AMR to ask court to reject labor contracts

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03-30-2012, 09:59 AM

#61

More Bacon

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Position: DAL

Posts: 623

Quote:

Originally Posted by Flyby1206

and if AMR gets their costs drastically lower than DAL/UAL then they will be forced to follow, or risk losing business.

Only if the product is comparable/competitive.

03-30-2012, 10:01 AM

#62

eaglefly

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Joined APC: Jun 2008

Posts: 8,350

Quote:

Originally Posted by More Bacon

No more so than Spirit, SkyBus, etc. have applied pressure--that is to say, almost zero. DAL doesn't necessarily want the bargain basement fare-seeker. Better to hone the product and capture the desired customer.

Should anything close to the term sheet prevail, it's not a stretch to expect that AA's product will continue down the crapper, and as a result, it will no longer be in the running for those lucrative high value customers willing to pay a premium for a better product.

Agreed. The other networks have a better network and arguably a better product. Supposedly AMR wants to recapture a "premium" product for the world business traveler. They may have a plan for the network, but if AA mainline is a significant part of the product going forward, that may be much more difficult. If the surviving employees are pummeled to the degree it sounds as though is being sought, I can't see how you can rebuild a product like that with these resources.

Perhaps someone will pull a rabbit out of a hat after all this is over ?

03-30-2012, 10:09 AM

#63

eaglefly

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Posts: 8,350

Quote:

Originally Posted by Flyby1206

AA/DAL/UAL all are going after the same pool of travellers. The frequent flier elites and the corporate contracts. Skybus, Spirit, etc are seeking the visit-grandma-once-a-year fliers and those who just want the cheapest ticket possible. There is a big difference in these strategies and if AMR gets their costs drastically lower than DAL/UAL then they will be forced to follow, or risk losing business.

The onboard product only matters in the premium first and business classes, and AA will keep up with DAL/UAL in that respect. AA does have some bitter FAs, but so do DAL and UAL. None of the three are competing against the modelesque Singapore attendants for sure.

Many corporate road warriors travel coach.......in fact, most do. The product will either have a sound foundation across the board or it will be deemed inferior. UAL and DAL have their labor issues and warts, but nothing to the degree of AA, IMHO.

I think had AA simply joined the BK train in the mid 2000's like the others, the labor equation here would be completely different. The last 10 years have been a slow and painful nightmare for most it seems and now after all that, the BK sham and now the final coup-de-gras of the terms of the term sheets and the bargaining intransigence. A new leader took over and a flicker of hope was there, but then the same old chef was appointed and snuffed the candle of hope for change.