New trouble for AA

[Rado]

They must be taking lessons from congress....

 

[pilotyip]

drive into the dirt?

That would certainly solve everyone's problems at AMR, you could really get even with managment by shuting the company down. Yes you are getting tubed, but it comes with the business and I don't care what you say it is better than driving a bread truck at 25K/yr.

 

[seagle]

Why would the top dogs at AMR do this? I believe I have the answer. Senior management fully expected to go into bankruptcy protection shortly after all the concessions were ratified (we know they are stupid, but not that stupid). Knowing bankruptcy was inevitable they decided to protect themselves. First, protect their retirements in a seperate fund unaffected by bankruptcy. Second, give themselves a nice little bonus to tide them over while in bankruptcy (Carty's estimated to be about $1 million). This way the top dogs are still well compensated and protected while the rest suffer through chapter 11 w/o any protection and significant cuts ontop of the "newly ratified contract". Almost a sweatheart deal, except somebody ratted them out.

 

[Palerider957]

Pilotyip--

OK, how low can you go....how much should a pilot take from a company? At what point does is it no longer worth while to endure, when does that milk truck at 25K a year start to look good?

What's your limit? Would driving the company towards BK solve problems? It might force some management changes, and the employees might actually fare better with a judge calling the shots rather than a greedy executive. You could say in BK the pension plans are open to exploitation--true! However, those pensions are open to exploitation RIGHT NOW by management.

What tools do pilots have when their company is bargaining in BAD faith to begin with? Do you hit back, or drop to your knees (again) and take it as part of the fAAmily.....you tell us.

Dazzle us with you insight....

 

[ilinipilot]

If anyone deserves the high salaries and bonuses its the pilots NOT management. If you make a bad decision as a CEO i.e. the TWA deal you lose some money, market share you can get it back.
You make a bad decision as a Captain you lose LIVES end of story. Maybe these managers need to think about that first before they go giving themselves these raises, bonuses whatever.
They are not the ones who have to fly 3 hours on one engine(I know its UAL but you get my drift), figure out how to manuever a plane with no hydraulics, and battle a 30 knot crosswind on approach into a small airport.
One bad decision mistake any airline could be done forever, one bad decision in the board room oops lets try this instead.

I think you all earn every penny and more that you make whatever you fly, because you all bear the entire responsibility of the avaition industry in every tough decision made.

D

 

[rjcap]

I don't know if anyone has posted this but my take on the AA mess is the following.

AA management knows the company is heading into chapter 11 whether or not the pay cuts are voted in. If management can get any of the labor groups to vote no they can then use this as an excuse for the chapter 11 filing. Management then uses the labor group as the primary cause for the chapter 11 filing thus displacing the blame and the resulting draconian cuts from management.

Carty simply wants to distance himself from the upcoming bloodletting. The cuts implemented by the bankruptcy judge will more then likely be far greater in scope then anything that has been discussed so far.

Hold on to your hats gentlemen, the ride is just beginning.



After the AA filing look for Delta to start making noise at the end of the summer. Leo will want the same cost reductions in labor as the other big three ( Usair, United & AA).

 

[Mr. Irrelevant]

Absolutely agree with rjcap. I was wondering if anyone would bring that up. The execs value is in the long-term prospects of the company. Bankruptcy court sounds like their best bet. I mean who do you think really leaked this news???? It's timing is a red flag IMHO.

 

[Heavy Set]

Carty is an A$$. It is time to replace him. You would never see Herb Kelleher act that way... Leo at Delta is very astute and savvy, but his ability to communicate with his own employees (and engender trust and loyalty) is very, very poor.

 

[rjcap]

After AA files 11, the judge will work down from the agreed compensation cuts and not the exisiting contract. Management set this up all along and placed themselves in a position with multiple options. This option will make the judge the fall guy and not management.

Regarding Leo, I have a feeling he is setting the stage for chap 11 also. He knows the pilots will never give him the compensation cuts he needs so he is putting in place the neccessary steps to work up to filing chap 11.

 

[Boeingman]

Regarding Leo, I have a feeling he is setting the stage for chap 11 also. He knows the pilots will never give him the compensation cuts he needs so he is putting in place the neccessary steps to work up to filing chap 11.

Shhhhhhh. Don't bruise some very fragile DAL egos around here.
I made some predictions about 18 months ago that were dead on accurate, but got lambasted for them.