Shuttle Flying, Bankruptcy Financing, & Gecas

[USA320Pilot]

USA32Pilot said: "Do not be surprised if the Shuttle obtains EMB-170 (aircraft)".

700UW responded: "Come February the Shuttle will be ALL Airbus."

USA320Pilot comments: During off peak times the Shuttle has about 30 or 40 passengers per flight and continues to lose money. The shuttle is operating better and US Airways has begun to take traffic traffic from Delta and Eagle, but the loads normally do not support a Boeing or Shuttle aircraft.

The Company announced that the Shuttle will return to all Airbus flying, changing the DCA-BOS service from a B737 to an A319, but I understand it will change equipment on the weekends.

It is my understanding a new schedule will be loaded into Sabre on December 4 and will include EMB-170 Saturday Shuttle service starting in I believe February. On weekends you primarily have leisure versus business travelers and the EMB-170 could be the perfect aircraft for this market. It is a nicer aircraft than the B737, will free up the A319s for Saturday service to the Caribbean and charter flights, where the yields and traffic are better.

Meanwhile, in order to obtain $140 million and reduce lease expenses by $80 million per year to improve cash flow with spiraling fuel prices and continue operating, the Company reached an agreement with GECAS to return 10 A319s in 2005 and 15 B737s in 2006 and 2007. Some or all of these aircraft may require heavy maintenance, which could be another cost savings.

See Story

According to the following news report, "US Airways' largest creditor is allowing the bankrupt carrier defer lease and debt payments in what could be a lifeline for the bankrupt airline. The pact also requires US Airways to extract more concessions from its labor unions," which all readers of this board should have known was coming .

See Story

Also notweworthy, the removal of these aircraft over time will buy the pilot group time to allow additional attrition to occur, which may not effect current manning.

US Airways has 10 A330-200s, 13 A321s, and 6 A320s on order previously scheduled for delivery in 2007 through 2009. In addition, the EMB-190 is scheduled for its first delivery in November 2005 to JetBlue. The JFK-based company intends to target US Airways’ and MidAtlantic flying in early 2006, which will create another problem for US Airways.

At the October 28 MDA Check Airman meeting management told the pilot’s that Embraer has 6 EMB-170s painted in US Airways’ livery sitting on the ramp with 3 more in production. With the EMB order suspended and not terminated, I expect these aircraft to resume deliveries in the second or third quarter of 2005.

In my opinion, especially considering today’s GECAS announcement, we could see EMB-190s also begin flying the Shuttle and other mainline routes at some point in the not-so-distant future.

Finally, if ALPA's RC4 and the other union's had cooperated with the company US Airways may have avoided bankruptcy and still would have the 279 aircraft fleet count in place.

Regards,

USA320Pilot

 

[firstamendment]

All work and no play makes Jack a bad boy.
All work and no play makes Jack a bad boy.
All work and no play makes Jack a bad boy.
All work and no play makes Jack a bad boy.
All work and no play makes Jack a bad boy.

USA320Pilot says
Finally, if ALPA's RC4 and the other union's had cooperated with the company US Airways may have avoided bankruptcy and still would have the 279 aircraft fleet count in place.


Tired. <_<

Yawn <_<

Somebody wake me when there's a new line..oh, I forgot I'm stuck in the movie THE SHINING.
View attachment 2207

 

[CaptianBoomer]

320:

Your post was good right up to the point where you started pointing the finger at the RC4 again.

This company never had the intention of operating 280 aircraft. They are upping the utilization and that is a good thing from a cost perspective. They always had the "contingency" in their contract proposals from day 1 of restructuring #3 that said if they filed 11 again they couldn't guarantee 280 aircraft.

This company has lied and lied and lied. These aircraft you talk about (330 and 321) will never be built for U. They don't want them and even though they are going to cut and cut and cut costs, they can get revenue from the UAL and Star code shares. They have no intention of growing. It is cut cut cut and you might see some growth, but it will be all cheap flying (from the employees perspective) RJ's. Never mind it will be a 90 seater (another giveaway from ALPA)

Sweet dreams!

Boomer

 

[Schatzee]

[Finally, if ALPA's RC4 and the other union's had cooperated with the company US Airways may have avoided bankruptcy and still would have the 279 aircraft fleet count in place.

[post="204038"][/post]​

Can you stop with the "RC4" already? As for the other unions, they tried to "cooperate" but couldn't find anyone on the other side of the negotiating table. They also have found that they just cannot not bend as far and as often as ALPA has.

 

[aafsc]

"Extract more labor concessions from it's unions." How much more are you willing to give in round 5?

 

[foreright]

good news!

 

[USA320Pilot]

US Airways’ complex agreement with GECAS provides the parties with a number of benefits. Listed below is an analysis of the deal:

US Airways

Increases the company’s liquidity by $140 million and reduces its expenses by about $80 million per year. This will improve unrestricted cash, cash flow, and help the carrier maintain ATSB funding requirements to improve its chances to emerge from bankruptcy in the second quarter of 2005.

Reduces the company’s B737 overhaul and CFM engine power-by-hour overhaul expenses.

Permits the orderly return of the jets that will result in the loss of about 100 mainline pilot positions from March through December 2005, which is about 10 per month, and about 150 pilot mainline positions in 2006 through 2007. The loss of these positions will likely not create any additional layoffs and will be offset by age 60 retirements, ERIPs, LTD’s, resignations, and attrition. The net result will be modest pilot growth up the seniority list.

The agreement will likely add 31 more RJs to the fleet increasing the total in the network to 200 aircraft adding more revenue to the airline. The exact delivery schedule is uncertain, but will probably include EMB-170 and EMB-190 aircraft (PSA could receive some more CRJ-700 and CRJ-900 aircraft too) that could add over 300 MDA pilot positions.

Increases the odds that the Pittsburgh B737 maintenance facility will be closed due to IAM resistance to participate in the new business plan.

GECAS

Reduces the financier’s exposure to US Airways.

Permits GE to lease 25 Airbus and Boeing aircraft to other companies at a higher rate.

Provides GE with more EMB-170/EMB-190, CRJ-700/900, B737, and A319 financing opportunities at market rates, versus below market rates.

Conclusion:

The agreement requires bankruptcy court approval on December 17, which is the last day of the S.1113© hearing and the last day the court will be in session in 2004, before Judge Mitchell goes on vacation until January 2005. In addition, the GE deal requires further labor “Transformation Plan†participation by those unions who do not have a new labor accord and will increase the pressure on Mitchell to “impose†new labor agreements, if necessary. If history repeats itself, the AFA, CWA, and IAM could receive worse and worse proposals, which has already been experienced at the company for many of its unions.

Bruce Lakefield told the ALPA MEC last summer in a confidential meeting I attended that GECAS wanted to remove about 30 aircraft from US Airways' fleet because the financier wanted to diversify its risk, which I previously reported on this forum. ALPA's RC4 ignored the advice of the advisors and management comments, which increased GECAS' desire to remove the aircraft from the carriers inventory. If the RC4 had struck a deal earlier, there would have been more financier confidence in the company's ability to survive, and there would have been more time to reach new labor accords with the other unions.

US Airways wanted to keep the 279 fleet intact, but due to labor resistance to change GE elected to place aircraft where they make money, whether it's US Airways mainline, MDA, PSA, or another operator.

Best regards,

 

[USA320Pilot]

CaptianBoomer:

CaptianBoomer said: “These aircraft you talk about (330 and 321) will never be built for U. They don't want them and even though they are going to cut and cut and cut costs, they can get revenue from the UAL and Star code shares.â€￾

USA320Pilot comments: The only time you get alliance revenue is if people fly on your aircraft, thus there is an incentive for US Airways to obtain feed for long-haul operations. In my opinion, the A330-200s, A321s, and A320s will replace B767-757 aircraft to more rationalize the fleet and eliminate CLT B767/B757 overhaul.

Meanwhile, do not be surprised if the company reaches a deal for A322s and announces new service to South America.

Regards,

USA320Pilot

 

[700UW]

Increases the odds that the Pittsburgh B737 maintenance facility will be closed due to IAM resistance to participate in the new business plan.

The IAM has been meeting with the company and will be meeting all next week to try and reach an agreement.

The loss of 15 737s will not even result in one track leaving.

The 757 is a better airplane then the A321, the A321 all ready had to have an engine upgrade to increase the thurst.

In addition, the GE deal requires further labor “Transformation Planâ€￾ participation by those unions who do not have a new labor accord and will increase the pressure on Mitchell to “imposeâ€￾ new labor agreements, if necessary. If history repeats itself, the AFA, CWA, and IAM could receive worse and worse proposals, which has already been experienced at the company for many of its unions.

Bad Faith negotiations is what that is, and the IAM will not let a creditor who has to share the pain equally per bankruptcy laws will not dictate a CBA to its membership.

And funny thing is the pain has not been shared equally with all creditors, vendors or unions, look for Brucie to be knocking ALPA's door once again.

 

[USA320Pilot]

The GE agreement provides the company with additional short-term bankruptcy liquidity while reducing long-term debt, it lowers aircraft ownership costs, and reduces maintenance expense, while simultaneously providing new lease agreements for new MDA and/or PSA jets. The pact will also help preserve "the vast majority" of the company's mainline fleet by deferring potentially crippling aircraft and debt payments, that if my memory serves me correctly was $260 million on 220 aircraft, which was due to be paid in January and February.

According to Reuters, “The agreement is heavily conditioned. It seeks court approval by Dec. 17 and new yearly savings and other restructuring milestones by Jan. 14. Mid-January is also when an agreement with lenders and the government (ATSB) permitting US Airways to access its only source of ready cash is due to expire -- which makes activating the GE agreement potentially crucial to the airline's survival. The proposal puts new and substantial pressure on three big airline unions to agree now to concessions worth more than $500 million annually or risk losing their contracts.â€￾

See Story

To clarify a point above, the EMB-170 will begin Shuttle flying in February and the flying will be loaded in Sabre on December 4. Moreover, do not be surprised if additional agreements are announced in the future to replace additional Boeing aircraft.

Finally, without new labor agreements early next week, if history repeats itself, the AFA, IAM, and CWA could receive company proposals seeking deeper cuts that could then serve as the basis for S.1113© "imposition" motion.

Best regards,

USA320Pilot

 

[Harry Callahan]

Another screw the employee looks like to me.

 

[legacy-to-LCC]

What is an A322?

 

[USA320Pilot]

Legacy-to-LCC:

An A322 is an A321 on “steroidsâ€￾ with bigger wings, engines, dual track landing gear, greater passenger/payload capacity, and longer range. It is more like a B757 than an A321.

Regards,

USA320Pilot

 

[700UW]

Funny, there is no mention of a A322 on the Airbus web page.

And nothing happens when you do a search for an A322 on their web site.

A320Family

A321

 

[Harry Callahan]

Could he be caught again ?