The "l" Word Again.

[willyloman]

Bruce Lakefield addressed the MEC at the MEC 1Q meeting on Thursday, March 10th. His opening comments were read almost verbatim from his prepared text. Here are some highlights of the discussion from our notes:

· Oil is at $55/bbl., original Transformation Plan called for $35/bbl.
· If oil prices stay this high, fuel will become the single highest expense above labor for the first time in company history, even with reduced labor costs.
· Industry economics are tough.
· Air Wisconsin investment was a good deal, but we will not see any more meteorites like that fall out of the sky.
· We have little cash and high costs
· Without new equity investment, we will liquidate.
· We have to find money ASAP, there is not a dime of equity out there.
· We need to make the decisions to keep the airline in business, they will be tough decisions, but we will have to do what is necessary.
· If it were necessary to park 30 or 50 planes, he would do what was necessary, but he has no plans to do this today. We have a lot of heavy checks due this year, costing hundreds of millions of dollars.
· This is a different airline at $50 vs. $30, If we can’t fly routes at this price, we will make decisions based on that.
· We are in survival mode, chasing equity.
· The pilots did a great job of going back to work and doing their jobs after concessions, unlike the militant rampers. (Again blamed labor for the Christmas meltdown).
· Without labor concessions already given, we would be out of business.
· There is too much seniority in our workplace. Seniority equals a “sense of entitlementâ€￾
· Too many seats out there, our load factor for February was 68%.
· JetBlue has a good product and will be using EMB190s. We use EMB 170s and people like them.
· (When asked about contract compliance) This is a two-way street. I have a problem with the employee’s sense of entitlement. I’m just trying to “save our asses.â€￾

 

[Harry Callahan]

"Without new equity investment, we will liquidate"
Enough is enough. The employees are tired of the threats. As Nike says "Just do it".

 

[W:EXCH:INVOL]

"Without new equity investment, we will liquidate"

[post="255460"][/post]​

Just to get it out of the way now.... This WILL NOT cause customers to book away in the immediate future.

 

[U 737 PILOT]

.... "· JetBlue has a good product and will be using EMB190s. We use EMB 170s and people like them. " ....................... .... And just wait until Jetblue starts hiring for thier Embraer program. The pilot ranks at MidAtlantic will be decimated as hundreds of already trained and qualified Embraer pilots leave for greener pastures at Jetblue. MisAtlantic is headed for a MAJOR meltdown.

 

[Phantom Fixer]

MAA is headed for a "Melt-Down" ? You bet your flight bag it is.

U Mainline is headed for a certain Melt-Down too !! Strategic Planning at U is a laughingstalk. What has the FLL Mini-Hub done..other than being created , then almost immediately downsized in scope?

U's planning was based on Fuel Costs at $35 a barrel...who else didn't see these costs rising to $50 , $55 or as it's rumored as $60 per by summer?

U's is not going to make it...and the writing is on the wall. The employee's have giving everything to try to make this work....wages , benefits and almost 45% of the workforce is gone since October of 2001 , yet nothing of any real magnitude has changed anywhere else..certainly not the narrow thinking on CCY's part.

The world as we know it has changed...and U's leadership is basing its so-called "strategic thinking and planning based on figures so dated or so far in the rearview as to be no actual plan at all.

Parking 30 to 50 Planes as is being rumored...is a greasing of the skids as to what is actually going to take place in the not too distant future. This act will allow how many more Pilots and F/A's to be shown the door?

What would 30 to 50 fewer planes do in terms of the agreements with the IAM on these projected heavy checks in PIT and CLT...not to mention the crud taking place in Mobile? How many more get the feared or in some cases , welcomed Pink Slip? Can two Heavy Maintenance Bases even remain justified?..as many thought we had one too many in reality anyway.

Face it Boys and Girls..this game is about to start flashing the TILT warning...and nothing any of us can do..including working for free is going to change the end game here.

U cannot compete in many markets at $55 dollars per gallon of oil....but somehow some way another carrier can...and more often than not , others can't either. If U can't make it based on all that's been given or taken..how can UA , DL CO NW or AA? Maybe its time for all the legacy carriers to fold up their tents...then maybe those buying the tickets that can't allow any of the majors to even break even will get exactly what they deserve.

I know from my little of the corner of the world...I cannot off-set my energy needs by much...as Electricity , Natural Gas and Automotive Fuel are pretty much non-negotiable as to what I pay for it , Gas being the one small area where comparison pricing nets a nominal savings...why is it different for Airline A Vs. B other than the ability to hedge for a period of time?

Exactly at what point does WN's ability to hedge based on costs a year ago , start reflecting on todays market prices? When does B6 or FL start losing the strategic advantage of past hedging? Basically...at what point if any does the playing field become leveled ?

 

[Travelpro72]

I actually find this quite funny. I can't even get upset or worried about this crap any longer. As stated above, "Just Do It". Doom and Gloom. Boy I can't wait for that VFLR........I changed my tune quite quickly today when I got my 15th paycheck that was for $1,097.08. That is what a f/a in his/her 8th year in the Int'l division is raking in. Add that to the $700.00 on the 30th paycheck. You can work just about anywhere for that money. That is at $31.52 an hour. Imagine what the people comming off of involuntary will make at $18.and change an hour. You gotta be kidding. I cant handle the doom and gloom from this company and especially that puppet of a ceo we have.

 

[ClueByFour]

· The pilots did a great job of going back to work and doing their jobs after concessions, unlike the militant rampers. (Again blamed labor for the Christmas meltdown).

Too bad the feds don't share his flawed view.

· (When asked about contract compliance) This is a two-way street. I have a problem with the employee’s sense of entitlement. I’m just trying to “save our asses.â€￾

[post="255451"][/post]​

This is why U is going to fail. Complete and utter lack of leadership acumen.

 

[insp89]

These latest comments from Lakefield are no big surprise. It will NEVER be good enough..


There is nothing stopping management from further dismantleing the mainline. Any old excuse will do..

As stated above, other airlines out there seem to be able to manage this fuel crisis without using the word liquidation....

It's pretty evident to me that management does not intend to keep USAIRWAYS a stand alone airline.

Their sole mission is cut mainline to the bare minimum..

And Then ?????

 

[Winglet]

Entitlement?? What?? You mean like entitlement to be paid for work performed??

Lakefield is a bigger idiot that I figured. He's raped the workers, now he wants them to kiss his *ss. This guy ought to win the Goodwin award for CEO stupidity and arrogance.

 

[PSA1979]

It's pretty evident to me that management does not intend to keep USAIRWAYS a stand alone airline.

Their sole mission is cut mainline to the bare minimum..

And Then ?????

[post="255505"][/post]​

Sell, Sell, Sell!!!!!!!!!!

 

[usairways_vote_NO]

I thought this thread was about Pineybob

Sorry my mistake

 

[USA320Pilot]

The comments that started this thread were made by the PHL Reps, who along with the PIT Reps, who were very upset at the meeting because they no longer have the "roll call" majority. John Crocker and Dan Von Bargen left out many other important points. According to the BOS F/O Rep Lakefield also said:

1. US Airways planned on $35 a barrel for oil in 2005, will incur $480 million more than planned in fuel costs in 2005 if oil remains at $55 a barrel. US Airways "would be profitable" except for the higher than planned cost of fuel. Fuel is now, for the first time, "our number one expense" item.

2. We must find equity investment, "or we liquidate," and we must find this equity "as soon as possible. There is "not a dime of equity money out there for the airline industry."

3. "We have done our part on the labor side," and "need to do it on the cost side."

4. "Without labor concessions, we would be out of business. I think we have a competitive cost structure on the labor side."

5. He's "looking ahead, not looking back in the rear view mirror."

6. The question is "how do we survive short term versus long term."

7. He will "do what I have to do" in the short term, making the "decisions that I have to make," in order to keep this company alive.

8. He does not, however, want to be "penny-wise, and dollar foolish."

9. He believes in the "Partnership" between the Company and its labor groups.

10. There are "people who want us to be out of business."

The statements in the PHL Reps council letter seem contradictory to many of Lakefield's comments that I heard and are posted here, but that is not unusual for the PHL REPs who have been reprimanded by the MEC chairman four times for misrepresentation. Lakefield's comments in my post are exact quotes and he did not elaborate.

Personally, my understanding is that like both Delta and American's comments normal sources of investment capital are not available, thus explaining the turning to the "Express" infusion of DIP financing/equity Air Wisconsin and current negotiations with Wexford Capital, Mesa Air Group, and private equity investors such as MatlinPatterson.

Regards,

USA320Pilot

P.S. The roll call is now controlled by the CLT, DCA, LGA, and BOS Reps.

 

[usairways_vote_NO]

The statements in the PHL Reps council letter seem contradictory to many of Lakefield's comments that I heard and are posted here, but that is not unusual for the PHL REPs who have been reprimanded by the MEC chairman four times for misrepresentation. Lakefield's comments in my post are exact quotes and he did not elaborate.

[post="255512"][/post]​

And you were banished or something from the alpa site? So we are supposed to believe you?

First you say "According to the BOS F/O Rep Lakefield also said:
Then you say "Lakefield's comments in my post are exact quotes and he did not elaborate."

Well which is it? Talk about contradictory!! No lets not lets talk about lying!!!

 

[BoeingBoy]

I'll leave it to the readers to decide how many "important" points got left out, but seems like this

"Finally, in regard to BoeingBoy's comments from MEC member's in attendance, the comments are accurate from what I heard in-person and remember. "

[post="255432"][/post]​

somewhat contridicts this:

The comments that started this thread were made by the PHL Reps, who along with the PIT Reps, who were very upset at the meeting because they no longer have the "roll call" majority. John Crocker and Dan Von Bargen left out many other important points.

[post="255512"][/post]​

I'll admit I left out some things, like the slap at the rampers and people wanting to destroy us, but not any significant points.....

Jim

 

[usairways_vote_NO]

[post="255517"][/post]​

320 is getting so deep he is lost in his lies and can't find a way out.

Hey 320 I see why you refuse to debate you get deeper and deeper you can't help yourself!!!

Watch out for that treeeee