FrequentFlierCA
Veteran
- Feb 25, 2008
- 591
- 35
That's because the employees took 25% pay cuts while AA management rewarded themselves with huge bonuses. The employees saved the company, not the managers.
The employee concessions did save the company from bankruptcy, no doubt about it. I also think that management isn't a dumb and useless as many on this board would like to think or portray. As four of the biggest seven US airlines went through Chapter 11 in 2002-2005, AA managed to stay out, keeping its retiree benefits in tact. Again, I credit the employees for taking the hit, but the management team negotiated the concessions, arranged financing and led the company with what was - at the time - a seemingly positive relationship with the entire work force.
Obviously there have been lots of sour grapes on both sides since then, but if you want an example of a management team of stooges and profiteers, UA fits the bill much better than AA.