Simple. ASM cap on RJ's.
AA's only able to put out about 25% of their network out for bid. Industry average is 40%.
Another one is the annual departures cap for outsourcing.
It might mean fewer union jobs, but the reality is that the RJ & airport staffing outsourcing gives flexibility to DL, UA, and CO, and allows them to serve a lot more tiny destinations than AA can. And they've got far more extensive domestic networks as a result.
Here's the language.
This will confirm our discussions leading to signing of the agreement dated August 15,
360 1995, in which we discussed provisions for the future schedules of commuter air
361 carriers relative to American Airlines.
362
363 It is agreed that, beginning with twelve (12) month period following August 15, 1995,
364 and each twelve (12) month period thereafter, the total number of available seat miles
365 (ASM’s) which may be scheduled by all commuter air carriers owned by AMR or feeding
366 American may not exceed six (6) percent of the total ASM’s scheduled by American.
367 This limitation will not apply to ASM’s scheduled by such commuter air carriers on new
368 service on a route, which American has not served since March 1, 1993.
369
370 No aircraft type currently in the American Airlines fleet, or inactive aircraft type
371 previously in the American Airlines fleet and still under the Company’s control, and no
372 current orders or options for an American Airlines aircraft type will be transferred to or
373 operated by a commuter air carrier either owned by AMR or feeding American Airlines
This only stops them from taking more than 6% of their current ASMS and giving it to another carrier that they own. So, where's the restriction on RJs serving tiny cities??
Heres the staffing language;
(d) The Company will continue to assign American Airlines TWU represented
88 employees in classifications, consistent with its established practices, as designated by
89 the Company to all stations wherein such TWU represented employees are assigned
90 currently with 1460 and above annual departures and will staff new cities (those not
91 currently staffed by the TWU) at or over 3650 annual departures. The Company will
92 also restaff former TWU staffed cities with 1460 and above annual departures.
This langauge really doesnt cover us, its in our contract but they can put a FSC there and satisfy the agreement, we dont have A&Ps in most stations with under 5000 annual departures, never mind 3650 despite this language. Plus this language was an industry leading concession when put in place, along with many others that have put billions into AA over the years. This language may provide a small amount of job protection, not much, just a little, in exchange the company recieved industry leading concessions, it certainly doesnt put AA at much of a disadvantage.
So are you saying that with those two concessions AA would be willing to give us $46.99 plus all the vacation, sick sime, holidays, tool allowances, IOD time, contractual CS policy, dual pensions etc etc that UPS is offering?