The human side of management

[Pi brat]

A few thoughts.

I have no doubt Doug Parker is under a lot of pressure, but he is handsomely paid to do that.

Maybe the reason US Airways can't attract the business traveler is that, when merged with AWA in 2005, Doug and company WENT OUT OF THEIR WAY to crap-down the airline so no business traveler would want to fly on it! US Airways had no problem attracting business travelers before the Tempe brain trust took over and ran them out off our airline. So, cry me a river, Doug. You reap what you sow. Don't expect the front line employees to take the hit YET AGAIN for management's blunders. Industry standard pay. Make the airline industry standard service, and maybe those FF might come back.

I have read this thread with interest since I believe a finance guy should never be a CEO since the focus will be solely on the bottom line, and they look at 'cuts' as profit improvements rather than a required expense to generate a good profit.

I was a loyal US flyer since the late 70s until about 3 years ago when I had enough of the cuts. I was a CP for 9 or 10 years and flew about 250 segments per year with a revenue of about $0.85 per mile flown, so I was a good revenue generator for US. I now fly DL, and they will get about $40,000.00 + in revenue on about 160 segments this year.

Why I don't fly US anymore is because of all of the CUTS in service and benefits. The one the broke the camel's back was the elimination of the 500 mile/segment minimum. I know it was re-instated but it was too late. My last flight on US was Oct 2010, and that was the only flight of 2010. At one point I would have returned to US, that was 2008-2009 time frame, if they only had reversed many of their anti business traveler practices, but they did not. So with the merger of NW/DL my number 2 and 3 airline became my number 1 airline. So their (US) inability to attack the business traveler is their own fault, and if they had admitted their mistake a few years ago I probably would have returned to the airline, but its too late. Today I think DL is leading the pack by attracting the business traveler, with Wifi on on Mainline, soon to be on RJs with FC. All but 50 seat RJs to have FC.

As stupid as it sounds, eliminating the coat closet WAS A BIG DEAL for me. I am sorry for the front line people at US that management's policies don't attract the business traveler.

So I guess you can blame it on the Bean Counter Side of management.

Excellent post! Too bad those in Tempe won't read it, or if they did they would tell you how you are wrong. I have many friends that also used to spend a lot of money on US and now give it to DL.

Thank you for all your support for those years you flew with us.

 

[john john]

I have read this thread with interest since I believe a finance guy should never be a CEO since the focus will be solely on the bottom line, and they look at 'cuts' as profit improvements rather than a required expense to generate a good profit.

I was a loyal US flyer since the late 70s until about 3 years ago when I had enough of the cuts. I was a CP for 9 or 10 years and flew about 250 segments per year with a revenue of about $0.85 per mile flown, so I was a good revenue generator for US. I now fly DL, and they will get about $40,000.00 + in revenue on about 160 segments this year.

Why I don't fly US anymore is because of all of the CUTS in service and benefits. The one the broke the camel's back was the elimination of the 500 mile/segment minimum. I know it was re-instated but it was too late. My last flight on US was Oct 2010, and that was the only flight of 2010. At one point I would have returned to US, that was 2008-2009 time frame, if they only had reversed many of their anti business traveler practices, but they did not. So with the merger of NW/DL my number 2 and 3 airline became my number 1 airline. So their (US) inability to attack the business traveler is their own fault, and if they had admitted their mistake a few years ago I probably would have returned to the airline, but its too late. Today I think DL is leading the pack by attracting the business traveler, with Wifi on on Mainline, soon to be on RJs with FC. All but 50 seat RJs to have FC.

As stupid as it sounds, eliminating the coat closet WAS A BIG DEAL for me. I am sorry for the front line people at US that management's policies don't attract the business traveler.

So I guess you can blame it on the Bean Counter Side of management.

Tempe and gang are you listing this is being echo all around the system

 

[Crzipilot]

I know of 2 close friends.....work from home for IBM, but travel to RDU every week, except for 2. So that's 2 r/t a week minimum.....800.00 x 50 is 40k min. not including extra travel and such. Used to sit next to them every Fri and Sun/Mon. Still run into them, but they are in the Delta waiting area as the BS schedule changes from their station aren't convienient, and oh ya. their station for US has become all express while DL has upgraded to 75......go figure.

 

[HPearlyretiree]

A few thoughts.

I have no doubt Doug Parker is under a lot of pressure, but he is handsomely paid to do that.

Maybe the reason US Airways can't attract the business traveler is that, when merged with AWA in 2005, Doug and company WENT OUT OF THEIR WAY to crap-down the airline so no business traveler would want to fly on it! US Airways had no problem attracting business travelers before the Tempe brain trust took over and ran them out off our airline. .

Yeah, US was in its second bankruptcy and about to be shut down, so obviously, the business travelers weren't making them profitable. The "braintrust" has made US profitable in some pretty tough times.

 

[HPearlyretiree]

All I needed to know about the scary talent running America West was when I started flying for work and I mentioned a trip out west and several of my co-workers asked "Who you flying" I replied, "America West" the response was "Nice knowing you hope you make it back someday" This was the trip were I was in Sky Harbor the day HP almost got grounded by the FAA.

Great, so you relied on inaccurate anecdotal stories from coworkers who didn't work in the industry to form your opinion of America West? Not to sound too gruesome, but how many plane crashes and losses of life did America West have in its history? (zero)

Nothing but hyperbolic rants from you, as usual.

 

[SparrowHawk]

Great, so you relied on inaccurate anecdotal stories from coworkers who didn't work in the industry to form your opinion of America West? Not to sound too gruesome, but how many plane crashes and losses of life did America West have in its history? (zero)

Nothing but hyperbolic rants from you, as usual.

I wouldn't know!

The FAA's near Grounding is a fact that I am aware of.

Also it should be noted that from my first flight PHL-STL on US in 1996 to the date of merger I was NEVER stranded or missed a meeting during that time. Now were there some bizarre reroutes? Oh YEAH

Bother way how many CEO's are convicted drunks at other airlines? (None) The last conviction was what Number 3 or 4? I forget.

 

[HPearlyretiree]

I wouldn't know!

The FAA's near Grounding is a fact that I am aware of.

Also it should be noted that from my first flight PHL-STL on US in 1996 to the date of merger I was NEVER stranded or missed a meeting during that time. Now were there some bizarre reroutes? Oh YEAH

Bother way how many CEO's are convicted drunks at other airlines? (None) The last conviction was what Number 3 or 4? I forget.

And, that is all you have, as usual. Tell me about America West's safety record, come on, you brought it up, be a man and report it to everyone.

No crashes, no deaths. I don't care that you weren't stranded or missed one of your (self) important meetings. You insinuated that AWA wasn't safe, how about you back that up? No one ever died on a flight by AWA. Can't say that about US, can we?

All you have is personal attacks on Doug, pretty lame, but again, you are all about your creepy obsession and your hyperbolic rants. Get a new hobby, your narcissistic personality disorder is getting boring.

 

[ChockJockey]

And, that is all you have, as usual. Tell me about America West's safety record, come on, you brought it up, be a man and report it to everyone.

Now now, no point in feeding the troll. We just have to accept that there are some people who push certain buttons and echo certain sentiments because it's their only way of getting assent and attention.

You have to think that life is pretty tough for someone who's only jollies to be had are dramatrolling an online messageboard, spending more time unhealthily debating nonsense with strangers than tending to a family or pursuing meaningful social relationships all the while justifying it by calling it a crusade for justice or Liberty or somesuch because papa's dying wish was for him to obsess over tipsy airline CEO's on the internet or whatever.

I mean, could you imagine of all the places one focuses one's energy and time to gain clout and exercise influence it's this place, as some anonymous poster? Such people should not be queried if only because they craft their responses to be purposefully odious and irritating; they should rather be pitied, or held as models for what one should ever strive not to be...

 

[SparrowHawk]

And, that is all you have, as usual. Tell me about America West's safety record, come on, you brought it up, be a man and report it to everyone.

No crashes, no deaths. I don't care that you weren't stranded or missed one of your (self) important meetings. You insinuated that AWA wasn't safe, how about you back that up? No one ever died on a flight by AWA. Can't say that about US, can we?

All you have is personal attacks on Doug, pretty lame, but again, you are all about your creepy obsession and your hyperbolic rants. Get a new hobby, your narcissistic personality disorder is getting boring.

For clarification and the record, HP's FAA's MTC issues had to do with poor, incomplete or inaccurate record keeping and absolutely NOTHING to do with anything else. I've never felt unsafe or in bad hands when in the air. Flight crews have been professional and polite as have those on US Airways. I have and will continue to be a strong supporter of the Front Liners.

My issues have ALWAYS been with those who manage US Airways and that goes back to the Wolf years on the US side. I have always felt that US management ran a perfectly good airline into the ground. I haven't changed my position on this ever. My whole "thing" with treating employees as assets as opposed to liabilities has nothing to do with doing the right thing. For me it's simply good business. To me the key difference between WN and other legacy carriers is how they treat their employees. The bottom line with WN is that if they didn't have the culture they do, they could never successfully implement their business model.

There is one US Airways executive that I have tremendous respect for is Andrew Nocella. I firmly believe that he is more responsible for the survival of both carriers. Andrew was the driving force at HP when they simplified fares and were able to effectively compete with WN in PHX. IMO the survival of HP first and then US when he left HP for US is a direct result of Andrew Nocella's revenue management/generation skills. IMO he is the uncredited, unidentified savior of both carriers. I don't know if Andrew has the chops to run the whole blasted works, but what he is tasked with he does extremely well.

To me, DP & SK are not unique! They are part of the Yuppie MBA crowd who were taught a certain way. To me they are merely shining examples of what will IMO keep American Companies from achieving the growth & profits they otherwise could. Just look at the Airlines, The companies highly regarded as good places to work, CO & WN were also the most profitable. The other thing they had was strong individual leaders, Gordon Bethune and Herb Kelleher. The ones who have struggled and floundered were often run by money guys.

 

[Singleflyer]

Yeah, US was in its second bankruptcy and about to be shut down, so obviously, the business travelers weren't making them profitable. The "braintrust" has made US profitable in some pretty tough times.

But it is now the 'braintrust' that is complaining that they can't attract the premium flier, thus not as profitable as they could be.

Yes, US was profitable when the economy was good and they had many leisure travelers. With the downturn, there are not as many leisure travelers and they can't attract the business traveler that they once had, so US's financial performance is not as good as it could be (admitted by Parker)

It was their short term thinking that chased me and many other CPs away. And As I pointed out in my previous post, my RPM was about 6 times their cost, so I was a profitable customers even with the CP benefits.

 

[SparrowHawk]

But it is now the 'braintrust' that is complaining that they can't attract the premium flier, thus not as profitable as they could be.

Yes, US was profitable when the economy was good and they had many leisure travelers. With the downturn, there are not as many leisure travelers and they can't attract the business traveler that they once had, so US's financial performance is not as good as it could be (admitted by Parker)

It was their short term thinking that chased me and many other CPs away. And As I pointed out in my previous post, my RPM was about 6 times their cost, so I was a profitable customers even with the CP benefits.

I'm loathe to be specifically critical of DP & SK and crew as they like a great many others view Long Range Planning in 90 Day increments known as "Quarteritis". They are merely more apparent as we interact with their company on a regular basis. Sure, US had some nice short term numbers. Now, we see some of the results of the short term focus showing up in the form of lower profits.

Personally I think this song sums up the attitude and approach of DP & SK

 

[flybynite]

 

[john john]

It seems that Doug's restraints are the Board, since they're the ones who are all about the stock price and profitability and whatnot.
I'll be honest, listening to him he had a lot of rational points and from his tone you could tell he was definitely proud of the airline and its future, but I did end up leaving the event with the feeling that Doug was a bit disappointed that the labor issue was as bad as it really is.

US Airways makes ‘most hated’ companies list
Tempe-based US Airways (NYSE:LCC) was listed as the sixth most hated company, scoring a satisfaction rating of 61 out of 100.
http://www.bizjournals.com/phoenix/news/2011/07/11/us-airways-makes-most-hated.html
Phoenix Business Journal
Date: Monday, July 11, 2011, 1:47pm MST