Crandall on CNBC -

[Oliver Stone''s Apprentice]

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On 3/14/2003 10:35:21 AM Hopeful wrote:

So eolesen:

SO asking Carty for a 16% paycut is like a grain of sand in the hour glass compared to 16% and other goodies AA wants from the TWU totalling $630 million and therefore why bother?

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Oh, I'm sure Carty will take a far bigger cut than just 16%, just like I will probably take a bigger percentage cut as a L5 than a L3 or L4 will take.

 

[Hopeful]

But keep in mind it is more than 16% for the rest of us. Loss of vacation, traditional pension, paying more for medical, etc. all add to the package. I think our share will be greater than Carty & Co.

 

[texflyer]

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On 3/14/2003 11:58:26 AM Buck wrote:

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On 3/14/2003 9:54:48 AM oldbscaler wrote:


Crandall has always preached tearing up labor contracts. That is what he did in the early 80's to start the "B scale". There were LCC's then, PEX, Apple, CAL, etc. The problem this time is there is no growth, so the problems have to be solved by the people on the property.

To his credit though, 83-92 were probably the best 10 years AA has ever seen!

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While I agree with most of what you say, there was no real growth for any B-scaler or C-scaler etc... As a B-scaler I started with wages at 50% of my fellow employee. First any growth would have to catch me up to this level and then any increases ect.... The airline did grow and the TWU will tell you, you would not be here if we had not taken the B-scale approach.


Why is there no growth now?
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Too much capacity now and not enough Y class demand. The demand is there for grandma to fly home,but not for the full Y fare class that helps fuel profits for the majors.