[blockquote]
----------------
On 2/5/2003 2:27:51 PM real world wrote:
Let me propose an alternative, how about we all chose to work together (management and all labor groups) to make this airline the best airline in the business. The US management team is committed to making this airline profitable and competitivly viabile for the future. It is this driving principal that has caused us to make these extraordinary decisions to ensure the franchise ultimately survives, without everyone’s sacrifices the entity would not be here for any of us. The airline industry has changed and air travel no longer holds the same value in the consumers mind. Consumers expectations have changed and their expectations are to pay $79 to fly to PIT-LAX not $1779, because of this we have had to modify our cost structure and for that matter our entire franchise to work within this new reality, if we do not, we will not be around very long and I for one do not want that happen.
----------------
[/blockquote]
------------------------------------------
Real World,
That all sounds very nice; from this observer's perch, it seems to be a little one-sided so far.
1. Pre-parity, U's CASM's exceeded those of the comparable airlines used in the parity review - AA, DL, NW and UA. Post parity, U's CASM's still exceeded those of the Big 4. If labor costs were equivalent among us, what costs drove our CASM's higher?
Post concessions, U's CASM's still exceed those of WN's, even though WN pays its' employees more than U pays theirs. How is this possible? What costs, other than labor, are driving U's CASM's so high?
What I'm looking for here is for management to step up and take some responsiblity for the mess U is in. Or, do you believe U's sole problem is labor and vendor costs?
2. Messr. Glass's letter to the CWA dated July 19, 2002 states "Knowing that a Chapter 11 filing remains a possibility, we have given each union with whom we have reached restructuring agreements a letter which commits that the company will not ask the court to increase the level of concessions as contained in their restructuring agreements, if the restructuring agreement is ratified by the membership. this is the single most important protection any union can receive in a Chapter 11 restructuring process because, in the event a chapter 11 filing becomes necessary, the company would undoubtedly face further degradation in traffic and revenue, resulting in the need for greater concessions."
The ink had not dried on the ballots for Concessions, part I, when Concessions, part II were demanded. Now, one can finesse this til the cows come home (we didn't approach the courts for further concessions - we threatened liquidation). But to a layman such as myself, Messr. Glass's letter said if we accepted the initial concessions, no further concessions would be sought, even if revenues deteriorated. Yet declining revenues were exactly what Concessions, part II were based on. Apparently, the 1113 letters turned out to have less value than was indicated.
More to the point, would you have me accept management at face value, and that there is no hidden agenda? Or do I need a Philadelphia lawyer every time managment posts a memo?
Trust was granted at the beginning of this process. Unfortunately, trust must now be regained.
You speak of choosing how we work together to make this the best airline in the business. Does managment have the sole initiative in that business model, or do we have some choice, other than vacating the premises? If so, I'd choose to have some meaningful input, and to have transparent relations with managment. I'd choose for managment to abide by the contracts it entered with its' employees, rather than contesting plain language. I'd choose for managment to hold itself as accountable as it holds us.
I worked for the best airline that ever was. I brought that work ethic to U, and along with thousands of others, busted my gut to make U as successful. But it takes a team to make any concern a success.
What is the vision going forward? Surely it is not merely cutting labor and vendors costs, for if that is all there is, U will not make it.
