facility closures or consolidation

[mike757]

WOW, some of you hit the nail on the head with the MD-80 fleet reductions.

Any speculation on which AA which facilities might be closed or consolidated?. I assume it's maintenance, since the announcement was made on national AMT day, just after management gave us our free pizza lunch.:blink:

 

[WingNaPrayer]

I'm betting a big part of what will change will involve outsourcing. Can the employees and outsource at a fraction of the costs while still keeping the presence. Outsourcing in cities like St. Louis, San Juan, Denver, Fort Lauderdale, pretty much any small station can be dumped. They just have to remember that the carriers that stay, or try to pick up AA's place are the ones that will be burning/wasting fuel while ridership continues to fall in the face of this new fee driven mentality the airlines are playing with now. The cliche a day late and a dollar short certainly comes to mind. AA should have adjusted fees long ago.

A lot of AA's capacity "problems" will be taken care of if they really sell Eagle. AMR will just have to bite the bullet this time and sell with no strings attached. As nasty as things are getting, they'll have to sell it for a song to get a buyer.


So, was the pizza cold?

 

[Hopeful]

You may see a focus on cutting Class 2 stations with some mechanics being furloughed there. It's not just a matter of staffing, but the cost of paying for and maintaining facilities and equipment at those stations.

 

[boston]

I'm betting a big part of what will change will involve outsourcing. Can the employees and outsource at a fraction of the costs while still keeping the presence. Outsourcing in cities like St. Louis, San Juan, Denver, Fort Lauderdale, pretty much any small station can be dumped. They just have to remember that the carriers that stay, or try to pick up AA's place are the ones that will be burning/wasting fuel while ridership continues to fall in the face of this new fee driven mentality the airlines are playing with now. The cliche a day late and a dollar short certainly comes to mind. AA should have adjusted fees long ago.

A lot of AA's capacity "problems" will be taken care of if they really sell Eagle. AMR will just have to bite the bullet this time and sell with no strings attached. As nasty as things are getting, they'll have to sell it for a song to get a buyer.


So, was the pizza cold?

 

[boston]

Why would one think SJU would be outsourced? SJU is a freq station for Carib and South America deversions and not to mention the maintiance. The station is to busy and to large.

 

[flyhigh]

I think from a mx perspective, if you're not in a hub, there is not mx personnel. With oil going the way it has, you can't deny the realities of this industry now. Even WN with all their hedging is going to start making some different decisions. This war of attrition will hurt everyone.

 

[NewHampshire Black Bears]

WOW, some of you hit the nail on the head with the MD-80 fleet reductions.

Any speculation on which AA which facilities might be closed or consolidated?. I assume it's maintenance, since the announcement was made on national AMT day, just after management gave us our free pizza lunch.:blink:

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Well..OK mike 757,......................... I'll give myself a "pat on the back" :blush:

To me it was a "NO BRAINER", while others like eolesen,....... wanted to take 767-200's out of service instead(eolesen is still a "good dooby" in my book) !!

And mike, don't be the least bit surprised if AA/ARPEY..yank another 100 s-80's out of service.
These are SERIOUS times, and to Arpeys credit, he(FINALLY) is getting SERIOUS !!

As I mentioned before, AA went thru a (somewhat) similiar "drill", back in 1980/83, and had to re-invent itself.

He's hoping you got enough occ seniority, to weather the Storm !!

 

[NewHampshire Black Bears]

Why would one think SJU would be outsourced? SJU is a freq station for Carib and South America deversions and not to mention the maintiance. The station is to busy and to large.

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Exactamundo.................boston !

OUR good pal...WingNaPrayer was "off by a mile" about SJU, just as I think he is about A/E.

(But in fairness, WNP has a very good "batting average")

 

[LGA Fleet Service]

"...CEO Arpey said layoffs would be across the board and could number in the thousands."


Bone Us Time...

 

[will fix for food]

A lot of AA's capacity "problems" will be taken care of if they really sell Eagle. AMR will just have to bite the bullet this time and sell with no strings attached. As nasty as things are getting, they'll have to sell it for a song to get a buyer.

Skywest and Republic have both made offers. AMR had too many strings attached so Skywest walked and bought XJet. Republic is still hanging around. It will be interesting to see how much American will have to pay for feed when there are only going to be two companies bidding for it after Skywest and Republic finish buying all the regional carriers.

 

[NewHampshire Black Bears]

You may see a focus on cutting Class 2 stations with some mechanics being furloughed there. It's not just a matter of staffing, but the cost of paying for and maintaining facilities and equipment at those stations.

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You're mostly right Hopeful, but there are some extenuating circumstances in some stations.

Take 501 sister station BDL for example.
They are currently down to only 5 mainline flights a day(3/DFW..1/MIA..1/SJU)..BUT, they've got 3 station protected guys there, and the #3 man has another 3 non-station protected guys SENIOR to him.

Bottom line, HDQ has to decide if they want to turn BDL, into (say) an ALB(ALL A/E) which I don't think they want to do, especially with the ..ERO located there.(they need the N/S's back to HDQ), plus the MIA and SJU are real money makers. (BDL was my "mustering out station")

 

[WingNaPrayer]

Why would one think SJU would be outsourced? SJU is a freq station for Carib and South America deversions and not to mention the maintiance. The station is to busy and to large.

Because SJU will become a 'destination' now instead of a passthru on the way to some other points caribbean. As for maintenance, those across the board layoffs Arpey mentioned also come to mind.

The bottom line is everything can be ground up into hamburger, including the steak. Everything is at risk right now and nothing is too precious to cut.

What I'll be curious to see is whether or not the execs have the cajones to cut meaty, consistently overbooked flights, and to cut staffing in places just for the sake of making cuts. I've seen AA do dumber things!

 

[Vortilon]

You may see a focus on cutting Class 2 stations with some mechanics being furloughed there. It's not just a matter of staffing, but the cost of paying for and maintaining facilities and equipment at those stations.

Well, thats already been done. Cut back A/C MX at class 2 stations - bring the AMTs to class one stations and take on more MX there. Fast forward a couple years - the plan is a complete failure. Reducing the a/c mx footprint systemwide will not save the company enough money to justify giving up the exposure to a/c mx that class two stations provide. Class twos are used to doing more with less. In fact, recent rumors were that restaffing some class twos was not out of the question.

 

[NewHampshire Black Bears]

"...CEO Arpey said layoffs would be across the board and could number in the thousands."


Bone Us Time...

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LGA,

TOUGH times for sure, but(FINALLY) it's apparent that Arpey hasn't forgot the LESSONS that his Mentor(CRANDALL) taught him, when (uncle) Bobby took him under his wing !

I know you've got enough.."occ" to ride out the "gale" in LGA

 

[American Air Surf]

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LGA,

TOUGH times for sure, but(FINALLY) it's apparent that Arpey hasn't forgot the LESSONS that his Mentor(CRANDALL) taught him, when (uncle) Bobby took him under his wing !

I know you've got enough.."occ" to ride out the "gale" in LGA

My thought, is I think they are going to close St. Louis..., ouch ....