AA needs more $$$$$

[General Lee]

AMR needs more than $1 billion in costs cuts - CEO
Wed May 10, 2006 10:54 AM ET
CHICAGO, May 10 (Reuters) - American Airlines needs to cut costs by more than $1 billion to keep its expenses in line with 2005 levels, the No. 1 U.S. airline's chief executive said on Wednesday.
American, a unit of AMR Corp. (AMR.N: Quote, Profile, Research), is "looking under every rock" for cost-cutting opportunities to offset record high fuel prices, said Gerard Arpey on a Webcast of a Bear Stearns Global Transportation Conference.

"We need more than a billion dollars in savings just to keep our costs even with last year," Arpey said.






I wonder who they're gonna ask? I thought the pilots told them a couple weeks ago to shove it since they gave out huge bonuses to 1000 managers? How about raising the fares $5 this summer for every seat? Or stop flying money losing flights out of DAL Love?



Bye Bye--General Lee

 

[aa73]

AMR needs more than $1 billion in costs cuts - CEO
Wed May 10, 2006 10:54 AM ET
CHICAGO, May 10 (Reuters) - American Airlines needs to cut costs by more than $1 billion to keep its expenses in line with 2005 levels, the No. 1 U.S. airline's chief executive said on Wednesday.
American, a unit of AMR Corp. (AMR.N: Quote, Profile, Research), is "looking under every rock" for cost-cutting opportunities to offset record high fuel prices, said Gerard Arpey on a Webcast of a Bear Stearns Global Transportation Conference.

"We need more than a billion dollars in savings just to keep our costs even with last year," Arpey said.






I wonder who they're gonna ask? I thought the pilots told them a couple weeks ago to shove it since they gave out huge bonuses to 1000 managers? How about raising the fares $5 this summer for every seat? Or stop flying money losing flights out of DAL Love?



Bye Bye--General Lee

Yes, we did tell'em to shove it, and our contract ain't up till 2008. No need to open early.

As far as flying out of DAL, you're preaching to the choir. They should have never even bothered going there in the first place, but who am I to convince them.

 

[lowecur]

"We need more than a billion dollars in savings just to keep our costs even with last year," Arpey said.






I wonder who they're gonna ask? I thought the pilots told them a couple weeks ago to shove it since they gave out huge bonuses to 1000 managers? How about raising the fares $5 this summer for every seat? Or stop flying money losing flights out of DAL Love?



Bye Bye--General Lee

Well, I have my doubts they can get anywhere close to that out of the present network the way it's set up. They need to sell a pared down Eagle to whomever and get the 100 seater at Mainline. I don't know what all the diddling is about with the pilots. They know they need the 100 seater to compete, and they need it at the same rate that everyone else has it. The longer they keep putting off the inevitable, the harder it's gonna be to play catch up.

imp:

 

[pkober]

Keep DAL because it's a commuters dream.

 

[accinelli]

Lets go Chap 11. Fun times for all.

 

[Big Slick]

I wonder what they could do to save more money? That's a real head-scratcher.

Newpaper Excerpt:
AMR Corporation Reports a First Quarter Loss of $92 Million, a $70 Million Improvement Over Last Year's First Quarter Loss of $162 Million

Arpey pointed out that as of April 14, AMR had contributed $120 million to its various defined benefit plans this year.

 

[AAflyer]

AMR posted a 150 million operating profit in the first quarter, while they lost roughly 90 million there cash position was boosted by almost 500 million.

AMR now sits with roughly $4.8 Billion in short term and long term investments in their cash hoard. At the end of the second quarter you will see AMR with a cash position with over 5 Billion.

At this cash position and chance to post a profit for the year, all while they give 100 million in bonuses to managers I am in NO hurry to give anything back.

AA

P.S. Hey General why did you leave this part out of the article, hope that was an honest mistake. When are you going to VOTE in your TA???

CHICAGO, May 10 (Reuters) -

The airline currently has a plan to trim costs by $700 million a year through such measures as fuel conservation, lowering ticket distribution costs and direct airplane routing. But rising fuel prices threaten to undermine the airline's cost-cutting progress, Arpey said.

 

[frog_flyer]

do dfw based guys get any bonus for goin over to kdal?

 

[AAflyer]

Bonuses are only given to managers in this business.

However if you commute out of DFW and use DAL, AMR will pick up your parking..

AA

 

[YourPilotFriend]

They will probably be seeking a 10% - 15% paycut from the pilots to bring them in line with other carriers. Also, I would expect them to park a percentage of the eagle fleet due to the rising cost of the 50 seater market.

 

[General Lee]

AMR posted a 150 million operating profit in the first quarter, while they lost roughly 90 million there cash position was boosted by almost 500 million.

AMR now sits with roughly $4.8 Billion in short term and long term investments in their cash hoard. At the end of the second quarter you will see AMR with a cash position with over 5 Billion.

At this cash position and chance to post a profit for the year, all while they give 100 million in bonuses to managers I am in NO hurry to give anything back.

AA

P.S. Hey General why did you leave this part out of the article, hope that was an honest mistake. When are you going to VOTE in your TA???

CHICAGO, May 10 (Reuters) -

The airline currently has a plan to trim costs by $700 million a year through such measures as fuel conservation, lowering ticket distribution costs and direct airplane routing. But rising fuel prices threaten to undermine the airline's cost-cutting progress, Arpey said.

Sorry, I may have left some of it out, since there were ads next to it and that all translated into a bunch of giberish on the screen.

I will vote no on the TA due to the fact that it still treats our current furloughed pilots poorly. They should be given classes back here before they allow larger RJs. But, I think it may pass by a small margin. We will see.


Bye Bye--General Lee

 

[AAflyer]

They will probably be seeking a 10% - 15% paycut from the pilots to bring them in line with other carriers. Also, I would expect them to park a percentage of the eagle fleet due to the rising cost of the 50 seater market.

Nope, kinda hard to ask for that much when your company has as much as ours in the bank. We have tremendous retirements starting, not that i agree with it, but AA could boost productivity before giving more in wage cuts. Thank you, while your vote was personal one I am sure AMR management is drooling all over an NWA type contract. Heck, JBs looks pretty good compared to yours.


AA

 

[Big Slick]

AAFlyer,

I've only been furloughed from American for 5 years. Hope all you current pilots hold out, that way I can stay furloughed for 5 more.

This is great! The old guys retire with millions while the young guys live off of unemployment.

Americans current strategy seems to be to allow as many senior guys as possible to retire before the inevitible pay cuts take place.

 

[AAflyer]

Slick,

Not happy with current things either. I am disposable in the eyes of senior pilots who want to keep their Pension. Pilot's currently with 30 years are looking at lump sum payouts over 2.0 million. Not sure why they are still here.

Would like to see some type of growth and recalls tied to ANY productivity changes.

Best,

AA

 

[Big Slick]

Hopefully this nightmare will end for all of us one day. I realize the last five years have not been fun for anyone.

 

[satpak77]

Hopefully this nightmare will end for all of us one day. I realize the last five years have not been fun for anyone.

things will get real good when we "stay the course" and invade Iran, OPEC's number 2 contributor, and oil goes to $100 a barrell.