AMR reports $291 million in net earnings

 
Old Jul 20, 06, 11:30 am
  #31  
brp
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Originally Posted by WRCSolberg
Thanks, dad.


Cheers.
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Old Jul 20, 06, 11:41 am
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Originally Posted by brp


Cheers.
It's a joke, he started off his post with "Now let's not get carried away kids...".
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Old Jul 20, 06, 11:43 am
  #33  
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Originally Posted by WRCSolberg
It's a joke, he started off his post with "Now let's not get carried away kids...".
Wasn't sure. Usually the is reserved for criticism and disapproval, so I wanted to see what you disapproved of. Move along...nothing to see here.

Cheers.
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Old Jul 20, 06, 11:44 am
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Originally Posted by brp
Wasn't sure. Usually the is reserved for criticism and disapproval, so I wanted to see what you disapproved of. Move along...nothing to see here.

Cheers.
The joys of written communication....


I agree with Blumie though, it will be a good spell before we see any new aircraft. And it will be much more likely we will see more 738s or more 772s before we hear anything regarding 787s. Heck, the 787 is a direct replacement for the 767, and AA's 767s aren't that old. I think the newest one was delivered in 2003?
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Old Jul 20, 06, 4:44 pm
  #35  
 
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Originally Posted by Blumie
Ok, kids, let's not get ahead of ourselves. A small profit for a debt laden company is unlikely to translate into a large commitment for new aircraft purchases anytime soon.
true, we'll have to see how the operating numbers look, but rasm up 11.7% is pretty healthy. $291m net even beats CO's profit, at long last.

I agree no real plane plans make sense until a few billion more in debt is gone.
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Old Jul 20, 06, 6:07 pm
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I'm hoping they can continue this throughout the winter months. Some of those SNN flights are still rather empty.

I'll be contributing to to AA's rev in the next few months.
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Old Jul 21, 06, 7:50 am
  #37  
 
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Originally Posted by Blumie
Wow, do you really have nine months of visibility into your numbers?
I am reminded of the quote, "while the individual man is an insoluble puzzle, in the aggregate he becomes a mathematical certainty." While demand can be narrowed to a range, long-term fuel prices are a wildcard. Even so, changes in fuel price have recently been muted by changes in yield (a cost-free fuel hedge, so to speak).

IMO, AMR management has a firm understanding of its cost structure and the industry environment. As a result, our investor relations department does a very nice job of communicating expectations to Wall St.
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Old Jul 21, 06, 1:42 pm
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That's good news!

I remember when I deciding to become an AAdvantage member or a Mileage Plus member - glad I choice to be an AAdvantage member. ^
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Old Jul 21, 06, 3:11 pm
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I have mixed emotions on this - to be totally honest.

First, Congratulations to AA re: the $291 million profit. I am sure this was not at all easy to achieve, and all AA employees should be proud.

Having said that, I fly every week (DFW-YVR). It would be nice to see AA make a bit more of an effort to improve J (they don't have F on this - they call it Business) lunches on these flights (4 hours to YVR, 3.5 back). The turkey sandwich is really, really old.
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Old Jul 21, 06, 3:59 pm
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Hope things keep improving

Good job AA.

Which union do you think will be the first to request to renegotiate their contract?
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Old Jul 21, 06, 4:49 pm
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Originally Posted by WRCSolberg
The joys of written communication....


I agree with Blumie though, it will be a good spell before we see any new aircraft. And it will be much more likely we will see more 738s or more 772s before we hear anything regarding 787s. Heck, the 787 is a direct replacement for the 767, and AA's 767s aren't that old. I think the newest one was delivered in 2003?
It would be 2012 or after before AA could even start deliveries on the 787. The plane has been so popular they don't have any delivery to dates now prior to 2012.
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Old Jul 21, 06, 8:08 pm
  #42  
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Originally Posted by rogodwin
Which union do you think will be the first to request to renegotiate their contract?
Actually, just the opposite. AA management did ask the pilots union to start negotiating on their contract that comes up in 2008. It was in the paper today.

American wants to negotiate a new contract

American Airlines has notified its pilots that airline management wants to negotiate a new contract — a move likely to spark a debate over whether employees can reclaim wages and benefits given up three years ago.

On Friday, airline executives informed leaders of the Allied Pilots Association, the carrier’s pilots’ union, that they will begin negotiations within 60 days. Under their current contract, either management or labor can choose to initiate contract talks.

The current contract expires on May 1, 2008. But negotiations often take years, so starting early makes it more likely a new deal will be in place by then.

full story: http://www.dfw.com/mld/dfw/news/1509...annel=dfw_news
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Old Jul 21, 06, 9:08 pm
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Originally Posted by tom911
Actually, just the opposite. AA management did ask the pilots union to start negotiating on their contract that comes up in 2008. It was in the paper today.

American wants to negotiate a new contract

American Airlines has notified its pilots that airline management wants to negotiate a new contract — a move likely to spark a debate over whether employees can reclaim wages and benefits given up three years ago.

On Friday, airline executives informed leaders of the Allied Pilots Association, the carrier’s pilots’ union, that they will begin negotiations within 60 days. Under their current contract, either management or labor can choose to initiate contract talks.

The current contract expires on May 1, 2008. But negotiations often take years, so starting early makes it more likely a new deal will be in place by then.

full story: http://www.dfw.com/mld/dfw/news/1509...annel=dfw_news
I think you're missing the larger point, which is that there are many examples in the past of unions (not just at airlines) grabbing as much as they can when their employer is doing well, only to find that it is exactly that over-reaching that later leads the employer into financial ruin.

GM, United, Delta, ....

The OP was probably alluding to the possibility that the unions at AA may pursue exactly this path in light of AMR's good quarter.

Many posters on this board have secretly and not-so-secretly hoped for AA to declare BK so they can benefit from the kinds of cost-cutting the other airlines have benfitted from... if the unions do pursue the policy I have hypothesized, I imagine the posters will get what they wanted!
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