No, no one will pay more for pajamas. As you know, airfares (especially premium class fares) are generally the same no matter the airline.
By differentiating the product, AA hopes to attract an additional fare away from UA/CO or DL/AF/KLM or USAir. Maybe things like this will work in selling a ticket to someone who would otherwise fly a competitor. Maybe not. Maybe superior service offerings will help attract/retain corporate contracts that would otherwise go to a competitor.
That's how airlines compete for premium customers: fancy seats and nice meals and quality wines, etc. Even sleep-assisting amenities like the ones announced recently by AA. The airline that attracts more premium customers than the others will succeed. The airlines that lag - well, they lose. They eventually file for Ch 11 protection, gut wages and benefits and cancel the stock of their stockholders. Their pilots see their pensions slashed and replaced with notes, promises and new stock.
Really? So what does WN do to attract premium customers? They dont waste a lot of cabin space and provide a lot of amenities in search of "premium Passengers" yet they have always shown a profit, never threatened bankruptcy and pay their mechs over $25k/yr more than AA does.
Despite the widespread belief on this forum that the Ch 11 process is all rainbows and unicorns for the employees at the airlines where that has happened, the employees at those airlines know how they have fared.
Widespread belief? I've never seen anybody describe the process as you claim they have.
AA can't afford your current pay, let alone afford to increase your pay. During 2008, 2009, 2010 and the first half of this year, AA has lost billions of dollars.
Have they? Or did they lose Billions of dollars that never existed anywhere but a spread sheet? Things such as the $988 million in "Goodwill" that they lost in 2002 and other legal but intangible assetts that they've written off over the years? They cant afford to pay us but they can buy 460 more new airplanes in addition to those they already had on order.
Yes, revenues are up substantially from the post-September 11 lows. Revenues in those lean years were not enough to pay the bills in those years, leading to huge losses in those years. Fuel is up by billions of dollars per year and wages are down by about $1.6 billion per year. AA lost billions in 2001, 2002 and 2003 and has lost billions in the aggregate in 2008, 2009, 2010 and this yearl. Your massive concessions in 2003 ($1.62 billion per year from the represented workgroups or about $9 billion so far) wasn't enough to cover the more than $20 billion increase in fuel over the past 8 and a half years (compared to fuel costs in 2001-03).
Between the increased revenue and the cost cutting it more than covered the $20billion in increased fuel over the last eight years.
Yes, the 2003 concessions were huge. Problem is, they weren't huge enough. To make ends meet, AA has burned a lot of furniture since then (billions of dollars worth) and borrowed billions of dollars since 2003. Additionally, AMR sold billions of dollars of new stock to investors since 2003.
If things were as bad as you say why would anybody buy that new stock? How much did you buy? Didnt they also cut some sort of a private bond deal?
I have no idea what BA pays. Are you planning to apply for a job with BA? In NYC or London? Good luck.
No but if you want to make comparasions then lets make comparasions.