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Tsuda
05-07-2012, 04:42 PM
American Air aims to boost revenue by $1 billion - Yahoo! Finance (http://finance.yahoo.com/news/american-air-aims-boost-revenue-192534842.html)

American Air aims to boost revenue by $1 billion
American Airlines aims to boost annual revenue by $1 billion annually by 2017



NEW YORK (AP) -- American Airlines plans to focus more on international flying and make better use of smaller jets in the U.S. as part of an effort to boost annual revenue by $1 billion within 5 years.
Fort Worth, Texas-based American thinks it can achieve almost two-thirds of that revenue goal by increasing its use of regional jets and making adjustments to better fit its aircraft to travel demand.
"We sometimes fly too many seats at times of day when there is not enough demand to profitably fill them," the company said in a memo to employees Monday.
At Chicago O'Hare, for example, United flies large regional jets in off-peak hours to save money, but American doesn't have the ability to do that. Larger regional jets typically have 70 to 100 seats. American's MD-80s have 140 seats.
American also aims to make agreements, known as code-sharing, with other airlines that will allow it to get more passengers without adding costs. For instance, such an agreement with another airline at New York's John F. Kennedy could feed customers into American's domestic or international flights, depending on the partner.
American also believes it can increase the sale of onboard extras onboard like Wi-Fi, roomier coach seats and lie-flat seats on international flights.
American aims to have 44 percent of its flying on more lucrative overseas flights by 2017, up from 38 percent today.
AMR Corp., American's parent, has been operating under bankruptcy protection since Nov. 29. US Airways Group Inc. has said it's interested in a merger with American.
Leaders of three labor unions at American announced two weeks ago that they had agreed to tentative labor contracts that would take effect in case US Airways merges with American. The unions hope that a merger would reduce the need for thousands of job cuts and other reductions that American proposes to save money.
AMR has said it wants to exit bankruptcy protection as a stand-alone carrier.
Besides the revenue growth, American thinks it can save $2 billion a year from cutting employees, restructuring debt and grounding old planes. American's latest plan to cut costs includes the potential elimination of 10,000 jobs scaled back from 13,000 originally.
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Wingtips
05-07-2012, 05:50 PM
more RJS, come on eaglefly, give me a highfive!

eaglefly
05-07-2012, 06:02 PM
more RJS, come on eaglefly, give me a highfive!

Yes, giddy with joy you are. Of course, this is simply a reiteration of what they conveyed back in January.

Don't spend too much time getting callouses on your hand though, as a large percentage will be going to carriers other then yours. ;)


Tsuda
05-07-2012, 06:13 PM
Eaglefly, and any other AA pilots, why not try to merge the lists? That way APA could control all the flying again. I know that the company is not interested in this concept, but it is my understanding that the APA leadership doesn't entertain the idea. Full disclosure I am an Eagle pilot.

eaglefly
05-07-2012, 06:26 PM
Eaglefly, and any other AA pilots, why not try to merge the lists? That way APA could control all the flying again. I know that the company is not interested in this concept, but it is my understanding that the APA leadership doesn't entertain the idea. Full disclosure I am an Eagle pilot.

That would be one solution, but the controlling management would have to agree to that concept. The current one has no interest in that though. Many AA pilots would accept that (myself included), even if we had to hold our noses and accept some of the more questionable characters like the high-fiver's rep on this forum.

LittleBoyBlew
05-08-2012, 07:51 AM
American Air aims to boost revenue by $1 billion - Yahoo! Finance (http://finance.yahoo.com/news/american-air-aims-boost-revenue-192534842.html)

American Air aims to boost revenue by $1 billion
American Airlines aims to boost annual revenue by $1 billion annually by 2017



NEW YORK (AP) -- American Airlines plans to focus more on international flying and make better use of smaller jets in the U.S. as part of an effort to boost annual revenue by $1 billion within 5 years.
Fort Worth, Texas-based American thinks it can achieve almost two-thirds of that revenue goal by increasing its use of regional jets and making adjustments to better fit its aircraft to travel demand.
"We sometimes fly too many seats at times of day when there is not enough demand to profitably fill them," the company said in a memo to employees Monday.
At Chicago O'Hare, for example, United flies large regional jets in off-peak hours to save money, but American doesn't have the ability to do that. Larger regional jets typically have 70 to 100 seats. American's MD-80s have 140 seats.
American also aims to make agreements, known as code-sharing, with other airlines that will allow it to get more passengers without adding costs. For instance, such an agreement with another airline at New York's John F. Kennedy could feed customers into American's domestic or international flights, depending on the partner.
American also believes it can increase the sale of onboard extras onboard like Wi-Fi, roomier coach seats and lie-flat seats on international flights.
American aims to have 44 percent of its flying on more lucrative overseas flights by 2017, up from 38 percent today.
AMR Corp., American's parent, has been operating under bankruptcy protection since Nov. 29. US Airways Group Inc. has said it's interested in a merger with American.
Leaders of three labor unions at American announced two weeks ago that they had agreed to tentative labor contracts that would take effect in case US Airways merges with American. The unions hope that a merger would reduce the need for thousands of job cuts and other reductions that American proposes to save money.
AMR has said it wants to exit bankruptcy protection as a stand-alone carrier.
Besides the revenue growth, American thinks it can save $2 billion a year from cutting employees, restructuring debt and grounding old planes. American's latest plan to cut costs includes the potential elimination of 10,000 jobs scaled back from 13,000 originally.
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What AMR fails to note is that those "lucrative overseas" markets are SLOT controlled and require a lot of $$ and political leverage to acquire. Its not as easy as Mr. Horton perceives it to be. If it were, Delta and United would be all over those "lucrative overseas" markets.

Justdoinmyjob
05-08-2012, 07:53 AM
What AMR fails to note is that those "lucrative overseas" markets are SLOT controlled and require a lot of $$ and political leverage to acquire. Its not as easy as Mr. Horton perceives it to be. If it were, Delta and United would be all over those "lucrative overseas" markets.

Maybe he's planning to employ the SWA of things. Just demand that DOT confiscate those slots and give them to a "new entrant" in the market.

avi8tor4life
05-08-2012, 08:22 AM
They can put in all the RJ's they want as long as they are flown at mainline.

javaguy141
05-08-2012, 08:57 AM
They can put in all the RJ's they want as long as they are flown at mainline.

That is what I am talkin' about RIGHT THERE!!!!!---this ain't about number of seats--this is about a whole pool of cheap labor.

GW258
05-08-2012, 11:24 AM
The industry only recently figured out that small jet unit cost were to high. Bankrupt management keeps doing the same thing over and over again. One day they will figure it out that a small jet requires the same operational resources as a large jet does.

More Bacon
05-08-2012, 01:29 PM
Wow--so all they have to do is say "we're increasing revenue by a billion."

That was easy.

buddies8
05-08-2012, 02:28 PM
They can put in all the RJ's they want as long as they are flown at mainline.

Yeap your right. Your avatar is the best to display for these sentiments. Being that ALPA caused the mess.

avi8tor4life
05-08-2012, 02:42 PM
You mean the pilots represented by Alpa caused this mess. Big difference. They decided. They turned them down.

Clear Right
05-08-2012, 08:52 PM
Full disclosure up front, I'm a B6 guy. Let's just say hypothetically AMR can't afford to buy JetBlue and they want to increase revenue by feeding their international market in JFK. They can't increase their domestic traffic at JFK because it is slot restricted. They can't add the Delta swarm of RJs at JFK because again they have no more slots, what's the problem with a B6 Codeshare at JFK alone to add high dollar revenue for AMR. Couldn't you put some scope restrictions on JFK with regard to a B6 partnership and increase your international feed...just saying, aren't you restricting profits when you can't organically grow your AMR traffic due to slot restrictions, but you could add revenue with a well defined Codeshare.

eaglefly
05-09-2012, 03:53 AM
Full disclosure up front, I'm a B6 guy. Let's just say hypothetically AMR can't afford to buy JetBlue and they want to increase revenue by feeding their international market in JFK. They can't increase their domestic traffic at JFK because it is slot restricted. They can't add the Delta swarm of RJs at JFK because again they have no more slots, what's the problem with a B6 Codeshare at JFK alone to add high dollar revenue for AMR. Couldn't you put some scope restrictions on JFK with regard to a B6 partnership and increase your international feed...just saying, aren't you restricting profits when you can't organically grow your AMR traffic due to slot restrictions, but you could add revenue with a well defined Codeshare.

AMR basically wants unrestricted codesharing which means the end of the majority of AA pilots careers.

Flyby1206
05-09-2012, 04:35 AM
Full disclosure up front, I'm a B6 guy. Let's just say hypothetically AMR can't afford to buy JetBlue and they want to increase revenue by feeding their international market in JFK. They can't increase their domestic traffic at JFK because it is slot restricted. They can't add the Delta swarm of RJs at JFK because again they have no more slots, what's the problem with a B6 Codeshare at JFK alone to add high dollar revenue for AMR. Couldn't you put some scope restrictions on JFK with regard to a B6 partnership and increase your international feed...just saying, aren't you restricting profits when you can't organically grow your AMR traffic due to slot restrictions, but you could add revenue with a well defined Codeshare.

AA doesn't make any real revenue on a Codeshare flight. Revenue isn't shared like in the BA/AA joint venture agreement.

If B6 did all the domestic connections for JFK then that would free up a bunch of AA slots that they could use for international expansion, but overall I agree with eaglefly and it could be a bad situation for AA/AE domestic ops in JFK

Clear Right
05-09-2012, 06:55 AM
AA doesn't make any real revenue on a Codeshare flight. Revenue isn't shared like in the BA/AA joint venture agreement.

If B6 did all the domestic connections for JFK then that would free up a bunch of AA slots that they could use for international expansion, but overall I agree with eaglefly and it could be a bad situation for AA/AE domestic ops in JFK

This is the problem I have with ALPA at B6. Think for a moment outside of the Legacy CBA mentality and put yourself in managements shoes. Just think of this as an intellectual exercise. Sometimes we don't see the forest through the trees because we don't trust management and we are worried about job protection, when the reality is you could be increasing jobs through more international traffic. Just bear with me and think about this scenario.

You can't increase domestic traffic because you are slot restricted at JFK. But your most valued revenue comes from your International JFK traffic. You want to add seat capacity at JFK with new 787s. But you need to fill the seats, so you Codeshare with JetBlue, not for domestic Codeshare profits, but to fill your International seat, adding much needed revenue.

Just don't allow the unrestricted Codeshare. Restrict it in negotiations to only Slot restricted airports where AMR can not add it's own domestic capacity. Everybody wins....maybe?

Flyby1206
05-09-2012, 07:58 AM
Just don't allow the unrestricted Codeshare. Restrict it in negotiations to only Slot restricted airports where AMR can not add it's own domestic capacity. Everybody wins....maybe?

I agree 100%. In slot restricted airports like JFK it actually hurts AA to use a valuable slot for RJ service to an east coast city just so they can connect the dots for international pax. I could see AA still flying routes like LAX-JFK and MIA-JFK using widebodies, but stuff like JFK-BOS/DCA/ORD/RDU could be better served by B6 E190s. You would still have to figure out the issue with transferring pax between terminals quickly, but that can be accomplished.

Something like this would definitely require heavy duty contractual language, but it can be done through a CBA ;)

beeker
05-09-2012, 08:33 AM
Why stop at a billion? Wouldn't a press release, "AMR wants to increase revenue by two Billion" be a better bigger positive headline for management? How about, "AMR wants to increase revenue by 1 billion and give a pony to every passenger and employee." Now that would be a good press release.

"AMR wants to increase revenue by 1 billion, switch all energy use to clean alternative power, end world hunger, create world peace and get every man woman and child a pony." That is what I would "want" to do as CEO of AMR, vote for me.

Tomahawk58
05-09-2012, 08:45 AM
Why stop at a billion? Wouldn't a press release, "AMR wants to increase revenue by two Billion" be a better bigger positive headline for management? How about, "AMR wants to increase revenue by 1 billion and give a pony to every passenger and employee." Now that would be a good press release.

"AMR wants to increase revenue by 1 billion, switch all energy use to clean alternative power, end world hunger, create world peace and get every man woman and child a pony." That is what I would "want" to do as CEO of AMR, vote for me.

Oh wait, haven't you just described Mr Parker's position. He states publicly that he sees another 1.5-2.0 Billion in cost-savings and revenue increase all the while guaranteeing no furloughs, DAL-Plus payrates, putting a pony in every stable, etc.

Not many here taking him to task for his statement other than myself and a couple of other folks.....Hmmmmm!

Tomahawk58
05-09-2012, 08:57 AM
The even greater irony or maybe it's hypocrisy is the willingness to accept Mr Parker at face value for his public statements even when his own house is divided, while deriding Mr Horton and his new team who's only been in the top job less then 6 months.

So compare the positions stated with the tenure. Tell us publicly why Mr Parker didn't offer his own team DAL rates 7 years ago? He's certainly been content to take the windfall resulting from the lack of combined contracts at US. Just what are the current pay rate differences between the West and East guys?

But many of you see him as the future savior of AA.....I'm not buying the hype.

eaglefly
05-09-2012, 09:00 AM
Oh wait, haven't you just described Mr Parker's position. He states publicly that he sees another 1.5-2.0 Billion in cost-savings and revenue increase all the while guaranteeing no furloughs, DAL-Plus payrates, putting a pony in every stable, etc.

Not many here taking him to task for his statement other than myself and a couple of other folks.....Hmmmmm!

Perhaps it's harder to take someone to task if they haven't already stiffed you.....................repeatedly ? :rolleyes:

eaglefly
05-09-2012, 09:06 AM
The even greater irony or maybe it's hypocrisy is the willingness to accept Mr Parker at face value for his public statements even when his own house is divided, while deriding Mr Horton and his new team who's only been in the top job less then 6 months.

New team ?

Brundage insinuates he's still apparently behind the scenes as puppet-master and Lorenzo's $1000/hour former attorney is front and center, embraced warmingly by Mr. Horton.

What more do you think most of us need to see or hear ?

So compare the positions stated with the tenure. Tell us publicly why Mr Parker didn't offer his own team DAL rates 7 years ago? He's certainly been content to take the windfall resulting from theh lack of combined contracts at US. Just what are the current pay rate differences between the West and East guys?

But many of you see him as the future savior of AA.....I'm not buying the hype.

Perhaps one reason you're not buying it is because you refuse to look in the right direction ?

Pay rates and combined pilots aside, the question should be which positions have generated profits and effectively run a competing company within their tenure ? :eek:

Not a pretty place to look I know, but we're talking about the future. Combine that reality with our slow, but steady death via the 1113 and I think then you can see why it's presently a no-brainer for the overwhelming majority of AA pilots.

Tomahawk58
05-09-2012, 09:23 AM
New team ?

Brundage insinuates he's still apparently behind the scenes as puppet-master and Lorenzo's $1000/hour former attorney is front and center, embraced warmingly by Mr. Horton.

What more do you think most of us need to see or hear ?



Perhaps one reason you're not buying it is because you refuse to look in the right direction ?

Pay rates and combined pilots aside, the question should be which positions have generated profits and effectively run a competing company within their tenure ? :eek:

Not a pretty place to look I know, but we're talking about the future. Combine that reality with our slow, but steady death via the 1113 and I think then you can see why it's presently a no-brainer for the overwhelming majority of AA pilots.

You're right of course, it's not hype if it's coming from Mr Parker. All will be well.

beeker
05-09-2012, 09:31 AM
Just an outside commentator, I don't know anything about what Mr. Parker has said. I was just making a comment about a statement with no plan behind it. I would be happy to do the same with Mr. parkers comments as well.

beeker
05-10-2012, 01:59 PM
But If your asking me if I would rather go with parkers hype or hortons hype, I would go with parker. Both have no plan but at least the pay/benefit cut wouldn't be as bad with parker( as they are promoting.)

tsquare
05-10-2012, 02:59 PM
Why stop at a billion? Wouldn't a press release, "AMR wants to increase revenue by two Billion" be a better bigger positive headline for management? How about, "AMR wants to increase revenue by 1 billion and give a pony to every passenger and employee." Now that would be a good press release.

"AMR wants to increase revenue by 1 billion, switch all energy use to clean alternative power, end world hunger, create world peace and get every man woman and child a pony." That is what I would "want" to do as CEO of AMR, vote for me.

Exactly. My question is where internationally they think they can wrangle even a billion in revenue increase.

-Europe in the toilet...
-South America? They already own that, so I doubt if they can get enough of an increase to make up for Europe..
-Zero presence in Africa.. (come on in boys... the water's fine. oh, and UAL is pulling out of some of those markets...)..
-Asia? I think their relationship with JAL would put the clamps on that..
-Antarctica?

Mink
05-12-2012, 07:36 AM
Slight hiccup in their "raise a billion..." efforts:

American Airlines to cut June flights because of pilot shortages | Dallas-Fort Worth Airlines News - Business News for Dallas, Texas - The Dallas Morning News (http://www.dallasnews.com/business/airline-industry/20120510-american-airlines-to-cut-june-flights-because-of-pilot-shortages.ece)

aa73
05-12-2012, 10:02 AM
Slight hiccup in their "raise a billion..." efforts:

American Airlines to cut June flights because of pilot shortages | Dallas-Fort Worth Airlines News - Business News for Dallas, Texas - The Dallas Morning News (http://www.dallasnews.com/business/airline-industry/20120510-american-airlines-to-cut-june-flights-because-of-pilot-shortages.ece)

but hey, let's go ahead and furlough 400 pilots. Genius!

Tomahawk58
05-12-2012, 10:18 AM
but hey, let's go ahead and furlough 400 pilots. Genius!

I understand US has a managed pilot sick program. Let see how that work out for the 9 percent that choose today to screw the company and their fellow pilots, when we're operating under that US system. I know, suddenly everyone will miraculously recover.

Actually, that would be good thing if we get folks back to being professionals that support the company cutting their paycheck.

Mink
05-12-2012, 10:24 AM
AMR is reaping what it's sown. You can't bend over your employees for years then expect them to be on board for the big win when you need them most.

Tomahawk58
05-12-2012, 10:32 AM
AMR is reaping what it's sown. You can't bend over your employees for years then expect them to be on board for the big win when you need them most.

That must be it. So all those carriers with rates of pay significantly below AA's current rates in addition to way more productive contracts have much lower rates of pilot sick; what would you attribute the reason for their performance to?

InformationEcho
05-15-2012, 03:08 AM
"Why don't you jump on the team and come on in for the big win?"

Full Metal Jacket Born to Kill/Peace Button Duality of Man - YouTube (http://youtu.be/KMEViYvojtY?t=55s)