Latest AA rumors....

[aa73]

Just chatted with one of the union domicile bosses who got out of the Fall Board meeting: It appears that management has no qualms on continuing to shrink the airline based on two factors: 1) If the airline recalls pilots, the pilots "win" - a big no-no during contract negotiations. 2) The more the airline shrinks, the higher the stock price goes up, the higher the management bonuses. (a.k.a. the "PUP" $$$$)

Therefore, his general consensus is that AA will continue parking aircraft at the rate of approximately 20 aircraft every six months or so, until we sign a new contract. With a new contract at least two years away, sounds like we'll be waiting awhile for those recalls. They will be furloughing pilots "from the top", using normal and early retirements. CA Hetterman (Vp Flight) has been telling recurrent classes that the airline plans on shrinking down to about 500 jets (we have over 600 presently.)

Fear grenade? Most likely - especially since we are entering Section 6. Take it for what it's worth - I don't think they really want to shrink that much more. I wouldn't put it past them, but if that's what the plan is, fine - I won't vote yes for a substandard contract just to get guys recalled - sorry. (That includes my own furlough as well!)

Stay tuned, gonna get ugly...

73

 

[Rik717pilot]

Hum, not surprizing that AMR wants to continue the shrinkage. Good way to get rid of the TWA guys and to boost share value and pad bonus potential. Also positions them for a merger and have a field day with the rank and file.

 

[satpak77]

funny how a recent Flying Magazine article, in this month or last months issues, discussed flying in the cockpit on an AA flight, how the author found AA to be a "big family"

 

[bayoubandit]

Holding the furloughs hostage, hmm.
Perhaps same stuff, different year. What else would we expect. The million dollar question is what will APA do. (Rhetorical)

Full body armor is donned!

 

[aa73]

Hum, not surprizing that AMR wants to continue the shrinkage. Good way to get rid of the TWA guys and to boost share value and pad bonus potential. Also positions them for a merger and have a field day with the rank and file.

Good way to get rid of ALL pilots, not just TWA! Management does not make the distinction of your past career when they shrink. As far as positioning for a merger, I seriously doubt AMR is in the cards for this latest round of consolidation.

 

[ils2minimums]

funny how a recent Flying Magazine article, in this month or last months issues, discussed flying in the cockpit on an AA flight, how the author found AA to be a "big family"

Yeah, we're kinda like the AAddams Family... Or the Manson's...

 

[tomgoodman]

Pressure tactics

When management egos get involved, they can be irrationally stubborn. Years ago, a Delta executive was quoted as saying "we won't hire any more pilots until you agree to a "B-scale", even if it's in our interest to do so."
They got their B-scale, although it wasn't nearly as horrendous as the one Crandall had obtained at AMR. Concessions like this are hard to gain back.

 

[Draginass]

Rumor is that at least 12 A-300s are being retired to help relieve the pilot shortage. Even more later is my guess. This is about destroying any last sign of resistance by the APA. Once that is done with a concessionary contract, then things might change. Recalls . . . . don't plan on it inside of 2 years from now. I think the former TWA flight attendants are real close to losing any recall rights.

 

[AAflyer]

Park Them!

I will be danged if I will lulled into a bul******************** contract so management can win!, and pay themesleves more bonuses.

Go ahead! Shrink it, shrink it till it is uncompetitive, and the company looses money, then the AMR BOD will get rid of this round of idiots.


My family, myself, and most (I hope) of my fellow pilots will not subsidize managment bonuses, or management screw ups!..

AAflyer

Hetterman is a oppps, better watch out, or AMR will find this and rule 32 me.....bad pilot...


P.S. AA73.. PM me, and let me know which one of the BOD mentioned this..

 

[80drvr]

Just chatted with one of the union domicile bosses who got out of the Fall Board meeting: It appears that management has no qualms on continuing to shrink the airline based on two factors: 1) If the airline recalls pilots, the pilots "win" - a big no-no during contract negotiations. 2) The more the airline shrinks, the higher the stock price goes up, the higher the management bonuses. (a.k.a. the "PUP" $$$$)

Therefore, his general consensus is that AA will continue parking aircraft at the rate of approximately 20 aircraft every six months or so, until we sign a new contract. With a new contract at least two years away, sounds like we'll be waiting awhile for those recalls. They will be furloughing pilots "from the top", using normal and early retirements. CA Hetterman (Vp Flight) has been telling recurrent classes that the airline plans on shrinking down to about 500 jets (we have over 600 presently.)

Fear grenade? Most likely - especially since we are entering Section 6. Take it for what it's worth - I don't think they really want to shrink that much more. I wouldn't put it past them, but if that's what the plan is, fine - I won't vote yes for a substandard contract just to get guys recalled - sorry. (That includes my own furlough as well!)

Stay tuned, gonna get ugly...

73

That's exactly the opposite scenario from what one of the more reputable CPs thinks. The recall thread from a few weeks back had more details on those 2007 plans. Interesting times when the union official is working to manage your expectations and the management guy is providing an optimistic outlook.

 

[WyoHerkdriver]

If they want to park more jets - more power to them! I have given up hope of being recalled so I don't give a crap if they shrink down to nothing.

 

[AAflyer]

That's exactly the opposite scenario from what one of the more reputable CPs thinks. The recall thread from a few weeks back had more details on those 2007 plans. Interesting times when the union official is working to manage your expectations and the management guy is providing an optimistic outlook.

80drvr,

I think the union guy is telling us what AMR and the "Hat" is telling them as well. While not very bright, I am sure they are trying to keep their stories straight.

Hang on, it's going to get bumpy!

AA

 

[witchdoctor]

Ralph says... wait a minute just got a new APA disinformation hotline email, now I'll get the straight poop. Oh well, Ralph says more of the same sh$t. Shrink, don't shrink, see if I care.

 

[NMoon]

Just my two cent, I don't think that AA's ego will alow them to continue to shrink. They want to be the largest airline in the world that's the reason they bought TWA. If SWA and CO continue to grow they will both be larger. No way will AA be number three.

 

[FlyBoeingJets]

Lots of interesting stuff here.

It does make some sense not to recall during during negotiations. Domestic capacity finally came down to where it needed to be to create profits. The plan to shrink, along with most other big carriers, has worked. But there are two other, more plausible plans...

One is to keep them all on furlough long enough to quit. Then AA can hire first year folks at substantially lower salary.

The other is cost. Gas prices, a couple of months ago, actually supported the idea of parking the Super 80 fleet when flying up against the 73NG and A320. Flying planes 20-30% less efficient is hard to do with oil at $80/barrel.


Going forward...

The economy may be slowing down. That will hurt growth options and further hinder recalls.

But oil is now coming down. The Super 80's suddenly look profitable.

 

[FlyBoeingJets]

Just my two cent, I don't think that AA's ego will alow them to continue to shrink. They want to be the largest airline in the world that's the reason they bought TWA. If SWA and CO continue to grow they will both be larger. No way will AA be number three.

If AA could beat the APA into a stinky contract they would. Then they would start an expansion and go back to eating up the competition.

Remember in a couple years this was said. It will happen.

Then I'll claim my fortune teller fee

 

[AAflyer]

Just my two cent, I don't think that AA's ego will alow them to continue to shrink. They want to be the largest airline in the world that's the reason they bought TWA. If SWA and CO continue to grow they will both be larger. No way will AA be number three.

AA was Carty, AA is now Arpey, if they can continue to shrink and line their pocket with multi-million dollar bonuses I don't think they would care if they were no.1 or no.3.. IMO. Crandall had an ego, Carty was an ego-maniac, Arpey is all about the money.

AA