Psa To Be Sold?

[BoredToDeath]

Furloughed,

Thank God your not an accountant.

They go out and sell 50 seats for $500 per seat yielding $25,000 for US Airways.

Now, from that $25,000 US Airways has to subtract the costs of running an airline.

• General Offices, Headquarters, Hangars, Facilities
  
  
  
  
• Employee Costs: Flight crews, dispatchers, schedulers, mechanics
  
  
  
  
• Aircraft Leasing and Maintenance Costs Plus Depreciation
  
  
  
  
• Ground Servicing and Ground Service Equipment
  
  
  
  
• Insurance
  
  
  
  
• Other Misc. Expenses

Lets say that the total expenses for this particular flight segment equal $1050.

Total profit to US Airways: $23950.00

Lets fix this.

They go out and sell 50 seats for $500 per seat yielding $25,000 for US AirwaysGroup. Out of the $25,000 US Airways Group pays PSA $1,000.

Now, from that $1,000 PSA has to subtract the costs of running an airline.

• General Offices, Headquarters, Hangars, Facilities
  
  
  
  
• Employee Costs: Flight crews, dispatchers, schedulers, mechanics
  
  
  
  
• Aircraft Leasing and Maintenance Costs Plus Depreciation
  
  
  
  
• Ground Servicing and Ground Service Equipment
  
  
  
  
• Insurance
  
  
  
  
• Other Misc. Expenses

Now since the PSA fee above will be a set amount that would guantee PSA a profit, the expenses listed above get paid $900.00 leaving PSA a $100.00 profit for that one flight.

After PSA gives all profits to group, the Total profit to US Airways Group: $24,100 (just as you said, all numbers were kept simple for the sake of argument. Just that you forgot to remember that the fee for departure is a way to guarntee a profit margin.)

My opinion? PSA will be sold to Mesa Air Lines and the US Airways customers won't notice the difference.

Like you said, It is your opinion. But I just don't see it happening with the things I see.

 

[Light Years]

Lets hope they announce it soon one way or the other- I know a few people who want to apply for F/A positions there, but not if its to be become Mesa.

 

[Furloughedagain]

yeah well, math was never my strong suit.

I guess what I was trying to say is that basically if the cost of running the PSA operation is more than the cost of the fee, then the airline will likely be sold. There is no benefit to hanging on to it.

See that? I could've saved you 10 minutes of reading.

 

[DorkDriver]

The PSA folks are in denial. If Group wants to sell off PSA your'e toast. Don't fool yourself! PSA is a flee on a dog's rump for Mesa. Park the 328's then start to worry about the future. They are dressing up the WO's for sale. Just because PSA is flying RJ's does no put you above anything.

The longterm prospects for US Airways are grim at best. I believe that Bonner will get his investment back no matter what. If it means selling off assets so be it. With all of the Mainline employees that have been hosed, they will not blink to get rid of PSA if it means survival of the airline. Even if it is just for 6 months!

I don't think anyone is denying anything. Mesa doesn't have the cash on hand to pull off any buyouts of any kind. Things at PSA are going good not only for ourselves but also for Group as a "group". The only way things could get better for the employees of PSA Airlines would be for Group to sell us or IPO us so we can get as far away from the Titanic as possible. If that happens, then at least the problems with the crj 700s is automatically solved.

Mainline employees: Would you rather change some of your work rules, or sell off the only profitable operation at Group? Either way, the company will do what it needs to do to keep our commitments to our lenders.

 

[Light Years]

NO part of the US Airways Group is "going goodl". How are we defining going good? Getting some replacement jets because you are the cheapest part of the company? That doesnt help the thousands upon thousands who have lost jobs, and the many more who still may if the company goes under.

 

[Bear96]

Mainline employees: Would you rather change some of your work rules, or sell off the only profitable operation at Group?

Buyers won't be interested in paying much for something that is UNprofitable...

 

[hammerhead]

PSA is profitable. Mainline is not.

 

[hammerhead]

call if labor cost if you want, but it's pretty simple.

 

[700UW]

US Airways has the lowest major costs of 6 of the 7 airlines bigger then it, including WN.

 

[hammerhead]

US Airways has the lowest major costs of 6 of the 7 airlines bigger then it, including WN.

Can you send me a link that proves this? even a little bit?

 

[700UW]

There is not just one link, but if you search AA, NWA, UAL, DL, WN various unions you will find their wages are higher then any US Airways Employee.

 

[hammerhead]

There is not just one link, but if you search AA, NWA, UAL, DL, WN various unions you will find their wages are higher then any US Airways Employee.

money losers:
7- Northwest posted a net loss for 2003 of $565 million
8- Delta posted a net loss for 2003 of $773 million
9- American posted a net loss for 2003 of $1.2 billion
10- United posted a net loss for 2003 of $2.8 billion

 

[700UW]

You failed to mention Southwest, their ramp workers and mechanics make way more the US employees and are one of the highest paid and highest % of unionized work groups.

Taking lessons from another on of the boards infamous posters?

Southwest Airlines Reports Third Quarter Earnings of $106 Million

 

[hammerhead]

I agree, they have a better business model too. Unionized? vague. Cooperative more likely.

 

[700UW]

Southwest Airlines has the highest % of unionized employees.

Pilots are SWAPA
F/As are TWU
Ramp is TWU
Reservations and Customer Service Agents are IAM
Mechanics are AMFA

Every major work group at WN are union and they make more then their US Airways counterparts and many other major legecy carriers