Transformation Plan Update

[USA320Pilot]

Just one more point...

When PIT reduces its size this fall, crewmembers will be displaced to other cities and the PIT ALPA hardline union leaders will lose many roll call votes, which will tip the roll call back towards the so called moderates.

Respectfully,

USA320Pilot

 

[PITbull]

Just one more point...

When PIT reduces its size this fall, crewmembers will be displaced to other cities and the PIT ALPA hardline union leaders will lose many roll call votes, which will tip the roll call back towards the so called moderates.

Respectfully,

USA320Pilot

Tip the scales to the so-called weak cowards who live in fear of those they believe control their destiny.

Just in case you are so confused, PIT will not downsize until at the earliest, OCT.

You should be out of a job by then.

 

[ClueByFour]

I've done field training in PIT and visited a host of companies in the area. Frankly not all that impressed. The inferiorty complex permeates the entire society.

I have traveled the entire USA, to markets large and small and Ive seen many reactions to economic upheavel. Some react in a very positive way others react by lashing out and blaming everyone EXCEPT themselves. PIT is a mixed bag. Some live in the past, others with an eye toward the future yet firmly rooted in the past. Yet always in the shadow of PHL, (In their minds) It's an interesting place. I'll be teaching there next Tuesday & Wednesday.

You need better clients if you are not impressed with the businesses in PIT. You can bean the US and/or divisional HQs of 3 fortune 5's within a 10 minute drive of the airport and another what, 7 world headquarters in/around the city itself.

What PIT needs is to ditch it's old political structure. People in Western PA lost steel and did just fine. Some of the old needs to be trimmed because it has not accepted the post-Steel reality, but most folks have moved on to other things and jobs. Alas, it's really the city itself that has not come to grips with reality, although it certainly appears that it will in short order (if the city folks had their way, the ACAA would have bent over and taken another one for US). In that sense, things are coming around.

This inferiority complex stuff is amusing, but I never noticed it in the 9 years I spent living in Western PA. If anything, PHL is in it's own little world at the other end of the state, and nobody really cares that much. If you recall, you have three regions of political sphere in PA--PIT, PHL, and the "T." Nobody from one seems to care about the others.

 

[RWerksman]

having lived in PA 45 of 49 years I have a few observations as well.

PHL suffers from a huge inferiority complex regarding New York.

PIT suffers from the same complex when it comes to PHL. If you lived in PA and observed state politics then the above isn't news. It affects everything that PIT-PHL does and the reaction is always defensive and myopic.

I've done field training in PIT and visited a host of companies in the area. Frankly not all that impressed. The inferiorty complex permeates the entire society.

I have traveled the entire USA, to markets large and small and Ive seen many reactions to economic upheavel. Some react in a very positive way others react by lashing out and blaming everyone EXCEPT themselves. PIT is a mixed bag. Some live in the past, others with an eye toward the future yet firmly rooted in the past. Yet always in the shadow of PHL, (In their minds) It's an interesting place. I'll be teaching there next Tuesday & Wednesday.

PIT suffers from the same complex when it comes to PHL. If you lived in PA and observed state politics then the above isn't news. It affects everything that PIT-PHL does and the reaction is always defensive and myopic.

...

I've done field training in PIT and visited a host of companies in the area. Frankly not all that impressed. The inferiorty complex permeates the entire society.


Wrong. Dont confuse a pro-PIT view with an "inferiority complex." It is healthy competition -- very much like a Dallas / Houston situation. What does this have to do with anything anyway? Please stop trying to deflect from the topic at hand.




I have traveled the entire USA, to markets large and small and Ive seen many reactions to economic upheavel. Some react in a very positive way others react by lashing out and blaming everyone EXCEPT themselves. PIT is a mixed bag.

Traveling for business does not equate with an ability to evaluate reactions to economic upheavel.

I've traveled all over the US -- in fact, I am writing this from Odgen, UT -- and I cant see how someone can evaluate the region based on a business trip. Maybe I'm stupid....

And what does this have to do with the topic at hand?

 

[TheLarkAscending]

This inferiority complex stuff is amusing, but I never noticed it in the 9 years I spent living in Western PA. If anything, PHL is in it's own little world at the other end of the state, and nobody really cares that much. If you recall, you have three regions of political sphere in PA--PIT, PHL, and the "T." Nobody from one seems to care about the others.

Absolutely agree with you, Clue on the aforementioned quote and further above regarding the subsequent actions that will happen once PIT becomes a focus city. I've lived in the suburbs of PHL and worked there, and I've lived in the northern suburbs of PIT and worked in the city, I've lived in NYC and worked there and live and work in the NY metro area ... to borrow someone else's favorite phrase: Bob, you are wrong!

There is not one ounce of envy between PHL and/or PIT. They both just happen to be in the state of PA.

 

[RWerksman]

USA320Pilot responds: PIT resources will be redeployed to Boston, New York, Washington, Philadelphia, Europe, the Caribbean, and westward. The new flying will generate more profits and support key business accounts in the Northeast Corridor.

Where "westward" I cant recall anything about moving west. (someone please prove me wrong...)

Generate more profits? Support key business account? Show me projections or proof of this. Its a calculated gamble. Not a sure thing.



USA320Pilot responds: Philadelphia is going to see an increase in capacity and jobs, therefore, the city will likely favorably react to the announcement. The Commonwealth new this announcement was coming, which I have said on this board for months.

This increase is going to be temporary, as was the increase at BWI.

And for the record, if I were a PHL resident, I would be more in favor of Southwest coming to town and giving me lower prices. Also, I think I would a little bitter -- why has U been overcharging me? why hasn't U put more resources in my town before they were "forced" to?

I would almost equte Southwest coming to town to a bully being put in his place and suddenly having to be nice.



USA320Pilot comments: PIT's O&D traffic is quite low, although it's growing and the airport has high unit costs. Dependent upon how the long-term debt is restructured, the airport unit costs will grow when US Airways exits this fall, therefore, the airport will be less attractive to LCC's.

As I have stated to great lengths before, there is a reason why O&D traffic is low at PIT.

AND - your logic is wrong in regards to per unit costs. The same can be said with U flying shorter routes in the northeast. With shorter routes, the per mile costs will be higher. You cant have it both ways.

 

[ClueByFour]

USA320Pilot responds: PIT resources will be redeployed to Boston, New York, Washington, Philadelphia, Europe, the Caribbean, and westward. The new flying will generate more profits and support key business accounts in the Northeast Corridor.

Let's consider these one at a time:

Boston--US pulled back once already, the gap at BOS has been filled, you have a brand new (and funded and popular) LCC at BOS itself, and LUV has the other airports bracketed.

Philly--dropping yields, the LUV effect, and you can't throw another 200 flights at it and expect to maintain any type of operational sanity.

Europe--Pulling down PIT gives you 2 widebodies, and losing the Bayer account (which, combined with one or two other German business accounts and the freight has kept a 330 on PIT-FRA yearround) will not be easy to regain out of PHL, nevermind competition that already exists.

Carribbean--AA has the cash and the existing routes to smash US if it threatens the AA share in the Carribbean.

Westward--pipe dream, unless you mean additional frequencies from the hubs or focus cities.

Key business accounts--US pissed many of them off in Chapter 11, and many more by pulling out of places like BOS and LGA in the last few years. Business travel buyers are smarter than ever, and won't make the same mistake twice.

USA320Pilot responds: Philadelphia is going to see an increase in capacity and jobs, therefore, the city will likely favorably react to the announcement. The Commonwealth new this announcement was coming, which I have said on this board for months.

You mean, the city of brotherly LUV? The city that had a few hundred people at the "hometown airline's" airport chanting for Southwest's arrival? The Commonwealth won't throw good money after bad, certainly not twice.

USA320Pilot comments: PIT's O&D traffic is quite low, although it's growing and the airport has high unit costs. Dependent upon how the long-term debt is restructured, the airport unit costs will grow when US Airways exits this fall, therefore, the airport will be less attractive to LCC's.

With $15 million a year in reduction, you have PHL's cost and an even more underserved market (absent a US hub). With $30 million in reduction, it's even lower. Oh, and the VFF base is suddenly willing to try new things. LCCs are also typically interested in point to point flying, where you simply roll the cost of the airport into the fare base, whereas US had to eat the cost for connections. Besides which, the LCC's smell blood--I give you PHL. PIT, absent the monopoly hub, is relatively easy pickings. Oh, and it's operationally unmatched.

 

[USFlyer]

So, Clue, with all due respect, you criticize every plan and everyone talking about the various plans. What, pray tell, are your profitable ideas?

 

[RWerksman]

by visiting many companies in the course of business, plus you see it in the way state politics.

When someone from PHL runs for Govenor they almost ALWAYS pick someone from PIT area to be Lt. Gov. WHY because usually PIT area residents will not vote for someone from PHL in large numbers.

You can look it up.

They pick someone from PIT because they want to appeal to people in PIT -- not because PIT residents wont vote for a PHL candidate.

Lt. Gov is a lame position anyway. I really couldnt even tell you who the Lt. Gov is in PA right now -- the position has zero impact on anything. (unless the gov leaves to work for the president)



PLUS, what about presidential politics? They choose running mates based on location. Does that mean the SC has an inferiority complex concerning VT?

 

[PITbull]

Heck look on this board and the naysayers work out of PIT. Granted this is anecdotal, and i call them as i see them.

Bob,

What the hell kinda comment is that? You obviously have no clue where the outspoken posters are from. I can tell you that PITguy and PITbull and Cav, Kt are not ALL the posters on this board. You would be surprised where the majority are from, quite stunned, in fact, and some are our very own pax.

Give us a break and get for real... <_<

 

[TheLarkAscending]

PLUS, what about presidential politics? They choose running mates based on location. Does that mean the SC has an inferiority complex concerning VT?

Yep, that must be it -- it is all about geographic inferiority complex indices -- and didn't I hear that Wall Street is going to begin trading according to that important fluctuation on the next full moon? :wacko:

 

[ClueByFour]

So, Clue, with all due respect, you criticize every plan and everyone talking about the various plans. What, pray tell, are your profitable ideas?

What I would have done:

1. Kept the FC cabin in the "big" SJs. Used those to right size stuff like most of the shorthaul stuff ex-CLT and PIT. Indeed, what DL has at CVG, if done with equipment with a difference, would have been a real "competitive response."

2. Redeployed the bigger metal to places like PDX, AUS, RNO, and any number of other long thin routes that could actually hold them. Lengthy hops make for lower costs, but you have to run these on real equipment--folks won't fly 2000 miles on an RJ.

3. I never would have pulled down LGA and BOS to retreat to the hubs in the first place.

4. In addition to #3, I'd have built out BOS even further as a "hublet" and started transatlantic service ex-BOS on 762s or even gone the 757 route (which I personally disdain, but CO seems to do well with it and AA seems to getting into the game).

5. I drive as much connecting traffic as I can via CLT and PIT, and leave PHL to p-t-p and transatlantic as much as possible. it's a crappy facility to connect thru.

6. I'd have been harsher in Chapter 11, but honest about it.

7. I would have done #6 to allow a fare rationalization, instead of yet another bungled attempt to merge with UA or be bought.

8. Get a marketing department that does not take 3 years off at a shot.

9. I'd have fixed the IT systems first thing in the door. There is no excuse for not being able to efficiently take people's money when they want to give it to you.

That's just off the top of my head. I'm sure there is more, and I've been saying much of this for years here and on FT.

 

[USA320Pilot]

I understand the Transformation Plan will have a mainline fleet of 320 aircraft.

In addition Bloomberg News is reporting Pennsylvania Governor Ed Rendell said officials of the airline told him yesterday that the carrier was going to have to scale back flights and cut employees in Pittsburgh and ask remaining workers for concessions. "It's possible the whole airline goes under, but it's also possible they just pull out of Pittsburgh," he said in an interview.

See Story

Regards,

USA320Pilot

 

[RWerksman]

you forgot:

10. Rationalize the fare structure. Stop scaring people with the random $1800 ticket -- target the mid level prices.

11. Maximize *. Being a reseller of other peoples things is much easier.

12. Work something out in regards to reciprecal upgrades with UA to lure VFFs.

13. How about some random acts of kindsness toward employees? Attempt to cultivate a corporate culture of friendlyness rather than continually targeting your key asset as a liability. Its the people stupid!

14. Maybe institute an Economy Plus section like UA. Charge more for these seats, and ramdomly upgrade people if they are not full. (research is needed for this one to see if it is worth it)



thats right off of the top of my head, and sorry I cant spell.

 

[ClueByFour]

I understand the Transformation Plan will have a mainline fleet of 320 aircraft.

Who is going to finance the additional 40 aircraft, given that GECAS is already nervous about the SJ financing?