American Airlines hit with downgrade ...

American Airlines hit with downgrade by Sterne Agee

There are 11 comments on the Business Journal story from Nov 15, 2011, titled American Airlines hit with downgrade by Sterne Agee. In it, Business Journal reports that:

Kauffman initiated coverage of the stock in October, but it didn't take him long to change his mind on stock.

Join the discussion below, or Read more at Business Journal.

Just Another BK

United States

#1 Nov 16, 2011
The Pilots at AMR have got to be smokin some really good stuff to believe they can get a 10% signing bonus and Then 3 years of 7% annually? I can't wait to see them start crying to the BK Judge not to dump their pensions on the PBGC where their max monthly payout will be less than $4000.00. Now that will be a reality check bub! Retirees will be crappin their pants! Ho, Ho, Ho Merry Christmas.
AAmgt

Collierville, TN

#2 Nov 16, 2011
I have said many times over the years that they should take what's offered. They don't deserve more.

Since: May 08

Santee CA

#3 Nov 16, 2011
Senior management at AA has blamed higher than expected fuel costs and labor costs for the downgrade. It's the same speech they pull out for quarterly losses. That of course is a sarcastic opinion and not a fact based statement. That said. How do they expect to get labor to agree to anything? They have lied so much and put so many spins on the truth, that if they ever do lay all the cards on the table, the managers that consistantly cry wolf cannot be believed. Yes, I can vote for yet another concessionary contract. Why do I need too? Remember the S-80 zip tie fiasco? How much did that cost? More recently Eagle planes on the tarmac more than 3 hours at ORD. The "reason", a slow moving storm front. American Eagle was the only airline with this problem according to the DOT. What did UAL do right? Even if the unions concede will it be enough to stave off bankruptcy after years of poor choices?. The only thing I do know is when all is said and done AMR Managers and the Board of Directors will once again line thier pockets as they have always done. When you lose Millions where do you find millions more to pay yourself for oh lets call it one of a kind job performance? An accurate assesment since every other entity in the industry is able to make money.
AAmgt

Collierville, TN

#4 Nov 16, 2011
Say want you want. We hold the cards and have the control. If we file, management won't feel the pain, you will.
RWG

Dillsboro, IN

#5 Nov 16, 2011
To; AAMGT
No wonder , with people like you supposidly in charge, American Airlines has loses billions and billions of dollars with no end in slight.
One of these days, they are going to put somebody in charge of this train wreck of an airline that has a clue about teamwork dedication, honesty and loyalty towards the company and his or her first step will be getting rid of idiots like you with your lack of leadership causing the termoil the company is in now.
Once again, the best thing you can do for American Airlines is resign, NOW!
Just Another BK

United States

#6 Nov 16, 2011
You can cry all you want about mismanagement, but the facts are fuel costs cannot be absorbed with higher airfares, fees alone. The consumer will look at cheaper options to get them there or not at all. The only other option is the next highest cost control and that's Labor. Like I said before this is not Rocket Science. You can only squeeze so much blood out of a turnip, Unions are good for that. At some point you have created a bubble for yourselves. That bubble is about to pop for AMR Labor Unions. Like it or not. The airline cannot afford a labor group of 8800 with Vice President salaries and benefits.
738drvr

Miami Beach, FL

#7 Nov 17, 2011
AAmgt is probably a lowly agent who wishes they had a real management job. Don't worry, when AA files bankruptcy and reduces head count, you'll be gone. Just like in'03 when 1000's of AAer's who didn't have union representaion lost their jobs. Real smart. Sorry, the concession stand for this group of senior managers who have lined their pockets with 300,000,000 IS CLOSED! Bankruptcy? BRING IT!

Fed up in DFW.
MechnTul

Dallas, TX

#8 Nov 17, 2011
This is a real issue. Bankruptcy...bring it? I don't think so. For every employee at American there are two on the outside, the trickle effect will be disastrous to many families. Management problems started after Crandel left, too bad we can't bring him back. His best idea...get rid of most of the upper tier. I will say at least in Tul there is a new drive for better communication. I hope the rest of AA will follow suit and with the door of communication open we and the pilots will be able to come to agreeable terms with our contracts and help American become the legacy it once was.
silverbird

Desoto, TX

#9 Nov 17, 2011
For my fellow employees willing to take down AA, please quit now so you don't feel abused by the company. Many of us just want to pay our bills and take care of our families, I beg you to find another job where you will feel appreciated. Why do you insist on taking us all down with you? Just go away, please.

Since: May 08

Santee CA

#10 Nov 17, 2011
silverbird wrote:
For my fellow employees willing to take down AA, please quit now so you don't feel abused by the company. Many of us just want to pay our bills and take care of our families, I beg you to find another job where you will feel appreciated. Why do you insist on taking us all down with you? Just go away, please.
You have no need to fear the Unions. For starters I know the reality that I am easily replaced. My fear lies with those who have been running the show since Crandall left. Did the hand picked Carty who talked us all into saving the company only to reward himself with the money the company needed to survive fool Crandall? No matter, he was ousted. Arpey is just as greedy and full of excuses. The Board of Directors refuses to make changes atop the only entity in the industry to be a consistant loser. Are they believing the spin, or just as corrupt. No I assure you the unions will not bring AMR down. They may pull the trigger, but the managers have already led this fine company to put the gun to it's head.
avion

Desoto, TX

#11 Nov 18, 2011
New, successful airlines have low labor costs and post profits every quarter. Very few, if any, ground service employees actually work directly for the airline. Maintenance is all outsourced. Check out Spirit, Allegiant, etc. They don't spend time negotiating with anyone other than their service providers. Pilots, FA's, and administration are their only direct employees. A gate agent or ramper making $20. an hour will be a thing of the past once the employees take down the major airlines.

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