"American seeks to boost its use of regional jets"

[Zidac]

http://www.star-telegram.com/2012/0...s&fb_ref=.T0TeQ_2J0qQ.like&fb_source=timeline​

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American seeks to boost its use of regional jets​

Using the right type of airplane on a particular route will help American Airlines improve its revenue by more than $600 million, the airline's chief commercial officer told employees Wednesday.​

In a letter to American workers, Virasb Vahidi provided details on how the airline plans to grow revenue by $1 billion by 2017 as part of a restructuring plan unveiled this month. Vahidi added that the company, which filed for bankruptcy in November, needs to create a premier airline for high-value customers.​

Under its restructuring proposal, American wants to alter its pilots contract, which limits the number of 70-seat regional jets the airline can use. By eliminating that restriction, Vahidi said American will be able to use more such jets, like the Bombardier CRJ-700, to match demand on certain routes.​

In Chicago, for example, it competes with United Airlines, which runs several flights a day with 66-seat and 120-seat jets. With its scope clause, American operates three flights to the same destination using 140-seat MD-80s.​

"We believe that right-gauging our fleet will result in a significant increase in our unit revenue, and will generate almost two-thirds of our $1B in incremental revenue," Vahidi wrote.​

The Allied Pilots Association, which represents American's pilots, said it believes that the airline can operate larger regional jets competitively but wants its own pilots to fly those aircraft and not third-party carriers or American Eagle.​

"We believe there is a case to be made for new aircraft for large [regional jets] to be operated competitively at American Airlines flown by our pilots and that is what we want to explore," union spokesman Gregg Overman said.​

This month, American unveiled its restructuring plans which included laying off 13,000 workers, terminating its pension plans and shutting down its Alliance Fort Worth facility.​

At that time, CEO Tom Horton outlined the airline's plan to cut $2 billion in costs while increasing revenue by $1 billion through joint business ventures with British Airways/Iberia and Japan Airlines. Horton also said American expected to increase flying from its five hub airports -- Dallas/Fort Worth, Miami, Chicago, New York and Los Angeles -- by 20 percent in the next five years.​

And by changing union contracts, it would increase domestic code-sharing with other airlines, such as Alaska Airlines and JetBlue Airways.​

Vahidi said a third of the incremental $1 billion in revenue is expected to be generated from these joint ventures and code-sharing agreements.​

Meanwhile, American workers in Tulsa stepped up to stop the layoff of 2,100 employees at the airline's maintenance facility there. The Transport Workers Union Local 514, which represents 5,600 airline mechanics and other American employees in Tulsa, said it began printing hundreds of yard signs to publicize its IsupportAmericanJobs.com campaign.​

"It's critical that our elected officials and community leaders continue the fight to keep these jobs in America," said Rick Mullings, a TWU organizer.​

Read more here: http://www.star-telegram.com/2012/0...Q_2J0qQ.like&fb_source=timeline#storylink=cpy​

 

[Nick]

"With it's scope clause, American operates three flights to the same destination using 140 seat MD-80s."

Yes, by choice. They're free to operate anything like the F-100s they used to have any time they want.

Instead, they want to outsource it to companies filled with employees that could not possibly care any less about the product the passengers in their plane experience. Great idea.

 

[inigo88]

All your scope are belong to us.

 

[etflies]

Bummer.

 

[Trip7]

I'm fine with them matching other legacies scope clauses. This is a business with razor thin margins so I understand their need to compete on a fair playing field. As long as it doesn't get out of hand with 100 seaters or something

 

[Trip7]

"With it's scope clause, American operates three flights to the same destination using 140 seat MD-80s."

Yes, by choice. They're free to operate anything like the F-100s they used to have any time they want.

Instead, they want to outsource it to companies filled with employees that could not possibly care any less about the product the passengers in their plane experience. Great idea.

F100s were uneconomical at the mainline level. Mainline pay scales is part of the reason they are gone. Even in Europe they were flown at the regional level

 

[SlumTodd_Millionaire]

F100s were uneconomical at the mainline level. Mainline pay scales is part of the reason they are gone. Even in Europe they were flown at the regional level

Well, the only reason that they became uneconomical was because an airline like AMR can't compete using F100s when Delta is using CR9s at an outsourced lift provider. It's an issue of competitive pressure, not inherent economics with the airframe. If their competition wasn't using outsourced lift on similarly sized aircraft, then the F100 could be perfectly profitable at mainline.

 

[derg]

F100s were uneconomical at the mainline level. Mainline pay scales is part of the reason they are gone. Even in Europe they were flown at the regional level

Put down the Purplesaurus Rex, please.

Other than that, I'm not touching this albatross of a statement with a ten-foot pole.

 

[jtrain609]

F100s were uneconomical at the mainline level. Mainline pay scales is part of the reason they are gone. Even in Europe they were flown at the regional level

I'm much more worried about attitudes like this in the pilot ranks than I am management. Saboteurs to our career within our own ranks will do more damage than any management group could dream of.

 

[LoadMasterC141]

Does anyone posting so far have any stake in the game at the current level? I understand this has a bearing on all your careers indirectly, but right now it has a bearing on my career - DIRECTLY. There would be no grounds to change the mainline scope at AA if ALL the competition were not already light years ahead in terms of degrading the mainline job. Don't • tell us to suck on a big nut to "fight the good fight" when you already gave it up. I hope we get a ton of flying from mainline. I need the work right now. Bite me.

 

[derg]

Absolutely.

No airline operates in a vaccum. No pilot group is "firewalled" from malaise at other carriers.

If Eagle takes substantial concessions, you bet your patootie that when your airline's negotiation team releases their contract opener, many provisions of that concessionary contract will end up right there on your desk.

UAL went down. The whole industry said, "Eh... too bad for them. Maybe we'll pick up some flying".

AAA went down. The industry said, "Well, (insert Wall Street talking point), and well, they gotta change their business model. And we'll pick up some flying probably."

I'm running out of creative ways to say the same thing, but either you catch my drift or you do not.

 

[ZapBrannigan]

Uneconomical. The cost per seat mile on an RJ is substantially higher than on larger aircraft. Simple math.

Only one thing makes an "RJ" cheaper to operate than a mainline hull. You.

 

[Kingairer]

I'm fine with them matching other legacies scope clauses. This is a business with razor thin margins so I understand their need to compete on a fair playing field. As long as it doesn't get out of hand with 100 seaters or something

Can someone post a facepalm picture please?

 

[rickt86]

its not just the pilots, its the ground crew, agents, dispatchers, etc....if AA pilots can some how take a fairly marketable rate on a 90 seater, make it the entry level jet there, and agree to use Eagle ops for all other parts of it (except maybe FAs?)....maybe they would have shot, esp if they dont back down on scope?

 

[ZapBrannigan]

It's been tried. At USAir in 2000 the negotiating committee ripped the cover off of the Comair contract, handed it to the company to keep the 50 seaters at the mainline.

They said no. The RJ is MUCH more valuable to them as a whipsaw.

They don't call it the replacement jet for nothin'

 

[derg]

It gives the ability for companies to "Whip Saw".

Regional A is providing 100 jets at $X for an X-month contract.

Then Regional B offers to provide 100 jets at $X-1 for an X-month contract.

Regional A screams TUK R JAAAWBZ and is pressed to cut costs or lose jets to Regional B.

Regional B .... well crap, ya'll either get it or you don't. I'm headed back to the lavatory to talk about tacos.

 

[Nick]

It gives the ability for companies to "Whip Saw".

Regional A is providing 100 jets at $X for an X-month contract.

Then Regional B offers to provide 100 jets at $X-1 for an X-month contract.

Regional A screams TUK R JAAAWBZ and is pressed to cut costs or lose jets to Regional B.

Regional B .... well crap, ya'll either get it or you don't. I'm headed back to the lavatory to talk about tacos.

Regional B in the news for a $1,500,000 maintenance fine.

Give flying to Regional B and make press release about how it's a quality operation.

 

[block30]

It gives the ability for companies to "Whip Saw".

Regional A is providing 100 jets at $X for an X-month contract.

Then Regional B offers to provide 100 jets at $X-1 for an X-month contract.

Regional A screams TUK R JAAAWBZ and is pressed to cut costs or lose jets to Regional B.

Regional B .... well crap, ya'll either get it or you don't. I'm headed back to the lavatory to talk about tacos.

So with this said, and BK going on, will AA have more than one regional carrier? I suppose at this point, it is a rhetorical question, because no one knows, right? I would just think if the remaining legacies have multiple regionals, why wouldn't AA?--especially if they are trying to cut costs.

 

[ZapBrannigan]

Seriously. Even the corporate pilot gets it. <----

 

[derg]

So with this said, and BK going on, will AA have more than one regional carrier? I suppose at this point, it is a rhetorical question, because no one knows, right? I would just think if the remaining legacies have multiple regionals, why wouldn't AA?--especially if they are trying to cut costs.

Is it about cost cutting or division of labor?

The Comair strike sent a shockwave throughout the industry.