Monday, April 29, 2019
 
FOR IMMEDIATE RELEASE
AA Pumps Money Into Management Bonuses As Safety Concerns Mount
Despite continued safety concerns - including $100 Million in FAA fines from 700 safety violations since 2000 - hundreds of grounded flights, and an aging fleet that is ranked last of the big 3 airlines in flight delays, complaints, and mishandled baggage, American Airlines revealed during a recent earnings call a stunning decision by management to prioritize big bonuses for executives over investing in adequate staffing and passenger safety issues that have cost the airline millions.
The announcement of the 2018 bonuses couldn’t come at a worse time for the company. At the same time it revealed that the bonuses were paid, AA projected a $350 million financial hit from the grounding of Boeing's 737 Max planes through at least Aug. 19, with the groundings costing AA 155 flights a day moving forward on top of the 1,200 cancelled in the first quarter. And while it's been reported that the airline's stock dropped 11% last month, for some mid-level managers, the bonuses in 2018 will soar high as 9%, which is a slap in the face to the hardworking members of the Association of Professional Flight Attendants, the airline’s pilots, and to passengers forced to put up with dismal on-time performances, delayed or cancelled flights, and decrepit planes.
“We thought we'd seen it all from American Airlines management, but it was absolutely shocking to see them reward their managers with big bonuses for a job not well done at the same time that flight attendants and passengers have had to put up with major safety concerns, delayed and cancelled flights and other issues plaguing workers and passengers,” said Lori Bassani, National President of the Association of Professional Flight Attendants, which represents 28,000 American Airlines flight attendants.
“You would think when the airline has been hit with nearly $100 million in fines over safety issues since 2000, the attention would be on improving the conditions for its workers and passengers, not finding ways to shuffle their books to make sure that management gets to fatten their wallets.”
The management bonuses were given even though American Airlines (AA) did not make the required $3 billion pre-tax profit target. Instead, AA found a way around it to make sure that managers got their bonuses by recalculating how it got to the $3 billion target. CEO Doug Parker in the earnings call said management employees received 51% of their targeted bonus for 2018 – meaning some mid-level managers received bonuses of about 9%. And he talked about making the bonus formula more lenient for the future to make sure “we have incentive plans that allow our team to believe they have a reasonable chance at getting their bonuses in any given year.”
It also comes as AA continues to rank last among top U.S. carriers when it comes to on-time performance. AA has also been dealing with a string of onboard incidents, including the hospitalization in January of two pilots and three flight attendants because of a “strange, mysterious odor” on the aircraft. AA has also refuses to recall uniforms that continue to make crew sick.
Among the other incidents:
- In February, a report from CBS listed claims from many American Airlines mechanics that they were pressured “to cut corners or not write up issues to get planes back in service faster,” claims that the FAA says are consistent with at least “32 anonymous industry-wide reports since 2015.”
- On Feb. 28, American was fined $1 million by the FAA for violating rules on long tarmac delays, forcing passengers to sit in planes for longer than 3 hours without letting them off, in a number of incidents dating back as far as 2015.
- On March 7, AA canceled 40 flights after taking more than a dozen Boeing 737-800s out of service after poor maintenance on overhead bins. The airline claims they weren’t a safety issue, but removed the planes due to an “overabundance of caution” even as mechanics were quoted saying there were "hundreds of issues"--including issues with electrical wiring.
Lori Bassani, National President of the Association of Professional Flight Attendants
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About APFA:
The Association of Professional Flight Attendants (APFA) is the largest independent Flight Attendant Union, representing solely the Flight Attendants of American Airlines. From its beginnings in 1977 to now, APFA members have known both triumph and tragedy. APFA has fiercely advocated for the Flight Attendant profession and has been on the forefront of change for workplace equality, women’s and human rights. APFA focuses 100% of its energy on its members, 27,000+ strong Flight Attendants who share a proud and diverse history of careers as airline safety professionals from multiple legacy airlines.
APFA Headquarters:
(817) 540-0108 | www.apfa.org | 1004 W. Euless Blvd, Euless, TX 76040
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