Sfb:
Sfb said: “Given the company's current cost structure, it would be virtually impossible for the company to reach a 6-cent CASM unless the employees actually were to work for free. From the 1Q financials, mainline CASM excluding fuel was 10.02 cents/mile.â€
USA320Pilot comments: With all due respect, I fully understand the bankruptcy process and I have held discussions with union officials, advisors, and money managers on this very point.
According to this week’s AW&ST, US Airways "transformation" strategy aimed at reducing its unit costs from the highest among the network airlines to the lowest, reaching levels of Southwest and other low-cost competitors. The airline plans to reduce fares and deemphasize hub operations, which would increase aircraft utilization and operating efficiency. It seeks further concessions from its employees, and it wants to begin the new wave of cost-cutting by summer. It's trying to negotiate more favorable costs at Pittsburgh, including a $500-million reduction in airport debt obligations, and it's threatening to pull down its hub operations and employment levels there if state and local officials don't come through. "While the company's preference is to complete its transformation on a consensual basis," US Airways told the SEC May 7, "failure [to attain low costs] will force the company to reexamine its strategic options, including but not limited to asset sales or a judicial restructuring."
According to ALPA MEC Chairman and board member Bill Pollock, who I have known for over 25 years and is a man of immense integrity, Mr. Lakefield has pledged his commitment to the survival of the airline and to working with ALPA on the Plan. While this reengineering of our airline may require additional investment from our pilots, Mr. Lakefield has made it clear to the other labor groups that ALPA will not shoulder the burden for any other group,†he said.
“The Plan, in fact, will not work, unless all parties agree to participate. The (comprehensive) plan makes several changes to our business model, including creating a hybrid operation in Philadelphia, increasing aircraft utilization, flying to passengers’ top destinations from LaGuardia, Boston, and DC, and increasing Caribbean and European flying. The Plan also establishes an aggressive new marketing strategy that lets our customers know that US Airways’ fare structure has been simplified and lowered, giving us a competitive product to challenge anyone, anywhere,†Pollock noted.
“I expect this Transformation Plan, if properly implemented, to solve US Airways’ structural and operational problems while achieving profitability. It must allow US Airways to evolve, survive and prosper in an industry that is facing increasing competition by the low cost carriers that are clearly preferred by both our business and leisure passengers,†he said.
SFB, Pollock has seen the plan and confidential information. With all due respect, I find it interesting that your uninformed perspective is in conflict with Pollock's.
Respectfully,
USA320Pilot