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On 4/21/2003 8:44:17 PM AAObserver wrote:
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On 4/21/2003 8

21 PM RV4 wrote:
All you produce is more FEAR. There is no plan? Or you don''t care about any plan?
If all you want to do is save JOBS, and you are in an industry flooded with over capacity, then you are placing more jobs in jeopardy than any downsize will.
I hate to inform you but someone has to buy tickets at a profitable price to fund those jobs. The jobs dont just survive because we keep ariplanes flying via concessions!
So lets'' go your way. The union members again vote for concessions, then Delta, Continental, Northwest, ect. also use the fear tactics you use to extract concessions. Now we are in the same position, too much capacity and not enough demand. So now we all fight over customers at $25 per ticket instead of the current $44 sale.
And where do we end up? Still losing money, still facing BK, and still NO PLAN.
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If the union members vote for the concessions, then AA is in a much better position to sustain itself under today''s ticket prices. If you check statistics, you''ll see that capacity is not the biggest problem these days. Most flights are pretty full even with all the world issues.
Do you work at HDQ? You obviously do not work at the airport, after spring break the airplanes have been empty. I witness it daily. Too much capacity!!!
The problem is that Southwest, Jet Blue, etc. have driven ticket prices down to low levels, and businesses are no longer willing to pay the premium last minute prices for their travellers. Therefore, AA and the other major airlines have had to lower their prices to keep the planes full. And just because a flight is full doesn''t mean it''s profitable. (Reduce the number of available seats, and raise the price when demand exceeds supply.... SUPPLY and DEMAND......I learned that in the 3rd grade!)
If AA''s costs (primarily labor costs) (like too many management people?, I have 5 supervisors in the office where only 1 maybe 2 is needed. Come visit, I''ll show you!)were in line with today''s market,( todays market, a Southwest mechanic makes more than I do before the concessions, ya, they outsource their overhaul....Hey Don, get the idea.....oh yea, you did because you said you''d close 2 of the overhaul bases in chapter 11....BRAVO!) they could continue on as they are right now. AA has already reduced capacity,(by parking some old TWA aircraft and a few dutch ovens?) but it''s cost structure has remained way to high to support the reduced capacity ???even when the planes are full.
See you in the unemployment line!
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