Us Airways Still Bleeding

[madders]

I do not know what people expect
Why people continue to compare U with WN
In my opinion there is no comparision
WN fortunes was built on their good decision to hedge fuel...
which is why they do not have to raise ticket fares to compensate for oil..

U and the other major airlines strength is that they offer a bit more than WN..overseas travel and prereserved seats.
and if they can make the travelling experience worth the extra bucks they will be able to thread water.

The turn around will be when oil will stabilize and the price will drop below say 40/barrell.

 

[700UW]

WN has made a profit for over 30 years straight and it is not all because if fuel hedging.

Smart leadership and smart business plan.

 

[PITbull]

Mad,

We've been accustomed to the comparison with WN because our managment has been trying to emulate them for years...point to point, rolling hubs, no frills etc.

The more they try, the more they lose. Reason being for the reasons you cite...first class, international travel, seat assignments etc...

Our mangment wanted a hodgepodge... to be more like SW with cross utilization, point to point operation, (not their wages) and take the JetBlue work rules, and accept the AWA wages. They wanted US Airways employees to take it up the __ __ __ by combining the worst work conditions yielding the highest cost savings that these carriers had to offer, leaving out the other components that was offered to these carriers' employees in exchange for effieciency.

Our mangament didn't know what they wanted to be when they grow up. Only solution, consolidation; left with shattered morale... no company loyalty.

Still bleeding 1/2 million daily. And if fuel prices rise again, that will increase the losses and keep burning through the investor money.

 

[calibrator]

Still bleeding 1/2 million daily. And if fuel prices rise again, that will increase the losses and keep burning through the investor money.

[post="310544"][/post]​

Exactly, so expect more cuts and more cuts until it's over. The thing that amazes me is how investors keep throwing good money after bad. 2.5 billion is chicken change when you are U, old or new. Oil will only go up and not down......It's over folks, the only thing left is time, until it's official.

 

[A330US]

I bet WNs gpnna die out in the next 10-20 years, the only reason why they are on top is fuel hedging, hedge runs out on 2009, when it does
prepare for WN to either rise up fares, or go into BK

and then those 700 aircraft will be more like 180

 

[luvn737s]

W_A_T_C_H and behold the future......

They don't take example from U, and lie to their employees

They are growing while the dreamers dream

[post="310490"][/post]​

My, My guess who put an 11 on their drama amplifier?

WN isn't scared of U. But it also doesn't see a niche left after every other airline pares it's costs to below LUV. That's not impossible (especially with a BK system that is so accessible). So what does the future hold for LUV? Where do they innovate, or are they left to become a whithered flower out of season (I thought Calibrator would appreciate the drama).

Gee, U/HP has been merged fror what a whole 2 weeks and they still haven't been able to turn around 20 years of U's mistakes? What's going on? Why hasn't WN pulled out of PHL?!!

The people of the new U realize they are pushing a big boulder up the hill. Who allowed it to get to the bottom? Who cares. The point is they are building it. Part of that is shrinking things a little. Burn off the fat, boost the metabolism to build up the muscle over time. U's current status does not predict the future. Wise, conservative management takes a longer view and does not allow itself to chase every passing fancy, but stays focused on it's core business. WN has done it for years and the new U is doing it too, although that's probably not how it feels on the inside.

WN folks, enjoy the ride now, but you too will see change, perhaps in ways you never imagined. You may enjoy future success, but it won't come at U's expense.

40,000 employees working together will ensure that.

 

[BoeingBoy]

Comon boeing boy... you're smarter than that. Without those interest payments there is no airline. Thats why I shorted this POS airline... They will never make enough to cover their interest payments and spend down the principal. There is very little left for equity, and it dwindles every time they liquidate some asset, which apears like a monthly thing.. No dividends, plus no capital appreciation, plus negative EPS, = $20 is a freaking joke. I understand stupid employees drinking koolaid, but wise investors wont.

[post="310500"][/post]​

There's no doubt that interest (and other) costs will be higher going forward. The ATSB backed portion of the "ATSB" loans just got 2% more expensive, leasing what were owned airplanes and slots, etc.

Jim

 

[javaboy]

This just goes to show you that an airline on the east coast still needs to go out of business. Your new cash will help protect you for those two years, but maybe one of your competitors will?

[post="310474"][/post]​

The surprise of this (my prediction) is that it will be CAL. I look for them to "be in the newspaper" more and more duiring Q4.


h34r:

 

[calibrator]

My, My guess who put an 11 on their drama amplifier?

[post="310610"][/post]​

If your delusions allow you sleep at night then you have my permission to keep popping the micro dots.

 

[speedbird86]

I understand stupid employees drinking koolaid, but wise investors wont.

[post="310500"][/post]​

Like Warren Buffet, David Bronner and the latest bunch of investors?

They're no smarter than any of us. They just got a whole lot more money to gamble with.

 

[speedbird86]

The turn around will be when oil will stabilize and the price will drop below say 40/barrell.

[post="310537"][/post]​

$40 p/bbl. IMO those days are gone.

 

[ClueByFour]

I bet WNs gpnna die out in the next 10-20 years, the only reason why they are on top is fuel hedging, hedge runs out on 2009, when it does
prepare for WN to either rise up fares, or go into BK

The thing is--they can raise the bar. They get to set it at the low end.

Look at WN, and look at their costs ex-fuel. Read their SEC filings and read about how it talks about ex-fuel decreases in unit costs (that includes labor).

The hedge is the icing on the cake, but at the heart of things WN has always hedged fuel--it allows for a known cost. That it happens to be cheap right now (while good in the short term) is not the point--it's elimination of variable costs. Which allows their very smart managers to know exactly what the P/L factors will be years into the future. Which allows planning. Which leads to profit.

and then those 700 aircraft will be more like 180.

I suggest that you not put money on that proposition.

 

[PHXLOST]

From the "West" POV..WN will hit critical mass, they already have in the west.
Very slow to no growth.
Facts:
They will not fly into Colorado (Herb gets mad at Penna story)
They will not go into smaller cities (i.e. no Medford, Fresno, Santa barbra)..This will translate in the East too.
They refuse to fly another A/C type...Good if you want to paint yourself into a corner, BUT...
They will not go international (no Canada, Mexico, Beyond?)
What is left?
Evolve or die...
I see no evolution in their future.
Come on EAST...Evolve!!, And we can do this!!!

 

[delldude]

Exactly, so expect more cuts and more cuts until it's over. The thing that amazes me is how investors keep throwing good money after bad. 2.5 billion is chicken change when you are U, old or new. Oil will only go up and not down......It's over folks, the only thing left is time, until it's official.

[post="310590"][/post]​

reminds me of a song i heard......
play it again sam

 

[PA18]

Our mangment wanted a hodgepodge... to be more like SW with cross utilization, point to point operation, (not their wages) and take the JetBlue work rules, and accept the AWA wages. They wanted US Airways employees to take it up the __ __ __ by combining the worst work conditions yielding the highest cost savings that these carriers had to offer, leaving out the other components that was offered to these carriers' employees in exchange for effieciency.

Our mangament didn't know what they wanted to be when they grow up. Only solution, consolidation; left with shattered morale... no company loyalty.

[post="310544"][/post]​

PB,

Your "hodgepodge" description is perfect.

US Airways (East) management wanted to emulate the LCC's, by cutting thousands of front-line employees while forcing draconian cuts in pay and benefits on those who remained; and by drastically cutting service and perks to its customers. But this is where the LCC comparison stopped.

While the company wanted the employees and the product to be "LCC", they certainly had no compunction about maintaining a "World Class Carrier of Choice", "Legacy Airline" management structure, replete with its bloated bureaucracy, and the obscene pay and benefits to which they were all entitled, despite running the organization into bankruptcy. Twice.

I've always been curious...Does anybody know how many vice-presidents JetBlue and Southwest have?

(And with Southwest now having almost twice as many aircraft as US Airways, I'd love to see a "vice-president-to-airplane" ratio for both companies.)