AAL Downgrades and 1Q20 Earnings

[Talos]

Gloating? Both Jim and I have pensions with AA, and I'd like to make sure it keeps coming without dealing with the PBGC. I've got dozens of friends who still work there.

No, I don't want AA to fail.

That said, the current management team has destroyed everything AA used to stand for, so the only thing that's the same is the name on the pension check.

The sad part is AA's unions recruited Parker in what was probably one of the most short-sighted moves ever. The previous team had issues, but they certainly understood finance and long term planning.

No, it's not gloating. I'm actually mourning what y'all did to what used to be my airline.

Have to agree that Parker and crew have done a dismal job handling the company. Bankruptcy is something all the airlines are looking at in October in a worst case scenario. Then the pensions are at risk of being terminated. A very ugly prospect. Have doubts this mgmt team has what it takes after putting us in this spot with their never lose money mentality. Hopefully by October things are better or the government has a new plan on how to deal with airlines.

 

[dfw gen]

Gloating? Both Jim and I have pensions with AA, and I'd like to make sure it keeps coming without dealing with the PBGC. I've got dozens of friends who still work there.

No, I don't want AA to fail.

That said, the current management team has destroyed everything AA used to stand for, so the only thing that's the same is the name on the pension check.

The sad part is AA's unions recruited Parker in what was probably one of the most short-sighted moves ever. The previous team had issues, but they certainly understood finance and long term planning.

No, it's not gloating. I'm actually mourning what y'all did to what used to be my airline.

EXACTLY!

 

[dfw gen]

Have to agree that Parker and crew have done a dismal job handling the company. Bankruptcy is something all the airlines are looking at in October in a worst case scenario. Then the pensions are at risk of being terminated. A very ugly prospect. Have doubts this mgmt team has what it takes after putting us in this spot with their never lose money mentality. Hopefully by October things are better or the government has a new plan on how to deal with airlines.

just now having doubts?

 

[Talos]

just now having doubts?

You know dfw gen, I actually couldn't write what I really think about mgmt and the union also. That kind of language is best left unsaid. Who would have believed we would have this Association that took many years to get us a deal and then almost right after ratification a disaster hits. Multiple people on this site mentioned long ago how this dragged out situation would bite us in the ass.

 

[Glenn Quagmire]

The Demand Dilemma

 

[Kev3188]

Good read. I don't have any answers, but I'm not sure what people expect carriers to do. As noted, capped LF's aren't sustainable for anyone.

 

[jimntx]

Good read. I don't have any answers, but I'm not sure what people expect carriers to do. As noted, capped LF's aren't sustainable for anyone.

The question that the article asked that most concerned me is "What do the flight attendants do if a passenger refuses to wear a mask or takes off their mask in-flight and refuses to put it back on?" There is an FAR that requires that a passenger must adhere to and obey any instruction from a working flight attendant--especially if safety is the underlying issue (and I think a case for passenger safety could be reasonable made in this case). However, in 15 years of working as a flight attendant, I never saw that FAR enforced a single time, and I saw numerous opportunities for invoking that FAR over the years (I could easily say at least 1 opportunity for every flight I worked in those 15 years. (Can you say, " Sir the cabin door has closed it is time to terminate your telephone call and turn off your computer."?) I never had a single First Class passenger respond to that request or even acknowledge that the request had been made.

If the passenger erupts into a series of letters to the CEO or others in management, the flight attendant will be written up as "not having handled the situation properly." Can almost guarantee that outcome based upon my years as a flight attendant at American. It was first-line supervisors only response to a bad letter written about a flight attendant....guaranteed question to f/a from supervisor, "What could you have done differently that would have gotten the passenger to comply and not be this angry?" (angry about the request to don the mask) I doubt this approach is any different at other airlines. Story time: I once responded to that question with this answer: "Well, I could have slapped him up the side of his head to get him to terminate his phone call (we were at the take-off position on the runway when his phone rang and he answered it), but I doubt it would have prevented his anger."

 

[Glenn Quagmire]

This article from James Fallows in The Atlantic is a must read. I also posted it over the news section.

Air Travel Is Going to Be Very Bad, for a Very Long Time
Flying used to be unpleasant. But scarcity, low demand, and public-health risks could make it unbearable.

 

[ALUS78]

Good read. I don't have any answers, but I'm not sure what people expect carriers to do. As noted, capped LF's aren't sustainable for anyone.

Odd, just read an article that said Carnival cruises had a 600% bookings increase. Remember the beginning of the pandemic hundreds on cruise ships were infected? Some ships weren't allowed to dock.

 

[eolesen]

https://nypost.com/2020/05/09/carnival-swamped-with-bookings-after-announcing-august-return/

Stimulus checks in action?...

Curious if that's Carnival Cruises the subsidiary, or Carnival Corporation the holding company that also owns Princess and Holland America, both of which were hit really hard with infections and blocked from docking.

Carnival Cruises are the Walmart of cruising, with shorter itineraries that attract a much younger demographic (working age adults with teen/college age kids) than the rest of their brands (well-off retirees with lots of time to kill). Pretty certain that only Disney attracts a younger average age group.

 

[V.O. Reason]

This article from James Fallows in The Atlantic is a must read. I also posted it over the news section.

Air Travel Is Going to Be Very Bad, for a Very Long Time
Flying used to be unpleasant. But scarcity, low demand, and public-health risks could make it unbearable.

Well first off the title says all I need to know.
Second this publication is a liberal news company and of course they will write an article that will harm corporate America and endanger thousands of jobs.
Screw this author

 

[ALUS78]

Well first off the title says all I need to know.
Second this publication is a liberal news company and of course they will write an article that will harm corporate America and endanger thousands of jobs.
Screw this author

So many opinions, truth is no one knows,but if country doesnt open soon ....

 

[CremaDiLimone]

nice, going back 4 1/2 years and reading nonsense from self-perceived experts. i must have missed it, did aa file for bk? no? why not? pan-am did in 1990.