[STRONG]American Airlines Cutting Back Capacity[/STRONG] [FONT size=1][/FONT][BR][BR][BR][FONT face=Verdana,Sans-Serif color=#000000 size=2][FONT size=+0][FONT face=Verdana,Sans-Serif color=#000000 size=1][A href=http://money.excite.com/ht/nw/bus/20021125/hle_bus-n25213292.html]http://money.excite.com/ht/nw/bus/20021125/hle_bus-n25213292.html[/A][/FONT][/FONT][/FONT]
More Cuts
- Thread starter Sean
- Start date
[blockquote]
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On 11/25/2002 1:39:34 PM acmech wrote:
Now why does that not surprise me? We all know where the cuts will come from. It is nothing more than despicable what American has done to TWA.Buy it up, eliminate the planes and the people to save money how sick.
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[/blockquote]
Although I understand your frustrations, we all know that ex-TWA'ers are not the only ones out on the street. There are plenty of AA'ers still on furlough as well. AA is losing millions of dollars a day, eventually this could cut deep into the AA ranks.
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On 11/25/2002 1:39:34 PM acmech wrote:
Now why does that not surprise me? We all know where the cuts will come from. It is nothing more than despicable what American has done to TWA.Buy it up, eliminate the planes and the people to save money how sick.
----------------
[/blockquote]
Although I understand your frustrations, we all know that ex-TWA'ers are not the only ones out on the street. There are plenty of AA'ers still on furlough as well. AA is losing millions of dollars a day, eventually this could cut deep into the AA ranks.
grndproxwarning
Member
- Oct 14, 2002
- 85
- 0
[blockquote]
----------------
On 11/25/2002 1:39:34 PM acmech wrote:
Now why does that not surprise me? We all know where the cuts will come from. It is nothing more than despicable what American has done to TWA.Buy it up, eliminate the planes and the people to save money how sick.
----------------
[/blockquote]
They have done to TWA exactly as they planned!
you were always expendable to the DFWHDQ Brain factory!!
They are good at hit and run moves..
The only thing you have to look foward to if you are lucky is..Maybe the pain will be over soon!!!
Remember Daddy W always says
You cant Bullsh** A Bullsh**er
AMR ENRON AND W
What DREAMS are made of
Ps. 2.8 BILLION OF WS campaign money came from the ENERGY
INDUSTRY..Gee do ya think there is a connection?????
----------------
On 11/25/2002 1:39:34 PM acmech wrote:
Now why does that not surprise me? We all know where the cuts will come from. It is nothing more than despicable what American has done to TWA.Buy it up, eliminate the planes and the people to save money how sick.
----------------
[/blockquote]
They have done to TWA exactly as they planned!
you were always expendable to the DFWHDQ Brain factory!!
They are good at hit and run moves..
The only thing you have to look foward to if you are lucky is..Maybe the pain will be over soon!!!
Remember Daddy W always says
You cant Bullsh** A Bullsh**er
AMR ENRON AND W
What DREAMS are made of
Ps. 2.8 BILLION OF WS campaign money came from the ENERGY
INDUSTRY..Gee do ya think there is a connection?????
Wild Onion
Advanced
- Aug 21, 2002
- 120
- 0
What is the correlation between AMR and Enron again?
Frequently, someone here doesn't like HDQ's actions and they make this comparison in order to make themselves seem informed and educated. Then they write a gramatically poor and hard to read post.
When AMR comes up having squandered everyone's pension, lied on numerous SEC statements and intentionally defrauded millions of investors, then there will be a similarity. Until then, you merely disagree with AMR management, which happens at every major corporation in America.
Of course George W. Bush got a lot of campaign money from the energy industry. He's a Texan. Last time I checked, it was legal to contribute money to a presidential campaign.
Then again, the more I think about it, what in the world do Enron and George W. Bush have to do with AMR's (legal) discretionary use of the TWA assets anyway?
Frequently, someone here doesn't like HDQ's actions and they make this comparison in order to make themselves seem informed and educated. Then they write a gramatically poor and hard to read post.
When AMR comes up having squandered everyone's pension, lied on numerous SEC statements and intentionally defrauded millions of investors, then there will be a similarity. Until then, you merely disagree with AMR management, which happens at every major corporation in America.
Of course George W. Bush got a lot of campaign money from the energy industry. He's a Texan. Last time I checked, it was legal to contribute money to a presidential campaign.
Then again, the more I think about it, what in the world do Enron and George W. Bush have to do with AMR's (legal) discretionary use of the TWA assets anyway?
NewHampshire Black Bears
Veteran
- Aug 20, 2002
- 10,154
- 681
Regardless(sadly)where the cuts come from, facts are facts !!
1.Apa has (temporarily) relaxed the RJ scope language.
2.The domestic system will be reduced 3.3%.
3.7000(mabey more) jobs will be eliminated.
However AA's stock has drifted upward 9% to $8.35 !!
I SINCERELY hope that NO ONE loses there job at AA !!!!!!
Having said that, It looks VERY clear to me that AA IS shrinking towards profitability.
Thats correct,(No, there's nothing wrong with your computer screen, or your eye's) I said SHRINKING TOWARDS PROFITABILITY!!!!
Don Carty IS doing in 2002/2003, what Crandall DID in the early 80's, and threatened to do in the early 90's.
At AA, Shrinking(domestically) towards profitability, WORKS !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
NH/BB's
AA/AFL-CIO
1.Apa has (temporarily) relaxed the RJ scope language.
2.The domestic system will be reduced 3.3%.
3.7000(mabey more) jobs will be eliminated.
However AA's stock has drifted upward 9% to $8.35 !!
I SINCERELY hope that NO ONE loses there job at AA !!!!!!
Having said that, It looks VERY clear to me that AA IS shrinking towards profitability.
Thats correct,(No, there's nothing wrong with your computer screen, or your eye's) I said SHRINKING TOWARDS PROFITABILITY!!!!
Don Carty IS doing in 2002/2003, what Crandall DID in the early 80's, and threatened to do in the early 90's.
At AA, Shrinking(domestically) towards profitability, WORKS !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
NH/BB's
AA/AFL-CIO
WingNaPrayer
Veteran
Many months ago I brought up the inevitable need for shrinking to profitability....and no less than a dozen members jumped down my throat because they [EM]knew[/EM] AA would never do such a thing, and therefore assumed I didn't know what I was talking about.[BR][BR]Now, I still say the target is 15,000 employees, that's [EM]fifteen thousand[/EM], will ultimately have to go and no one at corporate is going to care if they were chattel picked up from TWA or if they are long time AA people.[BR][BR]I also speculated that by year's end, AMR common stock would find a comfortable hovering point around 9 bucks a share. Looks like it just might make it. While at close of market yesterday, AMR common stood at 8.25.... AMR preferred stock continues it's steady recovery having gone from a low this year of 6.85 to it's close yesterday of 13.70 That's a 100% jump in preferred prices, even though one of it's major preferred stock investors (Legg Mason, Inc.) jumped ship this year and dumped everything it had invested in AMR. Even though Legg is sitting on many other stocks that have taken hard hits in the past 12-18 months as well, they chose [EM]not[/EM] to hang in there with American, and when major investors do things like that, it speaks volumes to the industry and more importantly, to other investors.[BR][BR]I've seen it said here that it doesn't matter what a stock's price is, that it has no affect on the company's bottom line. . . .well, it does. What a stock commands in price is a direct reflection on the performance of the company and if the company is not performing to a standard that will keep the stock price strong, then it's not worth investing in, and when capital is not invested, the company, (and in this case it's pension fund) begins to feel the pinch.[BR][BR]I haven't bothered to look lately, but does anyone have any hard numbers as to how many aircraft AA has either retired, sold, stored or just gotten rid of?
AA is definitely shrinking towards profitability, but funny thing -- everyone said that was the most critical fault of TWA (and I think before the disasterous 1996 summer season, Erikson did prove that one grows into profitability.)
Not being highly familiar with AA's operations -- TWA's problem was they shrunk below their nautral infrastructural size. Is this currently a situation where AA had their infrastructure overutilized and they are truly right-sizing the operation? I find it amazing in such a captial intensive industry as airlines, that shrinking to profitability works as more than a temporary stop-gap until revenue picks up (but growth is expensive).
Just curious as to what the board feels in the wisdom of shrinking to profitability, and if it is actually structural or a simple positioning response to depressed revenues.
Not being highly familiar with AA's operations -- TWA's problem was they shrunk below their nautral infrastructural size. Is this currently a situation where AA had their infrastructure overutilized and they are truly right-sizing the operation? I find it amazing in such a captial intensive industry as airlines, that shrinking to profitability works as more than a temporary stop-gap until revenue picks up (but growth is expensive).
Just curious as to what the board feels in the wisdom of shrinking to profitability, and if it is actually structural or a simple positioning response to depressed revenues.
BillLumbergh
Veteran
[SPAN class=headline][A href=http://biz.yahoo.com/prnews/021125/dam019_1.html]American's Domestic Capacity Will Be Down an Additional 3.2 Points By March 2003[/A][/SPAN]
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American's chief: Pay may be cut
--------------------
Carrier looking for billions more in cost savings
By John Schmeltzer
Tribune staff writer
November 26, 2002
In what may be a harbinger of bad news for employees of American Airlines, the carrier's chairman and chief executive told Chicago-area workers Monday that wage concessions may be needed.
Donald Carty said it is becoming increasingly difficult to find places to cut expenses at the carrier and that contractual changes may be required to help American recover from the economic downturn and terrorist attacks that have crippled the nation's airline industry.
Since the Sept. 11 attacks, American has announced 7,000 layoffs, cut flights and grounded dozens of planes. But Carty, who has yet to seek wage concessions at American, said the cuts may not be deep enough to help the Ft. Worth-based airline.
We are hopeful that we will get some help from the economy, but we are not planning on it. Our plan for 2003 [assumes] that it stays a very, very tough year, Carty said before some of the airline's 12,000 local workers at O'Hare International Airport.
As a result of the continuing drive to cut costs and the failure of a recovery to materialize, Carty said he could not predict when American's operations will return to the black. Elk Grove Township-based United Airlines, however, has told a federal agency that it will return to profitability in 2004.
United predicted its return to profitability as part of an application for a $2 billion loan from the Air Transportation Stabilization Board. Of that amount, $1.8 billion would be federally guaranteed. Without the loan, United, which has a $375 million loan payment due Monday, has said it will file for bankruptcy.
If United's application is based upon a revenue rebound, then that's something that isn't going to happen, Carty said.
His comments came as documents attacking United's federal loan application circulated on Capitol Hill in Washington.
Rather than returning to profitability in 2004 as United predicts, the analysis shows that United will still be unprofitable in 2009. The documents were purportedly prepared by Northwest Airlines, but the carrier declined to comment.
Unlike many competitors, American so far has sought to focus on restructuring its business in the belief that it could cut costs sufficiently to allow the airline to recover from the downturn.
Thus far, American has identified $2 billion in annual savings, but Carty said it still needs to reach $3 billion to $4 billion in savings.
Carty said any recovery plan has to take into account the impact of low-cost carriers such as Southwest Airlines. Unlike when the airline industry was trying to recover from the Persian Gulf war, he said discount carriers now can be found on almost every route.
We have to be competitive with Southwest and carriers of that ilk long term or we won't survive, Carty said.
While he said he believes the U.S. economy will continue expanding, Carty said it is a mistake to assume airline revenue will recover dramatically at the same time, given competition from low-cost carriers and fewer-than-expected business travelers.
Whatever we are trying to accomplish in the long term, we also have to be cognizant that the company can't bleed cash in the short term forever, he said.
American will also reduce flight capacity by another 3.3 percent early next year, he said.
Most of those reductions will occur on Saturday afternoon and Sunday morning flights, which could result in even more layoffs. Currently, the airline has 122,000 employees.
By the end of March, Carty said American, the world's largest airline, will be operating 18 percent fewer flights than it was at the end of 2001. United has said it will have to cut about 25 percent of its flights.
This is very much tactical. It is very much addressing the short-term crisis, Carty said.
Copyright © 2002, Chicago Tribune
--------------------
Improved archives!
Searching Chicagotribune.com archives back to 1985 is cheaper and easier than ever. New prices for multiple articles can bring your cost down to as low as 30 cents an article: http://chicagotribune.com/archives
American's chief: Pay may be cut
--------------------
Carrier looking for billions more in cost savings
By John Schmeltzer
Tribune staff writer
November 26, 2002
In what may be a harbinger of bad news for employees of American Airlines, the carrier's chairman and chief executive told Chicago-area workers Monday that wage concessions may be needed.
Donald Carty said it is becoming increasingly difficult to find places to cut expenses at the carrier and that contractual changes may be required to help American recover from the economic downturn and terrorist attacks that have crippled the nation's airline industry.
Since the Sept. 11 attacks, American has announced 7,000 layoffs, cut flights and grounded dozens of planes. But Carty, who has yet to seek wage concessions at American, said the cuts may not be deep enough to help the Ft. Worth-based airline.
We are hopeful that we will get some help from the economy, but we are not planning on it. Our plan for 2003 [assumes] that it stays a very, very tough year, Carty said before some of the airline's 12,000 local workers at O'Hare International Airport.
As a result of the continuing drive to cut costs and the failure of a recovery to materialize, Carty said he could not predict when American's operations will return to the black. Elk Grove Township-based United Airlines, however, has told a federal agency that it will return to profitability in 2004.
United predicted its return to profitability as part of an application for a $2 billion loan from the Air Transportation Stabilization Board. Of that amount, $1.8 billion would be federally guaranteed. Without the loan, United, which has a $375 million loan payment due Monday, has said it will file for bankruptcy.
If United's application is based upon a revenue rebound, then that's something that isn't going to happen, Carty said.
His comments came as documents attacking United's federal loan application circulated on Capitol Hill in Washington.
Rather than returning to profitability in 2004 as United predicts, the analysis shows that United will still be unprofitable in 2009. The documents were purportedly prepared by Northwest Airlines, but the carrier declined to comment.
Unlike many competitors, American so far has sought to focus on restructuring its business in the belief that it could cut costs sufficiently to allow the airline to recover from the downturn.
Thus far, American has identified $2 billion in annual savings, but Carty said it still needs to reach $3 billion to $4 billion in savings.
Carty said any recovery plan has to take into account the impact of low-cost carriers such as Southwest Airlines. Unlike when the airline industry was trying to recover from the Persian Gulf war, he said discount carriers now can be found on almost every route.
We have to be competitive with Southwest and carriers of that ilk long term or we won't survive, Carty said.
While he said he believes the U.S. economy will continue expanding, Carty said it is a mistake to assume airline revenue will recover dramatically at the same time, given competition from low-cost carriers and fewer-than-expected business travelers.
Whatever we are trying to accomplish in the long term, we also have to be cognizant that the company can't bleed cash in the short term forever, he said.
American will also reduce flight capacity by another 3.3 percent early next year, he said.
Most of those reductions will occur on Saturday afternoon and Sunday morning flights, which could result in even more layoffs. Currently, the airline has 122,000 employees.
By the end of March, Carty said American, the world's largest airline, will be operating 18 percent fewer flights than it was at the end of 2001. United has said it will have to cut about 25 percent of its flights.
This is very much tactical. It is very much addressing the short-term crisis, Carty said.
Copyright © 2002, Chicago Tribune
--------------------
Improved archives!
Searching Chicagotribune.com archives back to 1985 is cheaper and easier than ever. New prices for multiple articles can bring your cost down to as low as 30 cents an article: http://chicagotribune.com/archives
American Airlines parent AMR Corp. (AMR: news, chart, profile) traded lower by 14 cents, or 1.7 percent, to $8.11, the day after the company said it will cut capacity another 3.2 percentage points by March. By that time, American will be putting 18 percent fewer flights in the air. AMR Chief Executive Donald Carty told employees in Chicago on Monday that he would have to ask for pay cuts as the carrier struggles to find a profitable path. His comments came a week after leaders of UAL's mechanics union joined their colleagues in making wage concessions to help knock out $5.8 billion in operating costs over the next 5 1/2 years. Carty did not mention how deep the cuts would be or which employee groups would be most affected.
http://www.marketwatch.com/news/yhoo/story...542F594FF04B%7D
http://www.marketwatch.com/news/yhoo/story...542F594FF04B%7D
WingNaPrayer
Veteran
[BR][BR]
[BLOCKQUOTE][BR]----------------[BR]On 11/26/2002 9:16:10 AM [STRONG]Boomer[/STRONG] [EM]quoted from the trib[/EM]:[BR][BR]In what may be a harbinger of bad news for employees of American Airlines, the carrier's chairman and chief executive told Chicago-area workers Monday that [STRONG]wage concessions[/STRONG] may be needed.[BR][BR]----------------[BR][BR]And there you have it folks, the true cat is finally out of the bag, straight from the horse's ass....er...mouth![/BLOCKQUOTE][BR][BR]
[BLOCKQUOTE][BR]----------------[BR]On 11/26/2002 9:16:10 AM [STRONG]Boomer[/STRONG] [EM]quoted from the trib[/EM]:[BR][BR]In what may be a harbinger of bad news for employees of American Airlines, the carrier's chairman and chief executive told Chicago-area workers Monday that [STRONG]wage concessions[/STRONG] may be needed.[BR][BR]----------------[BR][BR]And there you have it folks, the true cat is finally out of the bag, straight from the horse's ass....er...mouth![/BLOCKQUOTE][BR][BR]
grndproxwarning
Member
- Oct 14, 2002
- 85
- 0
[blockquote]
----------------
On 11/25/2002 10:09:01 PM Wild Onion wrote:
What is the correlation between AMR and Enron again?
Frequently, someone here doesn't like HDQ's actions and they make this comparison in order to make themselves seem informed and educated. Then they write a gramatically poor and hard to read post.
When AMR comes up having squandered everyone's pension, lied on numerous SEC statements and intentionally defrauded millions of investors, then there will be a similarity. Until then, you merely disagree with AMR management, which happens at every major corporation in America.
Of course George W. Bush got a lot of campaign money from the energy industry. He's a Texan. Last time I checked, it was legal to contribute money to a presidential campaign.
Then again, the more I think about it, what in the world do Enron and George W. Bush have to do with AMR's (legal) discretionary use of the TWA assets anyway?
----------------
[/blockquote]
First of all,I if you dont understand my posts dont read
them..I was not aware that you needed good grammer to post here..I am used to notes and Email...I am not writing a formal letter here bucky..As to AMR ENRON,In my opinion
they are both mismanaged,and W is the one that said
WE ARE GOOD FRIENDS,BUT WE NEVER TALKED BUSINESS!!!
IE: Ken and W..Scary isnt it..
as far as TWA AND AMR.Lets just say I feel very sorry for
all the TWA Workers..I also feel bad for all the frontline
Emps at AA..But lets face it..The slashing has just begun
Might have to rename Don
CHAINSAW CARTY Before it is all over..
PS. POTATOE not POTATO
----------------
On 11/25/2002 10:09:01 PM Wild Onion wrote:
What is the correlation between AMR and Enron again?
Frequently, someone here doesn't like HDQ's actions and they make this comparison in order to make themselves seem informed and educated. Then they write a gramatically poor and hard to read post.
When AMR comes up having squandered everyone's pension, lied on numerous SEC statements and intentionally defrauded millions of investors, then there will be a similarity. Until then, you merely disagree with AMR management, which happens at every major corporation in America.
Of course George W. Bush got a lot of campaign money from the energy industry. He's a Texan. Last time I checked, it was legal to contribute money to a presidential campaign.
Then again, the more I think about it, what in the world do Enron and George W. Bush have to do with AMR's (legal) discretionary use of the TWA assets anyway?
----------------
[/blockquote]
First of all,I if you dont understand my posts dont read
them..I was not aware that you needed good grammer to post here..I am used to notes and Email...I am not writing a formal letter here bucky..As to AMR ENRON,In my opinion
they are both mismanaged,and W is the one that said
WE ARE GOOD FRIENDS,BUT WE NEVER TALKED BUSINESS!!!
IE: Ken and W..Scary isnt it..
as far as TWA AND AMR.Lets just say I feel very sorry for
all the TWA Workers..I also feel bad for all the frontline
Emps at AA..But lets face it..The slashing has just begun
Might have to rename Don
CHAINSAW CARTY Before it is all over..
PS. POTATOE not POTATO
Wild Onion
Advanced
- Aug 21, 2002
- 120
- 0
YOU can WRITE however you WANT, in ALL CAPS --- or with lot's-of EXTRA punctuation...!!!, no one CARES...CARTY CHAINSAW (HA HA HA), every problem in the world is W'S fault, ENRON ENRON ENRON, I'm right....W hates everyone...EVIL EVIL ENRON ENRON.
What the hell is the Potato bit about? Are you refering to a 15 year gaffe by Dan Quayle? What does that have to do with anything?
A solid argument is always well written and has a point. Since when is it OK to butcher the english language in an email or a note? Maybe I'm just overvaluing my high school diploma.
I'll read the posts I want to, and I'll respond to the posts I want to. If you don't like it, then either make a better post or be quiet.
What the hell is the Potato bit about? Are you refering to a 15 year gaffe by Dan Quayle? What does that have to do with anything?
A solid argument is always well written and has a point. Since when is it OK to butcher the english language in an email or a note? Maybe I'm just overvaluing my high school diploma.
I'll read the posts I want to, and I'll respond to the posts I want to. If you don't like it, then either make a better post or be quiet.
