Transformation Plan Update

[USFlyer]

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.

I should have been more specific. This is everything you would have done. But, given where US is now and the fact these things have not happened, what do you recommend going forward?

 

[PITbull]

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

I think USA320 has a stash of cash to help finance U, after all, he cites the planes will be A320...just so happens to be the planes he is qualifed on as Captain.... ah, ...LOL...

 

[RWerksman]

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

How about little Dave? I hear that he has come into the means to do so lately...

 

[USA320Pilot]

Clue:

USA320Pilot said: "I understand the Transformation Plan will have a mainline fleet of 320 aircraft."

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

USA320Pilot comments: Today's S&P downgrade increases the importance that LOA 91 be ratified. US Airways then can sell PSA/18 CRJs and transfer the RJs/ delivery positions that will total 25 50-seat CRJ-200s and 60 70-seat CRJ-700s to the acquiring carrier, probably Mesa.

This will permit US Airways to pay down the loan guarantee, increase liquidity, lower its short and long-term debt, and not have RJ acquisition capital diversion.

Furthermore, Allegheny/Piedmont could be sold to further boost liquidity and pay down more debt.

US Airways intends to then code share the ex-wholly owned express service to keep the revenue within US Airways Group.

Today S&P reported the ratings anticipate that US Airways will succeed in securing material labor cost concessions, and that it will retain access to committed financing for most or all of its planned deliveries of regional jets.

Thus, once there are new union accords and the CRJ delivery positions taken off of US Airways' books, GECAS and other financiers will be more inclined to provide Airbus and EMB-190/195 financing when the company has a competitive cost structure.

Respectfully,

USA320Pilot

 

[ClueByFour]

I should have been more specific. This is everything you would have done. But, given where US is now and the fact these things have not happened, what do you recommend going forward?

Today? If I'm Bronner, I liquidate now and save what I can. It's brutal, and such a prospect would pain me personally as the folks on the frontline at US have been very, very good to me. However, I'm convinced that the window of opprotunity to make sweeping changes closed about 1 year ago.

US, had it played the Chapter 11 game correctly, might be salvaged as a going concern. I've feared for some time (notably since it was clear that Siegel was not actually doing anything to change anything except for labor costs) that the relative inaction during and immediately after Chapter 11 would result in the death of US.

Today, there is just not enough time (or cash) left to do what would have to happen to save the airline, even with massive concessions from labor.

Now, I don't want to see that happen. I still maintain US2 status, and might even keep it next year, although I think I'll probably shoot for UA status with my flights on US for the balance of the year (BA gets the lion's share of my euro and transatlantic biz, and AA gets the balance of the domestic stuff these days). Had US not mismanaged itself so extensively during and after BK, they would still get the lion's share of my transatlantic and domestic business in one form or another....

 

[PITbull]

Today S&P reported the ratings anticipate that US Airways will succeed in securing material labor cost concessions, and that it will retain access to committed financing for most or all of its planned deliveries of regional jets.

Thus, once there are new union accords and the CRJ delivery positions taken off of US Airways' books, GECAS and other financiers will be more inclined to provide Airbus and EMB-190/195 financing when the company has a competitive cost structure.

Respectfully,

USA320Pilot

Yup! Everybody is in on the action to hammer labor.

 

[GeezLouis]

I wonder what the company will do if the IAM wins the arbitration thing? what will usa320 say then?

All I know is that USA320 and USflyboi will be pissed!!!

P.S. - Sources close to ALPA negotiations tell me that Lakefield now wants to farm out all the Airbus flying to a sister company to STE in Alabama. The company is supposedly made up of mostly Mexicans who got most of their time flying Crop Dusters over Jalepeno patches south of the boarder!

GeezLouis comments: If Alpa doesn't go along with this proposal to get pilot labor costs down, Bronner will probably file a S.11031-B2986, paragraph 10 and nullify their labor contracts in a prepacked bkruptcy filing. Have a great day Munn!

Respectfully,

Geez

 

[AKA_trvlr64]

This is the best bickering thread since US was in BK.


Face it, US will only be around for 2 more years, tops. There is no savior for this airline. No amount of PHL build up or GO FARES is going to keep WN and the other airlines in PHL from seeing the blood continue to spill from US.

 

[RWerksman]

Today? If I'm Bronner, I liquidate now and save what I can. It's brutal, and such a prospect would pain me personally as the folks on the frontline at US have been very, very good to me. However, I'm convinced that the window of opprotunity to make sweeping changes closed about 1 year ago.

US, had it played the Chapter 11 game correctly, might be salvaged as a going concern. I've feared for some time (notably since it was clear that Siegel was not actually doing anything to change anything except for labor costs) that the relative inaction during and immediately after Chapter 11 would result in the death of US.

Today, there is just not enough time (or cash) left to do what would have to happen to save the airline, even with massive concessions from labor.

That is the exact same thing I was thinking. You sir, are a scholar.


On a related note...

Lets also look at this from a different angle. If I were Southwest, the next thing I would do is bank on the downfall of U. Come into Pittsburgh and Charlotte -- make the pressure on U absolutely unbearable.

Once U's back is broken, you have a great foot in the door at three now underserved markets.

 

[funguy2]

Well said Clue and RWerksman. I agree with both.

 

[firstamendment]

I think USA320 has a stash of cash to help finance U, after all, he cites the planes will be A320...just so happens to be the planes he is qualifed on as Captain.... ah, ...LOL...

The flight attendants are going to buy the new a/c with all the liguor and headset money the company seems to think we have taken. We will put "COMPLIMENTS OF YOUR FLIGHT ATTENDANTS" on the sides of the aircraft purchased.

 

[GadgetFreak]

From where I sit Im looking at this scenario? PIT not a hub which means I have to either do my flights out of LGA non-stop or mostly PHL connections. Since I dont know about any new non-stops (even though there is some vague wording about it) that means Im looking at more PHL connections, some CLT but that is even more out of my way most of the time. Between that, the RJs and the rest, thats it for me. Just got a US shuttle for next month yesterday, Im out of here, cancelling it for the train. To much likely bad stuff re PHL and not enough certainty about anything else. Best to all, but I dont see this ending well. I cant imagine Bronner doesnt have a calculator ticking down the time to liquidation. I dont think they will mess around this time. They will sell it off in pieces while they can. Especially if they see the credit completely drying up that they need to fund the changes. And all of the contract clauses, arbitration and so forth wont be worth the paper theyre written on when he sees that number in front of him. The rules change then.

 

[DR.EVIL]

This usa320 guy needs to get a life, how many hours a day do you spend on this board.The fact is that we are all just tired of the entire airline BS that 90% of would perfer to wind this circus up and go home. Most of us dont care about the future of this company, we are talented and can do more than drive a bus.

 

[USA320Pilot]

RWerksman:

Have you seen the Transformation Plan Power Point presentation? I have and your comments are not in-line with management's plan.

In fact, yesterday the Associated Press reported a spokesman for the pilots' union said the airline's plan is a solid one.

"We like what we see," said Captain Jack Stephan, a spokesman for the US Airways unit of the Air Line Pilots Association, which had been very critical of the previous management team led by former President David Siegel, who resigned last month. "This may be the first time that US Airways is going to take part in something truly groundbreaking. It's going to be a change to the entire way we operate."

Stephan said the new plan dramatically increases the chances that the union will be willing to accept another round of wage concessions that the airline says it needs to avoid a second trip into bankruptcy.

RWerksman, either the company or labor agree to implement this plan in short order or there are rumblings David Bronner will implement the plan "with or without employees" in a pre-packaged bankruptcy.

For those naysayers, it's better to seek a job while you have a job so you have pay, benefits, medical, and flying privileges than nothing except unemployment.

In addition, if a person gets laid off it's still better to have the airline survive with employee support because you get severance pay, COBRA medical insurance, J4J opportunities (some employees) travel privileges, and recall rights in addition to unemployment.

Respectfully,

USA320Pilot

 

[USA320Pilot]

DR.EVIL:

DR.EVILsaid: “This usa320 guy needs to get a life, how many hours a day do you spend on this board.The fact is that we are all just tired of the entire airline BS that 90% of would perfer to wind this circus up and go home. Most of us dont care about the future of this company, we are talented and can do more than drive a bus.â€￾

USA320Pilot said: Great! Then why don’t you quit and let those who recognize that fundamental industry changes have occurred work with the company to help US Airways restructure? If you have the talent then you should leave the company instead of being miserable. Will you?

Respectfully,

USA320Pilot