AAL stock falling, worst sell off since Bankruptcy

[ChockJockey]

Yes, NO deal is better than a BAD deal.....This way they can;t take more from us.

 
So do you expect the Association to negotiate a JCBA for you that is as bad or worse than the current bankruptcy contract you're working under?

 

[MetalMover]

 
So do you expect the Association to negotiate a JCBA for you that is as bad or worse than the current bankruptcy contract you're working under?

Sure, they are saying they will throw money at us...But never have we received anything without giving something.

 

[luvthe9]

Bet you wish you had Horton back now.

 

[WorldTraveler]

But if DL was still a larger player in DFW, they would win the shootout hands down.

maybe, but probably not.

no one wins from excessive growth. Note that Wall Street was particularly concerned with WN's system capacity growth of 8% or more not just this year but a similar number going into 2016.

Their excuse that they are building out DAL only goes so far because their system capacity growth in ASMs is about twice what is need to build out DAL, which will reach capacity by this summer.

AA is being hurt because it said as would be expected that they would do what they had to do to protect share and their investment in DFW, their largest hub and home.

Wall Street has been tolerant of capacity growth from other carriers as long as they can show that they are increasing revenue - which even AS has been able to do with its rate of growth which has been higher than WN.


but when WN predicts unit revenue (RASM) to go down faster than the drop in CASM (WN has said costs would go down a couple percent while RASM while go down 2X that amount), Wall Street justifiably is concerned that low fuel prices have incentivized the industry to undo capacity discipline which is why the industry is doing as well as it has been. Unbridled capacity growth has hurt the industry many times before and let's hope for the sake of the industry and its employees that cooler, more rational heads prevail and respond to genuine concerns from Wall Street.

 

[chilokie1]

Hmmm, let's see......5 holidays at TIME and A HALF... 5 sick days a year..........10 IOD days........$.01 shift differential for afts and $.02 for mids........No double time........outsourcing of more and more work.......Frozen pension....reitree medical terminated......bottom of industry pay.......
You have the same deal, No?    
But hey we were in BK and it was the best the TWU could do under the circumstances......
 
What do YOU think you are going to get back in JCBA that will make the past concession go away?

Don't forget the waterboarding when you actually use one of your 5 sick days.

 

[Crash Pad DCA]

http://www.cnbc.com/id/102711641?__source=yahoo|finance|headline|headline|story&par=yahoo&doc=102711641
 
Last week, when Jim Cramer spoke with American Airlines' top exec on "Mad Money," he had no idea that the interview would send the entire airline group plummeting the next day. Whoops!
 
That was exactly what happened when Cramer spoke with American's CEO Doug Parker, who shared his concerns regarding the large amount of capacity being added into the industry by his competitors. Why was he worried? Because excess capacity means bloody competition in the airline industry.
 
"Some airlines are talking about 8 or 10 percent growth rates. They can't believe they have that kind of demand growth, so what they must believe is that at these economics they can fly more than they used to fly. Look, I don't think that's right," Parker said.

 

[WorldTraveler]

WN 's comments are what sent the industry down because WN said it intends to grow its capacity even above its own aggressive rates.


Parker's comments that analysts didn't like were that AA would be aggressive on price in order to check WN's capacity growth at DAL in order to protect AA's share at its DFW hub.

"bloody competition" is not good for profits in any industry.