What does one have to do with the other? STL stays open because there is a need for it not because of their performance. The slots and space in LGA is very limited, keepng headcount up is also a challenge.Bob,
Your examples are flawed.
In your example 1 you talk about STL being punished yet you have openly discussed that the TWA acquisition was a mistake. STL continues to get work and stay open due to their performance. Could the fact STL continues to stay open as a maintenance facility be because they work well. If purely a business decision shipping the work the work to say LGA would make more sense.
Example 2 you detail the 767 being sent to LAX. Don't airlines shuffle work based on their operations and facility capacity. No station owns the work. It is TWU AA work is it not?
exactly, no station owns the work and even if you are the best or worst in the system it really doesnt matter. For many years MIA had the reputation for being the worst in the system, yet MIA has done nothing but grow, and it will likely continue to do so..
In example 3 you talk about no OT. Greg Hall agreed to not layoff people in exchange that they would not work OT in the hope that union members could work instead of be laid off. The expectation is that the downturn would be short lived. Are you saying we should have laid off thousands so you could get OT?
No but then again Hall said a lot of things didnt he?
Example 4 you blame PLI but you incorrectly quote the $500M as recurring. It was not recurring or savings. It was value which could mean anything from a one time cost avoidance to harvesting JT8s off retired MD80s. You need to look at the MIT site. They show AA had less than 15 M&E employees per aircraft in the 1990s compared to over 20 to 1 today. AA had more fleet types then as well.
Obviously with all the competition for 3P work its cheaper for AA to do it in house.
More productive?
Yes AA is in the business to make money, and the amount of revenue generated per employee has nearly doubled, meaning we are nearly twice as productive as we were in 2002, what makes this even more remarkable is the fact that as you pointed out we do more work in house which should dilute that figure. The CASMs today are around what they were in 1930, in unadjusted figures.