strikeforce
Veteran
- Jan 18, 2011
- 1,224
- 253
AA can be cost effective tomorrow if it wishes, but many management employees will be gone with the rest of us, including executives. AA is management heavy because the company loves CONTROL! By outsourcing work, the company loses the control over that operation. IFE is outsourced to Rockwell Collins, and when they're not available that system gets deferred and AA has lost control of fixing it NOW. Yes, you can save a dollar here and there, but losing control of when airplanes gets fixed affects selling your brand to the customers. It's much more than just saving money. I find it amusing when I hear that Wall Street analysts want this or want that from a company....well, don't you think AA has many COMPANY analysts wanting the same thing, but know the in's and out's of AA, and through their analysis have decided that OUR in-house maintenance is more COST effective than farming it out.Of course you can find examples of people in foreign repairs stations who can't speak or perhaps even read English.... but is it possible that they, in assembly line fashion, are given jobs that do not require them to read the manuals?
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And more significantly, you might want to note that the US has some of the lowest scores in all areas among developed nations when it comes to how well its population reads and writes... and don't try to blame it all on immigrants because there are people who were born on American soil by the boatloads that can't read or write at levels remotely close enough to understand a newspaper, let alone a Boeing technical manual.
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HSBC runs the same ad around the world and you can walk through the streets of any developing country and find dozens of English schools and all kinds of ads for learning English including by immersion in other countries.
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The whole idea that maintenance outsourcing doesn't work because people "there" can't speak English is a red herring - and it also belies the fact that there are plenty of maintenance outsourcing operations in the US.
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Further, the idea that companies send their planes to an overseas MRO shop w/o oversight is often not accurate.... I know that there are employees of US airlines who live and work at overseas MROs to oversee the work done on their own planes.... and there is nothing that says they can't.
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FWAAA is correct that airlines don't compete on safety and the whole reason might be that AA has had more accidents and incidents regardless of the reason than any other large airline - and AA is facing the largest fine in FAA history for maintenance.
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It would be fine to tout doing it all in-house but you gotta make sure your own nose is really clean first - and that includes AA's flight ops procedures which have been faulted for several recent accidents. You can bet there are execs of other airlines that are whispering to lawmakers that they should look at the boogers hanging of AA's nose before they talk about legislating outsourced maintenance.
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Finally, Wall Street really doesn't care if AA does its work in-house or in the outhouse if it can do it at competitive costs to the industry and keep the operation running well - which leads to making money. Getting fined or having to ground planes is a costly distraction from making money.
Other airlines who do outsource have had fewer operational distractions related to maintenance as well as better P&Ls.
And in DL's case, they not only outsource the work they say doesn't make sense but they insource what does and are a larger MRO than AA is... and DL's maintenance costs are far lower than AA's.
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When AA can do its own work in-house at competitive rates to the industry and run an operation that is as good as if not better than its peers, then people will sit up and notice.... until then all the cries that everyone else is wrong and we are right fall on deaf ears.