Re: SFGate: American to charge for 1st checked bag, cut flights

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I suspect the stockholders are a tad irked, because AMR stock is
taking a nose dive, having lost about 20% of its value. If they think
they're losing money now, wait until some of the traveling public look
for alternative transportation.

On 5/21/08, Bill Hough <psa188@xxxxxxxx> wrote:
> American should be really, really ashamed of this. I know the employees
> are upset with management and their bonuses, this is just insulting.
>
> .
> ----------------------------------------------------------------------
> This article was sent to you by someone who found it on SFGate.
> The original article can be found on SFGate.com here:
> http://www.sfgate.com/cgi-bin/article.cgi?file=3D/n/a/2008/05/21/financial/=
> f065907D39.DTL
>  ---------------------------------------------------------------------
> Wednesday, May 21, 2008 (AP)
> American to charge for 1st checked bag, cut flights
> By DAVID KOENIG, Associated Press Writer
>
>
>    (05-21) 09:40 PDT Fort Worth, Texas (AP) --
>    American Airlines will start charging $15 for the first checked bag, cut
> domestic flights and lay off possibly thousands of workers as it grapples
> with record-high fuel prices.
>    Rival Delta has no current plans to match American's fee for the first
> checked bag, a spokeswoman said.
>    American, the nation's largest carrier, said Wednesday the fee for the
> first checked bag starts June 15 and that it would raise other fees for
> services ranging from reservation help to oversized bags. The other fees
> will mostly range from $5 to $50 per service, the airline said.
>    Last month American announced it would join other carriers in charging $=
> 25
> for second bags checked for some passengers, but it wasn't immediately
> clear how Wednesday's announcement would affect that.
>    Its proposed fee for a first checked bag would exempt people who belong =
> to
> elite levels of its frequent flyer programs, those who bought full-fare
> tickets and those traveling overseas.
>    Delta Air Lines Inc. spokeswoman Betsy Talton said the Atlanta-based
> airline is considering all of its options in light of $130-a-barrel oil,
> but has no plans "at this time" to match the $15 fee American announced.
>    Chairman and Chief Executive Gerard J. Arpey said he expects the new or
> raised fees will raise several hundred million dollars, but that was the
> best estimate he would give.
>    The changes were being made to adapt to "the current reality of slow
> economic growth and high oil prices," Arpey said. He said the fees are an
> effort to get customers to pay for services they want.
>    Arpey didn't put a figure on the layoffs, but when asked whether he
> expected the figure to be in the thousands he said yes.
>    American plans to cut domestic flight capacity by 11 percent to 12 perce=
> nt
> in the fourth quarter. American had previously expected fourth-quarter
> capacity to fall 4.6 percent from the same period in 2007.
>    Parent AMR Corp. said reduced flying will lead to an undisclosed number =
> of
> job cuts at both American and its American Eagle subsidiary.
>    AMR expects to retire 45 to 50 planes from its fleet, most of them
> gas-guzzling MD-80 aircraft. Those were the plane grounded for faulty
> wiring last month.
>    American said rising oil prices have increased its expected annual fuel
> costs by nearly $3 billion since the start of the year.
>    AMR shares tumbled $1.42, or 17.2 percent, to $6.78 after the announceme=
> nt
> which came as its shareholders gathered for their annual meeting. They
> sank to a 52-week low of $6.72 earlier in the session. --------------------=
> --------------------------------------------------
> Copyright 2008 AP
>
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-- 
Sent from Gmail for mobile | mobile.google.com

Regards,
Richard Whitenight
Arlington, Texas
"God Bless America"

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