Parker; How Much Longer Will He Last?

[CremaDiLimone]

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.

in 2019 - delta spent $300 million more (wages/benefits/profit sharing) on it's employees than aa did.

$12.9 billion vs. $12.6 billion.

 

[1986Mekanic]

in 2019 - delta spent $300 million more (wages/benefits/profit sharing) on it's employees than aa did.

$12.9 billion vs. $12.6 billion.

Yeaa, NYr likes to take the company side on everything. I have thought for a long time he's a company plant. Good post Crema

 

[CremaDiLimone]

the scaling back in jfk & bos was a huge plus for delta and ord for united. i see where the company now wants to start flying bos-lhr again.

25 years ago, didn't aa have 2 and maybe even 3 bos-lhr flights a day? 25 years ago, revenues weren't an issue.

in ord, united reconfigured older 767s adding many more premium seats to lhr. get more premium seats in the air for intl.

monkey see - monkey do. what is aa doing? more RJ seasonal service to steamboat springs? is that what delta and united have been doing to increase key metrics?

 

[V.O. Reason]

in 2019 - delta spent $300 million more (wages/benefits/profit sharing) on it's employees than aa did.

$12.9 billion vs. $12.6 billion.

Delta has about 12000 fewer employees however so while it does give them more of the pie the cost doesn’t effect the bottom line as much

 

[swamt]

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.

Thanks for that. So even United's was over double what AA just announced for 2019. 3/4's of tripling AA's.

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.

Delta just keeps winning.
Well, I have to eat crow. As some of you veterans will remember I argued with some on hear that AA will in fact outdo Delta once AA was out of BK for the same time as Delta. Well, I was dead wrong. AA can't even keep up and looking for another 3 years plus just to "catch up" with United and still far behind Delta after a total of 10 years after BK. NOT a good record for Parker, time to pull the plug.

 

[Rogallo]

Sad, ain't it?

 

[CremaDiLimone]

Delta has about 12000 fewer employees however so while it does give them more of the pie the cost doesn’t effect the bottom line as much

not sure what you're trying to say here?

aa already cut costs by replacing mainline (higher labor costs but revenue generating- premium pax/freight/mail) with eagle (less labor costs, but much less revenue - no premium pax, no freight/mail).

the example of cutting off your nose to spite your face.

when i went to school, we were taught that fixed costs are gold to business. hedging some of your fuel would fix some of your fuel costs.

aa refuses to even think about hedging a percentage of it's fuel purchases, delta made a tiny profit in 2019 from fuel hedges.

every little bit helps. just look at their profit sharing.

in the usa's #1 airport for connectivity, ord, aa RJ service has some 290 flights a day and aa mainline has about 210 flights a day.

what is that??? go with RJ service/envoy and the top line takes a huge hit. we can't even get figures with how many envoy ramp there are.

i'm sure the twu knows, but the issue here is they pay dues to the twu, so who cares?

i think most of us want to like parker and want the airline to do well. the company shouldn't blame labor for it's issues due to overall preformance and business decisions.

 

[ALUS78]

Yeaa, NYr likes to take the company side on everything. I have thought for a long time he's a company plant. Good post Crema

Everyone knows Nyers real name and where he works you just dont like what he posts

 

[1AA]

the scaling back in jfk & bos was a huge plus for delta and ord for united. i see where the company now wants to start flying bos-lhr again.

25 years ago, didn't aa have 2 and maybe even 3 bos-lhr flights a day? 25 years ago, revenues weren't an issue.

in ord, united reconfigured older 767s adding many more premium seats to lhr. get more premium seats in the air for intl.

monkey see - monkey do. what is aa doing? more RJ seasonal service to steamboat springs? is that what delta and united have been doing to increase key metrics?

Monkey see, monkey do as in profit sharing payouts?

 

[V.O. Reason]

not sure what you're trying to say here?

aa already cut costs by replacing mainline (higher labor costs but revenue generating- premium pax/freight/mail) with eagle (less labor costs, but much less revenue - no premium pax, no freight/mail).

the example of cutting off your nose to spite your face.

when i went to school, we were taught that fixed costs are gold to business. hedging some of your fuel would fix some of your fuel costs.

aa refuses to even think about hedging a percentage of it's fuel purchases, delta made a tiny profit in 2019 from fuel hedges.

every little bit helps. just look at their profit sharing.

in the usa's #1 airport for connectivity, ord, aa RJ service has some 290 flights a day and aa mainline has about 210 flights a day.

what is that??? go with RJ service/envoy and the top line takes a huge hit. we can't even get figures with how many envoy ramp there are.

i'm sure the twu knows, but the issue here is they pay dues to the twu, so who cares?

i think most of us want to like parker and want the airline to do well. the company shouldn't blame labor for it's issues due to overall preformance and business decisions.

I’m saying that DL labor cost are lower because they have fewer employees.
The issue is how does AA combat that to bring our cost in line.
The way AA is choosing to do it is tar RJ flying and trying to build up our profitable hubs in CLT and DFW.
However from what I’ve read that has not worked well for AA.
So yes the leadership is a problem as their strategy isn’t working.
However again labor cost still are high for AA and it’s inevitably going to mean fewer people and you can’t cut enough managers to actually effect that cost it has to come in other areas where the other carriers are beating us.
No I’m not saying we should get a **** contract it just needs to make sense for future labor cost that is competitive

 

[NYer]

in 2019 - delta spent $300 million more (wages/benefits/profit sharing) on it's employees than aa did.

$12.9 billion vs. $12.6 billion.

That's Including the profit sharing payout. It's more than a billion less in wages and benefits ($11.4B).

 

[NYer]

I’m saying that DL labor cost are lower because they have fewer employees.
The issue is how does AA combat that to bring our cost in line.
The way AA is choosing to do it is tar RJ flying and trying to build up our profitable hubs in CLT and DFW.
However from what I’ve read that has not worked well for AA.
So yes the leadership is a problem as their strategy isn’t working.
However again labor cost still are high for AA and it’s inevitably going to mean fewer people and you can’t cut enough managers to actually effect that cost it has to come in other areas where the other carriers are beating us.
No I’m not saying we should get a **** contract it just needs to make sense for future labor cost that is competitive

Understand the premise of trying to make case about incompetent management but at least pick real issues.

Revenues have gone up every year since 2016, including 2019 without the use of more than 50 737Max.

The issue with the labor costs is LAA has more employees and by the look of the proposals their plan is to cut some, but also not grow much more other than organically.

Another issue, at least in the Fleet world, is how DL can lower their overall expense with the use of thousands of Ready Reserve, who are limited in hours, have a different pay scale and no medical benefits.

Everyone wants to get rid of Parker, thinking a different CEO means more for us. On the other hand, a different CEO could absolutely mean less for us. Grass isn't always greener.

 

[ALUS78]

Understand the premise of trying to make case about incompetent management but at least pick real issues.

Revenues have gone up every year since 2016, including 2019 without the use of more than 50 737Max.

The issue with the labor costs is LAA has more employees and by the look of the proposals their plan is to cut some, but also not grow much more other than organically.

Another issue, at least in the Fleet world, is how DL can lower their overall expense with the use of thousands of Ready Reserve, who are limited in hours, have a different pay scale and no medical benefits.

Everyone wants to get rid of Parker, thinking a different CEO means more for us. On the other hand, a different CEO could absolutely mean less for us. Grass isn't always greener.

When Parker ssys he would.sign UAs contract and DLs rules and compensation tomorrow it doesnt give us a leg to stand on.I dont understand why i feel reasonable intelligent people wont and dont get it

 

[CremaDiLimone]

Understand the premise of trying to make case about incompetent management but at least pick real issues.

Revenues have gone up every year since 2016, including 2019 without the use of more than 50 737Max.

The issue with the labor costs is LAA has more employees and by the look of the proposals their plan is to cut some, but also not grow much more other than organically.

please -

#1 - yes, aa's revenues have increased. check out the percentage of yoy gains for dl and ua in regards to the top line, revenue.

again, aa has a revenue issue. i've spelled it out...if you still don't believe me, read barron's and the wall street journal.

#2 - labor costs and amount of employees. didn't seem to be an issue for aa. they decided to keep how many catering jobs?? how many lavs and water jobs? freight?

the disappointing part is that aa had and may still have a chance to shake up the company. they prefer the status quo and this is the real reason wall street doesn't like parker & co.

 

[La Li Lu Le Lo]

monkey see - monkey do.

Sea monkeys throw monkey doo? Well that is interesting but I don't see what it has to do with Parke...... oh wait... never mind. I see it now.