Service issues and culture change

[Poug Darker]

How much in labor cost does 400 million invested in worthless derivates equate to? (Parker et al)
How much in labor cost does 2 Billion in worthless stock buybacks equate to? (Wolf et al)
How about buying a west coast airline then shutting it down? (PSA)
How about 40 million in 'business select' seats? (Shofield)
How about $100/bbl. hedges??? (Parker)

How about putting the company's financial responsibility where it belongs?

 

[Dog Wonder]

Who could afford to pay for those mistakes?

 

[US1YFARE]

Who could afford to pay for those mistakes?

Oprah

 

[BoeingBoy]

How much in labor cost does 400 million invested in worthless derivates equate to? (Parker et al)

FWIW, those are not currently worth face value in the market but are performing (paying interest as specifiec) according to Parker/Kirby in the analyst calls. So while US coulcn't sell them and recoup their initial investment, US is getting the income from them as planned when they were purchased.

A problem would arise only if US needed to convert the "marketable securities" into cash - while not worthless they would bring in less than half their face value. As long as that need to be converted to cash doesn't arise and they keep producing the expected income everything is rosy.

Jim

 

[vantheman63]

FWIW, those are not currently worth face value in the market but are performing (paying interest as specifiec) according to Parker/Kirby in the analyst calls. So while US coulcn't sell them and recoup their initial investment, US is getting the income from them as planned when they were purchased.

A problem would arise only if US needed to convert the "marketable securities" into cash - while not worthless they would bring in less than half their face value. As long as that need to be converted to cash doesn't arise and they keep producing the expected income everything is rosy.

Jim

Anyone like myself who is invested in real estate has the same issue...my apartment buildings are essentially "unsaleable." But, they are still bringing money in each month...granted, not a lot...but they are returning some.

And that's a temporary thing....as are US' "derivatives." There will be a day before too long when they are saleable.

 

[ussnark]

As long as that need to be converted to cash doesn't arise and they keep producing the expected income everything is rosy.

Indeed. Wasn't AIG and a host of other "unfailable" companies saying that very same thing two years ago?

Maybe Parker can get in line for a TARP handout.... With a second round of residential and commercial mortgage resets coming soon to a bank near you, I would think a penny on the dollar might, possibly, be a deal, Kirby/Parkers "rosy" outlook otherwise ignored.

If you do not already, for economic info, try Calculated Risk. Tanta, RIP, originated the phrase, "We are all sub-prime, now".

Third party, side note on "Schofield's" "business select". Nine months after announcement and two weeks prior to "rollout" Carol Austin (AFA MEC chair) sent a trusted FA to the factory in Germany to see how it was going. Allegedly, he could not even get his shoes under the seat in front and every "adjustment" broke in his hands. When he asked for a USAir representative, the factory supervisor stated that the FA was the first person from USAir that they had seen the entire time. ALPA's response? Well, we don't want to make waves.

I, personally, like how French workers deal with non-performing CEOs.

 

[freedom]

I couldn't disagree with you more!!!

We waste thousands upon thousands of dollars paying reserves 40+ hours a month that they DID NOT work while paying senior people topped out pay and OVERFLYING hundreds of hours a month.

We have a stagnant airline and an outdated scheduling system that waste money and kills the moral of the flight attendants.

If you would come to a system that you don't pay people not to work, you could afford to give those seniors a buy-out and work the junior or hire people making half the amount of money.

you know what! i just had a great idea ... if i recall correctlly didn't AWA have an opt out program for when they wanted people to retire early .... we could do the same thing here ...instead of offering cash money for a buy out ... we could just offer anyone who's been with the company ten years early flight benfits and company paid health care for two more years ... with those two offerings i bet it would be enough to get a hundred people to leave ... AND it would be cost effective!.

 

[LD3]

I respect the hell out of all the senior members at US, remember 1549?