Bob Owens said:Let me clarify it for you. We should have rejected the concessions, period. Whether or not they would have filed is speculation. They had a drop dead date that was quickly amended when the F/As rejected the contract.
If I recall I jumped all over you because your statement implied that if we rejected the contract we would have forced AA to go C-11.
If the company had chosen C-11 then so what? We lost more than UAL did anyway. With 60% or so of the industry facing possible liquidation and the unions holding to their guns that abrogation will mean strike I feel the results would have been quite different than they have been. And over the long run airline workers would have been much better off.
Yes, you are a bright guy, and I'm sure that you realize that such an utter collapse of the industry would force the government to do something. When the NYC MTA claims they have no money, they raise fares, they dont go and cut the workers pay by 25%. If the government wants air travel to be just as accessible as a subway train or a city bus then fund it like that, dont expect us to work these crazy hours, weekends and holidays for nothing.
Oh, so its not the LCC'S?
When one is being dragged down usually what is dragging you down is lower than you, the fact is we undercut both of those carriers. Our labor costs were and are lower. They did not drag us down, they simply gave the TWU and AA the excuse to push us down.In fact its the opposite of what you claim, our concessions put the final nail in their coffins. So even when they are gone, what did we accomplish? We are stuck with this until 2009. We would need to nearly double our wage just to get back to where we were. While it might be a good deal for a company to engage in predatory pricing so that they can raise fares in the future it doesnt do us a damn bit of good to agree to long term concessions to put someone else out of work. While the TWU may like the idea of more dues payers those people who are not absorbed are now competitors for our jobs and we will not have the flexibility to arbitrarily restore our wages or benifits either.
Well I'm still working with a paycut, plus they raised my out of pocket costs for medical, so they are treating us no better this year than last. I've always said that the LCC claim was a farce,seems that you have altered from your position there.
So by not going BK AA got to keep the $20 Billion in debt, preserve the value of AA stocks and AA's other creditors kept getting their bills to AA paid even if AAs employees cant pay their bills. Gee that should make us all feel great shouldnt it? We are falling into debt, working second jobs all so people can fly cheap and everyone else can profit off the service that we provide!
I keep hearing too much capacity, even though the airplanes are flying with historically high load factors. I know, breakeven point, well that goes back to price. Like I said if the airplanes are flying full, they could have charged more. Its like an old Abbott and Costello routine.
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Planes are full? The publicly available data don't support that claim.
For instance, last month, AA's systemwide load factor was 73.4%.
http://biz.yahoo.com/prnews/041202/dath034_1.html
Yes, I realize that is several points higher than AA's historic load factors for much of the 1980s and 1990s, when it tended to hover around 67% to 70% or so. But overall, there are still plenty of empty seats.
And load factors are up because airlines are desperate for any revenue they can get, and have thus reduced fares to try to fill those seats. Increase price, you say? The year 2000 saw 11 industrywide price hikes. Back then they stuck. AA and others have tried to raise price many times in the past 3 years. But very few of them have stuck.
Nevertheless, the overcapacity is very real. You may think that an airline seat is an airline seat is an airline seat. But what AA sells and what the industry darline LCCs sell are two completely different products.
I'll say it one more time: There is overcapacity in the Fancy Pants segment of the airline industry - that is, the six legacy network airlines that fly all over the USA and all over the world. For some people, their product is interchangable with that of the LCCs. But for those of us who fly both for business and pleasure, all over the world, the LCCs are not a viable alternative. If I pick each flight I take by price, I'd never achieve top-tier status, and that's what glues me to AA.
When I pay $6,000 for a discounted J ticket LAX-LHR for business travel, AA treats me like someone special. And since I'm an EXP, AA generally treats me special when I pay $216 for an N fare transcon (for instance, when I take the family on holiday). That's the allure of the frequent flyer program for someone who flies a lot.
I routinely encounter people who look at AA as a white shoe airline, catering not to ordinary people but to movie stars and rich people. While it is true that AA owns much of that market, AA also sells tickets on the cheap. Big problem is that UA also flies LAX-LHR and LAX-JFK, carrying its share of the big-spenders. If AA could pick up a few more of those customers, AA's finances would improve. UA's disappearance would speed up that process.
Bottom line: Too much capacity in the Fancy Pants airline industry. Still, reasonable people can differ on that.
Couple of years ago, you often accused people of spreading FEAR (you often capitlized it, bolded it, typed it in huge fonts).
Interesting that now, from my perspective, you are the one spreading fear. Claiming that AA will terminate your pension if UA or US is successful in killing their pensions. How do you know?
Lots of fear-mongers (not just you) keep saying that more concessions are just around the corner at AA. How do you know?
Two years ago, you lobbied against the concessions, and in many of your posts today, you still complain about them.
It's almost as though you want more bad news for AA. But then again, that's only natural, because if AA succeeds over the long term, many of your predictions will turn out to be off-the-mark. You have turned into the purveyor of Doom and Gloom, and good news isn't welcome, is it?