It's Make Or Break Week For Us Airways

[crazyincanton]

Hi Folks! What have they done with the last 2 rounds of concessions that we have given? What will they do with this round? Wll Lakefield let us share in the spoils if we turn this thing around, or is that only for management? Let's face it: More than our wages have to be addressed. The morale and the way that they treat us has to be addressed. I am just afraid that there isn't enough time for any of this and the simplest thing for them to do is to come after us...again. If the structure and operation of this place isn't addressed then I will not give anything else, even if it means looking for another job. It looks like Lakefield may just be a different visage on the same old mantra. We have to decide, individually, where our line will be drawn. Good luck.

 

[tug_slug]

no doubting we have to ante up once again

Fliboi I know weve disagreed in the past but I think your right. Id rather give more concessions and get severance pay than see the airline die and not get anything but unemployment.

 

[ktflyhome]

Thats a very brave and wise choice. My hats off to you. Good luck in your future!

What a contridiction. Yea. You would like eveyone to leave. you would really be happy wouldn't you.? That is what you have been saying for months. You are just like Dave and the rest of them. "If you don't like it, then leave." How very sad that you encourgage your fellow co-workers and fellow employees to leave this company. Hope you can sleep at night.

 

[PITbull]

repeet,

Well said, sir!

Exactly so.

If management succeeds in the next giveback (and makes it stick for the next decade), it will make economic sense for most of IAM, AFA and CWA to find jobs elsewhere.

I agree with both of you wholeheartedly.

 

[BoeingBoy]

US Airways in do-or-die struggle for Philadelphia

Wednesday, May 05, 2004
By Dan Fitzpatrick, Pittsburgh Post-Gazette

For US Airways, it comes down to this: Defend Philadelphia or die trying.

The biggest head-to-head clash in the airline's history begins Sunday, when the nation's longest-running low-fare flier, Southwest Airlines, starts service from Philadelphia International Airport, US Airways' most profitable hub. Its assault comes as the nation's seventh-largest airline continues to lose money a year after emerging from bankruptcy.

Article

Jim

 

[insp89]

US Airways in do-or-die struggle for Philadelphia

Wednesday, May 05, 2004
By Dan Fitzpatrick, Pittsburgh Post-Gazette

For US Airways, it comes down to this: Defend Philadelphia or die trying.

The biggest head-to-head clash in the airline's history begins Sunday, when the nation's longest-running low-fare flier, Southwest Airlines, starts service from Philadelphia International Airport, US Airways' most profitable hub. Its assault comes as the nation's seventh-largest airline continues to lose money a year after emerging from bankruptcy.

Article

Jim

Jim, Are you SURE U lost money last quarter ?? $250 million PREPAYMENT to the ATSB loan MINUS the [so-called $177 million loss = $73 million.....What do you think ???? This aint brain surgery...

 

[BoeingBoy]

insp89,

That has been discussed both here and on the ALPA board - some say its just cash flow and not related to profit/loss, others disagree. I'll leave that to the accountants among us.

The only thing I do "know" is that having more cash is better than having less. However, I suspect that the company had no choice but to pay down the ATSB-backed loan to get the requirements changed. My guess is that we were in violation of some covenent or the other, or soon would be.

Jim

 

[funguy2]

Jim, Are you SURE U lost money last quarter ?? $250 million PREPAYMENT to the ATSB loan MINUS the [so-called $177 million loss = $73 million.....What do you think ???? This aint brain surgery...

insp89:

Read some of the other threads... The early payment on the loan is not related to profit/loss, only cash flow.

It isn't rocket science, its Accouting 101.

If I have a loan of $100 and $150 in my pocket, my net worth is $50. If I payoff the loan, and have a loan of $0 and $50 in my pocket, my net worth is still $50.

The things that are "expensed" (and remember profit/loss = revenue - expenses) are items required to make the widget: Labor, the cost of the machine (spread out over its useful life), etc. The only part of a loan which is expensed is the interest paid on the loan.

 

[sfb]

Yep, the prepayment on the loan only affects UAIR's cash balance, not its profit or loss for the quarter. Actually, it has a slight positive effect on earnings since interest expense is reduced by a couple of million per quarter; I also believe the company pays a periodic fee to the ATSB for the loan guarantee which is based on the size of the outstanding loan. Reducing the amount outstanding reduces the fee.

All that said, it's good to have the cash cushion provided by the guaranteed loan because the company needs a certain amount of liquidity to operate and it allows for a certain margin for error in case some future crisis strikes the industry, as well as a cushion for seasonal losses during the fall and winter. Even if a business is operating at break-even or a slight profit, a short-term liquidity crisis can drive it into bankruptcy; this is what nearly happened to America West in 2002.

It's also worth saying that the company's loss for the last quarter wasn't reflected in its cash balances since most of the loss could be accounted for in non-cash items -- things like depreciation, etc.

Some of the things in the article posted by BoeingBoy were pretty damning. You know your customers are p.o.'ed AND they know about the competition if they start chanting the competitor's name in the baggage claim (is that story true???). It sounds like some aspects of the company's image in Philadelphia are in desperate need of a makeover, and it has to happen NOW. And you cannot rely on a hope that Southwest's PHL operation will fall victim to the Philly Phactor -- because there's no certainty it will. If you plan based on that assumption and they manage to make things work, where does that leave you? Fixing the baggage system, rationalizing some fares, doing some marketing, juggling the schedule, and improving operations at PHL are all long overdue.

 

[WNrforlife]

Well, ya'll made a good run of it. Sorry that it didn't work out for you.

Philly will now be known as the "city of brotherly LUV.


Get it? LUV is our stock ticker symbol.

 

[ktflyhome]

Ever watch "Airline"????? They gotta lot of LUV in their hearts don't they????? Yea, right!!!!! They will let little old ladies die before they show any LUV in their hearts!!!! <_<

 

[insp89]

insp89,

That has been discussed both here and on the ALPA board - some say its just cash flow and not related to profit/loss, others disagree. I'll leave that to the accountants among us.

The only thing I do "know" is that having more cash is better than having less. However, I suspect that the company had no choice but to pay down the ATSB-backed loan to get the requirements changed. My guess is that we were in violation of some covenent or the other, or soon would be.

Jim

Jim, I would just like to be dealt with HONESTLY from this company [for a change] I was hoping Lakefield would come in and actually bring some integrity along with him.

 

[funguy2]

Philly will now be known as the "city of brotherly LUV.


Get it? LUV is our stock ticker symbol.

Yeah, we get it.

I am surprised that this has not been the theme of their marketing efforts... You should forward this idea up the chain at LUV.