Analyst expects AMR to lose over $1 billion in 2011
- Thread starter B737NG
- Start date
TIME FOR CHANGE
Veteran
They will continue to loose money until they get more concessions. Same old story same old song and dance
who will bear the brunt of the blame ?
Let me guess uhmmm...
The greedy union folk are the root of all evil
who will bear the brunt of the blame ?
Let me guess uhmmm...
The greedy union folk are the root of all evil
Hopeful
Veteran
- Dec 21, 2002
- 5,998
- 347
They will continue to loose money until they get more concessions. Same old story same old song and dance
who will bear the brunt of the blame ?
Let me guess uhmmm...
The greedy union folk are the root of all evil
Typical AA pattern of negotiations. They stall and stall until an economic event occurs, they will begin to preach the doom and gloom hoping the unions will succumb to more threats. When you stall for over three years, these events are bound to pop up.
MCI transplant
Veteran
- Jun 4, 2003
- 5,311
- 584
- Banned
- #4
<_< ------ Does this mean Management will have to give back their Bonuses??? 
MCI transplant
Veteran
- Jun 4, 2003
- 5,311
- 584
- Banned
- #6
<_< ------- Dreamer!!!!------ But frankly I hope your right!
Hopeful
Veteran
- Dec 21, 2002
- 5,998
- 347
<_< ------ Does this mean Management will have to give back their Bonuses???
Gee, I hope not! We don't want to lose our "key" talent!
WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,662
- Banned
- #8
"Jet fuel continues to pressure AMR's already razor thin margins, significantly impacting 2011 EPS outlook," Becker wrote. "We acknowledge the pricing environment is improving, but not enough to offset industry high labor costs and the rising cost of jet fuel."
The bleeding stops; it always does.
The bleeding stops; it always does.
Hopeful
Veteran
- Dec 21, 2002
- 5,998
- 347
WT? Could I voluntary give another $20,000 a year in concessions to help the company?
MCI transplant
Veteran
- Jun 4, 2003
- 5,311
- 584
- Banned
- #10
<_< ------- WT, is Management included in that "high Labor cost" comment? :huh:
Interested
Advanced
- Jul 3, 2010
- 193
- 9
<_< ------ Does this mean Management will have to give back their Bonuses???
Such a jokester
We have nothing left to bleed.
D
Deleted member 14439
Guest
and I expect to lose in no particular order...
1. 7sick days
2. 5 vacation days
3. 5 holidays
4. shift differential
5. double time
6. approximately 15k in base pay
You get the idea. Please feel free to add to this list......................................
1. 7sick days
2. 5 vacation days
3. 5 holidays
4. shift differential
5. double time
6. approximately 15k in base pay
You get the idea. Please feel free to add to this list......................................
WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,662
- Banned
- #13
I am not making a judgment as to where cuts need to be made - but looking at what has happened historically w/ other financially troubled airlines, it will come from all sources - but labor has almost always contributed one of the highest percentages in an involuntary restructuring. Continued notions that AA labor will recover what it lost 8 years ago are fanciful at best in light of the current economic environment AND the strength of DL's competitors relative to AA.
AA can prolong the process longer but without any realistic means of resolving the standoff with labor, you have to ask if it is really worth it to AA to continue the process of failing to be in a position to effectively compete.
Unlike previous downturns where AA was in a similar position financially and competitively relative to other network carriers, the situation is much different now.
DL and UA/CO both are in far better position economically to survive this downturn; both have far better cash flow projections for their obligations this year than AMR and both are continuing to take market share from AA in key markets - and there are low fare carriers that continue to feed in AA's top markets.
So, yes, the bleeding WILL stop. Doesn't matter whose blood it is. The blood of AA's employees is mixed with that of the company. You can and should insist that there be equal contributions from management and other financial sources but I can assure you they will extract blood from labor before you succeed at extracting blood from mgmt.
AA can prolong the process longer but without any realistic means of resolving the standoff with labor, you have to ask if it is really worth it to AA to continue the process of failing to be in a position to effectively compete.
Unlike previous downturns where AA was in a similar position financially and competitively relative to other network carriers, the situation is much different now.
DL and UA/CO both are in far better position economically to survive this downturn; both have far better cash flow projections for their obligations this year than AMR and both are continuing to take market share from AA in key markets - and there are low fare carriers that continue to feed in AA's top markets.
So, yes, the bleeding WILL stop. Doesn't matter whose blood it is. The blood of AA's employees is mixed with that of the company. You can and should insist that there be equal contributions from management and other financial sources but I can assure you they will extract blood from labor before you succeed at extracting blood from mgmt.
Hopeful
Veteran
- Dec 21, 2002
- 5,998
- 347
<_< ------ Does this mean Management will have to give back their Bonuses???
I don't think so, since AA hasn't paid any management bonuses since 2001.
Except a couple years since then, the variable pay (PUP/PSP) portion of the executives' total compensation has been substantially lower than the potential total. Objective observers would say this represents the equivalent of concessions for the executives, but I realize that objectivity is in short supply and when encountered, is relegated to third class status around here.
