The List Grows Longer & Longer

[Phantom Fixer]

What else is it they say...."Great minds think alike" or something like that.

Jim

[post="193181"][/post]​

 

[USA320Pilot]

Phantom Fixer:

Did you misss this?

FLYi's Financial Future

ARLINGTON (theHub.com) - With less-than-anticipated passenger volume and higher-than-expected fuel costs for its low-fare carrier Independence Air, FLYi Inc. may find itself in a precarious financial position, analysts caution.

Yesterday, FLYi reported Independence Air’s preliminary September 2004 traffic results. The carrier posted a 9.8 percent increase in traffic in September 2004 on a 12.5 percent increase in capacity over August 2004. This resulted in a passenger load factor of 44.4 percent, down 1.1 percentage point from August.

In a research report, UBS Investment Bank analyst Robert Ashcroft indicated “FLYi’s business plan isn’t working.â€￾ Aside from filling less than half its planes, Independence is paying close to double its anticipated price for fuel.

It also continues to hold 30 airplanes for Delta Connection. If Delta Air Lines reorganizes under bankruptcy protection, that could mean $25 million in unplanned aircraft rent payments for FLYi, Aviation Daily reported. Ashcroft said, “We estimate the present value loss to FLYi associated with these aircraft at $100 million to $150 million (about FLYi’s market capitalization) if Delta enters Chapter 11,â€￾ the Daily reported.

FLYi plans to release its third quarter financial report next week.

Regards,

USA320Pilot

 

[Phantom Fixer]

BoeingBoy, I'm considering bidding F/O on the A330.

Thats a great idea USA320Pilot....at least someone with some grits will be in command of that bird..and if need be? He can always direct you to shut your pie-hole for a change.



Pantom Fixer, Independence Air attempted to operate with an astronomical cost structure whereas US Airways' cost structure could drop below Southwest's, either with consensual or imposed contracts.


BTW...It's Phantom Fixer...not Pantom. I'm well aware of what the Li'l I is doing..or rather attempting to do..and regardless of what you hope our costs will be dropping too?...you can bet your house cat and cowboy hat that this leadership group at U would find a way to fumble it even if the labor and fuel were next to free.

Frankly you never cease to amaze. You always try to prop yourself up on the backs of others and align yourself with one failed regime after another , exactly at what point are you just going to become management? Hell , at least by being it , the stupidity would at least be better understood.

[post="193183"][/post]​

 

[USA320Pilot]

Phantom Fixer:

I'm sorry for my tyoing mistake. Unfortunately, my keyboard skills are not the best. By the way, did you miss this article too?

See Story

Regards,

USA320Pilot

 

[BoeingBoy]

Thanks for your concern, but I am not angry and frustrated. How about you, considering your age?

[post="193183"][/post]​

While it's nice that you're concerned about someone of my advanced years, have no fear. I've said several times on this forum that I will be little affected if this place closes the doors tomorrow or if I retire in 25 months at 60. Unlike some, apparently, I have been preparing for the possibility of this day arriving for the last two decades - when the ex-Braniff folks started arriving.

Jim

 

[Phantom Fixer]

Phantom Fixer:

I'm sorry for my tyoing mistake. Unfortunately, my keyboard skills are not the best. By the way, did you miss this article too?

See Story

Regards,

USA320Pilot

[post="193192"][/post]​

USA320Plot < Intentional SP Error.

No Sir , I did not miss that story too...but I can assure you this , I wasn't burning up the internet to read the phugging obvious either.

Without fail....Nobody except Southwest and AirTran are immune to the current conditions...and as some experts say , it's too early in the game to include JetBlue in that catagory...as they need to see more of the experiment un-fold first.

I can assure this too. U getting its way will only compound the issues in the short term. We lower our bottom line? The will certainly lower theirs...and then the last standing can name their price. Don't think for a monet that that comment includes you or I for a moment.

 

[FA Mikey]

Independence Air attempted to operate with an astronomical cost structure whereas US Airways' cost structure could drop below Southwest's, either with consensual or imposed contracts.


Regards,

USA320Pilot

[post="193183"][/post]​

Dream on SWA is a single fleet type airline. With a well organized, brilliant management team. They are 80% fuel hedged with a motivated work force. U is not got a chance of making cost equal to, or lower than SWA.

 

[BoeingBoy]

USA320Pilot,

Interesting that you should bring up I-Air - an airline with a high cost structure but low labor costs (what did you call their cost structure - astronomical?)

Does that happen to remind you of what another airline is attempting to achieve, maybe a little closer to home?

If you think U will achieve lower costs than WN, you're going to be disappointed. If U could get the employees to work for free (and maybe they would get to that, but time is running out faster than money) our costs would be as high or higher than WN. And then there's B6, in a cost class by itself and growing fast - in many of those same markets our "new and improved" plan is based on.

On the article about legacy carrier loses, excluding DL they aren't bad considering the environment (especially fuel). AA was cash positive for the quarter (will that be true of US?), NW lost relatively little (and has a new pilot agreement out for ratification that would erase that - and it's only for 2 years, nothing like management working with the employees to take another look in a couple of years to see what's needed).

I'm amazed you didn't include CAL - a $16 million loss. Given the environment, not too bad either.

It'll be interesting to see how U did in the 3rd quarter, especially in light of being in BK at the end and not paying a lot of bills.

Jim

 

[USA320Pilot]

BoeingBoy:

BoeingBoy said: “Does that happen to remind you of what another airline is attempting to achieve, maybe a little closer to home?â€￾

USA320Pilot comments: No, the CASM difference between the CRJ-200 and Group 2 and EMB-170 aircraft are the difference. I’m surprised you do not understand this, but then again maybe I am not that surprised.

By the way, I did not bring up I-Air and responded to a comment. Did you miss that too?

Respectfully,

USA320Pilot

 

[USA320Pilot]

FA Mikey:

The business plan intended to have a cost structure adjusted for fuel less than Southwest. In regard to hedging, it is expensive to buy Futures contracts on the NYMEX and hedge. Furthermore, you have to have a crystal ball to be successful. US Airways is hedged this year at about 35%, but Southwest’s CFO did a great job locking in low fuel prices.

This information has been briefed to every union.

Regards,

USA320Pilot

 

[FA Mikey]

FA Mikey:

The business plan intended to have a cost structure adjusted for fuel less than Southwest. In regard to hedging, it is expensive to buy Futures contracts on the NYMEX and hedge. Furthermore, you have to have a crystal ball to be successful. US Airways is hedged this year at about 35%, but Southwest’s CFO did a great job locking in low fuel prices.

This information has been briefed to every union.

Regards,

USA320Pilot

[post="193210"][/post]​

LOL you should do stand up. Reality is not your thing.

 

[BoeingBoy]

BoeingBoy:

USA320Pilot comments: No, the CASM difference between the CRJ-200 and Group 2 and EMB-170 aircraft are the difference. I’m surprised you do not understand this, but then again maybe I am not that surprised.

[post="193209"][/post]​

What's this, a subtle slight?

Actually I understand the DOC CASM difference between a 50-seat RJ and the 737's and little Buses - perhaps better than you. And the difference between the 737/little Bus and the Emb-170's. But then I was not the one belittling those who said that all the high unit cost RJ's was not the answer to U's problems, was I?

What you miss (and I'm not surprised) is the analogy of high cost structure/low employee pay. Yes, I-Air's high cost structure is the result of the equipment they fly while ours is only partially due to the smaller RJ's operated by and/or for us. But we have a high cost structure despite having the larger equipment (at least the 3/4 of the "branded" fleet that is "mainline".

Trying to succeed thru lowering employee compensation is attempting to "scale up" the I-Air experiment. Apparently, you do not understand that our NON-labor costs are about 75% higher than WN's. Until that is addressed, we will not be competive with WN and certainly not with B6.

Jim

ps - at least you finally took up my "the big savings are in increased utilization" mantra. Guess you just had to wait long enough to make it sound like you discovered it....

 

[ITRADE]

BTW....The local CBS affiliate in CLT has made it public that Independence Air will possibly be filing Chapter 11 as early as January. Empty seats and High Fuel prices are eating an LCC's lunch too.

Looks like a failed plunge into the big leagues even with to poverty wages to ride on doesn't have much promise...Just how different will U be at the same rates?

[post="193178"][/post]​

You have to remember that I-Air is a LOW FARE carrier. Nobody, not even I-Air, claimed it to be a low COST carrier.

 

[ClueByFour]

You have to remember that I-Air is a LOW FARE carrier. Nobody, not even I-Air, claimed it to be a low COST carrier.

[post="193285"][/post]​

They are exactly what U management is trying to become:

Low labor rates.
Low fares.
Sky high non-labor costs.

In other words, not a low cost carrier. Kind of like a PMC "poorly managed carrier."

 

[whlinder]

Kudos to Mikey for pointing out A320's insane claim that US could get its CASM below WN's. A320, you are crazy if you seriously believe that. If that ever happens it will take years, and because WN made mistakes. That is NOT going to happen anytime soon. Get back to reality and look for ways for US to cut its CASM without hurting much damage to their RASM.