New Business Plan

[RV4]

You best re-evaluate the concession package first.

The current pay/benefit cuts were designed to "keep jobs".

It you want to cut airplanes/jobs now, you would burn the candle from both ends.

Are you advocating a renegotiation of the T/A'd contracts? Or are you just adding reductions to them?

 

[AAONO]

July 2, 2002
CEO Carty says AMR needs a new business plan.


Source: Dallas morning news research dept.


I was just curious if anyone has seen the new business plan. Reduce capacity perhaps? To all those that say the union workers never offer suggestions....I say lay off 25%, 40%, 60% of the work force,whatever it takes. Ground the aircraft that are inefficient.(F100 to start, A300, older MD80''s) Management has all there little charts that break it down, take the most expensive to operate and park them. OK, now lay off how ever many people it took to operate that many aircraft. It''s the old supply and demand rule. There are too many available seats. Instead of offering 5 flights a day to Grandma''s house, just offer 3. Eventually Grandma will kick in the extra $20 to see her grandkids. Now get rid of the guy making the charts, all those aircraft are already gone. Keep the supervisor to worker ratio equal to or below the crew chief to worker ratio, we really don''t need that many supervisors...micro-management doesn''t work.
Alright, now we have fewer aircraft, planes are full. NO!! Do not buy more airplanes or brush the sand of the ones in the desert, raise your prices!
Wow! you know, I always wondered why that Harley cost so much....this supply and demand thing really does work.
But wait...the Industrial Unions do not want to cut heads, that would cost them union dues.......they want to have 100,000 people working for sub-par wages then to have 50,000 working for fair wages. Get out of bed with the union! It''s all in the business plan and the execution of the business plan, not the execution of the workers quality of life.
Also, I bet the workers wouldn''t be upset about management bonuses, they''d be getting profit sharing. Face facts...cutting heads and capacity is the only way out. Tick..tock...tick...tock...tick...tock

 

[AAONO]

----------------
On 4/18/2003 8:35:08 PM RV4 wrote:


You best re-evaluate the concession package first.

The current pay/benefit cuts were designed to "keep jobs".

It you want to cut airplanes/jobs now, you would burn the candle from both ends.

Are you advocating a renegotiation of the T/A''d contracts? Or are you just adding reductions to them?

----------------​

I know they were designed to keep jobs, thats why I voted NO, it will not get us out of this mess. Reducing capacity is the only way. The TWU didn''t want to hear "you need 600 mil from TWU.....then cut 10,000 heads" (numbers are for example only) That would cost the TWU more in union dues than if they were to just reduce base pay by 17% since dues is based on hourly base pay. Sorry , but it is reality. We are going into bankruptcy anyway, the great union buster Don just wanted to lower the bar before he lowers it further with a judge. And don''t forget the lobbying to change the RLA. Can you say "baseball arbitration"??? Lawmakers are already allowing overseas companies to take our jobs. Airline operated overhaul bases will soon be gone, don''t believe me, look at Carty''s bankruptcy threat,close the maintenance overhaul bases. As far as that goes, it has already been happening for years. Did you know that Rolls Royce is a 50% owner of TAESL,the AFW engine shop. They do ALL 757, 777 and use to do the F100 engine maintenance. AA pays an hourly fee for use of the engines. The aircraft will be next. When AA files bankruptcy, no problem, it''s a FAR 145 operation, the mechanics there will apply to work for TAESL knowing they won''t have a job with AA for long. If that doesn''t work they can always send the engines to there facilities in Canada, England or Hong Kong. Then there is the aircraft overhaul bases, farm it out..SWA does, works for them, get guys willing to work for $18 an hour, the Tulsa guys will do it! If not, Jose and Juan got some hanger space in Mexico. Eventually you will get down to a work force that is lean and efficient. It''s a reality. I am just waiting for my notice, see you in the unemployment line!

 

[Winglet]

Let''s see . . . Carty is out publically saying we need a new business plan? If he was a competent CEO and businessman, that plan would already have been implemented. But instead he carps about it.

This guy need to go before he can do any more damage to a great company.

 

[AAONO]

I only hope for the few that are left that they have the power to negotiate a fair set of work rules, pay and benefits in the future. The unions have already ruined what took years to accomplish. I have written my lawmakers in trying to stop my concessions agreement, as I feel it was not legal. Jim Little will not answer his phone calls, so dead end there, what else can you do?

 

[DFWCC]

----------------
On 4/18/2003 8:30:37 PM AAONO wrote:

July 2, 2002
CEO Carty says AMR needs a new business plan.


Source: Dallas morning news research dept.


I was just curious if anyone has seen the new business plan. Reduce capacity perhaps? To all those that say the union workers never offer suggestions....I say lay off 25%, 40%, 60% of the work force,whatever it takes. Ground the aircraft that are inefficient.(F100 to start, A300, older MD80''s) Management has all there little charts that break it down, take the most expensive to operate and park them. OK, now lay off how ever many people it took to operate that many aircraft. It''s the old supply and demand rule. There are too many available seats. Instead of offering 5 flights a day to Grandma''s house, just offer 3. Eventually Grandma will kick in the extra $20 to see her grandkids. Now get rid of the guy making the charts, all those aircraft are already gone. Keep the supervisor to worker ratio equal to or below the crew chief to worker ratio, we really don''t need that many supervisors...micro-management doesn''t work.
Alright, now we have fewer aircraft, planes are full. NO!! Do not buy more airplanes or brush the sand of the ones in the desert, raise your prices!
Wow! you know, I always wondered why that Harley cost so much....this supply and demand thing really does work.
But wait...the Industrial Unions do not want to cut heads, that would cost them union dues.......they want to have 100,000 people working for sub-par wages then to have 50,000 working for fair wages. Get out of bed with the union! It''s all in the business plan and the execution of the business plan, not the execution of the workers quality of life.
Also, I bet the workers wouldn''t be upset about management bonuses, they''d be getting profit sharing. Face facts...cutting heads and capacity is the only way out. Tick..tock...tick...tock...tick...tock



----------------​

AAONO, I wonder when AA goes down to 3 fl a day to grandma''s, what''s there to prevent DL or CO thinking
" here''s a chance to pick up market share and add a few flights? This industry isn''t smart enough to cut capacity to increase demand. Everytime there a sched cut someone else seems to be adding every day.

 

[Resman1]

It''s great in theory, however, the problem is not with Gramma paying the extra 20.00. The problem is that the business traveler is not going to pay 12 times what Gramma pays anymore. Until the company charges business traveler
fares (full fare Y and F and J class) that are competitive
with video conferencing, Gramma''s extra 20.00 won''t save us.

 

[767jetz]

For all those interested, here are Carty''s business plans A, B, & C:

A: Hold out as long as possible and wait for UAL to liquidate.

B: Hold out as long as possible and wait for UAL to liquidate.

C: Hold out as long as possible and wait for UAL to liquidate.


With the prospect of a UA liquidation diminishing rapidly, Carty is now caught with his pants down and scrambling to come up with a solution that doesn''t count on the demise of his competition. Now he is playing "monkey see, monkey do." He will take all he can from labor, cover his own a$$, take the company into CH11 anyway to turn the screws on creditors, then lobby the gov''t for additional anti-labor legislation such as baseball arbitration.

All airline CEO''s are cut from the same cloth!