For Sale 757's

[BoeingBoy]

"Creditor's car about one thing: getting paid..."

Very true. Let's see....

The company wanted 23% for 5-1/2 months or liquidation was a very real possibility. That's $209 million.

They got 21% for 4 months. That's $139 million - $70 million short of what the company says is needed to avoid liquidation.

Fuel is currently $12 per bbl over the company's "midrange" forecast. Each $1 costs $2 million per month, per the company. That's $96 million in extra expense thru Feb 15. We're now $166 million short of what the company says is needed to avoid liquidation.

So where can that extra $166 million come from? Anybody thinking "airplanes"?

Jim

 

[eolesen]

The February fleet plan and schedule will use 282 aircraft.

Section 1110 of the bankruptcy code permits the company to keep all of its aircraft for 60 days, which expires on November 12. This was the reason for the 60 day S.1113 protection letter.

Prior to November 12 the company has the right to reject or reaffirm aircraft leases. Following November 12 aircraft lessors can repossess their aircraft.

[post="191526"][/post]​

If US stays above 200 aircraft, I'll be shocked.

There's demand for aircraft today, and if AA was able to sell all of their F100's (for cash no less), surely the lessors aren't too worried about finding homes for aircraft. Even older aircraft like the 733 and 734 are in demand for freighter conversions (to replace aging 721 and 722's).

I'll say it again -- US's best bet for long term survival is to get down to an all A32x fleet, to dump the Boeings, and to get rid of the 330's as quickly as possible.

 

[USA320Pilot]

This weekend the February schedule will loaded into Sabre, now that the company can advertise the new business plan with labor productivity imposed, to ensure employees can man the operation. The plan includes flying 282 mainline aircraft where there will be many positive changes toward the newly transformed and emerging LCC -- US Airways. The changes will include:

1. The above mentioned flight increases at both PHL and CLT.

2. A smoother PHL schedule that de-peaks flights that should make the operations run better while allowing increased capacity.

3. 25 new nonstop markets. These new routes will be highlighted by the new FLL international gateway, a new-look DCA with flights to leading markets like DFW, IAH, ATL, and DTW, and almost no turboprop flights.

4. For 2005 there will be a 6% increase in mainline flying due to increased utilization that becomes economical due to the new cost structure.

5. More GoFares in key markets as costs come in line with other carriers who can make money selling low fares.

6. Two new European cities will be added in the spring to Star Alliance hubs as the company further rationalizes widebody use.

The corporate intent is to get new labor contracts in place, either consensually or via imposition, and then watch the other network carriers scramble as the Transformation Plan unfolds. The new business plan has merit and once the company once again posts profits the carrier can return to the capital markets for financing for new mainline, MDA, and PSA aircraft. This will permit more aircraft redistribution and point-to-point growth at LGA and BOS.

Management cost cut initiatives will save the airline about $20 million during the next 4 months and today's 21% employee wage cut will save the carrier another $140 million during the same period for a total savings of $160 million. New labor accords can provide a more balanced approach to cost cuts, with less of a W-2 cut and more savings from work rules and benefits that will save even more.

Tonight the CWA told Bloomberg News US Airways management "will immediately begin pressing workers for additional, longer-term cuts in pay, benefits and working conditions.''

Finally, Judge Mitchell reserves the right to extend the S.1113(e) order or impose deeper cuts via the S.1113© motion, which will provide even more savings than today's court order.

Regards,

USA320Pilot

 

[USA320Pilot]

Light Years:

Light Years said: "If Chautauqua or anyone other than MDA brings a 190 or even 170 onto the property, I would be very surprised if the thing ever left the gate, got catered, or got a lav change. A contract carrier 100 seater will not be recieved very well."

USA320Pilot comments: The ALPA TA agreement permits 25 EMB-190s and CRJ-900s to be substituted for CRJ-700s which can be flown at contract carriers. Here's the TA RJ language negotiated by the RC4 and their Negotiating Committee:

Amend Letter of Agreement #91 to allow for the flying of EMB-190 aircraft under the same provisions as EMB-170/175 aircraft (other than the following: (1) rate of pay; (2) subject to a maximum of sixty (60) EMB-190 aircraft orders; and (3) in the event the Company orders EMB-190 aircraft and can not fulfill the order, up to twenty-five (25) of the EMB-190 orders or aircraft delivered may be sold or otherwise transferred to a Participating Affiliate Carrier to be flown as US Airways Express), and CRJ-900 aircraft under the same provisions as, and in lieu of, CRJ-700/701 aircraft (other than the following: (1) rate of pay; and (2) CRJ-900 aircraft may be placed at a Participating Affiliate Carrier not subject to the December 31, 2006 placement deadline); and further provided that any EMB-190 flown as US Airways Express may not be configured with more than 97 seats available to revenue passengers, and that the CRJ-900 flown as US Airways Express may not be configured with more than 90 seats available to revenue passengers. Rates of pay to be established under the new equipment clause of MidAtlantic Airways or other air carrier where the aircraft are to be placed. No change to SJ Authority of other terms or conditions of Letter of Agreement #91.

If any employee fails to work or support these aircraft, I believe they will be terminated "on the spot" for failure to carry out a superiors directive.

Respectfully,

USA320Pilot

 

[ISP]

Interesting about the DCA-DTW flight. I guess I should assume it will be flown with the E170?

Question: Why has DTW fought off Mainline Express for so long? They only have one flight, and I belive they are still "mainline"

 

[SKY HIGH]

US Airways Says it is Not Planning to Reduce Fleet
Saturday October 16, 1:30 pm ET


ARLINGTON, Va., Oct. 16 /PRNewswire-FirstCall/ -- US Airways said today it has no current plans to reduce its fleet and that internet postings about aircraft for sale are "nonsense."

"In the coming days, we will be announcing a major schedule change for next February that has increased flying and new routes and assumes we will continue to fly our existing fleet of mainline and regional aircraft," said Chris Chiames, senior vice president of Corporate Affairs. "Unfortunately, some individuals intent on spreading rumors and fear have decided to start circulating two-year-old notices from our previous restructuring regarding potential aircraft for sale. We have been told that sources for these rumors include some pilots who are campaigning against the tentative agreement the company has reached with ALPA. A flight attendant union leader from Pittsburgh has also emailed the posting without first confirming the facts."

"Normally, we do not comment on rumors, but this one is so outrageous and patently false that we felt the need to correct the record," said Chiames.

 

[E-TRONS]

So why petition the BK court for the permission to go below the 279 minimum <_< ???

Say it with me.......................DUHHHHHHH!!!!!!!

 

[USFlyer]

Good for US ... I'm glad they took a stand against Internet rumors for a change.

 

[BoeingBoy]

"We have been told that sources for these rumors include some pilots who are campaigning against the tentative agreement the company has reached with ALPA."

Now wonder who put that spin on it???

Jim

 

[USFlyer]

Also, I'm looking forward to seeing this schedule change. This will give all of us a good indication of just how much US plans to change its business model.

 

[US1YFARE]

Also, I'm looking forward to seeing this schedule change. This will give all of us a good indication of just how much US plans to change its business model.

[post="191762"][/post]​

Yeah, maybe we will find out where the 2nd Liberia route is.

Why is everyone so surprised at the Judge's Order? all we heard before is that the unions were going to take their chances in court. now that there is a decision (and a very quick one at that) that they don't like, the complaining continues. IMHO, the Judge doesn't want to see US go away. He obviously believes that is what they need. There is very little room if oil prices continue to go through the roof, or if there is a terrorist attack that changes the industry again, or if other problems occur. The government recognizes that 911 changed the industry. IMHO, he also is sending a message to the unions that look, I'm not going to just hand over paycuts and whatever else management asks for, but if you can't work something out, I am going to give the US mgmt the opportunity to pull out of this. He looks at this like a lot of people outside the industry look at this: 21% is better than 100%. If things arer so bad, leave, and they'll hire cheaper people. The paycuts stink and management has mismanaged this company for a long time, but the reality is something has to be done and the Judge is obviously not going to just sit back and give the finger to management. I know a lot of people have invested a lot in US and have expectations when they retire. US is not the first company to have changes in retirement plans--IBM, DuPont, and others, have changed their benefits for retirees so that they do not have the healthcare they hoped for. They also dumped a lot of 50+ people in the early 1990's when it was even more difficult to find a good paying job than it is today.

 

[Fatherknowsbest]

Y1Fare,
You make me sick. What we are watching here on the 50 yard line is the systematic undoing of the US middle class. Just becasuse other greedy SOB's have gotten away with it in the past, is no reason for our Govt to continue to rubber stamp lying and stealing. Congress is way behind the eight ball here.
Here is the problem that you cannot understand because you are an outsider and always will be an outsider. Bronner and RSA have plenty of money. He/they have plenty of money to invest if they want. Crying to the Judge that no one can save us is a lie - plain and simple. Bronner is trying to take the easy way out because he is not capable of a real plan to save this Airline. The plan is still the one that Wolf/Gangwal left on the desk.Let me just give you (1) MAJOR problem.
2004 is the 6th or 7th consecutive year that Airways did not hedge fuel properly. I asked Gangwal in 1999 when oil was at a 30 year low, how come a frontline employlee knows you got to hedge fuel at a 30 year low and a million dollar COO doesn't know the same thing? Answer : Fuel will stay cheap. Fuel is ONLY the second biggest Company expense.

Every paycut the Airways employees have taken since 9-11, has gone to pay for F-U-E-L! Mismanagement IS the name of the game. Siegel said : "You can't hedge fuel in Chapter 11" So how come United started hedging fuel 2-3 months ago? Another CCY Lie.

1) US Airways needs a leader. (Bronner is no leader)
2) US Airways need a CEO that knows Airlines. (Lakefield is out of touch)
3) I will not give in to the thugs and enrich the RSA pension fund.
4) US Airways is helping in a big way in destroying the whole Airline Industry.

Because others have been lied to and lives destroyed, it's okay for Bronner to do that here too.Peolpe like you that don't take the time to know the real facts need to keep their dumb opinions to themselves!

 

[US1YFARE]

Y1Fare,
You make me sick. What we are watching here on the 50 yard line is the systematic undoing of the US middle class. Just becasuse other greedy SOB's have gotten away with it in the past, is no reason for our Govt to continue to rubber stamp lying and stealing. Congress is way behind the eight ball here.
Here is the problem that you cannot understand because you are an outsider and always will be an outsider. Bronner and RSA have plenty of money. He/they have plenty of money to invest if they want. Crying to the Judge that no one can save us is a lie - plain and simple. Bronner is trying to take the easy way out because he is not capable of a real plan to save this Airline. The plan is still the one that Wolf/Gangwal left on the desk.Let me just give you (1) MAJOR problem.
2004 is the 6th or 7th consecutive year that Airways did not hedge fuel properly. I asked Gangwal in 1999 when oil was at a 30 year low, how come a frontline employlee knows you got to hedge fuel at a 30 year low and a million dollar COO doesn't know the same thing? Answer : Fuel will stay cheap. Fuel is ONLY the second biggest Company expense.

Every paycut the Airways employees have taken since 9-11, has gone to pay for F-U-E-L! Mismanagement IS the name of the game. Siegel said : "You can't hedge fuel in Chapter 11" So how come United started hedging fuel 2-3 months ago? Another CCY Lie.

1) US Airways needs a leader. (Bronner is no leader)
2) US Airways need a CEO the knows Airlines. (Lakefield is out of touch)
3) I will not give in to the thugs and enrich the RSA pension fund.
4) US Airways is helping in a big way in destroying the whole Airline Industry.

People like you that don't take the time to know the real facts need to keep their dumb opinions to themselves!

[post="191903"][/post]​

You know nothing about me or my background. You also know nothing about bankruptcy and how corporations are run. waa waa waa...we'll take our chances in court...waa waa waa....full pay to the last day

 

[Fatherknowsbest]

No idiot. I need to know nothing about you. You aren't even smart enough to know what goes on here. Spew your "it's okay to screw Americans" some where else!

 

[cavalier]

Y1Fare,
You make me sick.

[post="191903"][/post]​

That statement tell us all we need to know invalidating every word from that point on.

The only fighting you or anyone will do is b-i-t-c-h-I-n-g on these boards. That is where it will start and end, you nor the unions have control which equals anger. Everything you said is true “exceptâ€￾ fighting because labor is hogged tied squirming in the mire of corporate America’s power backed by we the people’s government. Change the laws where it counts and stop screaming at some innocent poster you disagree with, makes you look like a union leader.