Posted on 04/23/2003 8:09:23 AM PDT by Mister Magoo
Edited on 04/22/2004 11:48:45 PM PDT by Jim Robinson. [history]
Amid all the turmoil over the failure of AMR Corp.'s American Airlines to disclose executive benefits, even as it asked its employees to take huge pay cuts, one little mistake stands out.
One short statement is creating enormous fallout for both Donald J. Carty, AMR's chief executive, and the leaders of American's three unions. The result could be that American, which has struggled so hard to cut its costs, could end up filing for bankruptcy protection anyway, changing the direction of the airline industry.
(Excerpt) Read more at online.wsj.com ...
Out-of-work flight attendants may gain some small solace if Carty is asked to step down, but it won't put food on the table.
It's like the crook, barricaded in his house, who says "The cops lied to me, so I'll cut my own throat."
It had nothing to do with the recession or terrorism, Cut routes.but the dawning realization in the travel respite that umpteen zillion useless business trips do nothing about increasing the profitability of a company. If they intend to survive, they are going to have to do the following:
1. Kill off the free miles and charge cash for each ticket - that way, they calculate their profits on real money as opposed to monopoly money.
2. Cut routes dramatically - tickets should be hard to find about 2 weeks out from just about any flight, and every flight should be full.
3. Eliminate food and beverage service on all flights. This eliminates a huge expense, lots of people, and a security risk all in one swoop. Airports have finally gotten their food courts working as they should, and its better than the crap served on flights. It wouldn't bother me to carry a bag of Wendy's.
4. Smaller, faster, regional flights are becoming more and more prevalent, and that is a positive.
5. Courtesy, efficiency and truthful statements to the flying public should be the number 1 priority.
6. Luggage should be paid for by weight. When I travel, I don't bring much luggage - however, I inevitably see the "steamer trunk" travellers, who I'm apparently subsidizing. Inasmuch as every pund affects fuel consumption, there would be greater profit to weighing baggage and charging by the pound.
I certainly do not consider myself pro-union but I understand the anger and reluctance on the part of the mechaics, attendants etc to approve the wage concessions. I guess the concept of "shared sacrifice" has a different meaning to Mr. Carty.
Granted, the rank and file worker may send American into bankruptcy and oblivion and their jobs along with it. However,as an AMR employee, how could you trust that Mr Carty will do all he can to keep AMR going when he concedes that "that he had given less-than-accurate information to his own spokesman?".
Did you trust that Clinton was deeply concerned you and would do everything in his power for the welfare of our country? Why trust this Clintonian character, Mr. Carty?
Frequent flyer programs will be the last thing to go; airlines know consumers have lots of these on the books and will fly the same airline to accumulate more for that "dream vacation." Besides, ever tried to use one of those big certificates? You've got to book a year in advance to get a seat.
I'm not sure what you mean by "charge cash." Airlines don't book revenue until flights are actually taken, no matter when the ticket was purchased. Revenue actually reflects passenger loads rather than "spring sales" or some such promotion.
Luggage should be paid for by weight. When I travel, I don't bring much luggage - however, I inevitably see the "steamer trunk" travellers, who I'm apparently subsidizing. Inasmuch as every pund affects fuel consumption, there would be greater profit to weighing baggage and charging by the pound.
Airlines are already moving in that direction, by limiting bags and charging for oversized bags. I know a guy (rather wealthy) who FedExs his bags to his vacation destinations because he doesn't trust the airlines.
Unions still suck.
What sense does it make to, in a fit of pique, vote yourself out of a job?
Some of these dopey AA employees are actually talking about bringing Bob Crandall back!
Talk about somebody who DESPISES unions!!
I agree it's a two way street .. but I still don't trust the Union Leaders
Follow Southwest Airlines' example. -Jay
Bruce Williams (radio entreperneurial advice host) has been advising people to do this for years.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.