of course the pilots will fly more for more money... but the reality is that AA needs labor contracts that deliver more productivity - in other words more flying for proportionately less money....
What arrogance. The same things you say? Why is it just what you say? It's all about what one chooses to read, and I'd rather read articles produced by reputable published analysts (who still are full of it) instead of big-headed douche-bags like yourself that continuously pat themselves on the back.
I vote to keep you over on the Deltoid board where you belong, where you can sing your praise only for The Deltoid Mothership to your hearts content.
The truth that goes well beyond the press release..... The Whole truth always comes out.... What an a$$..
You know, I’ve been listening to this “you’re not really an expert” because you won’t reveal your credentials” line for years now… but it hasn’t changed the fact that I have demonstrated for years that I know what drives the airline industry. The truth is the truth regardless of how inconvenient it is to hear or who says it.
I don’t pretend that I am the only one that "get it" – there clearly are people that have a great deal of understanding as well… but we all see it from our own perspectives and with our own biases – so ultimately it comes down to who can strip away their biases enough to get to the truth of the industry.
The journalists and industry experts have also weighed in on many occasions over the past 8 years or so that I have participated in airline discussion forums – but I take justifiable pride that I have identified a number of key issues and trends long before other supposed experts weighed in, only to have them write on the same issues later on…..
Most recently, and with respect to AA, I have been writing for over a year as each quarter’s financial results come out that
AA has a revenue problem that is far bigger than the labor issue that so many believe to be key– because AMR mgmt wants them to believe that is the root of AA’s problems. Sure enough there have been a number of “expert” articles about AA’s revenue issue using statistics that some would just as soon not look at – even if they are the benchmark that everyone who understands the business uses as the basis for performance
AA mgmt has touted for years that they didn’t need to merge – and yet the evidence is growing – and I have said it for years – that size DOES matter – and we are now seeing that AA can’t and won’t cut capacity to the degree that others are despite rising costs and soft demand – and AA’s performance reflects it. The “experts” are now recognizing that AA might be in a strategic corner now and really can’t compete with the likes of DL and UA and their respective alliances which are larger than AA – and both continue to chip away at the historic corporate revenue which has been a key part of AA’s business model.
While there were a whole lot more people here who could see past the excitement of new airplane orders - 773ERs and now the narrowbody orders – people like me quickly pointed out that new airplanes don’t solve the strategic issues that AA has and until they are solved, AA’s future is even more precarious than before because now they go from huge to enormous levels of debt.
No, arrogance is having had to listen to AA fans tout AA’s moral superiority in not filing for BK while they have simultaneously and repeatedly mocked other airlines who clearly did understand what needed to be done to turn their companies around and did it anyway –and are now positioned to survive if not thrive in the rough and tumble environment that is today’s airline industry. Meanwhile, AA has been on a long and steady downward decline....
You see these conversations are between people – using airlines as the point of reference for the discussion. My beef is not with American Airlines and I surely wish them no harm – I have repeatedly said that my brother works for them.
But some of those people who didn’t hesitate to trash every other airline while telling us who “righteous” they are might want to find out what condiments you use with humble pie… because the airline industry is at an inflection point and there will be losers. Those who were so certain of their own positions and the failure of others might be in for a rude awakening.
And while there have clearly been winners and losers in the industry with all kinds of fans, the AA company fan club has been some of the most arrogant on the web. Maybe this period of difficulty that AA is passing through will bring those folks back to the earth where the rest of us live. And for those people – interestingly here mostly labor supporters – who can see the company for what it is – I can only wish them the very best in the very uncertain ride that is ahead of them.
Other companies have gone through difficulties and their fans and employees have survived, albeit with scars - and most see the world far more circumspectly now.
Ain't it the truth. Evidently, the BOD thinks their golden boy can cajole the pilots into flying without a contract or type agreement. I'm sure the pilots would be happy to provide AA with such an agreement if they felt the company was trustworthy but alas - trust is in rather short supply these days and the price of said trust will be at a great premium for the rank and file all union groups.
Byhaps if the different union admin groups (the peers of the twu's "international") started spreading bankruptcy threats/rumors ...
careful, Frank. The union could get in serious hot water by spreading rumors that could materially affect the company... don't go there - it's not worth it. Besides Wall Street analysts will make all the comments necessary and they can do it based on actual data.....
but it should be noted that WN just reported their financial results and their domestic RASM growth for the quarter was one of the worst in the industry - AA and every other network carrier did far better on their domestic systems.
WN says they will be cutting capacity and for the first time in decades may not be growing for a while... Arpey was right in that some of AA's competitors would have their own financial performance issues that would alleviate some of the pressure on AA. that is true about some airlines....and slowing WN down is certainly good news for AA.
