YVINTERN
Veteran
That it's an error or that it was doubled?
Non rev fares doubled
- Thread starter NiceLandingCaptain
- Start date
That it's an error or that it was doubled?
cactusflyer
Senior
BOHICA, people, that is what my gut is saying.
I guess until some "official" word comes down, let's hope for the best (that it is an error), but expect the worst (that it isn't an error).
I guess until some "official" word comes down, let's hope for the best (that it is an error), but expect the worst (that it isn't an error).
Looks like it is true:
An Important Message from CEO Doug Parker
June 12, 2008
Dear Fellow Employees:
Last Friday, the price of oil surged nine dollars in one day to nearly $140 a barrel, setting a new historic high. As has been reported for months, sustained oil prices have created a financial crisis for our industry. For US Airways, the average fuel cost to carry one passenger on a round-trip in 2008 is $299 versus $151 in 2007. In 2000, that same cost was $70!
The economic rules of our industry have changed substantially and we simply can’t keep running the same plays. We have too many seats (supply) in the marketplace and not enough demand for those seats to raise fares. That leaves us with two options: reduce seats and find new revenue streams.
Today we announced plans to do both with the goal of returning US Airways to sustained profitability in this challenging environment. Similar actions have already been announced by other airlines.
Effective with our fall schedule, we’ll reduce flying across our system by returning some aircraft later this year and in 2009. We’re also planning to reduce additional aircraft in 2009 and 2010. In Las Vegas, we’re pulling most of our night operation primarily because as the price of fuel has gone up, incremental flying (used by airplanes sitting overnight) is now unprofitable.
In addition, we are introducing a $15 first checked bag service fee and a fee for the sale of in-flight beverages, which will start later this summer. We’re making some changes to our Dividend Miles program and will increase other administrative fees to offset costs associated with those services. As is often the case, we’ve chosen to be more aggressive than our competitors with some of these programs, but these are changes that are wholly appropriate in this new world. To offset the soaring fuel-related cost of transporting passengers that I mentioned above, we are also increasing the employee guest and parent pass fees.
Unfortunately, employees will be impacted by today’s announcement. One of the results of today’s actions is that we’ll need approximately 1,700 fewer employees once all of the capacity reductions are made. For front line employees, the staffing reduction is expected to be handled through attrition throughout the summer. Any necessary furloughs following the summer travel season will be mitigated by voluntary leaves of absence as permitted by our respective labor contracts. In workgroups with lower attrition, such as pilots, or where we don’t receive sufficient leave requests, the result will be to furlough where necessary.
For some workgroups, the way you do your job will change. We’re working hard to ensure our customer service, airport and in-flight teams have all of the support and tools they’ll need to manage these new programs, and there will be more specific information for each workgroup over the next weeks.
All of the actions we’re announcing today, when combined with the capacity other airlines have already announced, will have a materially positive effect on the financial performance of US Airways going forward. Our team has been here before and we won’t sit by and wait for external circumstances to dictate our future. A lot of “experts†are counting us out – but like all of you, I can’t wait to prove them wrong again. As part of my commitment to achieve this goal, as well as reaffirming my belief in our company, I’ve made the decision to invest an amount equal to my 2008 salary into US Airways by buying stock in the open market at the next trading opportunity for insiders.
We’re communicating a lot of information today through a special issue of AboutUS, video interviews with company leaders, Frequently Asked Questions/Answers, and other information on Wings and theHub (wings.usairways.com or theHub.usairways.com). If you have a question, we’ll do our best to try to get an answer for you quickly. Just send a note to corporate.communications@usairways.com.
Thanks for all you do each and every day. You are doing a great job of taking care of our customers. Please keep it up.
An Important Message from CEO Doug Parker
June 12, 2008
Dear Fellow Employees:
Last Friday, the price of oil surged nine dollars in one day to nearly $140 a barrel, setting a new historic high. As has been reported for months, sustained oil prices have created a financial crisis for our industry. For US Airways, the average fuel cost to carry one passenger on a round-trip in 2008 is $299 versus $151 in 2007. In 2000, that same cost was $70!
The economic rules of our industry have changed substantially and we simply can’t keep running the same plays. We have too many seats (supply) in the marketplace and not enough demand for those seats to raise fares. That leaves us with two options: reduce seats and find new revenue streams.
Today we announced plans to do both with the goal of returning US Airways to sustained profitability in this challenging environment. Similar actions have already been announced by other airlines.
Effective with our fall schedule, we’ll reduce flying across our system by returning some aircraft later this year and in 2009. We’re also planning to reduce additional aircraft in 2009 and 2010. In Las Vegas, we’re pulling most of our night operation primarily because as the price of fuel has gone up, incremental flying (used by airplanes sitting overnight) is now unprofitable.
In addition, we are introducing a $15 first checked bag service fee and a fee for the sale of in-flight beverages, which will start later this summer. We’re making some changes to our Dividend Miles program and will increase other administrative fees to offset costs associated with those services. As is often the case, we’ve chosen to be more aggressive than our competitors with some of these programs, but these are changes that are wholly appropriate in this new world. To offset the soaring fuel-related cost of transporting passengers that I mentioned above, we are also increasing the employee guest and parent pass fees.
Unfortunately, employees will be impacted by today’s announcement. One of the results of today’s actions is that we’ll need approximately 1,700 fewer employees once all of the capacity reductions are made. For front line employees, the staffing reduction is expected to be handled through attrition throughout the summer. Any necessary furloughs following the summer travel season will be mitigated by voluntary leaves of absence as permitted by our respective labor contracts. In workgroups with lower attrition, such as pilots, or where we don’t receive sufficient leave requests, the result will be to furlough where necessary.
For some workgroups, the way you do your job will change. We’re working hard to ensure our customer service, airport and in-flight teams have all of the support and tools they’ll need to manage these new programs, and there will be more specific information for each workgroup over the next weeks.
All of the actions we’re announcing today, when combined with the capacity other airlines have already announced, will have a materially positive effect on the financial performance of US Airways going forward. Our team has been here before and we won’t sit by and wait for external circumstances to dictate our future. A lot of “experts†are counting us out – but like all of you, I can’t wait to prove them wrong again. As part of my commitment to achieve this goal, as well as reaffirming my belief in our company, I’ve made the decision to invest an amount equal to my 2008 salary into US Airways by buying stock in the open market at the next trading opportunity for insiders.
We’re communicating a lot of information today through a special issue of AboutUS, video interviews with company leaders, Frequently Asked Questions/Answers, and other information on Wings and theHub (wings.usairways.com or theHub.usairways.com). If you have a question, we’ll do our best to try to get an answer for you quickly. Just send a note to corporate.communications@usairways.com.
Thanks for all you do each and every day. You are doing a great job of taking care of our customers. Please keep it up.
YVINTERN
Veteran
I figured these douchebags would have even let the prices stay if it was an actual error anyways.
Furloughd4now
Veteran
At this rate, it will be cheaper to buy and actually GET a seat :down:
FlyDCJets
Advanced
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- Mar 21, 2006
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New Guest Pass and Parent Travel Service Fees Effective Today
June 12, 2008
While US Airways employees and their eligible dependents, including spouses and registered guests, will continue to enjoy complimentary flight benefits – unmistakably one of the greatest benefits of working for US – throughout our network, we will increase guest pass (also known as buddy passes) and parent travel fees in order to help offset the high cost of fuel.
In 2008, we will spend an average of $299 just in fuel costs to carry one passenger – regardless of whether a passenger is revenue or not – on a roundtrip journey. In 2007, this figure averaged around $151. Other airlines have also recently raised some of their pass travel fees in response to higher fuels, so we’re not alone in this change.
All guest pass and parent tickets booked on or after June 12 will be assessed the following new service charges (prices are one-way):
Guest Pass Travel - depends on zone
• Domestic travel $50-$80
• Alaska, Mexico, Costa Rica $80
• Hawaii and Europe $200
Parent Travel
• Domestic $25
• International (includes Hawaii and Europe) $70
For complete details, please see the attached USNews Now, also available on Wings and theHub.
June 12, 2008
While US Airways employees and their eligible dependents, including spouses and registered guests, will continue to enjoy complimentary flight benefits – unmistakably one of the greatest benefits of working for US – throughout our network, we will increase guest pass (also known as buddy passes) and parent travel fees in order to help offset the high cost of fuel.
In 2008, we will spend an average of $299 just in fuel costs to carry one passenger – regardless of whether a passenger is revenue or not – on a roundtrip journey. In 2007, this figure averaged around $151. Other airlines have also recently raised some of their pass travel fees in response to higher fuels, so we’re not alone in this change.
All guest pass and parent tickets booked on or after June 12 will be assessed the following new service charges (prices are one-way):
Guest Pass Travel - depends on zone
• Domestic travel $50-$80
• Alaska, Mexico, Costa Rica $80
• Hawaii and Europe $200
Parent Travel
• Domestic $25
• International (includes Hawaii and Europe) $70
For complete details, please see the attached USNews Now, also available on Wings and theHub.
FlightChic
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- Feb 18, 2007
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- 954
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I'm with ya! Screw US Scareways!
YVINTERN
Veteran
I'm with you...complimentary...MY ASS....
hp_fa
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- Feb 19, 2004
- Messages
- 3,290
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EMBFA and FlightChic. In a way you are playing into the company's hand by leaving and not forcing them to buyout or furlough. If you and the rest of the reserves really wanted to send a more painful message you would hold out just long enough for the company to do their buyout and furlough this Fall and then quit. Now the company would need to fill slots after they had paid to clear slots and the newly furloughed would likely tell the company where they could stick their recall. Then, the company might need to train new FA's and that would increase their costs through increased training and the inevitable quitting by really new folks who don't realize what they actually signed up for when they took the job.
In short, you make it more expensive for the company in order to show them how much you appreciate all their efforts to improve your life over the past few years while you were busy taking care of their customers.
Best wishes to both of you.
In short, you make it more expensive for the company in order to show them how much you appreciate all their efforts to improve your life over the past few years while you were busy taking care of their customers.
Best wishes to both of you.
freedom
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- Feb 15, 2006
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- 3,244
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This is the start of what I mentioned might come to pass when we were talking about revue raising ideas .
sooner or later they will begin to charge non revs … i strongly suggest the company bring into force any charges or ideas to begin to start charging for non revs BEFORE they begin their force reduction .It’s my hope that those people who are only here for the flight benefits and who simply cannot stand the idea of paying a small charge to fly somewhere will quit and allow those workers who need this job to be able to keep it .
And so it begins .
sooner or later they will begin to charge non revs … i strongly suggest the company bring into force any charges or ideas to begin to start charging for non revs BEFORE they begin their force reduction .It’s my hope that those people who are only here for the flight benefits and who simply cannot stand the idea of paying a small charge to fly somewhere will quit and allow those workers who need this job to be able to keep it .
And so it begins .
