Parker; How Much Longer Will He Last?

[swamt]

And now a third article that needs to added to the growing list of negative Parker articles. he seems o be proud of the 213 million being paid out in PS to employees. That amount is what other airlines are paying in one quarter, or less. Delta is paying out Billions in PS. SWA is paying out more than 3 times what AA is paying at nearly 700 million for the year. Not sure what UAL's was/is. here's the list with the added 3rd one at end:

https://www.yahoo.com/news/m/3357eb1d-0873-35e3-ad1f-b29f47979aa4/american's-margin-gap-between.html

https://seekingalpha.com/article/43...is-in-perpetual-state-of-uncontrolled-descent

https://viewfromthewing.com/american-airlines-has-terrible-employee-morale-its-ceo-is-clueless-why/

Please feel free to add to the list. BOD's and Investors are watching and reading...

 

[CremaDiLimone]

Not sure what UAL's was/is. here's the list with the added 3rd one at end:

united's profit sharing was at $491 million for the year..about 45% higher than last year's and i believe - payable at end of feb.

 

[Vortilon]

Why bother stalking a guy who has been gone from AA for almost 17 years? Everyone knew Carty was on the board at Dell starting back in 1992.

Like it or not, Carty was (and probably still is) a brilliant finance guy. He sucked as a leader and CEO, but the discipline and talent he showed for finance was well worth sharing with other companies willing to pay him for guidance, so why not?

Yeah, he was a real genius. Wasn't he the guy that spearheaded the TWA asset purchase? Looking back, that showed true brilliance, I mean I don't know where AA would be without that strategic move.

 

[1AA]

Yeah, he was a real genius. Wasn't he the guy that spearheaded the TWA asset purchase? Looking back, that showed true brilliance, I mean I don't know where AA would be without that strategic move.

Also spent millions on that failed Canadian airline deal that his brother was somehow financially tied into it.

https://www.wsj.com/articles/SB892684921378544000

 

[Kev3188]

Yeah, he was a real genius. Wasn't he the guy that spearheaded the TWA asset purchase? Looking back, that showed true brilliance, I mean I don't know where AA would be without that strategic move.

To be fair, it probably would’ve been an okay move had 9/11 not happened.

 

[La Li Lu Le Lo]

Also spent millions on that failed Canadian airline deal that his brother was somehow financially tied into it.

https://www.wsj.com/articles/SB892684921378544000

Like I said.... same circus different clowns.

 

[eolesen]

Carty is responsible for AMR's growth plan in the 1980's. In particular, he negotiated the "walkaway lease" deals with McDonnell Douglas on the MD80, Boeing for the 767, and Airbus for A300's. Go do your own research on how groundbreaking those deals were, in that AMR could hand the airplanes back to the manufacturer with no penalty (nobody has done a deal like that since).

Honestly I am disappointed.... I consider you one of the smartest people on this forum.

So do I.

Yeah, he was a real genius. Wasn't he the guy that spearheaded the TWA asset purchase? Looking back, that showed true brilliance, I mean I don't know where AA would be without that strategic move.

Carty turned TWA down, and they came back begging. Financially, again, that deal was a steal.

As already mentioned, 9/11 changed everything, and frankly, the TWA purchase saved legacy AA jobs. Layoffs during that timeframe were disproportionately higher for former TW employees. It eliminated an undercutter in terms of pricing, and AA wound up with 175 aircraft for $792M, including a bunch of newer MD80's that were only just recently retired. We'll never know how successful that could have been absent 9/11.

Also spent millions on that failed Canadian airline deal that his brother was somehow financially tied into it.

You mean the deal that launched oneworld ?.... AMR invested $246M in CP, and a few years later, AC paid $137M for AMR's ownership stake. That could be read as a $109M loss (which is a benefit for reducing taxes...), but I suspect AMR got more than that in terms of charging CP service fees for everything from ground handling, fueling, weight and balance, frequent flyer mileage, and at least that much in incremental revenue via codesharing and oneworld itineraries.


You can say that Parker and Carty are cut from the same cloth, but the reality is Carty showed some vision along the way, and knew when to fall on his sword. Parker simply wanted to be CEO of a larger airline, and aside from pulling off two mergers, hasn't really innovated or done anything new, nor has he been willing to step aside for the good of the company even though it would probably be for the best.

 

[La Li Lu Le Lo]

I consider you one of the smartest people on this forum.

So do I.

You consider yourself one of the smartest people on this forum?

 

[NYer]

Yeah, he was a real genius. Wasn't he the guy that spearheaded the TWA asset purchase? Looking back, that showed true brilliance, I mean I don't know where AA would be without that strategic move.

Obviously, you don't remember what was happening in the industry at that time. It didn't work out but the reasoning wasn't the issue.

Then again, the point of this thread is to bash not necessarily to objectively discuss the issues.

 

[NYer]

Carty have us the best contract we've had and it is something many have tried to recapture with the "restore and more" fantasy.

One of the biggest issues in the current situation, which I guess everyone is willing to ignore, is the fact that labor costs contributed to the margin gaps. Advocating to get rid of a CEO willing to add to that gap in costs seems counterproductive.

We have tens of thousands more employees than any other airline. If a CEO is brought in to fix the sagging stock price and the margin gap where do you think they'll start?

They'll buy less planes? Spend less on product? Cut dividends? No more stock buybacks?

There is a cost problem, not a revenue problem.

 

[V.O. Reason]

Carty have us the best contract we've had and it is something many have tried to recapture with the "restore and more" fantasy.

One of the biggest issues in the current situation, which I guess everyone is willing to ignore, is the fact that labor costs contributed to the margin gaps. Advocating to get rid of a CEO willing to add to that gap in costs seems counterproductive.

We have tens of thousands more employees than any other airline. If a CEO is brought in to fix the sagging stock price and the margin gap where do you think they'll start?

They'll buy less planes? Spend less on product? Cut dividends? No more stock buybacks?

There is a cost problem, not a revenue problem.

Yes this is a big issue and it happens in all mergers.
Labor and fuel are always the biggest expense for airlines
Now with that said there are some operational problems can be controlled by the leadership.

Trust me back in the mid 90s Delta was not all what those who praise them for today. I worked in JAX which was one of Delta’s most senior stations and management came in and told the ramp guys you had 2 choices move upstairs or move to ATL and these guys had 30 plus years just so they could farm out the ramp
Every airline has good and bad it’s all of what you make of it

 

[NYer]

Yes this is a big issue and it happens in all mergers.
Labor and fuel are always the biggest expense for airlines
Now with that said there are some operational problems can be controlled by the leadership.

Trust me back in the mid 90s Delta was not all what those who praise them for today. I worked in JAX which was one of Delta’s most senior stations and management came in and told the ramp guys you had 2 choices move upstairs or move to ATL and these guys had 30 plus years just so they could farm out the ramp
Every airline has good and bad it’s all of what you make of it

My point is how LAA labor expenses are higher than the same expense at other airlines. We have many, many more workers with similar aircraft numbers.

 

[V.O. Reason]

My point is how LAA labor expenses are higher than the same expense at other airlines. We have many, many more workers with similar aircraft numbers.

Yes, agreed and many of the articles I’ve read points these issues out as to why AA debt is an issue that needs addressed

 

[NYer]

Yes, agreed and many of the articles I’ve read points these issues out as to why AA debt is an issue that needs addressed

It's debt that was necessary. It isn't operating debt like what led to the BK.

It is also debt that was taken on by Arpey, not Parker so I don't see how the BOD will blame the current regime.

Another miscue by the "Parker must go" crowd.

 

[CremaDiLimone]

There is a cost problem, not a revenue problem.

really? aa with a definite revenue problem.

delta with nearly 500 less planes..

revenue passenger miles (in millions) in 4q 2019:

aa (mainline and RJ) - apprx 59,000

dl - apprx 56,000

in 2019, delta didn't break down their number of RJ equipment - but aa has 942 mainline jets and 605 RJs.

operating revenues in 4q 2019:

aa - $11.313 Billion

dl - $11.439 Billion.

dl flew less miles with less equipment, yet pulled in $126 million MORE in revenue than aa.

aa has a revenue problem. as posted here for years, premium pax generate MORE revenue than economy pax and aa's 'premium economy' appears to be a yawn.

when aa slowly pulled away from premium pax hot spots as jfk/ord/bos, this is when delta surged past aa.

aa has 605 RJs. let's remember that as recently as last year, aa told us that nearly 70% of ALL RJs do not have one premium seat on the aircraft.

revenue problem brought on by aa mngt. that is running the airline as it's 2002, not during the current economic boom.