Guest EXPAT Posted February 1, 2012 Share Posted February 1, 2012 http://www.nytimes.com/2012/02/02/business/american-airlines-proposes-20-cut-in-salaries.html?_r=1 Another airline is looking to drastically cut expenses and overhead. American Airlines announced today that they want to cut 13,000 jobs and cut pay by 20% in order to reduce overhead for their struggling airline as they progress through the bankruptcy process. Cost management is one of the most difficult jobs in management and the airlines have never gotten it right. Quote Link to comment Share on other sites More sharing options...
Members JKane Posted February 1, 2012 Members Share Posted February 1, 2012 They also are cutting the BUR to DFW flight! I remain doubtful that they can cut their way to prosperity. Doing their job better, less antagonizing the customers, and taking advantage of all the benefits all the other airlines have gotten out of bankruptcy should be more than enough! I'm worried all the cost cutting and maintenance outsourcing is going to lead to something bad--soon. On the other hand many of the antique planes are being retired, which is good. If I never have to fly on another DC9/MD80 again it'll be too soon! Quote Link to comment Share on other sites More sharing options...
Guest FourAces Posted February 2, 2012 Share Posted February 2, 2012 According to the union the job cuts will not help AA much, however they will save some limited amount of money by sending those service positions overseas. Quote Link to comment Share on other sites More sharing options...
Members RA1 Posted February 2, 2012 Members Share Posted February 2, 2012 Would anyone be surprised to know that FEDEX does almost none of its' heavy maintenance? What little they do has only been recently. They do all or almost all of what I call line maintenance in house which would be changing tires, taking one inoperative radio out and replacing it with another, etc. They do use mostly US corporations for their heavy maintenance but sometimes use foreign. When they bought all those 727's they are now retiring, they used TAP in Lisbon on most of those for an initial "C" check, which is heavy maintenance. However, Hayes, Lockheed and Dee Howard installed all the cargo doors and fire detection equipment. Those are US companies. The point being that FEDEX doesn't have planes falling out of the sky and has never had a fatality from any cause, never mind a maintenance error. That does not mean I think they are perfect or a perfect business model for the people carrying airlines. I am sorry that AA and its' employees are having the problems. I personally have several friends who work for the airlines that have lost a LOT of money, to include some current pay and some retirement money. Aviation isn't an easy way to make a living; never has been and never will be. Best regards, RA1 Quote Link to comment Share on other sites More sharing options...
Members TampaYankee Posted February 2, 2012 Members Share Posted February 2, 2012 Learned from Laurence O'Donnel tonight on MSNBC that AA is looking to do away with the pensions promised to its employees all these years through bankruptcy -- some $90 million obligation. The Chairman of the Govt' Pension Overseeing and Guarantee Agency immediately put 90$ million in liens on AA properties in Latin America which are not part of the bankruptcy action, in order to not leave the government holding the bag on these pensions. Bravo for him. I doubt a Republican appointee would treat a big business like that nor GOP governors of any state if it was their responsibility. Quote Link to comment Share on other sites More sharing options...
Members JKane Posted February 2, 2012 Members Share Posted February 2, 2012 That is great news, but I though turning over the pensions to gov't was half the point? It's what all the other airlines did--as I understand it cutting existing, earned benefits by about a third, even for those already retired! Quote Link to comment Share on other sites More sharing options...
Members JKane Posted February 2, 2012 Members Share Posted February 2, 2012 Would anyone be surprised to know that FEDEX does almost none of its' heavy maintenance? [...] That is a great point! I'm just worried it becomes a race to the bottom with airlines pushing for ever cheaper. Counterfeit parts fitted in whatever country allows the maintenance companies to do it cheapest maybe? Quote Link to comment Share on other sites More sharing options...
Members RA1 Posted February 2, 2012 Members Share Posted February 2, 2012 Unfortunately, all too many here in the US have been in a race to the bottom for far too long. Best regards, RA1 Quote Link to comment Share on other sites More sharing options...
Members TampaYankee Posted February 2, 2012 Members Share Posted February 2, 2012 That is great news, but I though turning over the pensions to gov't was half the point? It's what all the other airlines did--as I understand it cutting existing, earned benefits by about a third, even for those already retired! Where can I turn my financial obligations over to the government????? Quote Link to comment Share on other sites More sharing options...
Members RA1 Posted February 2, 2012 Members Share Posted February 2, 2012 Declare bankruptcy? Best regards, RA1 Quote Link to comment Share on other sites More sharing options...
Members TampaYankee Posted February 3, 2012 Members Share Posted February 3, 2012 Declare bankruptcy? Best regards, RA1 I don't think the government will guarantee my creditors much less pay them. Quote Link to comment Share on other sites More sharing options...
Members RA1 Posted February 3, 2012 Members Share Posted February 3, 2012 No, they will simply remove your debts, except to the IRS, and hinder your lifestyle for a long time to come. No doubt that will not satisfy your creditors in the moral sense but it will in the economic sense, so to speak. Best regards, RA1 Quote Link to comment Share on other sites More sharing options...
