AA to exceed DL financial margins by end of 2015?

[AdAstraPerAspera]

it is abundantly clear that you are trying to sell a TA that many AA FAs know is not industry leading at all.

 
Whatever, dude. The only AA FAs you know are the ones on here, and we are all voting yes. Try again.

 

[WorldTraveler]

And what formula, praytell, wiis AA management and the APFA negotiators supposed to use to calculate something that hasn't yet occurred? Not all of us are blessed with a crystal ball as uncanny as yours.

I said that quite some time ago.

AA abd the APFA couldn't have negotiated on facts that did not exist at the time.

Since that time and before AA FAs will finish voting, it has become abundantly clear that DL FA profit sharing will exceed what was modeled.

DL has released financial forecasts which will push its profit sharing to $1 billion for year and about 1/4 of that goes to FAs.

 

[diamondcutter]

yes, I have read enough to know that AA is not compensating AA FAs for a value equal to the profit sharing that DL FAs will make.it is no surprise that the union ilks on here are all trying to discredit the potential for the industry to be profitable for years to come because it is only if the industry falls into a flat out tailspin that profit sharing plus DL FA rates will exceed what AA is offering.and if the industry falls into a flat out tailspin, you can bet your bottom dollar that AA will be cutting its employee costs as well.you, like a whole host of AA people on the interwebs can't stand to hear the truth.it is abundantly clear that you are trying to sell a TA that many AA FAs know is not industry leading at all.Parker wants you to sign it as quickly as possible before those people have a chance to speak up and find out what they are actually missing- in this case about $200 million in annual compensation that DL FAs will receive but AA FAs will not because AA convinced the APFA that DL cannot deliver profits on a long term basis.the AA/APFA agreement significantly undervalues DL's FA profit sharing and they sure don't want anyone to find that out.

Wrong again , falls into a tailspin, bet your bottom dollar cutting employee cost , not with a signed contract!!!! One can only imagine what you preach on Sunday's .... Oh the those poor parishioners, God help them!!!!!

 

[diamondcutter]

TELLS US ALL WHY YOU WERE KICKED OFF AIRLINERS.NET!!

 

[WorldTraveler]

tell us why you find the truth so hard to hAAndle?

AA cut the pay of its employees twice in ten years even with signed contracts. fAAct

 

[jcw]

Little unhinged are we

 

[diamondcutter]

Because we can't handle the TRUTH , you've got to be kidding . Just because you say it is is truth? You clearly have some deep rooted issues , and need help !! Take a good look at the thousands and thousands of mind numbing post and DL rants....you see nothing wrong with this . You are not mentally fit be a preacher!!

 

[WorldTraveler]

the truth is that you and a cast around the internet have tried to maintain an image of AA which is not in keeping with reality.

AA has a solid franchise; I have never argued against that.

During the 2000s, AA lost significant competitive ground because of high costs that allowed other carriers - legacy and LCC - to move into significant AA markets.

I spoke frequently about that, including on a.net, and expressed my concerns that AA would lose market share because of its inability to compete.

that is exactly what has happened. STL, JFK, and others are all indications that AA could not compete and other carriers moved in and took share.

AA reversed that share loss in some markets because of the merger which gave AA significantly more domestic presence.

but AA still is #3 out of 3 in both Europe and Asia, regions that are larger than Latin America. AA has a larger share of Latin America than other carriers have in other global regions but I have long said that increased access by new competitors would provide AA with financial pressures which too many here have been willing to discount.

when we now find out the magnitude of the currency crises which are taking place in Latin America - which include a stronger dollar against even stable currencies like the Brazilian Real - then the impact of AA's financial risk in int'l markets is far greater than what any carrier faces.

Add in the growing competitive environment in DAL/DFW plus DCA, both major operations for new AA, and it is very hard to deny that AA faces very unique revenue risks that no other faces.

AA is offsetting cost growth solely by moving very slowly in merging the two companies, which also slows the time it will take to reap revenue synergies - partly explaining why AA's domestic RASM performance was the weakest of the big 4.

so, I am just fine.

I do have news which a lot of people at AA don't want to hear.

You and investors are free to believe it or not but they are very real concerns.

 

[jcw]

All we can say is wow - lots of issues coming out

I thin unhinged is the term of the day

 

[robbedagain]

WT the preacher... geeze  if he is this bad with DL  I can only imagine what he preaches..  good grief

 

[WorldTraveler]

what you really are saying is that you don't like me being so honest about AA.

I am deadly accurate with what I have said about the industry.

You can go back and look at those posts on a.net that some people so gleefully say I got banned for and see that I had great expectations about what DL would become. I don't think there is anything that I said that hasn't taken place - and I probably underestimated where DL would be compared to where they actually are now.


In time, I think AA will grow to be a whole lot stronger than it is now. I had no problems acknowledging US' strengths - in the face of opposition from some AA supporters who wouldn't and still won't acknowledge US' strengths.

so far, though, I don't see AA fundamentally changing some of the same problems that plagued it before BK which included too much "vanity flying" (not profitable), lack of cost competitiveness (AA has lost its lowest cost competitor status within one year of exiting BK), and in having too much debt compared to its competitors.

Parker might address some of those things but the bar in the airline industry is a whole lot higher than it was in the past.

AA has to up its game as well.

As FWAAA notes, DL's pre-tax margin was higher than AA's.

 

[silverbird007]

I don't know why someone who is supposedly not a flight attendant is so worked up about a contact that does not affect them in any way? If anything you would think he would be worried about the DL fa contract. Oh yea they don't have a contract.

 

[robbedagain]

if youre as accurate as you alleged to be  then how come dl paid you to leave them

 

[Overspeed]

Highest and lowest profit margin carriers for the twelve months ending June 30, 2014.
 
Spirit, Allegiant, and Alaska are the higher ranking US carriers than all the margins based on profit margin.
 
http://aviationblog.dallasnews.com/2014/09/sevem-u-s-carriers-among-the-worlds-most-profitable-airlines.html/

 

[WorldTraveler]

from the article
Delta Air Lines ranks 10th, Southwest Airlines is 13th and American Airlines Group is 14th.

using the same gross operating profit margin, DL surpassed AA in the 3rd quarter of 2014 as well.

margins in the ULCC sector of the US slipped relative to legacies in 3Q2014