Overspeed said:
Bob,
I thought Fantasy Land was in Disney World not JFK.
AA did not outsource at the highest rate. Look it up and do the math yourself.
1995 outsourcing percentages
American 18.50% Continental 45.61% Delta 12.56% Northwest 18.56% United 7.71% US Airways 29.39% America West 48.60% Southwest 68.48%
In 2003
American 21.95% Continental 39.16% Delta 23.88% Northwest 36.79% United 21.29% US Airways 35.03% America West 67.33% Southwest 59.01% jetBlue 27.27% AirTran 47.62% Frontier 52.05% Virgin Ame
In 2013
American 30.30% Continental Merged UA Delta 41.81% Northwest Merged DL United 52.06% US Airways 54.20% America West Merged US Southwest 59.68% jetBlue 69.46% AirTran Merged WN Frontier 55.68% Virgin America 25.37%
UAL has for long been our primary comparator. At least as long as I've been in this industry. Our contract is based upon Delta and United, and your figures show that we outsourced more than even non-union Delta in 1995 so the claim we adopted SRPs to keep work in house that our competitors started outsourcing is false and not supported by the documentation provided. If anything after we gave SRPs outsourcing increased at all the major carriers and decreased at the minor carriers, even WN saw a decrease in outsourcing. I've long said that our SRPs helped push the other majors into more outsourcing and your figures support that.
Since AA started outsourcing A&P work in house the other major carriers that were not able to get concessions from their Unions increased outsourcing but even though AA was able to outsource in house their level of outsourcing still increased to 30%.
As for the other carriers, the minors, their outsourcing was always higher. The smaller the carrier the less economies of scale, they would often send that work to AA, UAL and Delta. America West, Air Tran, Virgin Frontier, those are places that mechanics go to in order to get the experience to get to the AA, UA, US , WN and UPS of the industry.
I'm glad you included SWA, they are now large enough to be considered a "major carrier" lets continue to do so. But forget about the Frontiers and Virgins, starter airlines where we go to get experience because the company didn't even include them. You are getting desperate. All those carriers combines dont have the capacity of AA.
Ok glad you are including SWA, so is that the new industry? I'm ok with that.
Another problem is I believe these figures are based on Maintenance spend, so that would include wages as well. The AA numbers may be skewed because mechanics at AA lost pushbacks and deicing and that loss would not be reflected because the work went to Fleet Service. The cost would have been moved out of the maintenance costs. Work that went to SRPs would also not be counted as outsourced even though as far as A&P mechanics it was.
Uniteds spend may be higher because their language forces them to send Narrow bodies to domestic MRO's, AA can send theirs anywhere and they are not able to hide their outsourcing of A&P work internally like AA can.