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Thread: Doug Parkerís next move

  1. #1
    Registered User NoOtPilot's Avatar
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    Doug Parkerís next move


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    Following the earnings call...

    After fuel prices and hurricanes fail to hide his inability to run an airline the size of American,
    Lower management could be getting a letter like this...

    ďWe need to make some difficult, but necessary, management reductions to more efficiently support our frontline employees and better align our costs with our current revenue realities. We expect that we will reduce our management positions through a combination of position eliminations, restructuring and not filling open roles.
    Employees will be told that it will take around three weeks for them to know who is actually affected by the staffing cuts. The layoffs are supposed to impact only management employees and not any frontline employees such as pilots, cabin crew, and airport employees.

    The profits have decreased significantly from last year.
    Rising fuel prices are one cause for the declining profits, something that has affected other airlines in the industry. But the company has also introduced a cost-cutting campaign and has deferred orders for new aircraft deliveries by at least four years.

    Our costs have been increasing for the last two years, but revenues have not kept pace.Ē

    Merry Christmas
    Your CEO
    Welcome to the Family...

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    They already did a purge from each hub a couple of months ago.
    I wouldnít be surprised to hear about an upcoming hub/domicile closure.

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    Let’s not forget that as a result of all this there seems to be no additional funds for competitive contracts for at least two of the front-line employee groups namely the mechanics who have been in negotiations for years with outsourcing a major roadblock and soon the pilots whose present contract is (like Envoy pilots) termed a “bankruptcy contract”. It’s had some sugar added since then, but still falls well short of industry leaders. It would appear then that to add to AAG’s seemingly unsolvable woes, its labor relations are doomed to remain in the dumpster for the foreseeable future.

    In order to improve the product, money has to be invested in both resources and personnel and now that so much has been squandered on stock buy backs intended to boost stock price and shareholder value (which failed miserably), there is none. An airline can hamstring itself in more ways then simply getting behind the curve on infrastructure, assets and staffing. That’s a foundation for its ability to act (or so often in the case of AA, react) and thus compete, but the quality also suffers when your front-line service providers become disillusioned, distrustful and alienated. The result is disengagement. There IS good news though and that’s the fabulous (and expensive) new management playground nearing completion which should provide exitement during some of the upper crust Christmas parties this year. I’m sure it gets boring talking about your wealth or the stunning profit-sharing percentages lining your pockets that were denied to the front-line chumps doing all the rowing.

    The truly scary part though is that times are still relatively flush for AAG right now, which is masking much of the true seriousness of the situation and IMO making a house-of-cards look less tenuous then it really is. What happens when times become not so flush.........or worse yet, a real industry down-cycle occurs which is inevitable ?

    My advice to anyone at AA, especially very junior pilots and to a lesser degree Envoy, is to boost savings, minimize debt and seek flexibility in your living situation. IMO, there is significant risk for AAG over the next few years and employees always are the first to get hit and hit the hardest.
    Last edited by Beagleboy; 10-25-2018 at 09:58 AM.

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    Quote Originally Posted by Beagleboy View Post
    Let’s not forget that as a result of all this there seems to be no additional funds for competitive contracts for at least two of the front-line employee groups namely the mechanics who have been in negotiations for years with outsourcing a major roadblock and soon the pilots whose present contract is (like Envoy pilots) termed a “bankruptcy contract”. It’s had some sugar added since then, but still falls well short of industry leaders. It would appear then that to add to AAG’s seemingly unsolvable woes, its labor relations are doomed to remain in the dumpster for the foreseeable future.

    In order to improve the product, money has to be invested in both resources and personnel and now that so much has been squandered on stock buy backs intended to boost stock price and shareholder value (which failed miserably), there is none. An airline can hamstring itself in more ways then simply getting behind the curve on infrastructure, assets and staffing. That’s a foundation for its ability to react and thus compete, but the quality also suffers when your front-line service providers become disillusioned, distrustful and alienated. The result is disengagement. There IS good news though and that’s the fabulous (and expensive) new management playground nearing completion which should provide exitement during some of the upper crust Christmas parties this year. I’m sure it gets boring talking about your wealth or the stunning profit-sharing percentages lining your pockets that were denied to the front-line chumps doing all the rowing.

    The truly scary part though is that times are still relatively flush for AAG right now, which is masking much of the true seriousness of the situation and IMO making a house-of-cards looks less tenuous then it really is. What happens when times become not so flush.........or worse yet, a real industry down-cycle occurs which is inevitable ?

    My advice to anyone at AA and to a lesser degree Envoy, is to boost savings, minimize debt and seek flexibility in your living situation. IMO, there is significant risk for AAG over the next few years and employees always are the first to get hit and hit the hardest.
    Oh, let me guess? The flow is in jeopardy of stopping. More useless opinion from a psycho.

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    Quote Originally Posted by DolphinsFan View Post
    Oh, let me guess? The flow is in jeopardy of stopping. More useless opinion from a psycho.
    So.........

    You’re implying it is IMPOSSIBLE for the flow to stop ?

    You’re implying AAG’s financial situation isn’t of serious concern ?

    You’re implying AAG management’s decisions have been rock solid considering the state of both its debt and stock value ?

    You’re implying AA strategic abilities are as flexible as their competitors ?

    You’re implying AA’s and for that matter Envoy’s employees (especially pilots) are all motivated and have desirable QWL ?

    Ummm.......just what ARE you implying in your “guess”, Mr. No Substance ?

  6. #6
    Registered User NoOtPilot's Avatar
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    Quote Originally Posted by DolphinsFan View Post
    Oh, let me guess? The flow is in jeopardy of stopping. More useless opinion from a psycho.
    2021 might come a little faster than originally planned. The company is not compromising with a time frame to flow anymore, wonder if lawsuits have been filled for false advertising.🤔🤔
    Last edited by NoOtPilot; 10-25-2018 at 10:58 AM.

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    Moving the majority of international from NY to PHL will kill off even more international flying. Nobody is going to fly to PHL from NY to go over the pond, they’ll buy the direct ticket and go from NY on somebody else. They made the same mistake with Boston. End result was to match prices they had to fly them from BOS to JFK for free on a 737 to charge the same ticket price to Europe. Now they’re going to do it with the NY market too.
    BK on the horizon under continued Parker leadership
    __________________________________________________ __

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    Quote Originally Posted by Cujo665 View Post
    Moving the majority of international from NY to PHL will kill off even more international flying. Nobody is going to fly to PHL from NY to go over the pond, they’ll buy the direct ticket and go from NY on somebody else. They made the same mistake with Boston. End result was to match prices they had to fly them from BOS to JFK for free on a 737 to charge the same ticket price to Europe. Now they’re going to do it with the NY market too.
    BK on the horizon under continued Parker leadership
    Expect Delta (and others) to capitalize on that potential. If new carriers get access to Europe (LHR) AA won’t be missed. I think PHL has insufficient infrastructure and regional feed for enough International expansion. Again, it’s critical to understand all these red flags exist under IDEAL economic conditions. What happens when the cycle turns (as it always inevitably periodically does) ?

    Below glideslope, full power, approaching stick shaker and praying no downdraft or tailwind before you’re over the threshold. Any pilot can understand that predicament.

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