LAYOFFS

[nycbusdriver]

Anybody remember the old PSA. If not ... they merged with US Air and over time all their west coast routes were dropped. Here we go again ......................

Like Yogi says: "It's deja vu all over again."

But the real kicker is that it's the traditional network of the Head-Shed crowd that's getting hacked.

(Old) PSA was the victim of Crystal City Cool Northern Efficiency.

 

[InternationalShannon]

Shannon. You should know better by now.

hahahahaha I don't really flick boogers. I put them in the Whoppers. You called my bluff!!

 

[UPNAWAY]

Whoppers?
You work an Wendy's!
Something is a miss..........

 

[sharktooth]

Something is a miss..........

Indeed. I believe she is, a miss.

 

[Dog Wonder]

Whoppers?
You work an Wendy's!
Something is a miss..........

Agents at US Airways do boarding calls for First Class.

 

[SolidCactus]

don't feel bad. layoffs are happening EVERYWHERE... hooray for the new economy...

 

[drifterreno]

Heard the other day Reno will have some layoffs before Christmas.

 

[usa1]

Like Yogi says: "It's deja vu all over again."

But the real kicker is that it's the traditional network of the Head-Shed crowd that's getting hacked.

(Old) PSA was the victim of Crystal City Cool Northern Efficiency.

The numbers don't lie ..... when times get tough .... the weak routes go first ...... the money is in the east.

 

[YVINTERN]

The numbers don't lie ..... when times get tough .... the weak routes go first ...... the money is in the east.

I've been called an pessimist by many but however the weak route structures are out West due to the Southwest effect of course, I wouldn't be surprised to see PHX get most of the reductions, if I was US I would try to acquire more larger aircraft to take the slack up from reduced frequency while upgrading capacity (This is what DL does).

 

[InternationalShannon]

Agents at US Airways do boarding calls for First Class.

:blink: ohhhh they must be laying THOSE agents off because I hear they don't actually have first class service....I wouldn't know......because, well....duh *order up!*

 

[john john]

Also , i shouldn't have to explain to you AGAIN how in this economy if we had held out we'd be getting ZIP ... you do watch the news right ?

Layoff's SUCK and i wouldn't wish it on anyone ...

As for my silver , it's gold baby, gold! tomrrow is the first day of CHA CHING!!!!

We will see how southwest ramp negotiations go in this economy ?
The major airline industry as a whole answer to labor group’s cuts is OUTSOURCE BABY
With one exception WN

 

[nycbusdriver]

I've been called an pessimist by many but however the weak route structures are out West due to the Southwest effect of course, I wouldn't be surprised to see PHX get most of the reductions, if I was US I would try to acquire more larger aircraft to take the slack up from reduced frequency while upgrading capacity (This is what DL does).

It has always amazed me that this management, and its predecessors in Crystal City and, yes, even Winston-Salem, always seemed to go after the littlest airplanes. Winston started to figure it out when they realized that big bucks could be made with the 767 across the pond, but Crystal City went into that concept kicking and screaming. Finally, they acknowledged that it did actually work, but never truly embraced the concept.

Rather than accommodate 200 passengers three times a day between PHL and PHX with three airplanes, they would rather run 6 or 8 little airplanes and then wonder why they can't make money. They blame the excessive crew costs, usually. But lately it's been the fuel costs (which are inherently worse when using more little airplanes to do the job of one big airplane.)

Although SWA manages quite well with littler airplanes, their business model is unique and cannot be compared to a carrier such as USAirways. They save tons of money on crew utilization and training to offset any inefficiencies in using 737s where a 767 or even 777 might be feasible.

 

[john john]

Rather than accommodate 200 passengers three times a day between PHL and PHX with three airplanes, they would rather run 6 or 8 little airplanes and then wonder why they can't make money. They blame the excessive crew costs, usually. But lately it's been the fuel costs (which are inherently worse when using more little airplanes to do the job of one big airplane.)

And those contracted express fix fees that US pays were negotiated with low fuel cost and US pays all fuel cost associated with express. Meanwhile the company wipsaws ALPA/USSAP about fuel. The express has a large empire at USAirway because ALPA scope allows it and every employee group suffers

 

[BoeingBoy]

One also has to remember that HP was a low cost hybrid carrier - their CASM was only about 0.75 cents higher than WN. So they could hold their own in PHX and LAS, making profits on those who were willing to pay a little more to get an upgrade to F/C and those in markets not served by WN. Up until they stopped reporting separate results, West's spread between CASM and RASM was almost exactly the same as East's. It was only when the results were combined that the combined CASM jumped well above the RASM out west.

As if that wasn't enough, HP/West was hedging about 50% of it's fuel needs while US/East was hedging none. When the companies merged, overnight US/East had the advantage of hedges for about 20% of it's fuel while HP/West only got the benefit of hedging 18% of it's fuel.

Jim

 

[sharktooth]

It was only when the results were combined that the combined CASM jumped well above the RASM out west.

Actually, since the operations are still "separate", the spread should be the same, notwithstanding gaming the accounting.

As if that wasn't enough, HP/West was hedging about 50% of it's fuel needs while US/East was hedging none. When the companies merged, overnight US/East had the advantage of hedges for about 20% of it's fuel while HP/West only got the benefit of hedging 18% of it's fuel.

Your assertion about hedging is problematic, mainly because it is vendor-based, for the most part. That would restrict using hedging at locations other than served by a vendor, the contracts rarely being portable.

And, for your entire post, generally, unless specifically excluded, CASM should include fuel cost (actual or budgeted being up to the corporation). Were US/East to change their fuel vendors to those used by US/West, perhaps, maybe, your numbers might work. Seeing the US operation lately, I doubt they are capable of anything close to that, hawking cokes seems to be their forte.