AA to exceed DL financial margins by end of 2015?
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robbedagain
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- Oct 13, 2003
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Id rather have more pay in my paychecks every other flippin week than have a PS bec if the company doesnt make a profit then no PS check once a yr whereas Id have higher take home pay every other week SO GET OVER THAT FLIPPIN PS SH!T DL can and DL will do as it plzs to its employees anytime any day as they see fit
WorldTraveler
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there will be no list, Josh.
the only fantasy here is that I will produce a list of 10 for any carrier when I haven't done it here for anyone else.
but nearly every other airline employee group in the US has recognized that participating in profit sharing on top of pay raises makes more sense than tying one's salary solely to pay raises which cannot ever be as large when combined with pay raise and profit sharing.
WN employees, who may receive the smallest pay raises in the industry this year, could end up with larger compensation increases than AA employees because of the amount of profit sharing that WN will pay - and WN's profit sharing is not near as large per employee as DL's.
AA's unions will be shown to have made a major strategic mistake that will cost their members literally hundreds of millions of dollars in compensation increases compared to their peers at other airlines - union and non union - who will receive profit sharing and pay raises.
there will be more than enough data available in time to determine which side is right.
the only fantasy here is that I will produce a list of 10 for any carrier when I haven't done it here for anyone else.
and that is your choice, robbed.
but nearly every other airline employee group in the US has recognized that participating in profit sharing on top of pay raises makes more sense than tying one's salary solely to pay raises which cannot ever be as large when combined with pay raise and profit sharing.
WN employees, who may receive the smallest pay raises in the industry this year, could end up with larger compensation increases than AA employees because of the amount of profit sharing that WN will pay - and WN's profit sharing is not near as large per employee as DL's.
AA's unions will be shown to have made a major strategic mistake that will cost their members literally hundreds of millions of dollars in compensation increases compared to their peers at other airlines - union and non union - who will receive profit sharing and pay raises.
there will be more than enough data available in time to determine which side is right.
diamondcutter
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WT ! Nobody obviously cares what you think or forcast!!! Especially coming from someone who helped DL into BK then took money an ran!!!
WorldTraveler
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wow, just wow.
how long have you worked for AA or US?
and, again, why do you need to resort to character assassination instead of listen to divergent opinions?
is not possible for you to say, "I appreciate that you see the financial risk involved in X and Y but I do not think that will be the issue for AA that you think it is. I am willing to let future history be the verdict. If I am wrong and you are right, I will acknowledge it and I hope you will do the same."
how long have you worked for AA or US?
and, again, why do you need to resort to character assassination instead of listen to divergent opinions?
is not possible for you to say, "I appreciate that you see the financial risk involved in X and Y but I do not think that will be the issue for AA that you think it is. I am willing to let future history be the verdict. If I am wrong and you are right, I will acknowledge it and I hope you will do the same."
WorldTraveler
Corn Field
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this is an aviation chat forum, not a junior high school bathroom.
if you don't want to hear any dissenting opinions, this is probably not the right place for you to interact with other people.
and to note again, the title of the thread is not even accurate.
AA and DL have both given investor guidance for an operating margin of 10-12% for the 4th quarter.
if you don't want to hear any dissenting opinions, this is probably not the right place for you to interact with other people.
and to note again, the title of the thread is not even accurate.
AA and DL have both given investor guidance for an operating margin of 10-12% for the 4th quarter.
WorldTraveler said:
Wow that's a rich statement - ever read your grade school bathroom posts
Let me translate what WT is trying to say:
DL has to generate more revenue than AA because it's woefully inefficient and is struggling to improve operating margin - since being down 47% in operating margin - they are increasing unprofitable flying at SEA and after a build up has retracted unprofitable flying in SEA to destinations like HND
Hope that helps everyone translate the blabber
WorldTraveler
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I pity you. I really do.
DL posted a higher gross margin than AA and became the US' largest airline in the most recent quarter.
DL has a higher yield on its system than AA does.
and can you provide us with proof that DL's SEA operation is unprofitable? you can't because there is no public information.
you would rather lie than admit that DL might really be doing something right in restructuring its Pacific operation.
BTW< did you listen to AA's earnings call to hear what they said about their industry worst decline in Latin America RASM?
DL posted a higher gross margin than AA and became the US' largest airline in the most recent quarter.
DL has a higher yield on its system than AA does.
and can you provide us with proof that DL's SEA operation is unprofitable? you can't because there is no public information.
you would rather lie than admit that DL might really be doing something right in restructuring its Pacific operation.
BTW< did you listen to AA's earnings call to hear what they said about their industry worst decline in Latin America RASM?
so let me see - your struggling again
DL increased capacity by 25% however could only muster up a 6% growth in revenue - therefore is losing money - can't through that kind of capacity change and only get a 6% lift in revenue - hence why all the analysts were focused on SEA and mgmt would not answer the questions
We all pity you
Bless your heart
DL increased capacity by 25% however could only muster up a 6% growth in revenue - therefore is losing money - can't through that kind of capacity change and only get a 6% lift in revenue - hence why all the analysts were focused on SEA and mgmt would not answer the questions
We all pity you
Bless your heart
WorldTraveler
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once again, you can't read the facts.
DL increased RASM by 6%... that is REVENUE PER AVAILABLE SEAT MILE>
they got more revenue for every seat mile they flew from SEA INCLUDING THE 25% new capacity.
AS saw its RASM on its system DECLINE and they specifically noted that their SEA performance was similar to their system.
so you really have no evidence to make a statement that DL is losing money in SEA>
you are misquoting and misinterpreting actual facts to try to make your point.
DL increased RASM by 6%... that is REVENUE PER AVAILABLE SEAT MILE>
they got more revenue for every seat mile they flew from SEA INCLUDING THE 25% new capacity.
AS saw its RASM on its system DECLINE and they specifically noted that their SEA performance was similar to their system.
so you really have no evidence to make a statement that DL is losing money in SEA>
you are misquoting and misinterpreting actual facts to try to make your point.
Huh? Read it again. The thread title is a paraphrase of AA's management asserting that AA's margins will exceed Delta's margins by the end of 2015.WorldTraveler said:
This year's 4th quarter margins are irrelevant to the thread title and the topic of this thread.
WorldTraveler
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2015 is a long ways off. no company provides any realistic guidance beyond 2014. By the end of 2015, AA will have to deal with $700M in currency locked up in Venezuela and an underperforming Latin region.
has Azul started their Campinas, Brazil to MFL and JFK flights yet? when does AA start their own service in those markets on top of Azul?
the only real investor guidance that has been provided is for the 4th quarter of 2014.
further, DL said it is expecting to have 20% gross operating margins. AA's statements might not be industry -leading after all.
and if AA reaches that goal, that is great.
but they will have to cut a lot of underperforming routes out of their system and cut costs - including people - that AA has but DL and UA do not.
AA's RASM has underperformed the industry and DL for a number of quarters and underperformed UA this quarter.
AA's mainline CASM is now higher than DL's although AA has a CASM advantage to UA at this time even though UA says it is working to get billions of dollars of costs out of their system.
there is a big difference between making a statement that AA will generate certain margins and actually achieving them.
has Azul started their Campinas, Brazil to MFL and JFK flights yet? when does AA start their own service in those markets on top of Azul?
the only real investor guidance that has been provided is for the 4th quarter of 2014.
further, DL said it is expecting to have 20% gross operating margins. AA's statements might not be industry -leading after all.
and if AA reaches that goal, that is great.
but they will have to cut a lot of underperforming routes out of their system and cut costs - including people - that AA has but DL and UA do not.
AA's RASM has underperformed the industry and DL for a number of quarters and underperformed UA this quarter.
AA's mainline CASM is now higher than DL's although AA has a CASM advantage to UA at this time even though UA says it is working to get billions of dollars of costs out of their system.
there is a big difference between making a statement that AA will generate certain margins and actually achieving them.
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