Gee Eric.....If AA wants FDX and SWA staffing levels, then IT IS THEIR DECISION!!!!
I am sure they can figure out how to get rid of OH!
Tell me why they haven't even attempted this transition?
And please, don't blame the contract!
A trip to the bankruptcy court would be all behind us now!
That recent WSJ article about the Aircraft Painting companies gave us a glimpse as to why AA still does their OH, because for all their BS about "higher labor" costs etc its much cheaper to do it in house. According the the WSJ airlines pay between $50,000 to $200,000 for a paint job, AA has polished skin but they have three different colored strips, which drives up the price. Add in that competitors have to fly the planes to where those shops are and you are probably talking at a minimum of $100,000 per plane for a paint job.
AA has a crew of maybe 5 OSMs work 8 days to repaint their MD-80s and they use rollers, cutting down the waste and avoiding most of the EPA stuff. Even if you figure in $10/hr on top of the OSM rate for benni's you are still looking at less than $10,000 for labor plus a few buckets of paint. It probaly costs AA less for the whole job than competitors spend flying their plane to the paint shop. So yea, the competitor, all things being equal would have $10,000 less in labor costs but they pay an extra $90,000 for the same result, a paint job.
AA has said they have the highest labor costs, they have never said that doing OH in house costs more. Why do you think that is?