AA to begin DFW-HKG and DFW-PVG in 2014; cancels JFK-HND

[WorldTraveler]

and in the time it took you to write your posts, AA flushed another couple thousand dollars down the drain trying to build a route system in the Pacific .... funded on the backs of their employees.

 

[eolesen]

They certainly didn't take pay cuts in bankruptcy. And it seems to be creating jobs in the process, so how exactly are the employees funding it? Payroll deduction?

This just one of your latest ploys, WT... use union catch phrases because you think others will suddenly see you as a man of the people.

Newsflash.... it ain't workin'....

 

[WorldTraveler]

you are so hopelessly devoted to standing up for AA mgmt. that you couldn't see the truth if it came up and hit you on the arse.

AMR's labor costs for the most recent quarter were down 13% or over $200M, including a reduction of 5000 positions. Not only are there fewer employees but they are making less. If you can't see that, then you truly are to be pitied.

AA's losses on the Pacific amount to about $3000 per employee. Tell me how many employees at AA care about seeing AA grow in the Pacific to lose that much money in order for the company to grow in China?

At the same time, AA is dumping several hundred million dollars per year trying to build a presence in the Pacific.

UA just said on their earnings transcript that the flood of capacity into China is pushing yields down and they expect it to continue.

Sounds like the absolute worse time for AA to be launching two of the longest US-China routes.

But not to worry since the employees are paying for it with their pay cuts.

The employees of AA have ever reason to hate their management.

 

[Rogallo]

They certainly didn't take pay cuts in bankruptcy. And it seems to be creating jobs in the process, so how exactly are the employees funding it? Payroll deduction?

No, not deduction, reduction!

 

[silverbird007]

WT WTWWwWT I heard the toilet paper in Tempe has widgets on it! DP is coming to get you!! LOL

 

[eolesen]

So who took an hourly pay cut? Please enlighten us.

 

[WorldTraveler]

you are truly clueless in your zeal to defend AA mgmt. DO you even know how to read a financial statement?

A 13% reduction in employee costs is far in excess of a reduction in headcount.
AA is spending less per employee and has fewer employees. It doesn't really matter if they cut anyone's base pay or not; AA is cutting the total spend per employee.

Only you would try to argue that AA mgmt hasn't cut anyone's pay. Every one else knows better.

ps. have you ever of the MIT airline data project?

 

[jimntx]

So who took an hourly pay cut? Please enlighten us.

Well, let's see. The flight attendants lost incentive pay for hours flown over 70. That was between $5 and $10 per hour depending on step on the pay scale. The International flight attendants lost the International differential which was a substantial amount of money per hour.

For 80 hours, the "wildly generous 3.5% raise" resulted in a humongous $90 raise for me--before deductions. Of course, my insurance premium went from $38/mo to $112/mo, and my annual deductible jumped from $150/yr to $750/yr.

If you call in sick for a 5 hour trip, you don't get the sick pay for 5 hours, you get about 3.5 hours. Trips removed because they fell within your vacation are also paid at the 3.5 hour rate per day rather than the value of the trip.

And so on, and so forth. Yeah, I would call it a pay cut.

 

[WorldTraveler]

and all of that explains exactly why AA's own published statistics show that they spend less per employee than they did pre-BK whether E wants to admit it or not.

But let's remember that for years he has told the AA employees of this board that they are the problem.

How, pray tell, did AA employees have anything to do with AA mgmt's decision to lose $200M per year to start one new flight after another to Asia so that AA could be something significant in a region where it has repeatedly failed?

They haven't even been able to hold onto revenue in NYC, including to any Japanese airport from their former home, yet we are supposed to believe they can add new flights to PVG and HKG and succeed?

 

[Jacobin777]

and all of that explains exactly why AA's own published statistics show that they spend less per employee than they did pre-BK whether E wants to admit it or not.

But let's remember that for years he has told the AA employees of this board that they are the problem.

How, pray tell, did AA employees have anything to do with AA mgmt's decision to lose $200M per year to start one new flight after another to Asia so that AA could be something significant in a region where it has repeatedly failed?

They haven't even been able to hold onto revenue in NYC, including to any Japanese airport from their former home, yet we are supposed to believe they can add new flights to PVG and HKG and succeed?

"Any"?

 

[WorldTraveler]

plz let ne know which flights AA will operate on its own metal between NYC and Japan.

 

[wcs]

So who took an hourly pay cut? Please enlighten us.

I'm pretty sure that there were a bunch of guys at AFW that had hourly pay go to $0

 

[jimntx]

I'm pretty sure that there were a bunch of guys at AFW that had hourly pay go to $0

Ah, but in the minds of the company cheerleaders that is not a pay cut. In consultant speak (I'm fluent in the language), when the word synergy won't fit, you say that the AFW event was rationalizing the employee overhead costs.

 

[Kev3188]

...Or "harmonizing costs across all touch points."

...Or "transitioning" employees.

 

[WorldTraveler]

.... or "creating long-term value for the enterprise" by using employee funded paycuts to pursue pipe dreams and highly risky ventures that would never be pursued if mgmt.'s own personal money was on the line.