What does Mr.ATD Don V. have to say about those numbers as it relates to giving up more concessions in negotiations?
I presented a list of questions from the 10K over a year ago and I never got any answers. In all fairness I got distracted and did not pursue it so maybe he did as well.
I just noticed the disparity recently as far as total wages not reflecting the concessions we gave and the headcount reductions. I have to wonder why our "economist" never picked up on it.
If everyone in the company gave up roughly 25% of their Compensation, as we did with the pay and all the other concessions, that alone should have reduced total wages from $8.392 billion to $6.294Billion by 2004, then if you eliminate a third of the remaing workforce their costs should have been around $4.217 billion assuming the headcount cuts were pretty even across the board, assume we all got back the same and add in the 7% we got back ($295 million) it comes out to $4.512 billion by 2009, but it wasnt, it was $2.3 billion over that. Obviously some in the company are doing much, much better than they were in 2003, $2.3 billion worth better. Some could be attributed to OT, but not much. Can you say 'Rise program"? How about executive bonuses?
So lets say the company is likely to tip the scales this year at around $22billion, which is around $4 billion more than they did in 2002, with the reduced headcount and all the concessions, assuming everyone gave the same, their labor costs should be around $4.5 billion, or $3.9 billion less than it was in 2002, so between the rise in revenue and the cuts in labor the company should have at least $8 billion extra to play with. Keep in mind that eliminating 200 airplanes saves a ton of money as well even though for book keeping, tax and selling concessionary contract purposes, they get to show that as a loss. They eliminated the entire A-300 fleet, and all the parts as well. I have no idea how to figure that number out but you have to figure that its a sizable figure in itself, in the hundreds of millions if not billions. So figure at the very least $8 billion.
Sure fuel may have taken a bite out of that, $3.1 billion, that still leaves them with around $5 billion to hide.
Where is that $5billion going? We know over $2 billion is going to wages, just
not our wages , where is the other $3 billion going?
Clearly not everyone has taken a hit.
Just $300 million of that would make us very happy, and probably save the company that amount through increased performance.