TIME: Is American the Worst-Managed Airline in America?

[marmar]

Is American the Worst-Managed Airline in America?
By Bill Saporito | @bilsap | February 6, 2012


Members of the Transport Workers Union (TWU) were scheduled to vote on a new contract with American Airlines, or AA, this December that would have lowered the airline’s cost and outsourced hundreds of jobs that weren’t directly related to aircraft maintenance. They never got the chance because American instead filed for bankruptcy. On Wednesday AA announced it planned to outsource just about all of them — 4,600 mechanics jobs are going, along with 4,200 ground-service positions, 2,300 flight attendants and 400 pilots. About 15% of American’s work force is getting a one-way ticket to Termination, Texas — thank you for dying with us today.

Of the cuts, the latter two figures make the most sense: American isn’t likely to be needing as many flight crews by the time its bankruptcy is settled because passengers are going to be bailing. Flying is horrible to begin with, and flying an airline run by a group of really angry people isn’t likely going to enhance the service level.

American was the last of the majors to file for bankruptcy — some have gone through the Chapter 11 bath twice — but it’s a standout for another reason. Over the long term, it has arguably been the worst-managed major airline — perhaps the worst-managed service company — that’s still in business. Over the past decade American has lost some $11 billion, which is about 15% of the industry’s total losses over the history of the entire industry. That’s quite an accomplishment.

AA is an airline that always seems to be mad at someone: employees, competitors, passengers, governments, OPEC. The company has been at war with its unions for years. Granted, the TWU is a rough crew, and the pilots are no picnic either. But both groups already negotiated givebacks and the TWU was on the verge of coughing up some more. Blaming the unions, which is basically what management is doing, misses the point. As a very smart CEO of a unionized company said to me years ago: “If you aren’t getting along with your union workforce, don’t call it a labor problem because it’s not. It’s a management problem.” And American has managed its workforce badly for years. ...................(more)

The complete piece is at: http://business.time.com/2012/02/06/is-american-the-worst-managed-airline-in-america/#ixzz1lbefx62C

[DrDan]

1. yes - based on my anecdotal experience with American

[CanonRay]

2. They hired Bain Capital, didn't they?

What more proof do you need?

[Ichingcarpenter]

6. at $11,000 a hour to figure to cut jobs/pensions

said it was cost saving to hire them in their memo....

[doc03]

3. Don't know the only flight I have been on in the last 16 years

was with Air Tran, from what I saw it shouldn't be hard to beat them.

[Loge23]

4. My goodnes, I actually agreed with Ben Stein!

The usually repulsive Mr. Stein did a piece on CBS Sunday AM in which he lamented the seemingly imminent layoff of 18,000 A.A. employees against the also imminent insane cash windfall of a few of the Facebook kids - including the guy who painted murals on the walls in exchange for stock: he stands to make about $10M.
We can go on about economic inequity in this country and rightfully so, but it's the values that are hopelessly out of whack.
Billions for a gossip, game, and ad site. Layoffs for hard-workers.

[just1voice]

5. Delta is a consumer nightmare

and I didn't read the link to Time.

[ProgressiveProfessor]

7. I think that belongs to ERA Alaska

Or Buffalo if you are Canadian. At least that is what cable TV teaches you.