More Concessions On The Way?

[B737NG]

I spoke with a Level 6 Manager of Aircraft Maintenance in ORD, who told me that next week he will be distributing a Powerplant Presentation from HDQ, to his Managers, Level 5's, to show on shift, that will in a nutshell, tell us as workers that we will need to increase productivity. As far as increasing productivity, he lead me to believe that increasing productivity meant layoffs..
He went on to say that we are expected to lose 426 million in the first quarter... What are everyones thoughts on this?

 

[buhbye]

I spoke with a Level 6 Manager of Aircraft Maintenance in ORD, who told me that next week he will be distributing a Powerplant Presentation from HDQ, to his Managers, Level 5's, to show on shift, that will in a nutshell, tell us as workers that we will need to increase productivity. As far as increasing productivity, he lead me to believe that increasing productivity meant layoffs..
He went on to say that we are expected to lose 426 million in the first quarter... What are everyones thoughts on this?

[post="252555"][/post]​

I have heard the APA is in back room meetings to eliminate the pilots A fund.

They will squeeze as much out of labor as they can with out taking cuts from management & upper management.

 

[LaBradford22]

I have heard the APA is in back room meetings to eliminate the pilots A fund.

They will squeeze as much out of labor as they can with out taking cuts from management & upper management.

[post="252693"][/post]​

The company wouldn't legally be able to "eliminate" the A fund. They might be able to freeze it, but any benefits already earned by pilots would still be paid at retirement.

As far as not taking from management, I can tell you with 100% confidence that the ones in management who can are jumping ship left and right. The Titanic is sinking folks. I've seen the cash flow projections, and let me tell you, it ain't pretty. AA will be back to the brink of bankruptcy by September, and all of your Unions will be back at the bargaining table.

Word to the wise - if you can find a job that pays comparably elsewhere, I would get out. Just MHO.

 

[Wretched Wrench]

quote=LaBradford22,Mar 4 2005, 03:26 PM]
......................................all of your Unions will be back at the bargaining table.

[post="252706"][/post]​

[/quote]



BARGAINING table?.

Quaint phrase, that.

.

 

[Oneflyer]

They will squeeze as much out of labor as they can with out taking cuts from management & upper management.

The rumor I have heard is that AA upper management is willing to ride out oil prices through April, but after that they'll come after the pilot's pension and salary cuts for everyone, management included.

 

[AAquila]

AA will be back to the brink of bankruptcy by September,

[post="252706"][/post]​

September: again great opportunity to pick up AMR Shares on the cheap, and resell them higher later in '06.

 

[Hopeful]

Bankruptcy WILL happen at AA. There is no other way to pay down the enormous debt.

 

[MCI transplant]

Bankruptcy WILL happen at AA. There is no other way to pay down the enormous debt.

[post="252976"][/post]​

<_< Hopeful, You need a new handle!!!!!

 

[Hopeful]

<_< Hopeful, You need a new handle!!!!!

[post="252980"][/post]​

How do you expect AA to pay this debt off?

Do you know the profits AA must sustain and for how long in order to bring this down.
Have you noticed the price of oil per bbl, lately?

Tell me how AA should pay this bill off.

 

[Decision 2004]

How do you expect AA to pay this debt off?

Do you know the profits AA must sustain and for how long in order to bring this down.
Have you noticed the price of oil per bbl, lately?

Tell me how AA should pay this bill off.

[post="253021"][/post]​

They wont pay the bill.

AA wil file Bankruptcy within the next 12 months and re-organize the debt.

 

[MCI transplant]

How do you expect AA to pay this debt off?

Do you know the profits AA must sustain and for how long in order to bring this down.
Have you noticed the price of oil per bbl, lately?

Tell me how AA should pay this bill off.

[post="253021"][/post]​

<_< You know there once was a commercial that put it this way! " You do it the old fashion way!!! You earn it!!!! If management would put as much effort into bringing in third party, and or Government contracts, as they spend trying to phyic up labor for more concesions, we wouldn't be having this coversation! But it's easyer for them to pull our chain than it is to get off their dead arses, and bring in work, (Profitable work) for us to do to get us out of this mess!!!! :angry:

 

[goingboeing]

<_< You know there once was a commercial that put it this way! " You do it the old fashion way!!! You earn it!!!! If management would put as much effort into bringing in third party, and or Government contracts, as they spend trying to phyic up labor for more concesions, we wouldn't be having this coversation! But it's easyer for them to pull our chain than it is to get off their dead arses, and bring in work, (Profitable work) for us to do to get us out of this mess!!!! :angry:

[post="253071"][/post]​

I don't mean to be a nay sayer but AA has a terrible track record doing 3rd party maintenance.AA lost their butt on the FED EX B-727 contract and was glad to get rid of it.They had a UPS B-727 contract in late 1985 and got rid of it also.

We need to fly profitable routes only and stop flying the ones that are losing money.If a route loses money overall dring a 12 month period AA should dump it.This may mean that AA becomes an airline with 300 airplanes but AA needs to get out of the employment agency business and start concerning themselfs with making profits.

 

[aafsc]

<_< You know there once was a commercial that put it this way! " You do it the old fashion way!!! You earn it!!!! If management would put as much effort into bringing in third party, and or Government contracts, as they spend trying to phyic up labor for more concesions, we wouldn't be having this coversation! But it's easyer for them to pull our chain than it is to get off their dead arses, and bring in work, (Profitable work) for us to do to get us out of this mess!!!! :angry:

[post="253071"][/post]​

I agree, because when you bring in more work, you are spreading more "units" (aircraft, engines, and components) over fixed costs (hangar rent, equipment used in the hangars/shops, utilities, administration, and people). This drives down your cost per unit. So not only can third part work bring in additional revenue, it can help reduce the cost of maintaining AA aircraft because the fixed costs will be "shared" with the third party aircraft. I think that this what AA is trying to do; starting in TUL. I also think that Decision's suggestion warrants further study because everyone in the bases has to be involved and motivated financially to make it work. Paying TIMCO wages to AA mechanics won't cut it. At is three bases, AA has some of the most experienced and knowledgeable AMTs in the business. At some of the third party facilities the turnover rate is high and when it is high you lose experience. When I worked at EAL in the hangar, the same AMTs worked on the same sections of the planes. I remember one AMT would always work in the nose gear, others in the fuel tank, and still others would be doing sheet metal work on the fuselage. Of course, they were qualified to work anywhere on the plane but I guess they had their preferences. When this is done, effieicency is increased because the AMT has experience and can see potential problems and solve them quickly. In my opinion the challenge will be increasing the output (overhauling airframes, engines, and components) by streamlining the way they do it without compromising safety and working to reduce/eliminate rejections or reworks.

 

[aafsc]

I don't mean to be a nay sayer but AA has a terrible track record doing 3rd party maintenance.AA lost their butt on the FED EX B-727 contract and was glad to get rid of it.They had a UPS B-727 contract in late 1985 and got rid of it also.

We need to fly profitable routes only and stop flying the ones that are losing money.If a route loses money overall dring a 12 month period AA should dump it.This may mean that AA becomes an airline with 300 airplanes but AA needs to get out of the employment agency business and start concerning themselfs with making profits.

[post="253077"][/post]​

According to AA, right now 80% of the routes are money losers. And as everyone says, "you can't shrink to profitability". It would be hard for AA to become an airline with 300 planes because when you shrink your fixed costs go up (fixed costs/fewer planes). One of the reasons Southwest is doing well (besides hedging large amounts of fuel) is because they are growing by about 10% a year. When you grow you are hiring people at starting wages which brings down your average costs. Southwest people top out at the highest rates in the industry but their continuous growth (hiring) keeps the average wage down. If they were to lay off and shrink, their labor and fixed costs would rise. People don't like it, but the reason AA was so highly profitable for most of the 1980s and 1990s is because of the "B" scales. It was the same principal that Southwest is using now. While people at EA, PA, and TWA were taking paycuts, AA told its incumbant employees that they would not take a paycut if they would allow the B scale. The strategy was to bring the average labor cost down at AA with a large expansion hiring thousands in at the B scale. At the same time AA negotiated an extremely favorable deal with McDonell Douglas for up to 500 MD-80s. With the B scale and the MD-80 deal lowering average costs the expansion brought in more revenue. Revenue rose much faster than average costs and this is why AA made a lot of money back then. As for the present, in my opinion, AA needs to move even faster into the international arena. Put your aircraft where the Southwests, Jetblues, and the Airtrans aren't. They should put more 757s to Europe where they can get higher yields and make a profit. Or at least loose less.

 

[TIME FOR CHANGE]

AA wil file Bankruptcy within the next 12 months and re-organize the debt

Thats impossible the twu rank and file refuse to enter chapter 11. They must grant concessions. In their feeble minds bankruptcy is not an option.