Originally Posted by kappys
Poor business model based on cheap fuel and business flights.
Airlines are stuck because they can't really raise their prices much - if they do people stop traveling. Business travel is becoming more and more optional in a lot fields thanks to some of the teleconferencing options that are out there now.
The unions have no real choice here - if AA goes bankrupt then they get nothing anyways. Still I feel its always a shame that unions and their benefits get slashed in these sorts of negociations but there is usually little or no limitation of executive pay/compensation as part of the legal arrangements.
I agree that some of the execs make way more than they are worth, but then most of their compensation they make is in stock options and benifits..
it is not actual money..
Unfortunately YEARS ago at most union shops and the airlines are no different wages got skewed and workers got used to the lifestyle..
Flight attendants making 70K a year and only actually working 40 hours a month or less.. and that was not including the benefits, or a auto worker making as much or more for putting a bumper on.. just a couple of examples of over the top salaries now they are unable to pay these wages as YOU said competition came in with much lower wages SWA as an example when they first started had brand new planes that required a lot less maintenance and gas was cheap and employees none had any seniority and while they had some pension benefits being offered the actual payouts on those were 20 years down the line.. they offered 19 dollar fares.
the other airlines in those same markets had to match them.. all the while paying sky high benefits and wages..
mostly the same thing happened to the auto industry.. with imports..
Americans got fat and lazy with high wages and we did not plan long term..
Now most of the companies understand that they have to look at long term and the employees are caught up in it..
got an appointment may expand on this later..