American Airlines to cut 7,000 jobs
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American Airlines to cut 7,000 jobs
American Airlines, the US airline which is close to seeking a merger with British Airways, has told staff thta it will cut 7,000 jobs by the end of the year, as it grounds aircraft in a bid to mitigate the impact of soaring fuel prices.
American said in a regulatory filing that it expected to record a second-quarter charge of up to $1.3 billion to account for the job reductions. It also plans to write down the value of the MD-80 and Embraer 135 regional jets that it is retiring as it eliminates flights, according to a report in The New York Times.
American said in a regulatory filing that it expected to record a second-quarter charge of up to $1.3 billion to account for the job reductions. It also plans to write down the value of the MD-80 and Embraer 135 regional jets that it is retiring as it eliminates flights, according to a report in The New York Times.
American Airlines to cut 7,000 jobs - Times Online
BA to seek clearance for AA and Iberia merger
British Airways is said to be close to seeking clearance from competition authorities for a three-way operational merger with American Airlines (AA) and Iberia.
The deal would allow the companies to combine nearly all aspects of their operations, including sales, purchasing and marketing, leading to lower costs and greater economies of scale. Legal sources in the United States said that a submission to the US Department of Transport was expected as soon as next week.
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Ouch. Just got to hope none of them have the right to work here in the EU! Could make it even worse over here now.
Now really isn't the time to be spending £80,000 on flight training :-(
Now really isn't the time to be spending £80,000 on flight training :-(
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Not a merger in the usual sense, but a marketing cooperation agreement, etc.
However, the 7000 jobs will go, and many older types of aircraft will be retired from the AA fleet.
As I own some AA stock, I have also written to the company suggesting that they cut costs further by outsourcing CC such as BA is proposing.
The AA pilots have already had their salary sliced down to what it should be, so no problem there, however their (the pilots) proposed salary increase of 53% should, of course, be rejected out of hand by the company...and most likely will.
The present fuel price shock is an excellent opportunity for all airlines to trim the fat from their business, including retiring older aircraft from their fleets....which is occuring on an accelerated scale, now.
As for BA, this is an excellent opportunity to get a larger marketing foothold in the American market.
However, the 7000 jobs will go, and many older types of aircraft will be retired from the AA fleet.
As I own some AA stock, I have also written to the company suggesting that they cut costs further by outsourcing CC such as BA is proposing.
The AA pilots have already had their salary sliced down to what it should be, so no problem there, however their (the pilots) proposed salary increase of 53% should, of course, be rejected out of hand by the company...and most likely will.
The present fuel price shock is an excellent opportunity for all airlines to trim the fat from their business, including retiring older aircraft from their fleets....which is occuring on an accelerated scale, now.
As for BA, this is an excellent opportunity to get a larger marketing foothold in the American market.
short flights long nights
My question is..why do so many US based airlines have so many old, crappy and fuel sucking aircraft in thier fleets..they never seem to update, but seem lost in the 70/80s....or am I wrong?
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Dirt cheap fuel and nil environmental policy has not required them (companies) to update their fleets. To be fair the americans have been using twins across the pond for decades long before the EC released its value.
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Why haven't US airlines bought new airplanes?
Short answer? Deregulation Act of 1978.
Real answer? Actually it is more of a case of retaining older aircraft to maintain competitive market share.
Until fuel prices went north of $100/barrel it was more economical to operate paid-for MD80's than purchase expensive 737-800's (FAA wire bundle debacles not-withstanding).
Now with fuel so dear, DC9 numbers in the US are dropping like a Beech Bonanza full of Doctors. At American we operate 325 MD80's with 45 slated for early retirement. Northwest has 92 even older DC9's that will see the scrap heap soon. United announced retirement of their entire 737-300/400 fleet last week (94 aircraft) and will consequently furlough 950 flight crew.
Myself, I am facing my second furlough from American in five years. When my former airline was "acquired", my seniority date was "adjusted" by 12 years and post 9/11 I went from a MD80 command position to the street in a year and one half.
Here we go again!!
Dave
Real answer? Actually it is more of a case of retaining older aircraft to maintain competitive market share.
Until fuel prices went north of $100/barrel it was more economical to operate paid-for MD80's than purchase expensive 737-800's (FAA wire bundle debacles not-withstanding).
Now with fuel so dear, DC9 numbers in the US are dropping like a Beech Bonanza full of Doctors. At American we operate 325 MD80's with 45 slated for early retirement. Northwest has 92 even older DC9's that will see the scrap heap soon. United announced retirement of their entire 737-300/400 fleet last week (94 aircraft) and will consequently furlough 950 flight crew.
Myself, I am facing my second furlough from American in five years. When my former airline was "acquired", my seniority date was "adjusted" by 12 years and post 9/11 I went from a MD80 command position to the street in a year and one half.
Here we go again!!
Dave
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With all due respect 411a, any airline that outsources its cabin crew is on to an immediate loser. The cabin crew are the saving grace of almost any carrier - quite often the only company employees the pax will come across. I work for BA and trust me, the outsourcing plan is causing a huge back lash already and no firm plans have yet been shared. It will almost certainly fail - well with BA at least. I understand AA are losing $3.3m a day, so I guess they need to be a lot more draconian in their approach, but NOT with their crew. 
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ForwardGalley is sadly mistaken.
New young (pretty) faces are what count in todays competative CC world, and neither BA nor AA have the edge in this department. One need only look at SQ, MAS, CX etc, to see the difference.
The only thing one can say about the more senior AA and BA CC is....they are expendable, and should be shown the exit door at the first available opportunity.
Period.
These older/higher paid CC are not that hard to miss, and cabin service will NOT suffer one little bit, when eager twenty-somethings are hired/trained in their place.
Out with the old, in with the new.
And no, this does not apply to pilots, as these folks don't sling the hash/drinks to the punters.
CC, dime a dozen, and should be paid accordingly....which ain't much.
New young (pretty) faces are what count in todays competative CC world, and neither BA nor AA have the edge in this department. One need only look at SQ, MAS, CX etc, to see the difference.
The only thing one can say about the more senior AA and BA CC is....they are expendable, and should be shown the exit door at the first available opportunity.
Period.
These older/higher paid CC are not that hard to miss, and cabin service will NOT suffer one little bit, when eager twenty-somethings are hired/trained in their place.
Out with the old, in with the new.
And no, this does not apply to pilots, as these folks don't sling the hash/drinks to the punters.
CC, dime a dozen, and should be paid accordingly....which ain't much.
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Good to see that 411a is still spouting tosh like an old broken record. Or is that an old broken (bitter & twisted?) L1011 flight deck person. See so many of those Tristars everywhere these days don't we?
Tired old views designed to have a pop at an entire worldwide industry in turmoil. Still 411a is probably revelling in his retirement whilst feebly attempting to stay in touch.
Best advice old chap, stick to a forum where someone might give a flying **** about your rather strange views. A management one might be a good place to start.
Tired old views designed to have a pop at an entire worldwide industry in turmoil. Still 411a is probably revelling in his retirement whilst feebly attempting to stay in touch.
Best advice old chap, stick to a forum where someone might give a flying **** about your rather strange views. A management one might be a good place to start.
the lunatic fringe
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As I own some AA stock, I have also written to the company suggesting that they cut costs further by outsourcing CC such as BA is proposing.
Just amazing.
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Sadly 411 is correct.
You see, the job is no longer what we want it to be. Flying first rate planes, getting our work done in about 10 days...lots of days off, fun over nights with beautiful flight attendants.
It is now, working at least 20 days. Older planes with outsourced mx. Older flight attendants (some are still good looking). Crummy hotels. Half the pay we wanted and the pax hate us. Pensions zapped.
And the glory of the wild blue has been tarnished too.
To dodah dave in wisconsin...I am sorry that AA screwed over TWA pilots. Believe me, I've seen stuff like that happen. You are a real airline pilot! Those who speak of how stuff like that never happens, don't know a trim knob from a Toga switch.
SO, the airlines that **** their crews over will survive. And someday, the pilots will be able to get their stuff together and make something decent again.
You see, the job is no longer what we want it to be. Flying first rate planes, getting our work done in about 10 days...lots of days off, fun over nights with beautiful flight attendants.
It is now, working at least 20 days. Older planes with outsourced mx. Older flight attendants (some are still good looking). Crummy hotels. Half the pay we wanted and the pax hate us. Pensions zapped.
And the glory of the wild blue has been tarnished too.
To dodah dave in wisconsin...I am sorry that AA screwed over TWA pilots. Believe me, I've seen stuff like that happen. You are a real airline pilot! Those who speak of how stuff like that never happens, don't know a trim knob from a Toga switch.
SO, the airlines that **** their crews over will survive. And someday, the pilots will be able to get their stuff together and make something decent again.
One need only look at SQ, MAS, CX etc, to see the difference
Imagine if a Western airline fired a flight attendant because she fell pregnant.
As for the job cuts I'd be interested to see how much the executives make in bonuses out of this too. I know there are a few issues along those lines at United with pilot furlough.
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What kind of idiot buys airline stock, much less US airline stock?
AA is in a rather strong cash position, and with its recent proposed marketing agreement with BA, should do quite well.
Sir Richard will not be pleased, however.
Once again 411a has hit it on the head. This time re stewardess. He is in good company. None other than the bearded one has repeatedly told his CC staff that they are cheap to replace and it is a "glam" job for a young thing to do for a few years and move on. And he is not going to pay his CC BA wages.
You might not like it but it is true. Have you ever seen AA advertise an "AA girl" on a billboard?
20driver
You might not like it but it is true. Have you ever seen AA advertise an "AA girl" on a billboard?
20driver
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Deregulation has triumphed!
Remember when air transport was a luxury? Reserved for the privileged jet set? Prosperous passengers flying around the world in First Class being attended to by nubile Stewardesses.
Where are they now?
Those lucrative customers are instead flying point to point in fractional business jets having former airline Captains hand carry their bags.
Yes, deregulation has triumphed by turning airline travel into yet another public commodity. Why put up with the frustration of queuing for yet another TSA probe (don't forget your plastic bags and remember to remove your shoes!), sorting oneself through a US hub airport, then missing your connection because of ATC delays and possibly losing your $15 bag?
Today, high yield passengers are not swayed by comely young flight attendants serving chateaubriand. Eliminating the hassles and discomfort of flying with the masses is what appeals to the jet set nowadays. Airlines can't supply that and yields suffer because of it.
How does Southwest do so well? They don't suffer under the misconception that they provide a luxury product, they know air travel is a commodity and they provide a competitive and consistent product.
The rest of us are still figuring that part out.
Dave
Where are they now?
Those lucrative customers are instead flying point to point in fractional business jets having former airline Captains hand carry their bags.
Yes, deregulation has triumphed by turning airline travel into yet another public commodity. Why put up with the frustration of queuing for yet another TSA probe (don't forget your plastic bags and remember to remove your shoes!), sorting oneself through a US hub airport, then missing your connection because of ATC delays and possibly losing your $15 bag?
Today, high yield passengers are not swayed by comely young flight attendants serving chateaubriand. Eliminating the hassles and discomfort of flying with the masses is what appeals to the jet set nowadays. Airlines can't supply that and yields suffer because of it.
How does Southwest do so well? They don't suffer under the misconception that they provide a luxury product, they know air travel is a commodity and they provide a competitive and consistent product.
The rest of us are still figuring that part out.
Dave
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Bernard Mannes Baruch heh? Died in 1965? Before deregulation? Huh, thank you.
Hey, I just got a couple hot stock tips for you: Microsoft and something called "the internet." I think it will be huge. I would give you more hot tips but I outsourced my guy. Now he shows up late, lips me off and sh**s on the carpet.
Hey, I just got a couple hot stock tips for you: Microsoft and something called "the internet." I think it will be huge. I would give you more hot tips but I outsourced my guy. Now he shows up late, lips me off and sh**s on the carpet.