Salukipilot4590

Read more here: American Airlines giving pay raises to pilots and flight attendants | Fort Worth Star-Telegram

Well ain't that just special!

Grats to the AA guys though!

F9 Driver

Parker, who actually answers to shareholders, put his credibility on the line by giving mid-contract raises, and bought some good will and good press.

Indigo, privately held by greedheads, creates reasons out of whole cloth to NOT share their enormous gains with the labor force.

Frontier is running at less than half AMR's CASM-ex fuel, but is terrified of a reaction like this - especially heading into an IPO.

BRIEF-American Airlines expects Q2 revenue per available seat mile to be up about 3 to 5 percent | Reuters

BRIEF-American Airlines expects Q2 revenue per available seat mile to be up about 3 to 5 percent



American Airlines Group Inc
* American airlines group inc - expects its q2 total revenue per available seat mile (trasm) to be up approximately 3 to 5 percent
* American airlines - impact on salary and benefits expense from mid-contract hourly base pay rate adjustment would be approximately $230 million for 2017
* American airlines - impact on salary and benefits expense from mid-contract hourly base pay rate adjustment would be about $350 million for 2018 and 2019
* American airlines group inc - consolidated casm excluding fuel and special items is expected to be up approximately 5 percent in 2017 - sec filing
* American airlines group inc- 2017 total system capacity is expected to be up approximately 1.5 percent versus. 2016
* American airlines group inc - q2 consolidated casm excluding fuel and special items is expected to be up approximately 7 percent year-over-year Source text for Eikon: Further company coverage:

sulkair

Awesome for American guys - I honestly mean that in my heart, but it's got me scratching my head to be honest. Help me understand what a mid-contract raise does for American - the business. Why am I instantly suspicious of some darker ulterior motive?

Maybe I'm just so jaded at this point I feel like it's a Greek bearing gifts situation. Or is that I'm jealous and Pi$$ed that we have to fight tooth and nail for "industry average" 5 years too late, not to mention we can't even get LOA 67 (owed to us) ....and they out of the blue get a birthday gift just because! Naw - they deserve it.. I know they do. But so do we.

Are mid-contract raises very common?

sulkair

F9 driver - a bit confused here:

You mention Parker who "answers to shareholders" bought good will, but Franke is terrified of the diminishing numbers a raise would beget. Ostensibly because future (IPO) shareholders wouldn't like it. Right?

But obviously current American Shareholders won't like that reuters report either so what gives?

Thanks in advance!

F9 Driver

Yo Sulk - sorry. I think I've just become so cynical that my ideas just come out with a sarcastic bent.

Parker did cause a drop in American's stock, but, ulterior motives not withstanding, he has the nads to invest in his employees. Either spend the money fighting and dealing with the problems PO'd labor can cause or spend that same money, (likely less overall!) AND make your people feel like their employer respects and appreciates their work.

Southwest was the only profitable airline when oil prices went crazy 2007-08 and the most unionized airline in the industry. Every other airline spent money trying to keep the unions out, PO'd their employees and ended up with unions on property anyway. Their fuel hedging didn't hurt, but their attitude toward not fighting the unionization of their workforce was there from the start.

Parker knows his stock will rebound, and he got good press / good will for his dollar.

Indigo won't cough up a plug nickel unless forced to, (the RLA or arbitrator) and has the lack of respect from labor that these actions engender.

I think it's a matter of perspective - pay now and get proud employees in return or fight to the end, pay then, and get nothing but the NMB off your back.

The difference could be that Parker sees American as a long term prospect, but Indigo seems to want to make as much as possible as quickly as possible no matter the collateral damage.

Rant over and hopefully clearer. 🙃

sulkair

Very! And sorry to make you spell it out like that. I bet you're exactly right wrt to Parker's reasons. I guess I'm just surprised by it. Maybe it isn't so old fashioned to respect and appreciate your workers as I thought.

full of luv

You all are overlooking APA's seemingly well executed campaign to get their pilots to stop floating vacations.

Don't know all the details, but the AA contract apparently allows pilots to not select a vacation week(s) and either sell back to company or float to a less busy time for some premium. Union realized that this contract provision was actually pilots voluntarily giving quite a bit of a gift to the company annually, and lobbied their pilots to not float their vacations but actually select and use their weeks which apparently had enough effect to get mgmts attention pretty quickly.

Not a work action, just a provision in the contract that rewarded the pilots with a bit of money at a larger cost to the overall group. Imagine going to a judge saying the mean union was doing an illegal job action by actually taking their vacations instead of selling them back. Probably a non-starter, but admittedly, old AA mgmt would have probably tried that route first.

F9 Driver

I figured there had to be more to the story. When the answer to the question asked of the mega rich, "how much is enough?" Acceptably became, "more" we had best have our collective act together to respond.
Thanks for the info, Luv.