Nearly half of Delta's revenue is from international ops. Nearly half of United's revenue is from International ops. AAL's percentage is 27%. Half of our major competitors. We are the largest airline in the world with a relatively small international footprint. Our profit margins are a fraction of United and Delta. Do you think those facts might be related?

We have a high cost structure and a cheap product. Delta and United are building true global networks and are able to command a revenue premium with the business travelers for a superior product. Meanwhile, Parker AA is busy announcing seasonal E175 service to random hamlets with no competition. Our results speak to the effectiveness of our business plan.

You work harder to make less money than your same seniority counter part at Delta or United.

This thread is about "time to WB CA". If enough people share your views on the importance of maintaining those jobs then time to WB CA will probably be more like 20+ years to never.

 

I predict in the next downturn AA will be first to fail, dragging others down. Labor cost are to high, chap 11 needs to happen.

 

But jumpseaters aren’t allowed to get bumped. Another crappy lack of work rules in our contract. Hopefully we get some LUS work rules here.

 

Which labor costs are you talking about? The pilots are near the bottom of the industry in total compensation. The mechanics will eventually work out a deal. It's not a cost issue. It's a revenue problem and lack of execution.

Ch 11 is not going to happen. It's ridiculous to even mention. $3 Billion profit even with an operation in shambles and people are talking bankruptcy. I think the pilots that went through the post 9/11 lost decade are similar to the generation that went through the Great Depression, always waiting for it to happen again next year.....

 

Great post history.

 

Very well said. It’s painful to watch Parker and his crew run this place like a domestic LCC. We will NEVER compete with Delta and United like this.

 

But but but what happened to the class- y / ic KDA statement?

 

Careful! It all comes down to clever accounting and political pull. Ask some of those LUS old timers about losing their pension.

 

I think it's irrelevant. When other carriers have large profitable domestic operations (ie SWA) and have a higher margin than us, that would tend to dispel your theory.

So what's interesting about your quip about operating into "hamlets" is those hamlets often have a higher amount of pax and revenue than some of our international markets. If you have some spare time, you can look up bts.gov and see passenger throughput between origination and destination airports. A good example with our own operation is Tulsa to DFW tomorrow...almost 2000(!) pax between those city pairs tomorrow booked on us.

So Vasu/company uses government data such as that to pick routes and develop them. Some there isn't much data on, and a risk is taken.

I think AA's largest problem is branding in that we don't have one, we are just a generic transportation company. Nothing really sets us apart. Also I feel the "American" name hurts us overseas as well. Parker's idea was to not be a Walmart but a Target, basically a step above the lowest common denominator.

Both Delta and United have a higher overall CASM than us but of course make up for that with higher revenue as well. My wife is a typical business traveler both domestic and international. By far her main priority in booking flights is schedule and seat available. Anything else is simply icing on the cake. East coast to west coast delta has better scheduling of flights. She won't even look at United. She does fly on AA when I can convince her to (rarely!).

Do we? I'm really not 100% sure in that, we might in some cases but not in others. From what I've seen however is SWA has all of us beat. But this group would never consider some of the items in SWA's contract, such as being a "lance capt".

The more we make the stronger we become. Operating money losing routes just to say we are an international carrier probably isn't a great long term business plan.

 

Looking back at the “KDA” mantra, I can’t tell if I find it hilarious or tragic... probably both.