PineyBob said:
That's cool! Throw the company under the bus! Real intelligent! Hope you like Government cheese.
Your point is a good one -- In another time and in another place. Two years ago it was appropriate. Two years ago it was relevant. Two years ago the employees trusted Management and chose not to "throw the Company under the bus". Since then the employees have given Siegel an unprecedented place in Airline History with unmatched levels of sacrifice yet seen, especially since 9-11.
The reason your point would have been a good one back then is that the employees had yet to give up anything. The reason your point is not relevant today is because the employees have given up unimaginable Billions. You must understand those numbers to keep everything in context. Again, and listen closely -- The employees gave the Company Billions. Like Management, you'd like to just wipe the slate clean, reset the counter to ZERO, and assume it's labor's reckless and uncooperative attitude which is destroying the Company.
Your assumption is also that Management has done an effective job of developing a plan and anticipating the obvious completive challenges of LCCs. The Company neither had a plan nor did they anticipate LCC competitive challenges. Not only did they not have an effective plan but the plan they did have has been slow to evolve. The POR approved by the ATSB and the BK Court along with Billions in employee concessions has given the Company advantages necessary to insure the success of the Airline – Management’s words not ours.
It was Management’s miscalculations, arrogance and complacency which has caused the Airline to loose credibility in the financial community and in the industry.
Miscalculations – While USair was practically the only network carrier to consistently loose money, Management points out that it was the strength of a diversified and expanded reach which has allowed other network carriers to turn the corner of recovery. Contradicting themselves, Management emerged from Bankruptcy with plans and threats to shrink the airline further if only they weren’t restricted by labor agreements. Now, reversing course, Management is talking about a 60 frame increase in the fleet.
Arrogance – Management believed they could continue the winning management style in Bankruptcy by bullying Vendors, Lessors, Airport Authorities, Political Institutions and Labor. By doing so they have lost tremendous opportunity for Goodwill for themselves and the Airline. The Airline has seen a continuity in Management’s approach to leadership. Labor agreements signed and agreed to by Management are only Eight Months old. Since then we’ve witnessed hundreds of contract violations. Furthermore Management has made no effort to scale down costs pertaining to it’s corporate headquarters and operations; They’ve rewarded former Executives when it was within their ability in the Bankruptcy process to alter these agreements and contracts; And USAirways current management, from the top down have stated that, absent of selfish Executive Pay and Benefit Packages, they have no loyalty to this Company.
Complacency – Management has not shown the same aggressiveness in implementing its Competitive Plan as it has pursued concessions. The nature of LCCs is to grow aggressively into Network carrier’s markets. This trend has not changed since before 9-11. The Company wallowed in complacency – in an Executive leadership vacuum of corporate strategy, timely initiatives and direction. While LCC as well as other Network carriers were busy responding to evolving industry challenges, USAirways Management squandered opportunity. Because of this complacency and failure to capitalize on the unique advantages Bankruptcy offers, Management once again scrambles for carelessly lost footing. In the process USAir’s tired leadership, once again, has become desperately out of ideas... Except for one. Like you, they want to discount the Billions they’ve already received from labor. It’s difficult, but they’re really trying hard to test the public, political, legal and financial communities’ gullibility that it’s once again a Gluttonous Labor Problem.
Unlike you, Labor has a memory of Billions of dollars in concessions. Unlike you, Labor as watched other Successful Airline Executives, Financial Leaders and Analysts criticize Management and praise Labor during this most difficult year of sacrifice. Unlike you, Labor has seen Management reward themselves disproportionately to the Executives who’s Airlines Management wishes to emulate.
Regardless of all the above, you’re point may still be relevant to a small degree. But the only way more concessions will be extracted is with new Management.
Because of all the above, there is no more trust in this management. You believe Labor is dragging the Company under the bus. You are blind to what labor has in fact done, what Management said they needed, and how Labor was praised for their sacrifice. Management is driving the bus which you refer to. And Management is trying to run down the company with reckless driving. Labor has and will do their best to pull the Company from the Path of reckless management. To do that, however, all must realize that we need a new driver for your bus. We just don’t trust them.
If your points are correct and this Management remains on the property, then the Company will fail for lack of trust in Executive integrity and competence. If you points are correct and Management it replaced early enough by the BOD, then the employees will listen and consider the logic for growth and success. Trust in Management means a higher probability of Airline survival. No Trust in Management means certain failure, either now or eventually.
So, it’s simple. Help us get trust and credibility back in the driver’s seat of your bus. If you believe this Airline can survive without such trust, then show me the Airline which has prospered with such leadership. Better yet, show me which Airline has in fact, “SURVIVED†without the trust and confidence of Labor in their Executive Leader... None, NOT ONE, has survived.
One the other hand, the employees can show you Airlines which have visited Bankruptcy, even twice, and have survived with very credible and trustworthy Leadership.
It's not a matter of who the replacement will be. It's not a matter of how long it will take to get the airline off autopilot and reprogramed back on course to survival and prosperity. It's about starting now, starting as early as possible to aviod the inevitable destiny of an Airline with poor Management / Labor relationships. There are extremely capable former and current industry executives who would rise to the challenge of interim Airline Leadership until a permanent Executive Team can be recruited. One which has the blessing of both the Board and Labor.
