LCC projected to lose $1 Billion for 2008...

[brokenwrench]

Good thing AA has that "war chest" as they will need it.

Merrill Lynch in a note predicts that if fuel averages $105 a barrel for 2008 AMR will lose 1.2 BILLION!

Northwest will fair much better with a predicted loss of $180 Million and for all of your prediction of doom for Delta they should see a loss of $419 Million. Not pretty for any airline but it seems things may be worse for the only major that did not cut cost in BK.

As an aside the PUP payments for AA execs are coming up and the Allied Pilots Assoc. is already stepping up the rhetoric.

APA Communications Committee: Put the champagne on ice and get out the glasses, because in only seven weeks we can celebrate another round of multi-million dollar bonuses for our senior executives. Before we give you a glimpse at their projected rewards, let’s look at the current state of the airline that makes AMR management so deserving:

-- 2007’s highest flight cancellation rate.
-- 2007’s worst on-time arrival percentage.
-- 2007’s highest compensated airline executives.
-- Currently averaging 30-40 mechanical cancellations per day.
-- Historical high of 75 in-flight mechanical events in January.
-- Dismal and deteriorating customer satisfaction.
-- Poor media exposure from recent in-flight emergencies and passenger incidents.
-- Historically high number of employee disciplinary actions.
-- Historically high number of contractual violation grievances.
-- Unprecedented employee unhappiness and anger.

This type of unprecedented underperformance by our executive management deserves recognition. Based on this week’s stock price, the AMR Board will recognize our airline’s dismal state by rewarding CEO Gerard Arpey $2.7 million, CFO Tom Horton $1.5 million, Vice President Dan Garton $1.4 million, Vice President Gary Kennedy $1.1 million and Vice President Bob Reding $1.1 million. The remaining 900 managers will divide up another $54.2 million. By dramatic comparison, those 900 managers will be dividing nearly the same amount the other 70,000 employees split when AMR distributed our $800 AIP bonuses. In addition, management bonuses vary in amount based on position and earnings, unlike our "one-size-fits-all" bonus (unless you were docked for serving our country or being sick).

Good luck to all.

 

[chucky]

Oil Up Almost $4 A Barrell

Yup, That War Chest better be nice and big.

 

[Informed1]

American Airlines is projected to lose 1.8 billion; Meanwhile, US Airways is projected to lose 1 billion. Does US Airways have a better product then American Airlines, thus, leading to lower losses for US Airways?

Why is American Airlines losing more capital than US Airways? :blink: Does American have an Inferior product as opposed to US Airways?

THEY (AMERICAN THAT IS) ACTUALLY PAY THEIR EMPLOYEES A LIVEABLE WAGE. THEREFORE, THEIR LOSS IS GREATER. THE GAP FOR LCC RESULTS FROM SUBSTANDARD WAGES WHICH LESSENS LABOR COSTS.

 

[Hi-C-Camp]

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Hey Piney, ,

I'm not so sure AA will lose THAT much in 08'.

But a couple of things to "opine" here,

First, AA is sitting on a WAR CHE$T , close to $7B.(A good "rainy day fund", and YES it is raining on everyone) !

Second,

AMR is Very fortunate to have A/E to use to AA's advantage. One way to lower AA fixed costs, Is to get Ejets on the AA property.."Yesterday"
Notice how WELL the Ejets are working for NW/Compass.

Speaking of the Ejet, have you personally(as a Loooong time LCC customer, flown on one of them yet, and if so, how did you like it) ?

NHBB, Lets get some things straight here.. First and foremost, AMR does not (let me repeat) does not have 7B in cash. Second, AMR has one of the most gas guzzling fleets in the industry, I am not sure, but I do believe the majority of the 80-s are still leased, therefore it will be hard to park the gas guzzlers no matter how bad you want to. This will make for a very interesting year indeed. I hope those pilots are ready to play hard ball unless they want another haircut.

 

[NewHampshire Black Bears]

NHBB, Lets get some things straight here.. First and foremost, AMR does not (let me repeat) does not have 7B in cash. Second, AMR has one of the most gas guzzling fleets in the industry, I am not sure, but I do believe the majority of the 80-s are still leased, therefore it will be hard to park the gas guzzlers no matter how bad you want to. This will make for a very interesting year indeed. I hope those pilots are ready to play hard ball unless they want another haircut.

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HI-C Camp,

"A Very Interesting Year", to be sure !

No sense you and I, going at each others throats, though It's HEALTHY to "agree to Disagree"

I look at "it" this way. It's great that everyone Brags/supports their favorite carrier !

With that said, It's going to come down to a game of "Who BLINKS FIRST"(kind of like a game of "Chicken")

Do I think AA could go BK-11 ?.....possibly.

But I STILL stand by my prediction, that the LAST 3 carriers LEFT STANDING will be AA/NW/WN(In which 1-2-3 order, I cannot say).

 

[Hi-C-Camp]

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HI-C Camp,

"A Very Interesting Year", to be sure !

No sense you and I, going at each others throats, though It's HEALTHY to "agree to Disagree"

I look at "it" this way. It's great that everyone Brags/supports their favorite carrier !

With that said, It's going to come down to a game of "Who BLINKS FIRST"(kind of like a game of "Chicken")

Do I think AA could go BK-11 ?.....possibly.

But I STILL stand by my prediction, that the LAST 3 carriers LEFT STANDING will be AA/NW/WN(In which 1-2-3 order, I cannot say).

Well NHBB, I think you are overlooking quite a few things... First and foremost, you have to consider what is going on at the present with each individual carrier. There are many factors that will play in this showdown. I want to know your opinion as it is related to AA and labor negotiations.. You know, when Arpey comes to the pilots and flight attendants when they post a loss of more than 1Billion dollars for the year, and says hey kiddos, your going to have to take another pay cut, someones panties are going to get in a wad..

If oil stays at the current price, I suspect that AMR could be one of the first to threaten BK, the others have been there and done that, and if they try to come back for more the employees will tell them to shove it. With one of the oldest fleets and highest wages, AMR is not at an advantage. The first to fold or be absorbed IMO (and I dont wish it on anyone ) will be F9 and B6 as well as Skybus. I dont believe anyone is safe, and that is alot of the problem in your neck of the woods, you are in a very daunting situation over in your corner and I wouldn't be the least little bit surprised to see a big ole BK and pension ditching right around the corner, along with hundreds of 80s shed to the Mojave.

 

[NewHampshire Black Bears]

Well NHBB, I think you are overlooking quite a few things... First and foremost, you have to consider what is going on at the present with each individual carrier. There are many factors that will play in this showdown. I want to know your opinion as it is related to AA and labor negotiations.. You know, when Arpey comes to the pilots and flight attendants when they post a loss of more than 1Billion dollars for the year, and says hey kiddos, your going to have to take another pay cut, someones panties are going to get in a wad..

If oil stays at the current price, I suspect that AMR could be one of the first to threaten BK, the others have been there and done that, and if they try to come back for more the employees will tell them to shove it. With one of the oldest fleets and highest wages, AMR is not at an advantage. The first to fold or be absorbed IMO (and I dont wish it on anyone ) will be F9 and B6 as well as Skybus. I dont believe anyone is safe, and that is alot of the problem in your neck of the woods, you are in a very daunting situation over in your corner and I wouldn't be the least little bit surprised to see a big ole BK and pension ditching right around the corner, along with hundreds of 80s shed to the Mojave.

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HI-C,

I'd have to be a raving Lunatic,to dispute, any of what you just said.

History has Proven, that AA can fall into a vat of SH!T, and always(somehow) emerge wearing a "new suit"
A lot of us AAers(no matter HOW BS we get at AMR) are very conscious of AA's "lucky horseshoe".

Like everything else, as Richard Anderson is SO fond of saying.........."STAY TUNED" !!!