USA320Pilot
Veteran
- May 18, 2003
- 8,175
- 1,539
Reality - just look around...
Dear Fellow Employee,
Continental Airlines chief executive officer Gordon Bethune said in a conference call with analysts and reporters today, "The barriers to Continental's profitability have not changed over the last several months and continue into 2004 -- low fares, high ticket taxes, a weak economy, the growth of low-cost carriers, and stubbornly high fuel prices."
I am not trying to carry management's message and God knows there is enough blame for all of us to share in all corporate departments, but it's clear some of these issues are cyclical and two are not: low fares caused by internet booking and the LCC's. Every legacy carrier including US Airways has to deal with today's economic reality and it's not myopic management that caused the LCC's to build a better business model.
From a cyclical perspective, Credit Suisse First Boston analyst James Higgins told Reuters News that the Houston-based airlines break-even results could be difficult if high fuel prices persist.
Whose fault is that? OPEC, airline management, or simply an undisputed economic reality, which will effect US Airways' current financial challenges?
Either US Airways’ management, creditors, investors, and employees adjust to the current economic reality or the company will perish. The ATSB and RSA hold all of the cards because the problems of companies like Continental Airlines and US Airways will not go away.
Thus, when would now be a good time for US Airways’ unions and management to begin negotiations on the “transformation planâ€, contract changes to permit growth, and discussions on ways for the company to return to profitability in preparation for the inevitable industry consolidation?
Respectfully,
USA320Pilot
Dear Fellow Employee,
Continental Airlines chief executive officer Gordon Bethune said in a conference call with analysts and reporters today, "The barriers to Continental's profitability have not changed over the last several months and continue into 2004 -- low fares, high ticket taxes, a weak economy, the growth of low-cost carriers, and stubbornly high fuel prices."
I am not trying to carry management's message and God knows there is enough blame for all of us to share in all corporate departments, but it's clear some of these issues are cyclical and two are not: low fares caused by internet booking and the LCC's. Every legacy carrier including US Airways has to deal with today's economic reality and it's not myopic management that caused the LCC's to build a better business model.
From a cyclical perspective, Credit Suisse First Boston analyst James Higgins told Reuters News that the Houston-based airlines break-even results could be difficult if high fuel prices persist.
Whose fault is that? OPEC, airline management, or simply an undisputed economic reality, which will effect US Airways' current financial challenges?
Either US Airways’ management, creditors, investors, and employees adjust to the current economic reality or the company will perish. The ATSB and RSA hold all of the cards because the problems of companies like Continental Airlines and US Airways will not go away.
Thus, when would now be a good time for US Airways’ unions and management to begin negotiations on the “transformation planâ€, contract changes to permit growth, and discussions on ways for the company to return to profitability in preparation for the inevitable industry consolidation?
Respectfully,
USA320Pilot