Judge lets American Airlines toss out its pilots contract

planejay said:
Does that mean eagle's contract is out the window too? This doesn't help the folks at Pinnacle.
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No kidding, I'm sure our bankruptcy judge will pay the "Well, they did it to American and they're bigger and "better" than you" card. Which means the company isn't going to budge at all on their term sheet. If what the union sent back as a counter proposal is akin to what they said in the latest e-mail, I'd go for everything on that. Company won't, though. Pay freezes? Yeah, they want huge cuts so they can send the profits to the shareholders (which management tends to hold a lot of shares, so they get the $$$). 18 month duration? F that. They'll want 5 years, otherwise they won't be able to realize the synergies of the cost savings initiatives. They WANT the 11% pay bump for first year FOs. I don't even think we HAVE anyone on that pay scale since it's been so long since we brought on any new hires. In the short term, it means it costs them nothing. In the long term, it might mean they actually get applications when we start hiring again.

They still haven't said why they suddenly needed several million more $$$ in concessions from the pilots over a few months ago, despite the fact nothing changed in their business plan or fleet model. God, I can't wait to be away from this place. If I found myself unemployed tomorrow because they shut down, I don't know. I might actually be HAPPY about it at this point....
 
I really don't understand how anyone in management could think that treating your employees like crap is the way to profitability. Sacrificing your quality of life and possibly your job so that you can still see silver airplanes with AA on the tail flying around? Screw that.
 
Screaming_Emu said:
I really don't understand how anyone in management could think that treating your employees like crap is the way to profitability. Sacrificing your quality of life and possibly your job so that you can still see silver airplanes with AA on the tail flying around? Screw that.
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Unfortunately it's due to the world of accounting and balance sheets. :(
 
Screaming_Emu said:
I really don't understand how anyone in management could think that treating your employees like crap is the way to profitability. Sacrificing your quality of life and possibly your job so that you can still see silver airplanes with AA on the tail flying around? Screw that.
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Wall Street.

I'm still wondering how if "momma" gave me a lemonade stand (CR9's) and subsidized lemons (fuel, branding, res systems, support), how by me building a multi-million dollar treehouse (new HQ, massive bonuses) and wrecking the business model with bad financial decisions, by punching my friend in the face, who is working the stand to help out, is going to magically make the whole thing viable.

Crap, that made a lot more sense before I started typing it.

Nvm.


Sent from my TRS-80
 
HVYMETALDRVR said:
Unfortunately it's due to the world of accounting and balance sheets. :(
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I agree. Managers of airlines now do their job relying solely on spreadsheets and catch phrases. Our company doesn't hesitate to send us reminders when our on time performance or completion factor is hurting. Which is really insulting. To them, on time performance is red or green numbers on a spreadsheet, to us its looking passengers in the eye when we finally get to our destination 5 hours late due to a completely avoidable situation and trying to apologize for it.

Very little with our on time performance or completion factor really comes down to us. Its not like we sit there for 20 mins and then suddenly decide "you ready to go?" Things that hurt our performance include maintenance, crew issues (sick calls, etc), plane swaps on different concourses, weather/ATC, ramp staffing/motivation, etc. There really isn't much that actually is within our control other than showing up, doing our job in a timely manner, and dropping the brake once everything is ready.

Management has nowhere else to look when our performance is bad except in the mirror. But they are so out of touch that they think everyone is happy enough here to throw "employee appreciation" parties every quarter where they give us soggy chic-fil-a that leaves us wrapped around the toilet at the overnight in PNS. Now they're hosting youtube style video competitions where people can say why they love working for us so much. Completely 100% out of touch. And I don't think they care.
 
Screaming_Emu said:
Now they're hosting youtube style video competitions where people can say why they love working for us so much. Completely 100% out of touch. And I don't think they care.
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Definitely out of touch with the frontline and in touch with the cash overflowing from their pockets. I was hoping none of these idiots would be dumb enough to submit something but I guess I was wrong. This is one way for the company to save money by not actually hiring a professional to make a video.

Anyway, Good luck to the pilots of AA, AE and 9E.
 
scooter2525 said:
Now I'm craving lemonade. Thanks derg.
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Yeah, me too. Me too.

The entire system is screwed up because you know the judge is just going to look at, say, "GoJets" and go "This seems reasonable" and bang. And then, in the next few years, that's going to be the new metric until the next emergency occurs.

Then the entire cycle will start afresh.
 
scooter2525 said:
You make it sound like the matrix.
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It is.

There's nothing new, only the players.

And we keep re-inventing the wheel and resetting the profession in the wrong direction.

If you look at the exorbitant money they're paying expat pilots in China, if you widen your aperture, you'll see that's only little more than "slightly interesting" than US compensation 12 years ago.

But I got a 4% "raise" this year (from 50% or more paycut) and I'm supposed to be running through the streets screaming "ALL HAIL MOAK"

I think I'm going to have to start day-drinking so I don't go to the dark-side before 1500.
 
Screaming_Emu said:
I really don't understand how anyone in management could think that treating your employees like crap is the way to profitability. Sacrificing your quality of life and possibly your job so that you can still see silver airplanes with AA on the tail flying around? Screw that.
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This is the modus operandi for the industry that produced one of the candidates for POTUS. It works like this... I use someone else's money to buy a company, and then cut corners as much as I can -- kill pension, lower medical insurance, sell off parts stores, etc all to make it appear as though I've increased profitability (even though some of these things can't be maintained in the long-run.) Lets say I cut so much that it appears that I've increased the profitability of this company I bought by $7 million dollars. Do I then use that $7 mil to reinvest in the enterprise to make it better? No, I use that increase of profitability of $7 million to leverage $70 million in debt, and then I use about half of that ($~35mil) to pay huge one time dividends to the share holders (my private equity investors) and then use most of the rest to pay "management fees" back to my private equity company (aka me.)
Then, if it turns out these "savings" can't be maintained in the long term and I can't afford to pay the interest and principle on the $70 million loans / bonds I took out on the basis of that, well I just declare bankruptcy since I've already gotten paid.


People WANT to vote for someone whose entire business creates NOTHING but debt?
 
scooter2525 - Ehh, it's the industry.

One can either get over it or die mad because no one gives a crap what I think! :)
 
Next month marks 10 years since my [second and final] furlough from AA. Since the F/As [at that time] only had 5 year recall rights, I've long expired and there will be no recall for me.

I'm very, very glad to be watching this debacle from the outside... :( and very sad for my friends who are still there.
 
Then there is this tidbit released today......

from Flightglobal.com
"Republic and American discuss large regional jet contract​
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By: EDWARD RUSSELL NEW YORK​
3 hours ago​
Source: ​
​
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Republic Airways is in talks with American Airlines regarding a capacity purchase agreement for large regional jets, as the mainline carrier restructures its fleet under bankruptcy court protection.
Timothy Dooley, chief financial officer of Republic, says that the regional carrier is cautiously optimistic that they will reach an agreement with American to fly some of the up to 255 large regional jets that are allowed under the carrier's new pilots contract, at the 2012 Dahlman Rose Global Transportation Conference in New York today.
The US Bankruptcy Court for the Southern District of New York approved American's motion to reject its pilots contact on 4 September. This allows the carrier to implement its proposed term sheet with the additional regional jets.
"We think last nights ruling is a beneficial one for us," says Dooley. "[Now] we can really start working with American on their future fleet plan as a standalone entity."
American's regional partner American Eagle operates 47 63-seat Bombardier CRJ700s currently. The remainder of its regional jet fleet has 50 seats or less.
The Fort Worth-based Oneworld carrier sees larger regional jets as necessary to compete with its competitors. The aircraft would allow American to optimise capacity on its routes.
Republic would have to acquire new aircraft for a potential American contract. All of its large regional jet fleet is under contract with other carriers currently.
Dooley says that the airline's longest standing relationship is with Embraer but that there are other large regional jets available on the market, on the sidelines of the conference.
American would likely be interested in Embraer 170 or 175 size regional jets, he adds."​
​
 
Well, when you have a product that no one wants to pay a premium for, I don't think it's going to move any more product if the folks producing it are pissed off.

There's a reason why White Castle employees are always friendly and make sure they get your drunken order right. If they were bitchy and mean, there's no way in your right mind you'd get a bag 'o burgers there at 10pm.
 
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