogan that works for us as well. "Think globally, act locally."

Maybe you could start by cleaning up the issues in SAN first. Are the members backing each other up like good union people should?

 

[TWU informer]

Ken, if you know of a chargeable offense then you have a duty to bring that up.

Were you a delegate to the TWU Convention? Do you know of anybody in your Local who was at that convention? Did you hold them accountable for not voting on your behalf the way you had wanted them to? Maybe you should start at the local level first.

There is a good environmental slogan that works for us as well. "Think globally, act locally."

Maybe you could start by cleaning up the issues in SAN first. Are the members backing each other up like good union people should?

And now outcome the "SLOGANS" from another TWU enthusiast.

I remember Jenni Proctor-Timms came out with a whole boat load of slogans and posted them all over the Tulsa base.

What do you think the result of that was? We still have nothing, she got an appointment to an International job.
Keep up the good and you too can be one of the elite, one of the appointed, one of the few.

Jenni, a proud defender of the US Consitution via military service, just didn't have enough to admit that the anti-freedom, anti-democratic, anti-American TWU was no good for the working stiffs of the USA. Instead she took her appointment and enjoys her's brother. She always claimed to love her brothers and sisters, but not enough to change that which is unjust and unfair to worker choice. Instead she sold out. I have known others that have done the same. But her military background left me scratching my head, when she could not see the truth and take a stand against tyranny in her own back yard and front porch. I always wanted to buy her a copy of "In Transit" by Joshua Freeman as a gift, just to see if the truth regarding the founding of the TWU along with her military service would conflict and change her views. But she got the appointment before I could get her the gift.

Wouldn't suprise if her new appointed assignement is to keep up with these boards and defend the undefendable.

Members "backing each other up", was that the lesson we should have taken from James C. Little's "without further ratification" concessions? The one where he took an unused early opener option and few worthless stock options, and place us ALL under what is now 8+ years of concessions. Is that the appointed leader demonstrating the TWU version of "backing each other up"? What flavor is that Kool-Aid you drink these days anyway?

 

[Buck]

And now outcome the "SLOGANS" from another TWU enthusiast.

I remember Jenni Proctor-Timms came out with a whole boat load of slogans and posted them all over the Tulsa base.

What do you think the result of that was? We still have nothing, she got an appointment to an International job.
Keep up the good and you too can be one of the elite, one of the appointed, one of the few.

Jenni, a proud defender of the US Consitution via military service, just didn't have enough to admit that the anti-freedom, anti-democratic, anti-American TWU was no good for the working stiffs of the USA. Instead she took her appointment and enjoys her's brother. She always claimed to love her brothers and sisters, but not enough to change that which is unjust and unfair to worker choice. Instead she sold out. I have known others that have done the same. But her military background left me scratching my head, when she could not see the truth and take a stand against tyranny in her own back yard and front porch. I always wanted to buy her a copy of "In Transit" by Joshua Freeman as a gift, just to see if the truth regarding the founding of the TWU along with her military service would conflict and change her views. But she got the appointment before I could get her the gift.

Wouldn't suprise if her new appointed assignement is to keep up with these boards and defend the undefendable.

Members "backing each other up", was that the lesson we should have taken from James C. Little's "without further ratification" concessions? The one where he took an unused early opener option and few worthless stock options, and place us ALL under what is now 8+ years of concessions. Is that the appointed leader demonstrating the TWU version of "backing each other up"? What flavor is that Kool-Aid you drink these days anyway?

Similar to others working OT when they shoud not?

 

[1AA]

Starting in 2013 the delivery schedule for AA from Boeing and Airbus will be an amazing, unheard of, astronomical amount of aircraft per month.

From 2013 to 2022 we will receive anywhere from 40 to 75 aircraft per year.
If the delivery schedule holds we will see a minimum of 3 and a maximum of 6 plus aircraft per month.
So for 9 years we will be seeing new metal flying in left and right plus the other aircraft on previous orders.
Someone has to fly and maintain them. I know they will replace the MD-80's but we are still at a plus. Expansion on the horizon for AA. Lots of maintenance for AA. Now we have to convince the TWU how to negotiate like a real union. We have all the numbers in our favor.

 

[eolesen]

Don't count your future paychecks until they're cashed... There's more than enough time to line up a MRO for the A320s, since AA has no tooling or expertise with it. And plenty of time to line up other lines as well...

Making the mistake of overestimating your negotiating position can be hazardous to your wealth.

 

[High Speed Steel]

Don't count your future paychecks until they're cashed... There's more than enough time to line up a MRO for the A320s, since AA has no tooling or expertise with it. And plenty of time to line up other lines as well...

Making the mistake of overestimating your negotiating position can be hazardous to your wealth.

Agreed.....

Moving forward without the element of preparation and caution could be a recipe for disaster!

 

[paul1]

They are going to recycle the aircraft faster than you can spin your head. When the heavy checks come do, they will drop the lease and pick up the new aircraft. bye overhaul. And for the line stations new planes will hold up long enough to check down the numbers there. remember ATA

 

[strikeforce]

Don't count your future paychecks until they're cashed... There's more than enough time to line up a MRO for the A320s, since AA has no tooling or expertise with it. And plenty of time to line up other lines as well...

Making the mistake of overestimating your negotiating position can be hazardous to your wealth.

We will see how prepared management is with finding an MRO to do the 757 heavy checks that are sitting idle. BTW, how much is that costing AA in potential revenue???????

Just for sh&ts and grins almighty experts......AA has had at least 8 years to outsource OH and they didn't, yet they continue preaching higher labor costs......so who's bamboozling whom here????? I don't believe the Cities of Tulsa and Dallas will just sit by and watch AA eliminate thousands of jobs without some input to those decisions.

Tulsa would have enormous problems replacing thousands of jobs. I just don't see it happening. This is definitely a negotiating ploy by the company through the INTL union to SCARE the membership.

 

[Duke787]

Starting in 2013 the delivery schedule for AA from Boeing and Airbus will be an amazing, unheard of, astronomical amount of aircraft per month.

From 2013 to 2022 we will receive anywhere from 40 to 75 aircraft per year.
If the delivery schedule holds we will see a minimum of 3 and a maximum of 6 plus aircraft per month.
So for 9 years we will be seeing new metal flying in left and right plus the other aircraft on previous orders.
Someone has to fly and maintain them. I know they will replace the MD-80's but we are still at a plus. Expansion on the horizon for AA. Lots of maintenance for AA. Now we have to convince the TWU how to negotiate like a real union. We have all the numbers in our favor.

As AA retires the S80 and 757, does AA do a C check on them before those retired a/c go to storage or the open market? And if they just park them wothout doing a c check, how does that effect mech #s ?

 

[Buck]

As AA retires the S80 and 757, does AA do a C check on them before those retired a/c go to storage or the open market? And if they just park them without doing a c check, how does that effect mech #s ?

If the aircraft is in a lease, most of the time the company has to return it in the condition they received it in. The AD's ECO's etc... can be negotiated. The mechanics numbers are most likely determined just as they are for accomplish a visit. If that visit is no longer necessary the those bodies are not needed, including the support staff.

 

[Buck]

How Can AA Buy Aircraft and Continue to Lose Money?
– Usually, buying new aircraft requires a significant, upfront cash payment when the plane is delivered. American’s new deal is based on operating leases, allowing us to lease the aircraft from the manufacturer, and we do not start paying on the lease until we receive the plane. Think of it like buying a house. You can purchase the house outright, which requires a lot of cash. You can get a mortgage that still requires a significant down payment, or you can lease it, typically with a small deposit. American chose to lease our new aircraft under favorable terms. This gives us the most financial flexibility with the least amount of upfront cash. Long-term, the new B737 and A320 families will help us reduce the cost of our operations by improving fuel efficiency, lowering maintenance costs, increasing dependability, and, we hope, customer satisfaction.