D
Deleted member 14439
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"Your M&R Negotiating Committee appreciates your patience and support as we work toward an agreement"....whoopsie, it`s not Friday yet.
TWU negotiations.........what?
- Thread starter Chuck Schalk
- Start date
Overspeed
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- Jun 27, 2011
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Exactly, the total ticket price paid remained the same. The consumers just kept paying the same price. Instead of paying $90 + $10 tax the airline collected the full $100. Consumer pays the same price they paid before the increase. No total all-in fare hike.
From the article;
"Friday evening we adjusted prices so the bottom line price of a ticket remains the same as it was before prior to the expiration of federal excise taxes, etc.," American Airlines spokesman Tim Smith said by email.
- Aug 20, 2002
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Then why did the company not give the customer a break? Do this and win until the others match this action.
TIME FOR CHANGE
Veteran
Oil tumbles below $78
How much money is AA saving on fuel
http://finance.yahoo.com/news/Oil-tumbles-below-78-amid-US-apf-79043104.html?x=0&sec=topStories&pos=1&asset=&ccode=
How much money is AA saving on fuel
http://finance.yahoo.com/news/Oil-tumbles-below-78-amid-US-apf-79043104.html?x=0&sec=topStories&pos=1&asset=&ccode=
Frank Szabo
Veteran
Odds are that everyone's fuel hedges are underwater now because of the drop - ie, all are hedged at a higher price.
Exactly.
Additionally, what matters is the price of jetA, not necessarily crude, and the price of refined products doesn't always drop as fast as crude - just like the gas pump prices are slow and sticky on the way down compared to greased lightning on the way up.
Overspeed
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- Jun 27, 2011
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Because if they gave the customer a break during the temporary tax "holiday" when the tax was reinstated customers would scream about the increase even though it wasn't the fault of the airline. By filling in the tax "holiday" with a temp increase the customers don't feel like they are getting screwed (as much) by the airlines juggling fares. The airlines get some extra money as a result. Could have been a PR boost maybe if AA had said something like "Congress screwed up and the customer wins at AA. By your ticket now before the tax kicks back in!"
http://www.bloomberg.com/news/2011-08-08/southwest-pulls-back-fare-increases-on-faa-bill.html
Overspeed
Veteran
- Jun 27, 2011
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The infamous crack spread!
http://www.airlines.org/Energy/Fuels101/Pages/AirlineEnergyQA.aspx
- Aug 20, 2002
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I would not want to fly on your airline........
Screw if they do, screw if they don't.
OP
Chuck Schalk
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- Nov 17, 2006
- 1,042
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- Thread Starter
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- #3,310
The economy is doing funny things, and so is American Airlines (AMR). Yesterday the stock price dropped below 3.90 a share at closing leaving AMR with a Market Cap of under $1.25 Billion. It is understandable that the entire market is still a little skiddish of the debt plan that the government concocted, but the problem at American is much worse.
In 2000, AMR purchased TWA for a total of $782 Million using $500 Million in cash to fund the deal. AMR shares were trading at $34 the day the deal was announced. What happened to 90% of the value of AMR?
Under Robert Crandall’s watch, American was an aggressive growth company that ran afoul of the DOT once or twice in order to block competitors from gaining routes. Today under Gerard Arpey, American has walked away from nearly all of its investment in Reno Air, leaving the routes to Southwest Airlines (SWA), and then walked away from Long Beach leaving routes to upstart Jet Blue.
From 1998 to 2003 Don Carty was the CEO of American while the stock slid from a high of about $38 to $11 about the time he was ejected by the board. Clearly the board to the steps they should have. So what is happening now?
Since Sept 11, 2001 Mr. Arpey has used high costs as his excuse for everything. The spirit of competition at American is all but gone and the market knows it. How else could Southwest Airlines be worth $ 7 Billion vs. American’s paltry $1.25B and American did almost exactly double the revenue.
Gerard Arpey has not been the CEO that American needs, he hasn’t had the chain smoking enthusiasm for the Airline business that Robert Crandall brought, or the tattoo yielding LUV that Herb brought to Southwest. In fact instead of being out cheerleading the enthusiasm of the new 400+ aircraft purchase, he has been nearly unseen according to most American employees at the Dallas Hub located just minutes from the headquarters.
Labor isn’t the problem at American Airlines, the leadership is. The longstanding gap between labor and management at American could have been welded shut when Mr. Arpey took over the carrier from Don Carty. Instead labor pay cuts and increasing management bonuses have only deepend and widened the chasm Mr. Arpey must cross to restore the ailing carrier.
Recently at the opening of Terminal two at San Francisco International Airport, you could see the problem first hand. Richard Branson of Virgin American showed up and brought along his space ship and astronaut Buzz Aldrin to speak about the future. Mr. Arpey sent a 1940’s era DC-3 that left a trail of oil on the gleaming new tarmac and a few retired instructor pilots. Mr. Arpey was nowhere to be found.
The recent good news of American buying 420 new airplanes is slightly reminiscent of the deal that Robert Crandall struck to buy the current MD-80 fleet at a super discount and grow the airline. The difference was he had all the labor deals in his pocket first. According to the press releases recently by the mechanics and flight attendants, Mr. Arpey is nowhere close to having these agreements.
With a looming pilot shortage and pilot pay that is among the lowest in the industry, sources say that American is getting less than 20% of its furloughed pilots returning to work. Where does Mr. Arpey plan to get the 4000 plus new pilots to fly the 420 new airplanes?
The bottom line is American is generating twice the revenue, and half of the gross margin of Southwest and is valued by the market at one seventh of its competitor Southwest. Is the board ever going to do anything besides approve another bonus for Mr. Arpey? In many markets, American’s competitive answer to Southwest has been the much smaller, slower and less efficient jets of American Eagle and that just doesn’t fly. Even under $4.00 Mr. Arpey hasn’t given us a reason to buy.
Post Published: 03 August 2011
Author: Freelance writers
Found in section: Beach St. Biz
In 2000, AMR purchased TWA for a total of $782 Million using $500 Million in cash to fund the deal. AMR shares were trading at $34 the day the deal was announced. What happened to 90% of the value of AMR?
Under Robert Crandall’s watch, American was an aggressive growth company that ran afoul of the DOT once or twice in order to block competitors from gaining routes. Today under Gerard Arpey, American has walked away from nearly all of its investment in Reno Air, leaving the routes to Southwest Airlines (SWA), and then walked away from Long Beach leaving routes to upstart Jet Blue.
From 1998 to 2003 Don Carty was the CEO of American while the stock slid from a high of about $38 to $11 about the time he was ejected by the board. Clearly the board to the steps they should have. So what is happening now?
Since Sept 11, 2001 Mr. Arpey has used high costs as his excuse for everything. The spirit of competition at American is all but gone and the market knows it. How else could Southwest Airlines be worth $ 7 Billion vs. American’s paltry $1.25B and American did almost exactly double the revenue.
Gerard Arpey has not been the CEO that American needs, he hasn’t had the chain smoking enthusiasm for the Airline business that Robert Crandall brought, or the tattoo yielding LUV that Herb brought to Southwest. In fact instead of being out cheerleading the enthusiasm of the new 400+ aircraft purchase, he has been nearly unseen according to most American employees at the Dallas Hub located just minutes from the headquarters.
Labor isn’t the problem at American Airlines, the leadership is. The longstanding gap between labor and management at American could have been welded shut when Mr. Arpey took over the carrier from Don Carty. Instead labor pay cuts and increasing management bonuses have only deepend and widened the chasm Mr. Arpey must cross to restore the ailing carrier.
Recently at the opening of Terminal two at San Francisco International Airport, you could see the problem first hand. Richard Branson of Virgin American showed up and brought along his space ship and astronaut Buzz Aldrin to speak about the future. Mr. Arpey sent a 1940’s era DC-3 that left a trail of oil on the gleaming new tarmac and a few retired instructor pilots. Mr. Arpey was nowhere to be found.
The recent good news of American buying 420 new airplanes is slightly reminiscent of the deal that Robert Crandall struck to buy the current MD-80 fleet at a super discount and grow the airline. The difference was he had all the labor deals in his pocket first. According to the press releases recently by the mechanics and flight attendants, Mr. Arpey is nowhere close to having these agreements.
With a looming pilot shortage and pilot pay that is among the lowest in the industry, sources say that American is getting less than 20% of its furloughed pilots returning to work. Where does Mr. Arpey plan to get the 4000 plus new pilots to fly the 420 new airplanes?
The bottom line is American is generating twice the revenue, and half of the gross margin of Southwest and is valued by the market at one seventh of its competitor Southwest. Is the board ever going to do anything besides approve another bonus for Mr. Arpey? In many markets, American’s competitive answer to Southwest has been the much smaller, slower and less efficient jets of American Eagle and that just doesn’t fly. Even under $4.00 Mr. Arpey hasn’t given us a reason to buy.
Post Published: 03 August 2011
Author: Freelance writers
Found in section: Beach St. Biz
I'm not so sure about the accuracy of this statement in regard to pay. Our pilots have only recently been surpassed by Delta, who is now the industry leader in pay, in the last year or so by a very slim margin. If our pilots settle in the near future they will probably regain the lead. I can only envy our pilots who have been very savvy negotiators in regard to pay and benefits.
Mr Red
Veteran
- May 11, 2010
- 612
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Need to do your research.All work groups at AA are at the lower end of pay scales for airline employees.Why do you think Top manangment gets bonuses every year,They got employees to volutarily take BK wages,and renegotiated all vendor contracts without hiring the lawyer team. Unbeliveable!!
No, Birdman is correct and the article quoted by Chuck (which contains numerous factual errors) is incorrect. AA's pilots were the highest paid legacy pilots from 2005 (when DL's pilots got their pay whacked) until very recently when DL's pilots once again began surpassing them. For several years, only WN pilots made as much as AA pilots.
AA's FAs are near the top in average pay (annual income per FA) but lag somewhat in pay rates.
AA's mechanics? Industry-lagging pay. Blame the worthless union. Nothing but impotent parasites.
Frank Szabo
Veteran
That's what I was thinking - haven't seen any on the property for 20+ years - I've seen plenty of parasites, both union and company, but no management.
