Letter from Doug Parker

[N311AW]

That's great....anyone else getting pay raises?

As far as the AFA contracts go, if HP were thrown onto the current US contract I'd get about an $8/hr raise at my longevity, which is the 6/7 yr step of the scale. Of course, I'd lose scheduling flexibility and vacation. I'm not sure if the company will actually just throw HP onto the US contract, but they have hinted that they'd like to do that. AFA and the company are working on a merged contract now, but I'm not holding my breath for anthing fair given the aversion to labor at "the sandcastle."

What I do know is even with all of our differences, we're all one group now, and neither the HP or US folks are in any mood to give up anything.

 

[ClueByFour]

ClueByFour said: "So, when is the unqualified EPS of LCC going to be a positive number?"

USA320Pilot comments: "As Fuel Prices Climb, American, US Airways, and Delta Raise Domestic Leisure Airfares for the 5th Time in 2006 ... Says BestFares.com."

Click here for the story.

Best regards,

USA320Pilot

I love the fact that you did not answer the question.

When can we expect unqualified positive EPS from LCC?

*crickets*

 

[Walmartgreeter]

The grocery stores and other businesses that raise prices because fuel costs them more, don't make the big announcement.

I am not really sure about grocery stores..but many other business are currently adding "fuel surcharge" fees to their prices. The disclosure of added fuel charges is a GOOD thing for the airlines..it allows them to separate service charges from uncontrolled fuel charges. Just a point..grocery stores offer thousands of somewhat unrelated products for sale under one roof. Airlines, excepting the different classes of cabin travel, offer ONE product..transportation from one point to another..nothing more. It's about time this difference was highlighted. Greeter.

 

[USA320Pilot]

ClueByFour:

ClueByFour asked: "When can we expect unqualified positive EPS from LCC?"

USA320Pilot answers: "I do not know because I do not have access to the books, however, I believe it will be sooner than the timeframe given to the equity investors. By the way, when do you expect an 'unqualified positive EPS from LCC'?" I would be interested in reading your "informed and expert" opinion and analysis.

Best regards,

USA320Pilot

 

[ClueByFour]

ClueByFour:

ClueByFour asked: "When can we expect unqualified positive EPS from LCC?"

USA320Pilot answers: "I do not know because I do not have access to the books, however, I believe it will be sooner than the timeframe given to the equity investors. By the way, when do you expect an 'unqualified positive EPS from LCC'?" I would be interested in reading your "informed and expert" opinion and analysis.

Best regards,

USA320Pilot

Look for much higher than anticipated "integration costs" and much lower than expected "synergy savings." I've run billion dollar integrations from an IT and process perspective--Parker's estimated "synergies" in those areas alone is laughably optimistic.

As for when? I'm not willing to crawl out on the same limb as airline analysts looking for a nice pump and dump opportunity, largely because nobody without serious hedges has a business plan that can support $70/bbl (or higher) oil.

 

[flygirl74]

I never quite figured this out. A person puts on their blazer and leaves home, drives to the airport,goes thru security, waits at the gate,and THEN AT THE AIRPLANE just HAS to hand you that "emergency coat" (got to hang this NOW). WTF!! We fly 50 flights a month, we know that we are going to hang the jacket....not delay boarding!!!

 

[john john]

I never quite figured this out. A person puts on their blazer and leaves home, drives to the airport,goes thru security, waits at the gate,and THEN AT THE AIRPLANE just HAS to hand you that "emergency coat" (got to hang this NOW). WTF!! We fly 50 flights a month, we know that we are going to hang the jacket....not delay boarding!!!

Good stuff LOL

 

[hp_fa]

I never quite figured this out. A person puts on their blazer and leaves home, drives to the airport,goes thru security, waits at the gate,and THEN AT THE AIRPLANE just HAS to hand you that "emergency coat" (got to hang this NOW). WTF!! We fly 50 flights a month, we know that we are going to hang the jacket....not delay boarding!!!

I never quite thought of it the way that I am about to say, but it is an interesting thought.

Do all these captains of business and industry go home and hand their coats to their significant others and/or children? Do they go to work and hand their coat to a secretary or other person with whom they work? Do they go to the doctor or dentists office and hand them the coat. How about when they go to a supermarket, hardware store, Mercedes store, 7-11 or wherever else they shop?

The one exception is a fine dining restaurant, but haven't we established that an aluminum can at 35,000 feet is not generally considered a gourmet dining experience?

 

[FCYTravis]

It's one of the last vestiges of old-school First Class, when the F-cabin meant something more than a bigger seat and free booze.

 

[BoeingBoy]

It may be a good topic for a poll if anyone can figure out a way to have only F/A's answer. However, my guess is that most F/A's would rather hang the coats than have the passengers do it. There's only so many hangers in that closet and, as sure as I'm sitting here, when the first FC passenger hung their own everyone following them would do the same no matter where they were sitting.

Jim

 

[hp_fa]

It may be a good topic for a poll if anyone can figure out a way to have only F/A's answer. However, my guess is that most F/A's would rather hang the coats than have the passengers do it. There's only so many hangers in that closet and, as sure as I'm sitting here, when the first FC passenger hung their own everyone following them would do the same no matter where they were sitting.

Jim

Jim, my point simply echos what others have said before. We will get to the pax coat, but we don't need to disrupt the boarding of the flight to do it ASAP. I don't know the East way of boarding and the duties of the First Class FA. I was extremely familiar with the duties and resonsibilities of the First FA at West. Between getting passemgers on the plane, doing the meeting and greeting, solving the problems that always are involved in boarding, doing security stuff that we do, trying to enforce FAA and Company carry-on policy, getting a predeparture drink (if possible) into the FC pax hands, getting briefed by the flight deck, taking care of the beverage needs of the flight deck and simply getting the door secured, there is a hell of a lot to do in 30 minutes with a full flight.

I will grant you that the 737 is easier for us to do more simply because there are only 8 FC pax and max capacity on the 737-300 is 134 pax. The 320 has 12 in FC and 138 in the main cabin, so 1 more people to board in the same amount of time and four extra FC pax. The 319 boarding was never a problem for me with the max load of 124 pax.

What would disturb me would be the attitude of someone who thought of themselves first and didn't bother to try and see the big picture (of getting the plane out safely and on-time). Trust me, if pax made half an effort to help me help them get on their way, they would be rewarded with excellent service. Once I had the time to focus solely on them and their comfort.

 

[BoeingBoy]

Sorry, HP-FA - didn't mean to imply that the F/A's should snap-to and hang coats to the exclusion of everything else.

Based just on my observations from standing in the cockpit door, here on the east they'll usually ask if they can hang the coats either as the passenger is stowing baggage (if there's not a line of passengers filling the aisle) or as they take pre-departure drink orders (after the passenger is seated).

Jim

 

[USA320Pilot]

ClueByFour said: "Look for much higher than anticipated "integration costs" and much lower than expected "synergy savings." I've run billion dollar integrations from an IT and process perspective--Parker's estimated "synergies" in those areas alone is laughably optimistic."

USA320Pilot comments: "Today Prudential Equity Group upgraded US Airways (LCC) to overweight from neutral weight and lifted its price target to $48 from $40, citing the surprising lack of problems at the combined America West/US Airways. In addition, the broker told clients that recent insider buying adds a degree of confidence to its positive outlook for the company."

Click here to view upgrade.

Click here for LCC relative strength.

Click here for stock quote.

ClueByFour said: "I'm not willing to crawl out on the same limb as airline analysts looking for a nice pump and dump opportunity, largely because nobody without serious hedges has a business plan that can support $70/bbl (or higher) oil."

USA320Pilot comments: I find it interesting that US Airways' stock continues its rapid rise when the company is facing crude oil prices much higher than $70 per barrel considering its effect on jet fuel prices and the company's energy costs. I wonder why so may people are buying the stock. ClueByFour, what's your informed opinion?

Best regards,

USA320Pilot

 

[700UW]

The problems have not started yet.

 

[BoeingBoy]

USA320Pilot comments: "Today Prudential Equity Group upgraded US Airways (LCC) to overweight from neutral weight and lifted its price target to $48 from $40, citing the surprising lack of problems at the combined America West/US Airways. In addition, the broker told clients that recent insider buying adds a degree of confidence to its positive outlook for the company."

Your "comments" seem to be a cut-n-paste of a Marketwatch report here.

What Bob McAdoo actually said was:

"Although we believe the airline industry will continue its return to a more normal state, it is possible that
the price of oil and/or refining crack-spreads could continue to climb. If this happens, recent revenue
strengthening will likely be offset and, without further fare increases, LCC shares could retreat significantly.
Conversely, LCC management could be more successful in handling merger obstacles than we are anticipating.
Should this occur, LCC shares could move higher."

I'm frankly flomixed by the statement about insider buying, since it wasn't in the Prudential report. The only "insider" buying has been by PAR, and that came from "insider" selling - ACE. There have been stock grants to certain executives under the incentive plan within the last week, but I'd hardly call that insider buying.

Last, I'm not sure I'd call getting back to a 52-week high set shortly after the stock was available "continuing it's rapid rise". If you haven't noticed, just about all the airline stocks are up today - even DL & NW whose stocks will be worthless. Given the small float of LCC stock, larger than average price movement would be expected.

Jim