Probabilities

[openview]

Uair could compete if the right changes are made to contracts once and for all and I'm not talking about wages. The typical employee doesn't get to see or comprehend how expensive even the smallest detail in a contract can be or how it can handcuff management in its long term decisions. Very often the right operational move or decision isn't or can't be taken because of unproductive or prohibitive terms in someone's contracts.

A simple example, f/a's can bid vacation days one day at a time. A nice idea, option, benefit and one you'd think harmless and why not. Yet the administrative, programming, processing or planning cost of a simple sentence in a contract like this can be incredibly expensive. And that cost falls onto the overall cost or benefit your group can enjoy or negotiate. In reality many f/a use this as a way to free their entire sched. Many use their entire balance to bid say 25 wednesdays off over the summer or holiday months and then bid a monthly block withs trips that touch wednesdays and the trips get automatically dropped from their system. So now this person has no scheduled responsibility for the entire month. Yes they pick up trips and are responsible to get their time in, but from a mgmt stand point imagine trying to plan long term to cover, schedule, accomidate, build an operation when a person has the ability to eliminate half of their years scheduled trips. Whole departments have been created or exist to manage agreements specifics just like this.

I'm not saying this ability should be eliminated. Just that the terms, sentences, side agreements, language etc. in every contract has a cost attached to it.

 

[smfav8r]

About 10 years ago all of the respected analyst said that CO would be done in a couple of months......hhhmmmm......guess they know all!!!

Not saying U is going to survive, just commenting on the knowledge and intellect of the media and analysts!!!

 

[ktflyhome]

Actually, Openview, if I am not mistaken, when Preferential Bidding Starts (who knows when) this all will be eliminated.

 

[openview]

Ktflyh...

I don't know, I'm no longer there. But there certainly is costs associated with every sentence of every contract and the afa's alone is an inch thick book. So when mgmt comes to the employees seeking concessions or productivity gains it often lets the unions decide where their cuts or productivity occur. And it is reluctant to change anything certainly, so the changes are often thinly spread across all areas of the contract as opposed to truly changing a few big inefficient areas and the culture for good until dire conditions exist. So if you are a crewmember that just wants 3 or 4 full weeks off a year vacation, and would prefer to preserve your pay instead...you are in reality paying for that piece in the contract. Contracts have page after page after page of things just like that, that employees don't really see or comprehend that cost millions to a company's operation.

 

[BoeingBoy]

openview,

You're right - the contracts do have things that cost money - the millions you speak of. However, what many of us see is a company that won't (or hasn't adequately) looked for the same "efficiencies" in the structural side.

One simple example - if aircraft utilization and average stage length were to be brought to JetBlue's levels, that would reduce our CASM over 1 cent. That doesn't sound like much until you look at how many seat miles we produce a year - over 50 Billion. Now that's a saving of over $500 million a year and there is nothing in the pilot's or f/a's contracts preventing it.

Jim

 

[PITbull]

I have no doubt, that U can become competetive and that they can beat SWA. The question is, at what cost to the employees? It is no secret, he with the lowest CASM wins, unless you can exact higher ticket revenue. With the way things stand now, the answer is no on etting more per ticket, except in a few markets, so that will not carry U. Then it must be done by productivity increases, reduction in wages and furloughs, basically with Siegel said. Again, the question is, how much will the employees have to accept, it will not be SWA pay, not HP, not jetBlue, it sounds like it will be even less.

Secondly, the question is, whether he succeded in making SWA the enemy and not himself. Of course, only the individual viewer can make that determination.

If he is sincere, then as of today, he will settle all grievances expeditiously. He will forfeit the golden parachute and sign the contract he said he would, as well as reducing management salaries. This cannot be done, once all the Union employees are onboard, he must lead this change. Speaking of change, as of today, there should and must be visible changes. The time is now!

Best of luck!

I don't believe the focus should be on beating SW. No one beats SW out, unless they choose to leave.

We need to learn to live in PHL together and coexist. We have a different product, we should promote that.

 

[Trin03]

Pitbull,

Well stated! I don't think US can beat WN either. They have been pretty successful whereever they have gone. So co-exisiting should be the key thoughts

 

[usjacket]

This management has no clue and the board for some reason refuses to make a change! Good luck to all!

 

[USA320Pilot]

737nCh11:

737nCh11 said: " I would like to hear usa320pilot's opinion on Dave's remarks about keeping the UAL code share. Kinda pokes a great big hole in his conspiracy theory. P.S. He isn't a captain anymore."

USA320Pilot comments: 737nCh11, your comments above are misrepresentation. What I said in the past is that I would like to US Airways to dump the UA code share (I still do) and then try to establish a similar agreement with AA or NW/CO (if antiturst and DL issues can be resolved). Moreover, I have been a A320 Captain throughout the process and hold a line.

Respectfully,

USA320Pilot

 

[jimntx]

I don't believe the focus should be on beating SW. No one beats SW out, unless they choose to leave.

We need to learn to live in PHL together and coexist. We have a different product, we should promote that.

Exactly! At a "town hall meeting" at AA before our concessions, I pointed out to one of the Vice-Presidents that (my exact words), "No one ever succeeded in retail by trying to out-walmart Wal-Mart. What is your plan for succeeding in the face of growing competition from the LCCs?" He missed the point entirely, of course.

The shopping centers in Humble, TX where I have a home have several large empty buildings that used to contain the likes of K-Mart who tried to beat Wal-Mart at their own game. Target, on the other hand, just moved into a larger, more modern store. But then, Target has succeeded by differentiating themselves from Wal-Mart in the public's mind--just what you have suggested that US Airways needs to do vis-a-vis SWA.

P.S. Has anyone else seen the irony in the fact that while possible solutions are bandied about in this thread, almost 70% of the voters in the poll at the top of the thread believe that U will fail whether or not the unions grant concessions? I hope that this attitude does not become a self-fulfilling prophecy.