APA President blasts management.

[Worldport]

You were correct - AA did mortgage everything to raise those billions in cash, but the point is that there was a zero percent probability that AA was going out of business. AA filed for Ch 11 so it could score a win over the stubborn pilots and FAs, who refused to agree to more efficient contracts unless they got "restore and more" type compensation. AA certainly didn't file for Ch 11 because it had to or because it had run out of options (the reasons US, UA, NW and DL all filed for bankruptcy protection).

There was no guarantee that AA would become insanely profitable, but that's not a satisfactory excuse for trading away profit sharing for small wage increases.

By 12/31/2012, before the formal announcement of the merger, AA had almost turned the corner to profitability in its first year in bankruptcy. The 2012 net loss was just $130 million, excluding special items and reorganization expenses, a $900 million improvement over 2011's results. On a stand-alone basis in 2013, AA earned $1.0 billion in profits, excluding special items and reorg expenses, about the same as United earned in 2013.

 Do you think the DL + 3% would be offered without the merger ?

 

[Overspeed]

Worldport,
No the DL+3 would not be offered but we would be getting the 15% pretax PS which is more. Merging was not the goal of the unions at AA, the short sighted one of getting rid of the AMR BOD was. Now we are paying for it. Early openers would start in the TWU CBA in 2016 which is now so we gained nothing by buddying up with Ichan Jr (Parker).

 

[700UW]

You wouldnt be making the big profits, without the merger, a lot of the profit comes from PMUS, not just PMAA, so your PS would have been less.

 

[WeAAsles]

There was also no one who was anyone, banks, creditors, analysts, unions, etc who liked or agreed with the AA Standalone, Cornerstone plan. They said it would keep the industry fragmented and produce less revenue (profits)

Yes maybe the old management team would have merged anyway but there was no guarantee of that? JetBlue at least publicly wasn't biting.

Don't forget all those Pilots who were lining up to retire because of how one of their Pensions was structured that would have given them a lot less had they waited much longer with the way the stock was tanking. (Wall Street gave up on AA) I believe 200 got out and another 500 were cueing up? Can't run an airline without Pilots.

 

[Worldport]

Worldport,
No the DL+3 would not be offered but we would be getting the 15% pretax PS which is more. Merging was not the goal of the unions at AA, the short sighted one of getting rid of the AMR BOD was. Now we are paying for it. Early openers would start in the TWU CBA in 2016 which is now so we gained nothing by buddying up with Ichan Jr (Parker).

 Funny I saw a lot of pissed off employees I also saw a "cornerstone" strategy that evey analyst said would fail,  Without a merger we would have always lagged in revenue, might have been driven out of ORD.

 

[bigjets]

I'm not one for whining, but these are some good troubleshooting tips.
 
 
 
 
 
https://www.freeenterprise.com/management-advice-from-gordon-bethune-the-ceo-who-saved-continental-airlines/
 
 
1. Treating your customers and employees well is the right thing to do—and it’s good for the bottom line.
 
 
 
 
 
2. Don’t forget where you came from.
“I used to be an airplane mechanic—that’s how I started off. And do you know how much faster I could fix an airplane when I wanted to fix it versus when I didn’t want to fix it? That’s where the money is. They don’t teach that at Harvard Business School. But they do teach it when you’re growing up. These are basic things, but I think too many companies forget it.”

 

[Overspeed]

W,
Horton wanted to run the new merged airline and kick Parker to the curb. The AA unions wanted Horton out because they were pissed at him and the AMR BOD for taking the company BK. There is some reason to believe that the relationship between Glading/APFA and US Treasurer may have tipped the scales towards Parker and his boys. UA, CO, NW, and DL all rejected Parker's bid for a merger except AA...hmmm. DL for one has proven that avoiding Parker's mgmt team was the right move and UA/CO link up seems to be going well for employees now there. Maybe Parker can be like Smisek and take a hike!

 

[bigjets]

I heard two business men say they would rather connect on AA then fly direct on UAL, and that was in Denver. Troubleshooting tip. You know that waitress you have, and she was just awesome, but the next door restaurant has that waitress that you know hates her job. Where are you going to take your wife?
 
http://patch.com/new-jersey/newarknj/united-airlines-announces-record-profit-workers-protest-low-wages
 
 
 
 
“It’s been five years, and now five holiday seasons since United Airlines initiated the merger [of United/Continental/Continental Micronesia],” Association of Flight Attendants (AFA) International President Sara Nelson stated at the time. “But United flight attendants are still without a joint contract and work another holiday season without sharing in the profits they help create.”

 

[Worldport]

W,
Horton wanted to run the new merged airline and kick Parker to the curb. The AA unions wanted Horton out because they were pissed at him and the AMR BOD for taking the company BK. There is some reason to believe that the relationship between Glading/APFA and US Treasurer may have tipped the scales towards Parker and his boys. UA, CO, NW, and DL all rejected Parker's bid for a merger except AA...hmmm. DL for one has proven that avoiding Parker's mgmt team was the right move and UA/CO link up seems to be going well for employees now there. Maybe Parker can be like Smisek and take a hike!

 Sorry Overspeed, I didn't realize you were being "drawn and quartered" must be difficult to type.

 

[WeAAsles]

W,
Horton wanted to run the new merged airline and kick Parker to the curb. The AA unions wanted Horton out because they were pissed at him and the AMR BOD for taking the company BK. There is some reason to believe that the relationship between Glading/APFA and US Treasurer may have tipped the scales towards Parker and his boys. UA, CO, NW, and DL all rejected Parker's bid for a merger except AA...hmmm. DL for one has proven that avoiding Parker's mgmt team was the right move and UA/CO link up seems to be going well for employees now there. Maybe Parker can be like Smisek and take a hike!

Delta is only going good for "some" employees because they don't have any pesky Unions or CBA's to worry about. They can do whatever they want there pretty much. Absolutely let's not bring up UAL. That whole thing was a major debacle and 5 quarters for all the employees for still going on years. Munoz might wind up being great but he has a lot of work ahead of him.

I'll expand more on Horton and Parker later. But compared to Smisek, Parker is my best Uncle. But even family can piss you off from time to time.

 

[Realityck]

W,
Horton wanted to run the new merged airline and kick Parker to the curb. The AA unions wanted Horton out because they were pissed at him and the AMR BOD for taking the company BK. There is some reason to believe that the relationship between Glading/APFA and US Treasurer may have tipped the scales towards Parker and his boys. UA, CO, NW, and DL all rejected Parker's bid for a merger except AA...hmmm. DL for one has proven that avoiding Parker's mgmt team was the right move and UA/CO link up seems to be going well for employees now there. Maybe Parker can be like Smisek and take a hike!

 
Unless our negotiating committee members (TWU and IAM) quickly resolve any remaining contractual differences, management will use the same tactics they’ve used successfully for many years when merging Airlines, of letting the Union’s fight among themselves thereby avoiding the contract the members deserve. We must speak with one voice and get the contract our members deserve.

 

[Rogallo]

 
Unless our negotiating committee members (TWU and IAM) quickly resolve any remaining contractual differences, management will use the same tactics they’ve used successfully for many years when merging Airlines, of letting the Union’s fight among themselves thereby avoiding the contract the members deserve. We must speak with one voice and get the contract our members deserve.

 
Funny!

 

[WeAAsles]

W,
Horton wanted to run the new merged airline and kick Parker to the curb. The AA unions wanted Horton out because they were pissed at him and the AMR BOD for taking the company BK. There is some reason to believe that the relationship between Glading/APFA and US Treasurer may have tipped the scales towards Parker and his boys. UA, CO, NW, and DL all rejected Parker's bid for a merger except AA...hmmm. DL for one has proven that avoiding Parker's mgmt team was the right move and UA/CO link up seems to be going well for employees now there. Maybe Parker can be like Smisek and take a hike!

I didn't read any indication that Horton wanted to continue to run the airline after the BK. BK was what he was used for. Maybe he would have continued on and maybe he would have turned it over to someone else if we had remained standalone? As far as the merger. Since Parker was the one who wooed the creditors that a merger was the best option, it was Parker who was going to run the airline. And at the end of the day no matter who wants to say otherwise, we are AA in name only. Our real name is America West.

I also don't think any of the Unions hated Horton. But there certainly were some managers below him that were very much hated. I think the hatred grew from both sides in frustration that our (AA) fortunes sucked for so long. But I did meet some of those lower managers personally and didn't get much of a good taste in my mouth for them.

The merger was still the best option and the proof of that is in the profits and Parkers decision not to hedge fuel.

As far as employee relations the jury is still out for me? I'm feeling good and bad vibes so far.

Again if next week I get cookies or cake with a BIG Thank You for making Parker more rich than he already is, I'll have to red mark that scorecard.

 

[bunt3dunk]

Crew scheduling is a disaster , they really screwed that up , pissing away millions due to managements incompetence.Parker is greedy , wants all of the profits for the executives.

 

[Koolcat]

I blogged about this three years ago how all airline management is cut from the same cloth.