AMR on ICE, shaken not stirred

[The Goose]

Some thoughts. New China routes need aircraft. Should would be nice not to have to finance. MD80's getting long in the tooth. If you paid cash, you could get in the same mode as WN and not have financing costs for aircraft thus being more competative. Increase employee wages , thus making happier employess and better customer service, thus making happier customers which makes happier stockholders which would prevent the selling of Eagle 😱

There you go again - what you propose stinks of common sense.

Repeat after me - "I work for an airline, I work for an airline ..."

 

[FWAAA]

Some thoughts. New China routes need aircraft. Should would be nice not to have to finance. MD80's getting long in the tooth. If you paid cash, you could get in the same mode as WN and not have financing costs for aircraft thus being more competative. Increase employee wages , thus making happier employess and better customer service, thus making happier customers which makes happier stockholders which would prevent the selling of Eagle 😱

I think AA should explore whether the airplane manufacturers would accept AAdvantage miles instead of dollars for some new efficient airplanes. 😛

Fact is, Citibank alone provides AA enough revenue each year to make the payments on a bunch of new airplanes. Why would AA ever want to let go of that revenue stream?

For some collectors, miles are like crack. Crack dealers like keeping their profits to themselves - same with AA and AAdvantage miles.

 

[The Goose]

What are you smoking?

I agree - whatever it is, it's really good.

Trouble is, he doesn't seem to be willing to share.

 

[The Goose]

I think AA should explore whether the airplane manufacturers would accept AAdvantage miles instead of dollars for some new efficient airplanes. 😛

Fact is, Citibank alone provides AA enough revenue each year to make the payments on a bunch of new airplanes. Why would AA ever want to let go of that revenue stream?

For some collectors, miles are like crack. Crack dealers like keeping their profits to themselves - same with AA and AAdvantage miles.

Maybe they could buy a few new ones paying the same way the execs got their bonuses.

 

[mrman]

As long as you have the pipe out, you could trade AAdvantage for Iceland Air, make Reykjavik the new AA international European super hub, bring the blond haired blue eyed ubber Icelandic flight attendents in to replace the long in the tooth International Matrons who would be put on the DFW-Midland run. I think a new feet rubbing service with mannies and peddies would be nice to increase customer satisfaction and shareholder value and thus save Eagle.

Wouldn't you love for this gay 2MM Explat CPA to take over the airline!
Bring back the olive!

 

[LGA Fleet Service]

Increase employee wages , thus making happier employess and better customer service, thus making happier customers which makes happier stockholders

You've got it wrong, stockholders aren't concerned with happier employees or better customer service.The tone of the letter screams "Show me the money!" Not "Make the employees and customers happy!".

To bottom line worshipers like the FL group, we are liabilities and are to be treated as such.

They don't care about paycuts,inflight service or anything else.They know they bought AMR at $30, now it's below $25 and they aren't happy about it.

 

[mrman]

You've got it wrong, stockholders aren't concerned with happier employees or better customer service.The tone of the letter screams "Show me the money!" Not "Make the employees and customers happy!".

To bottom line worshipers like the FL group, we are liabilities and are to be treated as such.

They don't care about paycuts,inflight service or anything else.They know they bought AMR at $30, now it's below $25 and they aren't happy about it.

First of all this was in jest. Second I think one of WN core values is happy employees make happy customers which make happy stockholders. I they have been making money for 35 years.

There is no discussions by FL dealing with employees. It discussed cutting out business units.

The response was to the question why AA would sell a unit that makes money.

Seems we need to turn that frown upside down

 

[MCDP]

You've got it wrong, stockholders aren't concerned with happier employees or better customer service.The tone of the letter screams "Show me the money!" Not "Make the employees and customers happy!".

To bottom line worshipers like the FL group, we are liabilities and are to be treated as such.

They don't care about paycuts,inflight service or anything else.They know they bought AMR at $30, now it's below $25 and they aren't happy about it.

You are correct. Just another reason not to work for an airline. Get out if you can.

 

[jimntx]

Second I think one of WN core values is happy employees make happy customers which make happy stockholders. I they have been making money for 35 years.

And, when that gets pointed out to the average airline executive, they respond with "No, No. That can't be it. They are making money because..." (pick all that apply)

A. Their fuel hedges.
B. The cheap gate rentals at (Love Field, Midway, etc) as opposed to DFW, ORD, etc.
C. Average consumer not interested in value, just a cheap ticket.
D. Their f/as clean the plane.
E. They don't serve meals.
F. They don't have International service.
G. All of the above.

 

[FurloughedByAPFA]

The ghost of TWA...........


DISMANTLE // FOR // PROFIT

 

[FrugalFlyerv2.0]

I agree with jimntx; one loser airline (Air Canada) spun off/sold its frequent flyer program in a desperate attempt to raise cash and all of a sudden the financial oracles in Iceland think it's what AA should do.

Correct - AC FF program, Aeroplan, was sold sometime during/or shortly after AC's re-organization (Canada's Chapter 11 equivalent - in/around2003, eh).

Also, the AC FF program which was kind of average to begin with, now that it is spun off it is even worse. Worse for the AC FF flyer. At least that is the sense I get from the complaints I hear about it from my mommy.

On the other hand, Onex Corp. (I believe it was Onex Corp. who bought Aeroplan, the same Onex who tried to use AA and CP buy AC and merge it with CP - remember) is whoring out Aeroplan like never ever seen before (more banks / credit cards, all kinds of retailers, etc. etc. etc.).

 

[FrugalFlyerv2.0]

AA takes in several hundred million dollars a year from its partners like Citibank, the hotel chains and car rental outfits, together with hundreds of smaller businesses who buy miles from AA to award to customers. Since fulfilling flight awards can be done on the cheap, the AAdvantage program is hugely profitable. Maybe that's how the financial wizards think it's worth a few billion dollars.

Yep, Citibank AA MasterCard has me hooked. ~80 000 AAdvantage miles earned this year with only 10 segments on AA/1-world carriers. Now the amount of AAdvantage miles I "earn" for every $ spent at FTD or dining out is a different story ... ... ...

 

[eolesen]

The customer list is definitely the draw here -- somewhere between 10 to 15% of the U.S. households are on it, and you can very easily figure out disposable income levels based on the frequency of one's travel, their purchases via Citibank, etc...

Want to know how many people from Michigan taking two or more vacations a year happen to visit in Hawaii each March? AAdv's database can probably tell you that pretty easily...

 

[jimntx]

From Jetnews:

The company issued the following response to the FL Group statement. "We have received the letter and value input from our shareholders. Our Board and senior management regularly give careful consideration to the best use of our strategic assets and the impact that those decisions might have in the long run for our shareholders. We generally don't comment publicly on the actions of or our communications with shareholders or what we may or may not do in the future."

Translated into the English, I think they are telling FL group to go jump in the lake.

 

[Barfbag]

A Bear Stearns Analyst estimates UAL's frequent-flier program could be worth $ 7.4 Billion, as a stand alone company. - WSJ 9/28

What do you figure AA's is worth?