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an4...@anon.penet.fi

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Nov 21, 1993, 10:04:17 PM11/21/93
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> I fly mostly America West, and they would kill to make what American FA's
> make. I don't know what the salaries are but I got the impression it's
> maybe low twenties. I
> also fly Southwest, and I don't know what their salaries are, but I think
> they're probably around American salaries but I think they fly much, much
> more.
>
>
> ..robert

Almost a good point Robert. The 1992 median yearly wages for an
American FA was the low twenties, $23,007.

I think they fly much, much more is a rather vague term. Why do you think
the fly that much more the the rest of the industry? American FAs on average
fly as many hours as the other FAs for major airlines do. In general, the
numer of hours an FA actually flies depends on the FA, when the FA has a
choice.

I don't have any numbers for American West, but I have come up with the
following comparing the 3 big airelines:

1993 Yearly Wages Comparison (Based on 75 flying hours monthly)

American United %Higher Delta %Higher
=======================================================================
Two Years $15,876 $16,764 5.6 $17,388 9.6
Four Years $18,180 $18,336 0.9 $20,592 13.3
Six Years $20,784 $25,336 31.5 $24,420 17.5
Eight Years $23,796 $29,520 24.0 $27,588 15.9
Ten Years $29,672 $31,440 6.0 $30,432 2.6
Twelve Years $31,473 $32,880 4.5 $33,564 6.6
Fourteen Years $32,736 $34,128 4.2 $35,652 8.9
No more raises
after Fourteen
Years for American.

Source APFA Contracts, AFA

American/AMR CEO's Compensation versus the industry

1992 Total Compensation
======================================================
AMR/American Robert Crandall $4,009,000
United Airline Stephen M. Wolf $2,548,000
Southwest Herbert D. Kelleher $962,000
USAir Seth E. Schofield $961,000
Delta Ronald W. Allen $536,000

Source: Forbes Magazine Executive Compensation Review

According to 1992 Annual Reports for American, Delta and United, American
was the most productive with respect to Costs per available seat mile:

American 8.93 cents
Delta 9.35 cents
United 9.6 cents

Source: 1992 Annual Reports

American/AMRs projected earnings (in millions)?

1993 1994 1995 1996

First Boston $192 $598 $888 N/A
Duff & Phelps $137 $453 $841 $954
Standard & Poor's $118 $393 N/A N/A
Value Line $210 $350 N/A N/A

Source: Industry & Financial Reports, June 1993


Earnings Comparison, Big Three

American/AMR United Delta
=====================================================
1993 $192 million -$102 million -$381 million
1994 $598 million $267 million $97 million
1995 $888 million $490 million $402 million

Source: First Boston, June 1993
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Robert Ashcroft

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Nov 21, 1993, 11:25:55 PM11/21/93
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In article <031306Z...@anon.penet.fi>, an4...@anon.penet.fi writes:
|> I don't have any numbers for American West, but I have come up with the
|> following comparing the 3 big airelines:

Again, this is almost irrelevant. American, United and Delta are all
running scared not from each other, but from airlines like Southwest,
which has lower costs than all of them (though not lower average salaries).

What matters is not how American stacks up against United, but how it
stacks up against America West, Southwest, or even Continental, in terms
of productivity and so on. A few years ago the consensus view was that
the Big Three were going to rule the skies, and that you should just
forget about any sort of effective competition to them. Now the view
is very different, since there are alternate models which clearly do
much better than the Big Three, even in poor economic conditions. Or
perhaps that should be, _especially_ in poor economic conditions.

United is even thinking of breaking up the airline. That is how
badly the Big Three want to reduce costs.

I feel sorry for the employees at the Big Three. Any way you look at it
they are in for a rough ride in the near future. But the sooner they
face up to this, the better, not only for their airlines, but for themselves.

RNA

Susan King

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Nov 28, 1993, 5:22:08 PM11/28/93
to
Does anyone know how travel agents make their money? Is it
generally straight commission, or a salary plus commission?

The reason I'm interested is that I often have arrange very
complicated travel plans with international itineraries that
take a lot of time for the agent to work out. And then we
change them at the last minute. We've been working with the
same travel agent for several years. He's very
detail-oriented and conscientious, but sometimes he's a real
whiner. It makes us wonder if we've been doing him a favor
by giving him all this business, or if we just
over-complicate his job.

The airline tickets we order are almost always first class
and business class, and he arranges hotel and rental cars as
well.

Henry Mensch

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Dec 2, 1993, 12:39:10 AM12/2/93
to
sus...@ludwig.slc.com (Susan King) writes:
->Does anyone know how travel agents make their money? Is it
->generally straight commission, or a salary plus commission?

depends. if it's a big agency like american express, thomas cook,
etc., then it's probably some salary plus minimal commission. if it's
a small, owner-operated agency, then it's commission only (between
5-15% on the fare paid for airline tickets, 10% on hotel bookings, and
??? for rental cars).

->The reason I'm interested is that I often have arrange very
->complicated travel plans with international itineraries that
->take a lot of time for the agent to work out. And then we
->change them at the last minute. We've been working with the
->same travel agent for several years. He's very
->detail-oriented and conscientious, but sometimes he's a real
->whiner. It makes us wonder if we've been doing him a favor
->by giving him all this business, or if we just
->over-complicate his job.

it's neither. all his clients do that, so it's just more of the same.
if you were to book an itinerary which required no changes, not on ly
would he earn more commission (by spending less time yacking with you,
he could yack with another client and make new bookings), but you
offer variety (by not giving him the usual "change at the last minute"
scenario).

i think you should concentrate on the "detail-oriented and
conscientious" bits and less on the whiny bits; those details will
save your butt (and you can just read other messages in this space
from folks who bought tickets who weren't so detail-oriented).

->The airline tickets we order are almost always first class
->and business class, and he arranges hotel and rental cars as
->well.

if they are paid first or business class tickets, then the agent has
less reason to be whiny ... if you're using ffb upgrades then you're
costing him money (not only is he not selling a premium fare, but it
takes more of his time to process your ticket).

--
# henry mensch / <h...@netcom.com> / pob 14592; sf, ca 94114-0592; usa
# "on the internet, nobody knows you're a bear." --tovah hollander

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