AA to cut 13,000 jobs
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Interesting interview with Bob Crandall, FWIW
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AA - outsourcing MM
I remember the forklift incident well. I was in USA at the time and recall the coverage.
My brother - a captain with AA - was scathing, even then, about ORD and their MM team "short cuts." This was almost immediately after the incident.
Any smaller airline would have folded with such a disaster, but "too big to fail" springs to mind. Well AA continue but Willie Walsh might be worried with 2 of the One world partners ailing or gone and with Iberia's baggage handling record
My brother - a captain with AA - was scathing, even then, about ORD and their MM team "short cuts." This was almost immediately after the incident.
Any smaller airline would have folded with such a disaster, but "too big to fail" springs to mind. Well AA continue but Willie Walsh might be worried with 2 of the One world partners ailing or gone and with Iberia's baggage handling record
Last edited by Gove N.T.; 17th Mar 2012 at 10:29. Reason: Left out the title
Sollution
Thank you for posting that sb sfo. Very informative 30 minutes. I heartily agree with Mr. Crandall on the point that aviation is infrastructure. Why it is not treated as so always baffels me. Sure various parties mouth the shiboleth that it is infrastructure but it never seems to really be treated with what it does for the economy.
One can, and does, argue the merits of deregulation, and Crandall clearly states that on the balance he does not consider dereg a success. What I found most interesting however, was why he believes that. He made his points well. As Simon Jenkins said recently in The Guardian, "Deregulation is good in general but tends to be bad in particular." A sentence well worthy of debate I am sure, but I think there is some truth in it...
I never worked for him but at least it seems as if he is supporting the home team and that is a least something these days.
One can, and does, argue the merits of deregulation, and Crandall clearly states that on the balance he does not consider dereg a success. What I found most interesting however, was why he believes that. He made his points well. As Simon Jenkins said recently in The Guardian, "Deregulation is good in general but tends to be bad in particular." A sentence well worthy of debate I am sure, but I think there is some truth in it...
I never worked for him but at least it seems as if he is supporting the home team and that is a least something these days.
Last edited by Uncle Fred; 21st Mar 2012 at 18:39.
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AA lost $20 million a day in February.
If something doesn't change fast, folks in Texas might remember the late Don Meredith singing a Willie Nelson tune...
Losses keep mounting at American Airlines parent | The Salt Lake Tribune
If something doesn't change fast, folks in Texas might remember the late Don Meredith singing a Willie Nelson tune...
Losses keep mounting at American Airlines
FORT WORTH, Texas
The parent company of American Airlines told a bankruptcy court that it lost $619 million last month as revenue declined from January and failed to offset costs including fuel and labor.
Since filing for bankruptcy in late November, AMR Corp. has lost $1.76 billion including $663 million in expenses related to the Chapter 11 reorganization. That's more than the $1.08 billion that the company lost in the first 11 months of last year.
AMR disclosed the February numbers in a filing Thursday in U.S. bankruptcy court in New York.
The February loss included $375 million in bankruptcy-reorganization costs. Most of that came from rejecting leases on aircraft and debt related to airport bond issues.
The company said that excluding costs related to bankruptcy and other special items, its operating loss was $186 million. AMR had operating losses of $5 million in January and $728 million in December. Its net losses, including all items, were $234 million in January and $904 million in December...
FORT WORTH, Texas
The parent company of American Airlines told a bankruptcy court that it lost $619 million last month as revenue declined from January and failed to offset costs including fuel and labor.
Since filing for bankruptcy in late November, AMR Corp. has lost $1.76 billion including $663 million in expenses related to the Chapter 11 reorganization. That's more than the $1.08 billion that the company lost in the first 11 months of last year.
AMR disclosed the February numbers in a filing Thursday in U.S. bankruptcy court in New York.
The February loss included $375 million in bankruptcy-reorganization costs. Most of that came from rejecting leases on aircraft and debt related to airport bond issues.
The company said that excluding costs related to bankruptcy and other special items, its operating loss was $186 million. AMR had operating losses of $5 million in January and $728 million in December. Its net losses, including all items, were $234 million in January and $904 million in December...
Last edited by Airbubba; 2nd Apr 2012 at 05:34.
Heard a rumour that USAirways was interested on an AA rescue. Anyone else?
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Sad day for aviation? It was a sad day when they gobbled up a helpless TWA to a chorus of outright corporate lies to the city and people of St. Louis. It will be a joyous occasion when they are in turn gobbled and forgotten.
Buttonpusher
Maybe they are crying huge losses to avoid the PBGC from holding their feet to the fire for the pension obligations that AA have ?
Once that is done, "miraculously" they will have enough money to come out of Chapter 11.
This play has been seen too many times.
Once that is done, "miraculously" they will have enough money to come out of Chapter 11.
This play has been seen too many times.
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Heard a rumour that USAirways was interested on an AA rescue. Anyone else?
:
US Airways Files For American Airlines Merger; Unions On Board
Pilots: Combined Airline Would Retain American Airlines Name, Fort Worth Headquarters
April 20, 2012 10:42 AM
DALLAS (CBSDFW.COM) - US Airways officially announced Friday morning that it wants to merge with Fort Worth-based American Airlines. While it has not made a takeover bid for American, it has struck a collective bargaining agreement with the airline’s three main unions — the Allied Pilots Association, the Transport Workers Union and the Association of Professional Flight Attendants.
On Friday morning, those three unions — which includes American’s pilots, mechanics and flight attendants — released a joint statement in support of a takeover of American Airlines by rival US Airways. The three unions make up 55,000 of American’s 73,000 employees.
Pilots: Combined Airline Would Retain American Airlines Name, Fort Worth Headquarters
April 20, 2012 10:42 AM
DALLAS (CBSDFW.COM) - US Airways officially announced Friday morning that it wants to merge with Fort Worth-based American Airlines. While it has not made a takeover bid for American, it has struck a collective bargaining agreement with the airline’s three main unions — the Allied Pilots Association, the Transport Workers Union and the Association of Professional Flight Attendants.
On Friday morning, those three unions — which includes American’s pilots, mechanics and flight attendants — released a joint statement in support of a takeover of American Airlines by rival US Airways. The three unions make up 55,000 of American’s 73,000 employees.
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USAirways and AA merger
From USAPA.
On behalf of nearly 55,000 American Airlines employees, including the 26,000 member Transport Workers Union (TWU), the 17,000 member Association of Professional Flight Attendants (APFA) and the 10,000 member Allied Pilots Association (APA), we are pleased to confirm our support of a possible merger between our airline and US Airways. We have reached agreements on term sheets for collective bargaining agreements that would govern the American Airlines employees of the merged airline with US Airways.
This significant step represents our shared recognition that a merger between American Airlines and US Airways is the best strategy -- and fastest option -- to complete the restructuring of American Airlines, which will allow it to exit the Chapter 11 bankruptcy process and restore American Airlines to a preeminent position in the airline industry.
As envisioned, a merger of US Airways and American Airlines provides the best path for all constituencies, including employees of both American Airlines and US Airways. The contemplated merger would be based on growth, preserve at least 6,200 American Airlines jobs that would be furloughed under the Company's standalone strategy, and provide employees of both American and US Airways with competitive, industry-standard compensation and benefits. The contemplated merger would also offer improved job security with a commitment to no furloughs for any currently active pilots or flight attendants. Over the long term, the combined new airline would support greater job security and advancement opportunities for both American Airlines' and US Airways' employees that are far superior to those available to employees at either airline on a standalone basis. Importantly, by avoiding a lengthy and contentious 1113 process, the new carrier would be able to emerge from bankruptcy more quickly.
A merger would create a foundation to establish American Airlines as a vigorous competitor of the two larger network carriers and the industry at large. Customers of both airlines and air travelers in general will benefit greatly from a viable third network carrier and significantly enhanced travel choices.
On behalf of nearly 55,000 American Airlines employees, including the 26,000 member Transport Workers Union (TWU), the 17,000 member Association of Professional Flight Attendants (APFA) and the 10,000 member Allied Pilots Association (APA), we are pleased to confirm our support of a possible merger between our airline and US Airways. We have reached agreements on term sheets for collective bargaining agreements that would govern the American Airlines employees of the merged airline with US Airways.
This significant step represents our shared recognition that a merger between American Airlines and US Airways is the best strategy -- and fastest option -- to complete the restructuring of American Airlines, which will allow it to exit the Chapter 11 bankruptcy process and restore American Airlines to a preeminent position in the airline industry.
As envisioned, a merger of US Airways and American Airlines provides the best path for all constituencies, including employees of both American Airlines and US Airways. The contemplated merger would be based on growth, preserve at least 6,200 American Airlines jobs that would be furloughed under the Company's standalone strategy, and provide employees of both American and US Airways with competitive, industry-standard compensation and benefits. The contemplated merger would also offer improved job security with a commitment to no furloughs for any currently active pilots or flight attendants. Over the long term, the combined new airline would support greater job security and advancement opportunities for both American Airlines' and US Airways' employees that are far superior to those available to employees at either airline on a standalone basis. Importantly, by avoiding a lengthy and contentious 1113 process, the new carrier would be able to emerge from bankruptcy more quickly.
A merger would create a foundation to establish American Airlines as a vigorous competitor of the two larger network carriers and the industry at large. Customers of both airlines and air travelers in general will benefit greatly from a viable third network carrier and significantly enhanced travel choices.
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Have USAir integrated the seniority lists from America West and USAir pilots yet, 7 years since the merger? Good luck with that...
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We are waiting decision from a federal judge that should put the whole East (old US Air)/ West (America West) seniority debacle to rest. The company went to court a year ago to ask whether they (the company) were liable for damages should they not use the Nicolau Award as the seniority list of record.
Recall that the company did accept the list from ALPA, just before ALPA was voted off the property by the East pilots who wrongly blamed the union and not their own negotiators for failing to listen to the arbitrator's admonishments that "date of hire would not be a factor in the resulting seniority list". So the only seniority list that is in play on the US Airways side is the Nicolau arbitrated list.
The APA has acknowledged in its communications with it's members that any new seniortity integration involving the American pilots will be done under the Bond-McCaskille federal legislation that mandates binding arbitration and prevents the "staple job" that APA used on the TWA pilots. That legislation was put in precisely because of the AA/TWA merger.
The expected seniority list integration (if the deal goes through - and that is a BIG if) will go on the lines of Delta/NWA which will involve certain equipment fences and a ratio of active pilots by seat and equipment groups. All sides know of the mess that has taken place here. No one wants to repeat it, least of all Doug Parker, the US Airways CEO and the driver of this deal.
Recall that the company did accept the list from ALPA, just before ALPA was voted off the property by the East pilots who wrongly blamed the union and not their own negotiators for failing to listen to the arbitrator's admonishments that "date of hire would not be a factor in the resulting seniority list". So the only seniority list that is in play on the US Airways side is the Nicolau arbitrated list.
The APA has acknowledged in its communications with it's members that any new seniortity integration involving the American pilots will be done under the Bond-McCaskille federal legislation that mandates binding arbitration and prevents the "staple job" that APA used on the TWA pilots. That legislation was put in precisely because of the AA/TWA merger.
The expected seniority list integration (if the deal goes through - and that is a BIG if) will go on the lines of Delta/NWA which will involve certain equipment fences and a ratio of active pilots by seat and equipment groups. All sides know of the mess that has taken place here. No one wants to repeat it, least of all Doug Parker, the US Airways CEO and the driver of this deal.
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AA pilots just rejected the LBFO (last, best and final offer) from management and now the ball bounces back to the company and the BK judge:
President of American Pilot Union Resigns - WSJ.com
Many of the AA pilots seem to think that the company will come back with a better offer, we'll see...
After the pilots of American Airlines overwhelmingly rejected a concessionary contract offered by AMR Corp. on Wednesday, the union president, Dave Bates, tendered his resignation at the request of the union's board, the Allied Pilots Association said Thursday.
Many of the AA pilots seem to think that the company will come back with a better offer, we'll see...
.
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Did the pilots win this round? Do the work rules remain status quo?
Bankruptcy judge denies American Airlines request to toss its pilots contract and impose tougher terms | Airline Biz Blog
Bankruptcy judge denies American Airlines request to toss its pilots contract and impose tougher terms
By Sheryl Jean
[email protected]
5:10 pm on August 15, 2012
A U.S. Bankruptcy judge today denied American Airlines Inc.’s request to toss out its collective bargaining agreement with about 10,000 pilots, saying the airline’s proposal to furlough 450 pilots and change flight code-sharing were not justified by its business plan or the practices of rival airlines...
By Sheryl Jean
[email protected]
5:10 pm on August 15, 2012
A U.S. Bankruptcy judge today denied American Airlines Inc.’s request to toss out its collective bargaining agreement with about 10,000 pilots, saying the airline’s proposal to furlough 450 pilots and change flight code-sharing were not justified by its business plan or the practices of rival airlines...
No, Judge Lane ruled that the furlough and code share sections did not have reasonable limits on them. He gave AMR three days to draft some limits and return. He actually was in agreement on AMR's RJ term sheet proposals--84 seats, huge relief from AMR current scope rules. Wait 'til next week for a final, but from most of the ruling, it's not good, IMO.
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true, it is a poker game.
APA called AMR and the judge stalled AMR.
Yes AMR will come back with the changes to 1113 that the judge indicated need refining to match the industry average. But will AMR implement the 1113 and continue without a negotiated contract, I think not, by next week when the judge updates his ruling, AMR and APA would have sent feelers out to see when to start negotiations again. Or the house comes down burning.
Since Horton has made up his mind on the merge with US Airways is a good deal, American Airlines Makes A U-Turn Regarding The Merger - Seeking Alpha the question when will Horton and his management team leave, being they will not be the surviving managers of the new AA.
APA called AMR and the judge stalled AMR.
Yes AMR will come back with the changes to 1113 that the judge indicated need refining to match the industry average. But will AMR implement the 1113 and continue without a negotiated contract, I think not, by next week when the judge updates his ruling, AMR and APA would have sent feelers out to see when to start negotiations again. Or the house comes down burning.
Since Horton has made up his mind on the merge with US Airways is a good deal, American Airlines Makes A U-Turn Regarding The Merger - Seeking Alpha the question when will Horton and his management team leave, being they will not be the surviving managers of the new AA.