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December 1, 2011

offtobrowntown says: As a son of an AA employee who went through the fear of mass layoffs during the post 9/11 airline bankruptcy days (He made it thankfully). Do you guys think AA'll be laying off any employees as per renegotiations with the unions? Or do you think it'll be purely restructuring.

» SFB says: To put it simply, layoffs are probably on the menu. From this CNNMoney article on the matter: "American pilots fly fewer hours than their counterparts at other carriers, and receive similar pay and benefits for less work time. And because the maximum number of hours an American pilot can work in a month equals the minimum at Southwest, American is required to hire more people to work in the cockpit for the same amount of flying." Even though American pays less than most of the other airlines, the union-enforced disparity of hours is hitting the airline hard, costing them roughly $200 million each year. Benefits are also very costly for the airline. Ultimately, if the forthcoming labor talks go AA’s way, expect layoffs. Even if they don’t, expect service cuts that could lead to labor cuts anyway. — Ernie @ SFB

21:22 // 2 years ago
January 2, 2011
Is American Airlines screwing over online travel sites?

It appears American Airlines is burning online travel bridges. In recent weeks, both Orbitz (who couldn’t reach a contract with the airline) and Expedia (who voluntary took them out) have ditched the airline. Is it possible that these sites have been so successful at their mission that they’ve actually forced airlines to make their flights cheaper? Well, to test this theory, we looked online at American Airlines’ site for travel deals to from DC to Dublin (where we’re taking our girlfriend in the next few months). The average cost at a site like Orbitz was roughly $650 per person for a flight and hotel. The lowest price at AAvacations.com? $1260 per person. It’d be way harder to figure out that was an awful deal if we had to go to every airline to compare prices. AA’s efforts to strongarm online travel sites are simply bad for consumers and should not be supported. Who else has good deals to Dublin? (photo by lrargerich) source
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It appears American Airlines is burning online travel bridges. In recent weeks, both Orbitz (who couldn’t reach a contract with the airline) and Expedia (who voluntary took them out) have ditched the airline. Is it possible that these sites have been so successful at their mission that they’ve actually forced airlines to make their flights cheaper? Well, to test this theory, we looked online at American Airlines’ site for travel deals to from DC to Dublin (where we’re taking our girlfriend in the next few months). The average cost at a site like Orbitz was roughly $650 per person for a flight and hotel. The lowest price at AAvacations.com? $1260 per person. It’d be way harder to figure out that was an awful deal if we had to go to every airline to compare prices. AA’s efforts to strongarm online travel sites are simply bad for consumers and should not be supported. Who else has good deals to Dublin? (photo by lrargerich) source

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11:09 // 3 years ago