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AMR's $8 Blanket Bungle: Firing Line

Stocks in this article: AMR

So it doesn't amaze me that the leadership at AMR made such a hilarious business decision as to start charging for blankets. Why?

Let me count the ways.

Will AMR order pilots to lower the cabin temperature to increase sales? "Captain Buckley, we notice that your blanket sales are low this month. Can you explain why? The flight manual says to keep the cabin temp at or below 32 degrees (except on flights to south Florida ... we can't afford the liability of older passengers and their conditions, but we expect you to use your judgment if they look like a healthy bunch)."

Maybe the thousands of furloughed pilots could start a business. Sell blankets outside of security for $4, thus undercutting the market by 50%.

Or as a frequent business traveler on AMR (executive platinum a year ago, dropped to unwashed masses gold status recently), I'm going to pack my carry-on full of space blankets. I'll sell those for $2 onboard, selling ad space on them to rival carriers for a premium.

Seriously AMR. Find a business plan that actually sells a product that makes more than what it costs to produce.

Firing Line: I want my former employer to succeed. The employees were the best team I ever worked with (for a day). But a business so focused on the tactical generation of revenue rather than developing a strategic business plan that makes sense is a business that is destined for trouble.

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