American Airlines faces turbulent ride

American Airlines faces turbulent ride

There are 11 comments on the The Beaumont Enterprise story from Oct 4, 2011, titled American Airlines faces turbulent ride. In it, The Beaumont Enterprise reports that:

In this June 6, 2011 file photo, an American Airlines aircraft at a Terminal D gate at Dallas-Fort Worth International Airport, in Grapevine, Texas.

Join the discussion below, or Read more at The Beaumont Enterprise.

Since: May 08

Santee CA

#1 Oct 4, 2011
I'm going to put this in a way even a manager who may read these blogs can understand. In 2003 the company came to the unions and asked for lifestyle altering changes to avoid bankruptcy. In 2 weeks they had contracts in place with promise of shared gain when things turned around. When you look at what has happened to the economy over the last 8 years there hasn't been a whole lot of gain. Nothing to share. No problem. Over these tough times AA mangaers have taken bonuses. Other CEO's had forgone them from time to time. Had AA execs thanked the Board of Directors for the generous offer, but declined because times were tough they would have the current problems. Once is a mistake. Doing it annually is just a totally disrespectful. The company is still in trouble. Had the bonuses not been taken it is my opinion all works groups would be under yet another concessionary contract. Why should the unions give again? What the company is asking for is the same thing that would be taken in bankruptcy. There is no reason not to let a court decide how to run the company since the current mangers cannot. I expect doom and gloom projections of what will happen to my life if the company goes BK, but I can trust nothing I am told by the company. I've seen what happens when I trust them, and won't be fooled again.
Flyer

United States

#2 Oct 5, 2011
Prost wrote:
I'm going to put this in a way even a manager who may read these blogs can understand. In 2003 the company came to the unions and asked for lifestyle altering changes to avoid bankruptcy. In 2 weeks they had contracts in place with promise of shared gain when things turned around. When you look at what has happened to the economy over the last 8 years there hasn't been a whole lot of gain. Nothing to share. No problem. Over these tough times AA mangaers have taken bonuses. Other CEO's had forgone them from time to time. Had AA execs thanked the Board of Directors for the generous offer, but declined because times were tough they would have the current problems. Once is a mistake. Doing it annually is just a totally disrespectful. The company is still in trouble. Had the bonuses not been taken it is my opinion all works groups would be under yet another concessionary contract. Why should the unions give again? What the company is asking for is the same thing that would be taken in bankruptcy. There is no reason not to let a court decide how to run the company since the current mangers cannot. I expect doom and gloom projections of what will happen to my life if the company goes BK, but I can trust nothing I am told by the company. I've seen what happens when I trust them, and won't be fooled again.
I will put this so all who need a Union to negotiate for them can understand. AA management is brain dead, yes!. They did not get enough from the workforce back in 2003 and ended up with he highest labor cost and the worse work rules in the industry. Now, with bankruptcy looming, it is time to fire current management, take the company in chapter 11 and then WHACK the Unions into real concessions. There needs to be lower wages, an elimination of the pension for all new hires and a freeze on the current pension with a switch to a 401k program, and work rules that will allow AA to once again become the choice for the business traveler. Time to let the workers know who is boss and that is the share holders!

Since: May 08

Santee CA

#3 Oct 5, 2011
Flyer wrote:
<quoted text>
I will put this so all who need a Union to negotiate for them can understand. AA management is brain dead, yes!. They did not get enough from the workforce back in 2003 and ended up with he highest labor cost and the worse work rules in the industry. Now, with bankruptcy looming, it is time to fire current management, take the company in chapter 11 and then WHACK the Unions into real concessions. There needs to be lower wages, an elimination of the pension for all new hires and a freeze on the current pension with a switch to a 401k program, and work rules that will allow AA to once again become the choice for the business traveler. Time to let the workers know who is boss and that is the share holders!
I agree with you for the most part. The company is after everything you mention except the lower wages part. They actually include some give backs. Not much, but more than nothing. Here is why BK has to be the answer. If the unions give the company what they are asking for outside of bankruptcy the same "talent" will head AA down the path to 2020. If the BK road is taken the unions may get hit even harder but there will be a shake up on Amon Carter Blvd. I am willing to take the risk. The unknown path is better for the long term survival of the company than the one the current regime is proposing. How do I kow that? I don't. I just know I don't trust the current regime and thier true motives.
AA mgt

Collierville, TN

#4 Oct 6, 2011
I agree with flyer except, add that we need to acquire another airline and return to our rightful position as largest airline in the world.
AA mgt

Collierville, TN

#5 Oct 6, 2011
p.s. education trumps brawn.

Since: May 08

Santee CA

#6 Oct 6, 2011
AA mgt wrote:
I agree with flyer except, add that we need to acquire another airline and return to our rightful position as largest airline in the world.
OK Mgt. Who shall we aquire? SW? Never happen. B6 (jetBlue), VS (Virgin), The Frontier group? There is already a codeshare in place with jetBlue, and there is no real advantage excpept taking back routes (ie.) the Caribbean we surrendered to them already. Branson would shut down before merging with his sworn enemy. Frontier offers nothing as far as stategic routes. They do Airbus aircraft, and they are on thier last legs. However, did you learn nothing from the TWA merger. Because AA totally destroyed TWA in so much as leaving the routes, abandoning the aircraft and facilities. Laying off a majority of the workers. I don't think they would be able to convince the government who must approve the merger that wouldn't happen again. That leaves US and AS. AS offers the West Coast market. I presume after AirCal and Reno Air that idea has been finally put to bed. Although look what it would do for the LAX focus city. US Airways. Could have done that alreaady. Thier route system is a joke. They are in talks with thier Pilots longer than we are to work out merger issues. Do you want to take that on? Not to mention MR. AA Mgt. Aquiring another carrier is not part of Flight Plan 2020. Perhaps you are familiar with that. Also note that many of the employees who use brawn have college degrees, but came out of school to a weak job market. When jobs were finally available in thier fields, and considering the benefits package at AA it would have been a negative move economically. Brawn and an education is a formitable combination. I look forward to your thoughts.
Flyer

United States

#7 Oct 7, 2011
AA does not need to be the biggest, it needs to return to being the best. How does AA do that?
1 clean out Management and bring in creative and strategic thinkers
2 dramatically lower employee costs - 30%, by eliminating the pension program for a 401k, eliminate 75% of all mechanics via outsourcing, make Tulsa a stand alone business and sell Eagle.
3 get more new planes as fast as possible. More 777 and many more 787 then are on order.
4 reduce flying to no profitable cities
5 more fees on tourist
6 make Ex Platinum more exclusive and more plush
7 once you have more planes fly direct to more destinations internationally from the 5 hubs especially to Asia and Europe
8 upgrade all the business class seats to full flat seat
9 allow upgrades for all of one world
10 never again allow the pilots to pohibit AA from flying and route!
RWG

Dillsboro, IN

#8 Oct 8, 2011
The sad thing is, most of the problem American has today, they have had for the past 30 years. The current mis-management refuses to make the changes they need to to revive the company and a good example are the writigs of whoever this AAMGT is. The only thing his or hers Americanized brain can think of is make the company bigger. They did that back in the 1980's where they went from 300 airplanes to over 600 in about 6 years. What good did it do them? None.
The labor relations problems are still there, the bad attitudes amoungst union and management employees is still there, the lack of teamwork is still there and the big one, the laziness is still there. The last problem is the I want mine and screw everybody else mindset still plaques the company, throughout the ranks.
A total change in management and it's philosophy is the only thing that will fix American Airlines.
la tormenta del siglo

Irving, TX

#9 Oct 8, 2011
Flyer wrote:
<quoted text>
AA management is brain dead, yes!.
not so sure about that. Could you keep a business open for ten years without earning a profit?
Mister Wilson

Houston, TX

#10 Oct 8, 2011
Enjoy your "turbulent" ride thanks to your Unions. If you would just buckle down work harder for less and give up your golden parachute ALL of you would have jobs into 2012...God forbid your D@mn unions allow that! Trust me let the communist run you, you'll end up in the unemployment line! Good luck with that! Perry and Bachman in 2012! God Bless!
la tormenta del siglo

Irving, TX

#11 Oct 8, 2011
Mister Wilson wrote:
Enjoy your "turbulent" ride thanks to your Unions. If you would just buckle down work harder for less and give up your golden parachute ALL of you would have jobs into 2012...God forbid your D@mn unions allow that! Trust me let the communist run you, you'll end up in the unemployment line! Good luck with that! Perry and Bachman in 2012! God Bless!
The ground workers are being outsourced more and more in smaller markets. Many of the old AA's cities CMH, PIT, MKE, OKC etc are either outsourced or handled by Eagle station agents. AA has a plan up it's sleeve to break up the hubs after the Eagle divestiture.

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