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Profit sharing is dead at AA, analyst says

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General Lee

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Joined
Aug 24, 2002
Posts
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Analyst: 'Profit sharing is dead' at American Airlines
November 11, 2014



By Trebor Banstetter

The lack of a profit-sharing program was a significant force behind American Airlines flight attendants rejecting a tentative contract this week, but analysts say there's no chance of them gaining the benefit through arbitration.

"Profit sharing [at American Airlines] is dead, and will almost surely stay dead through the arbitration process," wrote Hunter Keay, an airline industry analyst at Wolfe Research.

BusinessWeek noted after the vote "American had negotiated an end to profit-sharing payments in the deal, an element that many flight attendants did not like," while the Dallas Morning News wrote that the pay packages at other airlines were clearly on attendants' minds when they voted down the tentative contract.


Delta is expected to pay out more than $1 billion in profit sharing to employees for 2014, more than United Airlines, Southwest Airlines and JetBlue Airways combined. American employees will receive no profit sharing bonuses despite what the airline forecasts will be a record 2014 profit.

American CEO Doug Parker told the Morning News in August that he doesn't believe in profit sharing.

"We just think it's an inefficient way to pay team members," he said.






Offfffffcourse he does........ But I bet Doug will get some profit sharing himself...



Bye Bye---General Lee
 
Last edited:
Doug thinks anything that involves actual $ is an ineffective way to pay team members. He was hoping the FAs might take cat food. Not happening
 
:eek: YIKES! Are you stalking me HeavyLoad while I'm stalking your sister Jenny???? You're scaring me man. :laugh:
 
AA will kick ass because they will have a huge employee cost advantage over their competitors. DUI Doug has always had an employee cost advantage, and that is why he is a wall street god.

Welcome to Walmart Air.
 
AA will kick ass because they will have a huge employee cost advantage over their competitors. DUI Doug has always had an employee cost advantage, and that is why he is a wall street god.

Welcome to Walmart Air.

Yessssssss! Believe it or not, I want the AA/US pilots to get a great contract, so the other two and SWA can try for even better. But the lack of profit sharing during low oil years is ridiculous. If he won't give you profit sharing, it better be DL plus 15 or 20%. DL's profit sharing for this year should be close to 20% of the W2, or an extra 2 1/2 months worth of pay! Next year it could be 25%.



Bye Bye---General Lee
 

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