Food For Thought

USA320Pilot

Veteran
May 18, 2003
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Dear Fellow Employee & Interested Parties:

The ALPA supplemental restructuring increased the minimum required block hours to 939,600 hours. This provides the 279 aircraft fleet with a daily utilization rate of about 10.01 hours per day per aircraft, which is obviously under utilizing the aircraft. When the company fully implements pilot productivity changes included in the restructuring agreement(s) (Pref Bid, Reserve Time Balancing, and other Work Rule changes) in 2004, the carrier may be able to fly each aircraft another 2 hours per day, which would be a dramatic 20% increase in block hours/ASMs.

US Airways holds firm delivery positions on 85 EMB-170’s that will now arrive between January 2004 and September 2006. For 2004 and 2005 US Airways will accept about 60 EMB-170s.

On December 3 the ALPA code-a-phone said, "Fellow US Airways pilots are now being hired and trained at MidAtlantic. A total of 56 pilots including 34 check airmen and 22 line pilots are now in training in Pittsburgh. The last seniority number for the most junior Captain is currently 3904 and the last seniority number for the most junior First Officer is 4057."

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Pilots in training at MDA report that all of the check airmen are trained and all the line check airmen will be complete by mid January. The first group of line pilots have completed their oral examinations and they will start simulator training in late January. The company intends to hold 3 pilot training classes per month with 10 pilots each every month with 40 Embraer jets in service by the end of 2004. Reports indicate the first delivery will occur in about two weeks, final certification is scheduled for February, and the first revenue flight will be flown on March 7.

On December 5 the Pittsburgh Post-Gazette wrote Analysts still think that off all the possible partners, a marriage between US Airways and United may make most the sense. Mike Boyd, who heads the Colorado-based aviation consulting firm, The Boyd Group, said a full merger doesn't make sense, but that he could envision US Airways, through its major investor, the Retirement Systems of Alabama, attempting to cherry-pick some of United's assets, such as gates at Chicago's O'Hare airport or at Denver International Airport. It would give US Airways a gateway to destinations in the West, Boyd said. And such a move would give United, which is still in Chapter 11, the funding it needs to emerge from bankruptcy.

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On December 17 the Beaver County Times reported US Airways chief executive officer Dave Siegel met in Washington, D.C., with top managers Tuesday (December 16) and was expected to address the need for further cost-cutting. Siegel told managers he wants to grow, not shrink, the airline, and would like to add 60 planes to the mainline fleet within two years, provided costs can be reduced, a company executive said.

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On December 29 US Airways announced that it would furlough 552 flight attendants.

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On December 29, CWA Local 3641 Charlotte President Jim Root said, "The Company has postponed its announcement of the "new business plan" until the first of February. The Company has not called CWA to talk about our roll in the new business plan, yet."

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On December 30 the Pittsburgh Post-Gazette wrote an article titled "US Airways interim deal with county progressing" that dealt with the on-going Pittsburgh hub negotiations. The newspaper said Allegheny County Chief Executive-elect Dan Onorato hopes to have an interim agreement in place soon to cover US Airways operations at Pittsburgh International Airport beyond Jan. 5 while negotiations continue over efforts to reduce the airport's $673 million in debt.

Without a short-term deal, US Airways no longer will be bound by its leases at Pittsburgh International Airport as of Jan. 5. The airline canceled its leases, effective that date, before emerging from bankruptcy in March. The cancellation would allow US Airways to shut down its Pittsburgh hub as of that date, although it has committed to U.S. Sen. Rick Santorum to maintain its current level of service at Pittsburgh until at least Labor Day. A short-term agreement would govern the airline's operations until then. "The bottom line is, you've got to deal with Jan. 5. You can't pretend it's not coming," Onorato said. As part of a short-term agreement, US Airways is exploring the possibility of signing long-term leases for a small number of gates to take advantage of lower fuel prices accorded to carriers with such leases.

In my opinion, the interim Pittsburgh hub negotiations positions US Airways to either reject the hub or operate the hub similar in scope to Delta-Comair in Cincinnati. In addition, to create economies of scale the airline could still reject the pilot simulator facility, pilot ground school (Beaver Grade Road), flight attendant training (Carnot), operations management (RIDC West), reservations (Greentreee), and some maintenance facilities. These facilities could be consolidated with existing vacant space in Winston-Salem and Charlotte.

In an interview with the Pittsburgh Post-Gazette on December 19 US Airways’ chairman of the board David Bronner discussed the unfolding transformation plan and the Pittsburgh hub.

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Meanwhile, today the Pittsburgh Tribune-Review reported Allegheny County Executive-elect Dan Onorato plans to meet with US Airways Monday with hopes of striking an agreement that would preserve the carrier's heavy flight volume and employment in return for keeping airport costs in check. The 11 a.m. meeting will be held in the authority's offices at Pittsburgh International Airport and will be followed by a 2 p.m. press conference, said Ali Detar, an Onorato spokeswoman. Onorato, a Democrat and currently the county controller, will be sworn in Friday as the new chief executive, replacing Republican Jim Roddey.

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Chip concludes: I’m not the brightest mathematician, but it appears a 20% increase in current aircraft utilization, with the current headcount, would be dramatic. This increase in flying would likely include the current supplemental restructuring agreement scheduling/work rule changes plus quit possibly further pilot productivity improvements.

Separately, the rumored 2004 and 2005 60 A320 family aircraft and 60 EMB-170 aircraft would require about 1,200 pilots and dependent upon Airbus fleet composition, about 1,500 to 1,800 flight attendants. From this observer’s perch, it appears reasonable that US Airways would not furlough flight attendants if it was going to dramatically increase organic mainline flying, not to mention the company cannot train 1,200 pilots.

Thus to increase the current 279 fleet flying by 20% and add 60 mainline aircraft, the current pilot work force would have to provide more than a 40% increase in productivity and not have any 2004 and 2005 retirements or attrition.

Therefore, I believe either management has no intention of adding 60 new Airbus/Boeing jets to the mainline fleet, with US Airways employees working these flights, or the company will obtain 60 additional Airbus/Boeing jets and staff these aircraft with personnel from another source.

Separately, with the Post-Gazette reporting that "US Airways is exploring the possibility of signing long-term leases for a small number of gates" in Pittsburgh, the airline could have an agreement in place to operate a small spoke operation, if a deal cannot be obtained to operate a hub similar in scope to Delta-Comair in Cincinnati.

In conclusion, I believe there could be something the rank-and-file members do not know that caused the MEC to publicly call for the removal of Siegel, but the question is what? Thus, I believe there is more to the story than 60 additional mainline jets, which the current pilot workforce cannot man, and the MEC may know something they are not telling ALPA members.

Regards,

Chip

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Chip Munn said:
Therefore, I believe either management has no intention of adding 60 new Airbus/Boeing jets to the mainline fleet, with US Airways employees working these flights, or the company will obtain 60 additional Airbus/Boeing jets and staff these aircraft with personnel from another source.

Regards,

Chip
Chip, do you actually think before you post?

Any jet wieghing over x amount of pounds and flying as US Airways is MAINLINE EMPLOYEE WORK!

Do you actually think any of the unions on the property would stand for this?

Man think before you post, cause that is a beauty. The IAM took them on the Airbus work and so far has prevailed, ALPA took them on with the CRJ-705 prevailed, the IAM threatens the company again over the GSE issues and prevails.

You need a reality check.
 
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700UW:

It's apparent you do not understand the deeper meaning of my post. With all due respect, I suggest you think a little deeper about my comments. Moreover, maybe you should study each of the different work group contracts.

Respectfully,

Chip
 
Obviously we are going to buy a piece of another outfit with already staffed aircraft. Here we go again with another UCT thread. Hold on, me thinks this thread will get a little bumpy now.
 
Chip with all due respect you are way off base.

If it says US Airways on the plane, not express it is mainline work, covered by all CBAs, it cannot be a wet lease, Your contract forbids that without ALPA's approval.

Second, this company does not have a pot to piss in, and there is no way any employee group will subsidize a purchase of anything.
 
AM49AAA said:
Obviously we are going to buy a piece of another outfit with already staffed aircraft. Here we go again with another UCT thread. Hold on, me thinks this thread will get a little bumpy now.
Interesting thought. The same thing occurred to me, but I can't imagine what part of which outfit it might be. But speculation might be fun! If Chip can speculate with impunity, so can we!

60 RSA 757's from UAL staffed by UAL crews. Maybe a wet lease deal. Boy won't THAT blow the roof off the place! Both places, in fact!

60 A320's from AWA staffed by AWA crews. Until the pilots signed their new contract, the AWA pilots had a lower hourly scale than US pilots, but they may be ahead now. Either way, that would create its own unique mess.

60 A320's from JetBlue! That would be plausible if JetBlue had 60 A320's, right?
Or do they? Hmmm!

60 737's from American. (Those 737's just never looked right in American livery anyway.)
 
Anybody see the coincidence of "60 new mainline aircraft" in 2004/2005 and 60 EMB-170's in 2004/2005? Isn't MDA a division of "Mainline" using the same operating certificate? Aren't those -170's to be flown by mainline pilots (furloughed) with mainline f/a's (furloughed)? Any IAM members that can comment on the maintenance end?

Financially, the money for the -170's is only about 85% lined up (3rd qtr report) and requires us to maintain a "B-" credit rating. Aren't we on credit watch at S&P? Concessions to maintain our credit rating may be the only way to get those "60 mainline aircraft".

Food for thought....

Jim
 
Did someone say " He only has these weird thoughts when he does not take his medication.â€￾?

--Have that nurse wife give ‘em to ya.
 
BoeingBoy said:
Anybody see the coincidence of "60 new mainline aircraft" in 2004/2005 and 60 EMB-170's in 2004/2005? Isn't MDA a division of "Mainline" using the same operating certificate? Aren't those -170's to be flown by mainline pilots (furloughed) with mainline f/a's (furloughed)? Any IAM members that can comment on the maintenance end?

Financially, the money for the -170's is only about 85% lined up (3rd qtr report) and requires us to maintain a "B-" credit rating. Aren't we on credit watch at S&P? Concessions to maintain our credit rating may be the only way to get those "60 mainline aircraft".

Food for thought....

Jim
they fly it on mainline and its IAM'S work per the contract.even if its a piper cub. :up:
 
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Group:

BoeingBoy said: " Anybody see the coincidence of "60 new mainline aircraft" in 2004/2005 and 60 EMB-170's in 2004/2005?"

Chip comments: BoeingBoy, I purposely placed those numbers and information in the post to be thought provoking. When the 60 mainline aircraft news was released at the December 16 manager's meeting I immediately talked with a number of senior officers and senior flight department management personnel and I was told they were Group 2 mainline type aircraft and larger. I specifically asked if the reported 60 jets were EMB-170s or other RJ's and I was told "no", but who knows.

In fact, if US Airways wins its A320 heavy maintenance appeal on January 12, do not be surpised if the aircraft are Airbus.

Meanwhile, I believe the "Transformation Plan" will be multi-faceted and it should not be surprising it may take a little longer to announce. But, it does not take to much initiative to listen to conversations from sources around CCY to know there is a lot going on. Moreover, there will likely need to be contract changes to permit the company to remain an on-going concern because of the ATSB financial covenants. If these covenants are breached the ATSB has the right could pull the plug on the entire operation.

At this point the only thing that seems certain is that there is uncertainty "in the air." There have been informed reports of a corporate combination and companies routinely talk, but it's no secret that United Airlines and US Airways have held on and off again discussions ever since July 27, 2001. Moreover, it has come to my attention that US Airways has conducted on-site evaluations of United's B767-200 fleet, which were rejected during the last omnibus hearing in Chicago and are available for sale or sub-lease at www.speednews.com

Other reports indicate the company is looking at aircraft flown at Swiss International including A330 and A320 family aircraft.

If the company attempts to create significant organic growth by increasing the 279 fleet utilization rate, plus add 60 current mainline type aircraft in 2004 and 2005, to meet this demand the current pilot group would have to provide over a 40% increase in productivity to fly the added block hours. Could it be done?

Maybe, but it sure seems hard to believe. There have been some wild reports of the company seeking a pay cap of 93 hours and a host of work rule changes – notably the one's listed in the restructuring and supplemental restructuring agreement that were to be discussed.

However, if the company truly desired to add the flying does it make sense to involuntary furlough 200 active flight attendants, unless they create something crazy like a 125-hour flight attendant pay cap for the remaining 5,600 flight attendants?

Nonetheless, it now appears that we will hear more about the Pittsburgh hub disposition on Monday, January 5, at Dan Oranoto's press conference and the "Transformation Plan" in early February. In addition, there is the potential that the IAM, CWA, AFA, and Teamster contracts may not be able to influence much of the future process.

Respectfully,

Chip
 
Chip Munn said:
In fact, if US Airways wins its A320 heavy maintenance appeal on January 12, do not be surpised if the aircraft are Airbus.

....

In addition, there is the potential that the IAM, CWA, AFA, and Teamster contracts may not be able to influence much of the future process.
In the unlikely event that US wins the appeal, you can almost take money to the bank that the IAM will appeal.

And, if US has that much success end-running extremely iron-clad scope language in the Mech and Related contract, what makes you so sure that US ALPA pilots will be at the pointy end of these new airbus products?
 
Not hanging around CCY too much, I only know what I read. So far I have seen nothing in print that said the company was looking at adding any specific type of "mainline aircraft".

As for any 40% increase in pilot productivity, I see no way that it is remotely possible. I know that some see great productivity gains from "preferential bidding" but I don't buy it. A given pairing will pay the same no matter what bidding system puts the crew names on that pairing. Maybe reserve utilization will be better (depends on how efficiently scheduling uses them - a big inefficiency now). I guess if all training were pay only, vacation pay was reduced (again), and nobody got sick(?) you could get to 20%, but if mgt is counting on 40% they're dreaming.

Jim
 
Chip Munn said:
Nonetheless, it now appears that we will hear more about the Pittsburgh hub disposition on Monday, January 5, at Dan Oranoto's press conference and the "Transformation Plan" in early February. In addition, there is the potential that the IAM, CWA, AFA, and Teamster contracts may not be able to influence much of the future process.

Respectfully,

Chip
Umm Chip,

There are no Teamsters at US Airways.

Get your facts straight!
 

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