As if AA doesn''t have enough management cost?

[RV4]

Now they are hiring outside management services?
http://biz.yahoo.com/rf/030307/financial_amr_1.html
AA can stick concessions where the sun doesn't shine.
If the massive legal, human resource groups, inventory control analyst, purchase agents (ect.) cannot do their jobs, then remove them from the payroll!

 

[flyhigh]

I'm sure they'd love to be able to focus on this, however, they have to work extra with a machinists union that isn't interested in seeing this company survive.

In reality, by hiring an outside firm, there's a good chance they'll end up better off. Given their knowledge of other companies, they can negotiate costs to levels that are more commensurate with what other companies (inside and outside the airline industry) pay. The cost of this is a drop in the bucket compared to so many other things not being hit.

 

[Buck]

A lot of it is appearance. Whether you like or not, if Crandall were still running the place, decisions would be made in a timely manner. Those decisions may not have been to labors liking, but they would have been made. This stagnation, with a cash burn of $5 million a day, the doom and gloom over bankruptcy, is beginning to hammer away at what moral the employees have left. Carty offers no Return on Investment for labor.

 

[WingNaPrayer]

...and again, who's fault is that? Bad management is what put AA into the shape it's in, so lazy and ineffective management is the direct cause of their no raise situation....NOT 9/11.

 

[Oliver Stone''s Apprentice]

It doesn't matter what management does -- it is going to be wrong.

I've sat and listened to people tell me how management is inept for letting AMR get into this situation, and now that management goes out and gets outside advice, management is inept for not having the talent internally...

If we didn't have all of our good management people bailing out for jobs where they won't be taking pay cuts after three years of no raises, perhaps we wouldn't need to hire consultants.

 

[WingNaPrayer]

Nope, he's not offering a damn thing, it's gimme gimme gimme or I'll just take it from you in bankruptcy. Everything he wants is permanent with NO turn arounds if the airline industry improves. He'll lock you in and never let go even if the company was MAKING 5 million a day in clear profit.

 

[RV4]

All I was saying is that AA pays large numbers of management to handle these aspects of business. And now, they have to hire outside for services.

eoleson, my point wasn't that this is the wrong idea. My point was why pay two groups of people to one job!

What exactly do you do for AA?

And can we outsource your job also and get it done cheaper? Better doesn't seem to matter anymore, just cheaper is all we need now!

 

[RV4]

I think mangement made failed stategic decisions or non-decisions.

Waiting for WAR, waiting for someone else to liquidate, watching Bankruptcy proceedings for outcome.

All the while losing money at a record pace.

I agree with Buck, Crandall would have been leading instead of misdirected following of no particular path.

When AA goes Chapter 11, who gets the naming rights to the Dallas Arena?

 

[Oliver Stone''s Apprentice]

[blockquote]
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On 3/10/2003 3:24:28 PM RV4 wrote:

Waiting for WAR, waiting for someone else to liquidate, watching Bankruptcy proceedings for outcome.
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[/blockquote]

Again, management is damned no matter what approach they take...

[blockquote]
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On 3/10/2003 3:24:28 PM RV4 wrote:

And can we outsource your job also and get it done cheaper? Better doesn't seem to matter anymore, just cheaper is all we need now!
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[/blockquote]

Outsourcing my job would cost the company money. We've looked at it during the past four budgets.

Using today's rates and salaries, even with benefits, my group costs less than half of what EDS and Sabre charge to do the same work.

After pay cuts and benefit changes, we'll be even more cost effective...

 

[RV4]

[blockquote]
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On 3/10/2003 6:00:30 PM eolesen wrote:

Outsourcing my job would cost the company money. We've looked at it during the past four budgets.

Using today's rates and salaries, even with benefits, my group costs less than half of what EDS and Sabre charge to do the same work.

After pay cuts and benefit changes, we'll be even more cost effective...
----------------
[/blockquote]

So "We've looked" or you've looked at your own budget to determine your retention need and rate of pay? That sounds fair!

What exactly is it that you do for such low pay and benefits?

And, where can I go to get an education in your work field so that I can volunteer to be screwed like you have been?


Outsourcing our jobs will cost the company money also. Once we are eliminated from the competition of overhaul, the F.B.O's overhaul price will skyrocket. Anytime you eliminate competition, the vultures arrive to confiscate the corporate bank account.

Our managers have made it clear that by staying in the business of overhaul, we keep pricing down. In fact, General Electric recently offered $9 Million in repair credit to extend the Maintenance by the Hour Contract on the CF6-80c2A5 engines. Funny think though Eric, we don't get to claim that $9 Miilion as a credit in our budget, but if we were not here doing overhaul, it would have never been offered in the first place!