update on further concessions

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  • #16
Quitting isn't the answer. But if negative/positive or this how would one call it...ying/yang? is in your vocabulary then let me put it this way.

Quitting is the negative, whereas staying and trying to make things better is the positive.

One way to make things right is to hold David accountable and not proclaim him God. It is not profane to say he has already made poor decisions and the sooner we all accept that then we can move forward. And of course the unions must be made accountable also.

If this is the Titanic then I'm going down with the ship but I'm going to do my darnest to make the captain right this ship if I can. Agree?

In the meantime we all have a responsibility to continue doing the best job we can do.
 
Chip,

I do agree with what you are saying. I would like to see low, mid and high level management take some appropriate hits. I found the bonus program to be in bad taste ( not to mention the low and mid level management I know took minimal pay concessions) and it is hard to do my job when there is minimal help around, I have tons of management running around telling me what to do and when to do it but we don't have enough people to accomplish it in a timely manner. I have to wonder if more cuts are required are they are going to hit the areas in which we are fat or is my job just going to get harder and take longer.
 
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Chip,

I think US AIRWAYS needs to go elsewhere for cuts if we are finally talking about paycuts/benefit cuts. I believe the ground employees are bottomed out and perhaps the pilots.

Regarding the ATSB loan. United is just asking its unions for 5.5 years and has cut unprofitable routes. US AIRWAYS continues to expand INTL routes, particualarly cheap Carribean flights where the price is right for every traveler.
I don't want them to cut routes but if it means coming back to me for more pay then US AIRWAYS needs to look at 'axing' some of those carrabian flights.

Chip however you look at it there is contention. A very volitile situation indeed.
 
Pit Guy & Sabre (Joesy):

Nobody likes this situation and the company is seeking ways to further reduce cuts without additional employee wage and benefit reductions, but there will be more layoffs.

On Tuesday management and the Creditors Committee held the required 341 bankruptcy meeting and company lead attorney John Butler, from Skadden & Arps, told the creditors that US has already achieved its previous cost reduction target of $1.3 billion per year.

That's enormous and great news, but the airline needs about another $200 to $300 million in annual cuts with the reduced revenue projections to qualify for the loan guarantee.

Obviously it is very important and incumbent upon management to find ways to slash another $200 to $300 million in annual expenses, but how can they do that?

It appears the company and the Seabury Group have made further progress to reduce aircraft lease expenses. Management's intention is to have most of the additional needed savings obtained from its aircraft lessors and we should hear more on this issue at the November 7 Omnibus Hearing.

However, Pit Guy, it appears you are going to get your wish for further pilot cuts because today the airline posted the January pilot bid.

According to ALPA, the bids includes 221 pilot furloughs in addition to over 530 pilot furloughs announced in the last bid. The announced furloughs in bids 02-03 and 03-01 are affecting pilots who are in their 12, 13, 14 and 15th year of service for US Airways. The total pilot furloughs announced since the Restructuring Agreement became effective are up at least 750 pilots. There will be over 1800 pilots on furlough if all furloughs become effective. This would be over a 30 percent reduction to our pilot workforce.

The furlough is without additional fleet reductions, covers 279 aircraft, but reflects reduced aircraft utilization through a reduction of flight hours.

It appears the company has made significant progress in restructuring aircraft leases and will maintain 279 aircraft, but will not fly all of these jets to better match capacity with demand.

Management promised not to seek additional contract concessions from labor and US vice president of corporate communications Chris Chiames recently told the Associated Press the airline will honor that promise, but that does not include further furloughs for all employee groups.

In my opinion, maybe if the company and its unions would look for ways to improve productivity while simultaneously maintaining employment levels, maybe, just maybe, the airline could position itself for cost effective growth when the economy permits.

Chip
 
Those Caribbean flights aren't as cheap as you think they are. It's pretty rare that you can get down there for less than $400-600 round-trip; compare that to those $150 round-trips to Florida (only 1-2 hours less flying time) and $200 round-trips to California that pop up every once in a while. It's also a good way to use aircraft which wouldn't be flying otherwise on the weekends.

Dave Siegel has little, if any, control over the economic environment which US Airways faces in the coming months. The Chapter 11 filing gave the airline some breating room, but it is absolutely imperative that the company's cash flow turns positive sooner, rather than later. And aside from the usual seasonal uptick at Thanksgiving and Christmas (and November will be very bad for everyone, given that Thanksgiving return trips fall in December this year), the 4th quarter looks to be almost as bad as last year. Moreover, January and the first half of February are also historically very, very weak travel periods; the airline can't afford to lose several million dollars a day through half of the first quarter and hope to successfully reorganize; the existing cash-on-hand and DIP financing just won't cover it.

I think few in the industry six months ago thought that the revenue picture would be quite as ugly as it is today. Many were predicting a recovery in the second half of 2002 which really hasn't materialized as corporations continue to focus on keeping lean in the face of severe pressures on profitability. Remember that most of the network carriers added capacity back in over the spring and summer since traffic and fares seemed to be mounting a modest recovery (in sequential terms) in the second quarter. It's clear that the uptick in traffic and fares sputtered out below the level most airlines needed to reach break-even, and now we may not see the hoped-for recovery until 2004.
 
In my opinion, maybe if the company and its unions would look for ways to improve productivity while simultaneously maintaining employment levels, maybe, just maybe, the airline could position itself for cost effective growth when the economy permits.

Chip


Thank you Chip for this a very sound statement!
 
Thanks for the information Chip.

While it is unfortunate to hear of any one losing their job hopefully all cuts will be done on a timely manner so we can return employee moral to a healthy level.
 
Pit Guy:

There is reason to believe the company may be liquidated; therefore, you will no longer have to lobby for further pilot pay cuts to socialize total labor expense.

By the way, your concept of paying US pilots 70-seat RJ wages to fly widebody and narrowbody mainline aircraft is understandable from your position within the company. However, what's good for the goose is good for the gander. How about if all employee groups take the same type of cut and go down to Express wages?

Chip
 
[blockquote]
----------------
On 10/25/2002 11:07:51 AM Lakeguy67 wrote:

If you are such a great airline analyst, why are you flying planes instead of working on wall street? Your self-preservation scared self is showing again.

Why are YOU sorting parts and not flying airplanes???
2.gif']
 
There is reason to believe the company may be liquidated; therefore, you will not longer have to lobby for further pilot pay cuts to socialize total labor expense.


Come on Chip you carry some weight here in the written word of aviation, so tell us just where this is coming from? Is it your frustration dealing with people on these boards because many see a different picture from the battle field? Is it because you are very human and also experience the despair that clouds rationality from time to time? Do you have a direct link to the powers that be and seeing the feedback you receive they now think chapter 7 is the answer? Just why would Chip make this one little powerful statement here for all the world to see? Funny how just a few short months ago our future truly looked bright, and today chapter 7 looms. Destiny sometimes can’t be predicted and what makes life interesting and full of challenges, I could write a book about it. Good to you Luck Chip and to all my fellow co-workers, many of whom have become good friends.
 
I think it is about time that management starts taking the same concessions that other employee groups have taken. So far in my department ( line mtc) we have not furloughed any supervisors and in fact added a few. This is interesting due to the fact that the cancer we call commuters has spread from its original E gates to all of A concourse and soon to be part of B if rumors come true. Mainline has lost 25 gates and the headcount for management has increased. Can anyone explain this?
 
Chip, get off your soap box, we are tired of hearing you play the company line. Be a man and have some independant thought, you seem to have a knack of sticking your nose where it does not belong. If you want to be Siegel's lackey then apply for the position and stop letting the company pimp you out. Did you not learn from when you bashed the IAM and CWA before?[BR][BR]If you are such a great airline analyst, why are you flying planes instead of working on wall street? Your self-preservation scared self is showing again.[BR][BR]
 
Cav:

I'm not frustrated, just stating a fact from an informed source. This week and next Thursday will be critical to US Airways' future.

Let's hope things work out, but the company no longer meets the requirements for the debtor-in-possession financing and loan guarantee.

Thus, no further cuts, then no funds and no company. Why don't you check with your union Reps?

Chip
 
Ok, it appears that this thread (and others) are beginning to get out of hand. Let this serve as a reminder that insulting and inflammatory remarks will not be tolerated.
 
cavalier,

The only problem with that idea is that productivity and efficiency improvements will drive more job losses in the short-term until the economy rebounds down the line (whenever that may be) and the conditions are right for longer-term growth.
 
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