More Cancellations For Beleagured AA

American Airlines Losing Millions And Fliers' Goodwill; Nearly 600 More Flights Cancelled

(CBS/AP) 
American CEO Gerard Arpey said Thursday that the cancellations will cost the airline "in the tens of millions of dollars." Analysts say the toll could easily be that, and perhaps much more.

Besides lost revenue from the canceled flights, American also was giving $500 travel vouchers to an unspecified number of inconvenienced passengers and putting some travelers up in hotels. There also could be transportation costs to and from hotels, extra overtime for employees and the long-term costs of losing goodwill among customers.

American spokeswoman Andrea Huguely said the cost probably wouldn't be known until Saturday night, when the carrier expects to have all its MD-80s back in service.

The cost to other airlines also was unclear, and the pain could continue, analysts said.

"Just given the level of scrutiny, it wouldn't surprise me if there were more cancellations and groundings at other airlines," said Standard & Poor's analyst Philip Baggaley.

He said the disruption was worse than some major storms that have affected large airline hubs.

"The costs are fairly substantial," Baggaley said. "Given that the cancellations have been spread among a number of carriers, this will make it harder for airlines to turn around and try to raise fares, particularly in the weakening economy. It does indeed come at a bad time."

Meanwhile, mechanics and FAA inspectors cleared more of the planes to return to service. American said Friday that 226 of its 300 MD-80s were back in service by Friday morning. It expected to operate half its normal number of MD-80 flights in the morning, rising to 60 percent by late afternoon.

American had grounded the same planes two weeks ago after the FAA began a crackdown on airline compliance with safety rules. American put the planes back in the sky, but they weren't examined by the FAA until this week, when inspectors found the wire-packaging work hadn't been done correctly.

The federal rule stems from reports that poorly packed wires could lead to electrical arcing, which could cause a devastating fire - although FAA said it had no reports of fires. Arpey said mechanics have found no signs of chafing in the wiring of its jets, and that passengers were never in danger.

Airline officials said they were giving $500 travel vouchers for passengers who were stranded overnight away from home, and that customers who were booked on canceled flights could request a full refund or apply the value of their ticket toward future flights.

The airline also said it waived its customary fee for changing flights for any customer on an MD-80 flight through Sunday, even if the flight was not canceled.

[jtormey3]

http://ejectsturgell.blogspot.com

Friday, April 11, 2008

Quiet Rockland Urges America To REJECT Robert A. (%u201CBobby%u201D) Sturgell As FAA Administrator

In the lyrics of Dewey Bunnell of the group America, from the 1971 song %u201CSandman%u201D:

%u201CAll the planes have been %u2013 grounded%u201D.

It%u2019s time to bring back America. The REAL America. The FAA is more broken than the cracked airplanes it purports to regulate. FAA Head %u201CBobby%u201D Sturgell is a losing legacy case %u2013 the son of J. Edgar Hoover%u2019s personal secretary, planted years later at the FAA, an agency that the powers-that-be assumed Sturgell could never screw up.

Well, that failed legacy case named %u201CBobby%u201D Sturgell DID screw it all up. Big time. The United States aviation system is now at flashpoint crisis.

Enter, Sandman.

Quiet Rockland opposes Robert A. %u201CBobby%u201D Sturgell%u2019s confirmation as FAA Administrator. Moreover, Quiet Rockland calls for %u201CBobby%u201D Sturgell%u2019s SUMMARY REMOVAL as Acting FAA Administrator.

%u201CBobby%u201D Sturgell is an abominable public official. The current regime of the FAA is a dismal nightmare. The FAA is a guileful federal agency still dwelling in the pocket of industry. Together, Sturgell, the FAA, and the airlines derisively and contemptuously laugh at you and me, the American people %u2013 the people to whom this country belongs.

But no more.

[bobnjersey]

[I am surprised there isn''''t a congressional investigation in Cheney''''s secret meeting with Oil executives and the planning of his oil and energy stragtegy.]
[Posted by yongamerica at 04:43 PM : Apr 11, 2008]

this was taken all the way to the ussc to gain access to the list of who was present ... and apparently since he was part of the executive branch (at that time) they ruled the info confidential due to executive privilege.

[sgtrds]

The Bush appointed FAA climbs into bed with top airline executives and allow them to skip or delay safety inspections because they cost too much time and money. Then whistle blowers blow the whistle on the practice and now the airlines find themselves losing money by grounding planes to do inspections that they should have done in the first place. Obviously the only way out now is another taxpayer funded bailout ala Bear Stearns! I mean we can''t allow these airline executives lose their 4th or 5th vacation homes or have to settle for a smaller yacht now can we!

[bobnjersey]

["If somebody''s got a choice between being in a plane crash and being late, is there a choice?" Jane Bernard, a writer from New York who was delayed by at least three hours en route from LaGuardia Airport to Miami, said Thursday.]

this isn''t the choice.

for the airline ... the choice is between a timely and conscienscious maintenance of the fleet ... vs ... waiting till the last minute and doing shoddy work.

so now ... for the passenger ... the choice is between an airline that does it right ... and one that doesn''t. that choice should be easy to make now.

[yongamerica]

This stuff is WAY blown out of proportion. After all, what could go wrong with a 160-thousand pound aluminum tube travelling 504 mph, seven miles above the earth with 300-or-so people on board? Huh? - DaVicar2

Apparently that''s how AA feels about the subject. The airlines were given 18 months to make this inspection. And AA waits until the inspection period is past due to begin.

[yongamerica]

I am surprised there isn''t a congressional investigation in Cheney''s secret meeting with Oil executives and the planning of his oil and energy stragtegy.

[coppertales]

Boeing issued a service bulletin two years ago addressing this problem. The FAA then issued an AD to comply with this problem and gave the airlines 18 months to comply. Appearantly, AA did not.

After all, when airlines are in financial difficulty, corners will be cut somewhere, just like any other business in trouble does. However, the head management will continue to pay themselves big bucks so if they get fired, they won''t be hurting. It is the "me" generation making their fortunes in quicktime.

[ixoye_02]

This whole situation is ridiculous. How can a business keep it''s customer when they strand passengers like this? It sounds more like "Oops, we just forgot to maintain our planes, so we will have to cancel your flight". It won''t travel by domestically by air if I can help it...I would rather drive if I can. I don''t see how the domestic airlines can retain their customers with these situations happening without plan.

[photogeezer]

How about the aircraft manufacturers who design and build the planes? Why weren''t MD, Boeing and others required to fix what they screwed up, plane by plane?

Boeing has been whining about not getting the tanker contract. Why give this contract to a company with a history of cracked fuselages?

Why not some blame for the Harvard MBA''s making one short-term gain, stupid decision after another? THEY are the ones causing messes like this and lost jobs.

Republican administrations have become known for lax oversight and too-cozy relationships between industry and regulatory agencies. We are seeing what happens when business is allowed to do as they please.

[bgwinnett]

More Cancellations For Beleagured AA

************************

The whole nation can''t have gone sober surely.What about Lindsey Lohan.

[barbaraf4]

Has anything been found as a result of these inspections?

[excoachken]

Why can''t our government do more to protect consumers, like those stranded by such incompetence? Not maintaining airplanes properly for the general public is very close to criminal action. We sue Doctors and lawyers for such "malpractice" so why can''t the stupid C.E.O. pay in the same way?

[hoosiermoon]

Why would anyone remain a loyal customer of American after this?? People are going to fly American only if that is the last option they have. 4 airlines have file bankruptcy recently. American will be the 5th very soon. All because of the crooks in top management.

[tremdis]

This is why I fly Continental.

[docpeter-2009]

From the article, "Industry experts estimate American''s revenue losses will range between $40 million to $50 million, reports." Last year AA showed a big profit, that was ultimately divvied up as bonuses to the execs. Last year AA knew or should have known that these repairs were needed/required. Someone should be asking why were execs given bonuses and repairs not made? If I was an AA ticket holder I would be more concerned about their total lack of following safety procedures than about the inconvenience of having to change flight plans.

[pensacola88]

I think the public fools theirself when I read some of these posts, because we saw just last month where Southwest Airlines paid $10.2 million for failing to comply with an airworthiness directive, and they still had to comply.

The consumer''s punitive-minded scorn to inconvenience is usually shortened when they stop and think about their own personal automobile and think about the neglect it receives.

Consumers are throw-away minded, but American Airlines clearly are not.

Cancelled flights clearly erode profits off the bottom line, but court fights and voucher claims paid for maintenence delayed flights have far more lasting impacts.

Controlling is a great lure for many with things to cope with. Accepting is a far better coping skill.