JCBA Negotiations and updates for AA Fleet

[NYer]

It is a copy cat industry. If we want to predict what will happen and/or what the Company will want, just look across the aisle.

It doesn't take too much investigative work to see that if other airlines don't have certain positions then they will want the same. If there are other airlines with more "flexibility" the Company will want the same. That's it, it's that simple.

Seems no one has noticed, but Wall Street doesn't allow companies making billions in profits to just lavishly share the spoils with others. If anything, Wall Street punishes companies that are making billions but have costs they consider too high. Here's the thing, under the law, the CEO is supposed to act in the best interests of the shareholders...not the passengers, not the employees, but the shareholders.

 

[WeAAsles]

...and you're more lost than I thought if you think the former US CEO and current AA CEO Parker cares about quality...if you haven't noticed W, the AA product only remains in name only, or very close to that.

The AA Product you're thinking about only exists in your own mind and before the World changed after Sept 11 when the entire industry began scraping just to survive. AWA was a LCC and US when Parker stepped in always had one foot near the grave and the last thing he could do was make investments in upgrading the quality. They didn't have the financial ability to do that.

Yes I believe Parker and the new AA are making those changes now that the financial ability to do so is there. But it takes time to turn a ship the size of the one we sail on. I read about product improvements all the time on Jetnet and on the net. Take your mind out of employee perception mode and you'll see that.

But no, N American Airlines are not in the league of service provided by Emirates (Look at their fare prices though) and if you want to compare to Delta don't forget they're 5 years ahead of us coming out of BK to start working on their product if you want to compare some apples and oranges.

AA is headed in the right direction.

 

[WeAAsles]

In 4Q16, Southwest Airlines (LUV) had the highest labor costs, comprising 34% of its revenues. Delta Air Lines (DAL) finished in a close second place, with labor costs forming 32% of its revenues. These high labor costs contributed to these two airlines posting lower margins than their peers.

Although American Airlines (AAL) and United Continental (UAL) have lower labor costs than Southwest Airlines and Delta Air Lines, higher income tax provisioning led to a significant decline in margins for 2016. In 4Q16, labor costs formed 29% of AAL’s revenues and 28% of UAL’s revenues.

In 4Q16, JetBlue Airways’s (JBLU) labor costs comprised 26% of its revenues. Alaska Air Group’s (ALK) labor costs formed 25% of its revenues, and Spirit Airlines’s labor costs comprised 21% of its revenues.



http://marketrealist.com/2017/03/be...labor-costs/?utm_source=yahoo&utm_medium=feed

 

[ATD]

It is a copy cat industry. If we want to predict what will happen and/or what the Company will want, just look across the aisle.

It doesn't take too much investigative work to see that if other airlines don't have certain positions then they will want the same. If there are other airlines with more "flexibility" the Company will want the same. That's it, it's that simple.

Seems no one has noticed, but Wall Street doesn't allow companies making billions in profits to just lavishly share the spoils with others. If anything, Wall Street punishes companies that are making billions but have costs they consider too high. Here's the thing, under the law, the CEO is supposed to act in the best interests of the shareholders...not the passengers, not the employees, but the shareholders.

The Golden passport by Duff McDonald. Great read and if our union brothers want to get educated.

 

[WeAAsles]

The Golden passport by Duff McDonald. Great read and if our union brothers want to get educated.

Sounds like a very interesting read. I wonder if the examples of how business is being conducted in the tech industry and how they treat their employees is providing a new model that will be expanded out over time into other industries? I think Parker has been trying to instill that thought process into the Airline and the addition of Munoz over at UAL was a complete 180 over his predecessor Smisek.

https://mobile.nytimes.com/2017/04/24/books/review/golden-passport-duff-mcdonald.html

 

[WeAAsles]

It is a copy cat industry. If we want to predict what will happen and/or what the Company will want, just look across the aisle.

It doesn't take too much investigative work to see that if other airlines don't have certain positions then they will want the same. If there are other airlines with more "flexibility" the Company will want the same. That's it, it's that simple.

Seems no one has noticed, but Wall Street doesn't allow companies making billions in profits to just lavishly share the spoils with others. If anything, Wall Street punishes companies that are making billions but have costs they consider too high. Here's the thing, under the law, the CEO is supposed to act in the best interests of the shareholders...not the passengers, not the employees, but the shareholders.

It is a copycat industry absolutely but you have to take into account the curveballs when one player changes the game.

When Richard Anderson told investors in one conference call that he didn't care what they said about making short term profits and that he was setting up the Airline for the long haul, Wall Street punished the stock the next day. But that doesn't necessarily mean there was a change of course. He still brought up the Airlines Labor costs much to their chagrin. And before Munoz stepped in it looked like UAL was headed for an eventual meltdown with worse toxic labor relations than maybe even we went through in the past. He finally gave the AFA their long awaited contract and dramatically improved the IAM Ground contract. They even got a quick turnaround on an overwhelmingly rejected Mechanic TA.

Being the last group in the Majors now looking to finalize our deal could also mean we set the new bar for some improvements that could be where others will point to us?

We really do need to get ourselves out of the old concessionary mindsets we've lived with for so long IMO.

https://www.dallasnews.com/business...g-american-southwestwill-passengers-pay-price

 

[Koolcat]

It is a copy cat industry. If we want to predict what will happen and/or what the Company will want, just look across the aisle.

It doesn't take too much investigative work to see that if other airlines don't have certain positions then they will want the same. If there are other airlines with more "flexibility" the Company will want the same. That's it, it's that simple.

Seems no one has noticed, but Wall Street doesn't allow companies making billions in profits to just lavishly share the spoils with others. If anything, Wall Street punishes companies that are making billions but have costs they consider too high. Here's the thing, under the law, the CEO is supposed to act in the best interests of the shareholders...not the passengers, not the employees, but the shareholders.

Good grip of the industry's pulse NYer

 

[CremaDiLimone]

You mean $33.30 at the end of their 5 year contract. Ok DL is at $30.15 x3% is 90 cents. 30 17 +90 is $31.07 at a 5 year contract say at least 2. 1% year will bring us close to $35 with a 55 cent differential As far as health care you are not going to do better than the other 80,000 employees so get that out of your head

sure, when i say ua at $33.30 and when i say aa at $35..those are max rates. i know ua doesn't make $33.30 right now.

as far as health care, i don't understand what you're saying about getting what out of my head. i understand you don't want the aa plan. i get it. i understand.

i believe if aa offers the $35, 10 holidays, scope doesn't get gutted, the TA will pass. off the cuff, seems as though the old lus mngt. had no problem keeping freight, but contracted out lavs. if crew chiefs become leads, maybe everyone will be happy enough to ratify a deal.

 

[CremaDiLimone]

Your funny weez, even a monkey can place a bag from a cart with a high degree of quality, except that using monkeys to do our job is classified as cruelty to animals.

you may be right. why doesn't delta, an airline with no constrictions..do this? why don't they get rid of costly clerks making $30+/hr and cashing profit sharing checks in recent years of $7,000-$12,000 and hire $10/hr mugs?

if they don't, what makes you think aa is ready to push a button and send job recruiters to the zoo?

 

[CremaDiLimone]

My bet would be DL will again at best match us next April? But the major leapfrog game appears to be over. If DL does leap over ever again and we're locked in to our JCBA that's it. I'm done. I'm not going to gripe and moan if we agree on something and it passes the vote.

The Pilots and Flight Attendants don't want to honor their agreement that's on them. My comment will be I don't give a S.

i hope you're right..more money for them and others means more for us. i just think the dl wage train has pulled into a stop for a few years.

 

[WeAAsles]

Good gripe of the industry's pulse NYer

Gripe? "Freudian slip"

 

[CremaDiLimone]

It is a copy cat industry. If we want to predict what will happen and/or what the Company will want, just look across the aisle.

It doesn't take too much investigative work to see that if other airlines don't have certain positions then they will want the same. If there are other airlines with more "flexibility" the Company will want the same. That's it, it's that simple.

Seems no one has noticed, but Wall Street doesn't allow companies making billions in profits to just lavishly share the spoils with others. If anything, Wall Street punishes companies that are making billions but have costs they consider too high. Here's the thing, under the law, the CEO is supposed to act in the best interests of the shareholders...not the passengers, not the employees, but the shareholders.

i agree, yet aal got zero love from wall street, despite gifting shareholders with apprx. $10 billion in buy-backs and dividends...in 3 short years. listening to the conference calls, you could tell parker was aggravated with the analysts. he's cooled down a bit, toned it down but he still has to be shaking his head.

 

[WeAAsles]

i hope you're right..more money for them and others means more for us. i just think the dl wage train has pulled into a stop for a few years.

Actually I'm assuming you mean you hope I'm wrong? Parker (The Board of Directors) did take a few steps at matching Delta after they gained more even though contracts were already agreed to. But that looks like it's over now. Flight attendants wanted more and lost and the Pilots are well in the back of the pack now.

When he said in a Town Hall that the leapfrogging has to end at some point, he wasn't blowing smoke. BUT we haven't signed our deals yet.

 

[Koolcat]

Gripe? "Freudian slip"

Blame it auto spell check

 

[bob@las-AA]

you may be right. why doesn't delta, an airline with no constrictions..do this? why don't they get rid of costly clerks making $30+/hr and cashing profit sharing checks in recent years of $7,000-$12,000 and hire $10/hr mugs?

if they don't, what makes you think aa is ready to push a button and send job recruiters to the zoo?

You are forgetting one thing, less than 40% at DL got PS, ready reserve did not get PS, and that same group fewer reached top out pay.