Dave's Weekly Message & Thoughts

SFB:

Thanks for taking the time to dig into each company's quarterly statement to conduct the research. The figures are illuminating and provide a significant amount of information about the reality facing US Airways and the other legacy carrier's.

The big difference between US Airways and the other legacy carriers remain the disparity between short and long-haul flying. Long-haul has lower unit costs and higher revenue (RASM), therefore, the company must continue to reallocate its aircraft as RJs and EMB-170s come on line so the B737s and A320s can be flown on longer legs with greater stage lengths.

In addition, the company must expand more into Europe either with internal or acquired growth.

In conclusion, the CASM comparison validates Siegel's comments that costs must come down.

Regards,

Chip
 
CHIP: Why doesnt USAirways try to get long haul aircraft such as the B-757, 767, and other aircraft and open up a lot of new routes out west and expand to europe such as munich and hamburg? And if they did this, wouldnt that bring in more money to the airline?
 
Chip Munn said:
SFB:

Thanks for taking the time to dig into each company's quarterly statement to conduct the research. The figures are illuminating and provide a significant amount of information about the reality facing US Airways and the other legacy carrier's.

The big difference between US Airways and the other legacy carriers remain the disparity between short and long-haul flying. Long-haul has lower unit costs and higher revenue (RASM), therefore, the company must continue to reallocate its aircraft as RJs and EMB-170s come on line so the B737s and A320s can be flown on longer legs with greater stage lengths.

In addition, the company must expand more into Europe either with internal or acquired growth.

In conclusion, the CASM comparison validates Siegel's comments that costs must come down.

Regards,

Chip
In a PM from a company executive it said: “Let it be known, we must prepare for more sacrifices as labor. Never ending saga with this airline“.

So let me ask you Chip since you agree with everything they say and do. How LOW do we go? When or does it ever end? Why wasn’t TWO, read TWO cuts not enough when PROMISED it would be? Why is Dave not being held accountable and only being rewarded with bonuses? Doesn’t getting your pension ripped out from under you make you feel very leery of this management team? How can you agree with ANYTHING they say when their track record is nonexistent? Instead of agreeing with them why aren’t you out on the front lines calling for a change in our management team?

Is there something I am missing or what?

With all due respect Chip, you are one big enigma!

Regards….Cav
 
He's no enigma....He's a "Yes man". It's all about Chip remaining a Captain and hopefully on something bigger than an A320.

It matters little if it's at UA's expense...or on the backs of the clobbered laborers of U (former and present)

Notice how he always offers up the outsourcing of maintenance as a "Viable" means of cost cutting...like the others are doing. He never elaborates on the downside of anti-labor actions , unless it's the gun be leveled at his head again.

Then again...Maybe Chip is looking past 60 and mandatory retirement as a pilot here...maybe he's grooming to be yet another CCY "Yes Man" in his golden years...you gotta remain in favor to pull that off.

Enigma's are of un-known origin , Chip reads like a self-serving , self-promoting Autobiography....hardly an enigma.
 
Cav:

I fully understand the issues at hand, but the fact is US Airways has the highest CASM.

In regard to your questions, the answer is different for each person. However, if you were CEO what would you do about the CASM problem?

Regards,

Chip
 
Chip Munn said:
Cav:

I fully understand the issues at hand, but the fact is US Airways has the highest CASM.

In regard to your questions, the answer is different for each person. However, if you were CEO what would you do about the CASM problem?

Regards,

Chip
Just classic Chip,

Your asking Cav what he/she would do to offset costs. I think if you or Dave were halfway attentive on these boards...you would have a list of examples on how to curtail costs around here.

I know....it's easier to keep dipping in the well of good faith...and letting the one trick pony continue to drink on our dime.

Why don't you echo your comments to your ALPA buddies , I'm sure if they were asked to live at comparative wages to the rest of us whom are hanging on....they to would turn on you again.

Until you offer up something tangible , other than attacking labor and drumming the out sourcing of skilled work....you are nothing more than Dave's Boy.

Stop upsetting the work force and United....and turn your attention to where the short sightedness really lives , that's CCY in case your compass is out?
 
Chip Munn said:
Cav:

I fully understand the issues at hand, but the fact is US Airways has the highest CASM.

In regard to your questions, the answer is different for each person. However, if you were CEO what would you do about the CASM problem?

Regards,

Chip
It has been stated elsewhere that labor costs are lower at US than at other carriers. This leads to the question why do we have the highest CASM? Labor has already given all they are going to. Are there other ways to be more efficient? Probably many, but would CCY think of them and implement them?

Rather than looking at wages, how about a look at productivity. The workforce is cut to the bone, and having too few people is potentially more expensive than having too many. I have read here there are many ways that productivity can be improved at little cost.

Also read elsewhere here is the fact that a route realignment might help, adding more long stages--this would be great, although I don't know how much it will help.

With the announcement that Southwest is coming to Philly, it's only going to get worse--it will drive fares down, and it will add more congestion to an already overloaded airport. I don't know what they're thinking.

Anyway, my best to you all--
 
Art,
Thanks for a reallly tangible post....and by-God we appreciate your loyalty , if nobody else doesn't. You stick with the local hardware store...maybe we can chat at the rotary nail bin someday? :up:

Ways to curtail costs and increase efficiency/productivity have been posted here a million times...certainly longer than I've been actively posting yet following anyway.

CCY seems to give little to no credence to anything brought forward to them..I would have to cite the shallow/hollow "Employee Suggestion Program" that was re-instated after much badgering.

Nothing that I've heard of..even if in a modified form has ever been implimented..or even addressed in some cases.

Siegel and crew are interested in only Hail Mary wins...and they are all tied to killing off the remaining laboring groups. It's the fail swoop to modest profits , instead of developing a program that allows everyone on the team to win in the long term aspect.

The employee's , The local Government officials and now the passengers are on to these Bozo's...Dr. Bronner needs to be !! We are drowning in a formula for failure. :(

I realize Dr.Bronner is not a medical Doctor...and it's obvious . The patient keeps soiling the bed....and he has not lifted a finger to stop it. To date very little if anything has hapened to right things since we emerged from Chapter 11...plenty was done then and lots of it irreversibly negative toward those whom made and make up the USAirways family...obviously numerous cities and passengers served suffered in an alike manner.

The 600 Million Dollar Bonus Baby crew needs to be shown the door....and I hope Bronner has some legal eagles that can effectively breach their exiting contract verbage as they attempted to pull on all of us repetively.

I hope the Rigger of the "Golden Parachute" turn out to be as inept as Dave and his band of thieves. Crash and Burn Bonus Bozo's !!! :up:
 
Chip Munn said:
Long-haul has lower unit costs and higher revenue (RASM),

Regards,

Chip
You are right that long-haul does decrease CASM, but long-haul does not have a higher RASM. As stage lengths increase, both RASM and CASM usually decline though not necessarily at the same rate.

Yes, U does need to lower CASM. However, Siegel really needs to decide what vision he has for this company. If he wants to be the "super East Coast regional," then he's not going to have find a way to do business with a higher CASM. U's east coast focus forces costs higher.

If he wants U to have a CASM down around 8 cents, he's going to have to abandon some of the high cost regional markets and go after more long-haul point to point high volume business. Unfortunately, this will be difficult give the presence of low-fare carriers in this segment...not to mention U's already weak hub system (which many get weaker with WN's announcement today).
 
Chip Munn said:
If you were CEO what would you do about the CASM problem?

Regards,

Chip
First Chip we PAY $750,000.00 a year to this guy to find answers to these and many other problems...!!! Not to mention his stock.

I don't get paid enough to even start but I'll give it a shot,

1. Get big A/C and fly long haul...Opps..That means people, A/C, an investment in the company. ( Can't do that ) :p

2. Get production up in all area's...Opps..That means working with labor. (Can't do that) :eek:

3. Start hauling freight again to off set empty seats...Opps...That means going back and eating crow. ( Can't do that ) :lol:

Keep burning those bridges Dave. :up: :up:

SL
 
Robbedagain:

Robbedagain asks: "Why doesnt USAirways try to get long haul aircraft such as the B-757, 767, and other aircraft and open up a lot of new routes out west and expand to europe such as munich and hamburg? And if they did this, wouldnt that bring in more money to the airline?"

Chip answers: The company has looked at this and I'm not sure if all of the B757s are equipped for EOW flying. In addition, the Lufthansa alliance provides lift (revenue) at no expense. US Airways will grow organic transatlantic service and we will see more of this flying in the future.

Chip
 

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