US Airways to cut flights

[chipmunn]

[P][A href=http://www.usatoday.com/travel/news/2002/2002-11-01-usairways.htm][FONT face=Times New Roman size=3]http://www.usatoday.com/travel/news/2002/2002-11-01-usairways.htm[/FONT][/A][/P]
[P class=inside-copy][FONT size=3][FONT face=Times New Roman]Siegel called a meeting with the pilots union Wednesday to discuss the problems. Union spokesman Roy Freundlich declined to say whether the company is seeking more givebacks but said pilots are becoming increasingly concerned about management''s approach to the restructuring. [STRONG]The pilots say their latest schedule — good for three months to one year — calls for a 10% reduction in flying.[/STRONG][/FONT][/FONT][/P]

 

[cat 111]

Austin Powers,AKA Dave is trying to do what the Wolfman had tried to do.SHRINK IT AND SELL IT. If Dave wanted to run the airline why wouldn't he put the NONSTOP flights back from the northeast to florida.Those METROJET planes went out full.No wonder morale is at an all time low.

 

[deelmakur]

This kind of spiral is almost always fatal. As a former customer (who really misses the place), I walked away from my US1 benefits because I couldn't get anywhere anymore. No sooner make a res, than the schedule is cut, or the route dropped. Pretty soon it will be down to the PIT-PHL shuttle. The management is out of its depth. They react, as opposed to anticpate. Two dimensional people working in a three dimensional situation. You can't chase it. You have to get in front of your problems. They don't teach that. Like a football QB, you either have it or you don't.

 

[ITRADE]

[P]As part of cost cutting measures, what is the going market lease rate for an A-320?[/P]
[P]What if US were to dump about 35 or so expensive 737s and replace them.[/P]
[P]There are up to 10 Sabena A-320s, 14 Ansett A-320s, and 12 Swiss A-320s which are not currently in use. US could easily dump 35 expensive 737-300s and 737-400s and could pick some of these sitting birds at a discount.[/P]

 

[autofixer]

Amen deelmakur, I have been on this line of thought ever since the restructuring was announced (with the goal of 10+ cents per seat mile). I think that the employees at U so wanted to believe the 'pie-in-the-sky' rhetoric(What choice did they have?), that they could not, or would not see the obvious...management is in over their heads. I don't want it to be so, however, that does't change the fact: you can never shrink an airline into profitability. All you do is drive UP your unit costs. As your cost increase, you cut more and your costs INCREASE even more! As you say, the death spiral.

 

[W:EXCH:INVOL]

Heard there might be station closing(s) announcement today. Anyone else hear this?

INVOL

 

[deelmakur]

The issue is plummeting revenue. It falls faster than they can lower costs, thus each successive cost saving is wiped out. The availability of parked aircraft doesn't do anything for the company. they already have cheaper leases, as a function of the bankruptcy court ruling. The apparent plan is to shift flying to baby jets, flown by less expensive crews (including rehired furloughees). This pre-supposes that customers are willing to squeeze into them, when competitors are offering larger, conventional aircraft. In a situation like this, you have to have the full confidence of the employees (as Continental did), and the support of your core customer (nicely dented by the unwarranted attack on them, and demonizing of them by Marketing). They continue to confuse the employees, by extracting concessions, then coming back for more, followed by further employment and aircraft reductions. Meanwhile, everything with a wing on it is being redeployed against the franchise by not only the upstart carriers, but also the majors. All of a sudden you have DL at DCA, launching O & D flights into the southern franchise. CO shows up in White Plains to feed a hub 50 miles away. Jet Blue tattoos them in upstate NY, and Florida, with heretofore unheard of numbers of frequencies. In the old days no discount guy would put more than 2 or 3 day into a competitive market, for fear of retaliation. Not so now. The imperative at Fort Fumble in CCY appears to be CYA. The latest initiative....get some indemnity from the shareholders. Having been wiped out, they may be looking more closely at whether this whole mess actually started before 9/11. And to all, a good night.

 

[geo1004]

Lions and Tigers and Bears, Oh my!!!!

The maker o' deals does not see a bright future for US.

 

[chipmunn]

Itrade:

In a personal discussion with Dave, he mentioned removing high cost B737s and replacing them with used/parked narrowbody A-320 family aircraft; however, I suspect we will not see an increase in airframes until about 2004. Additional capcity will be driven by feed/revenue improvement and today in a USA Today article the paper wrote, The pilots say their latest schedule — good for three months to one year — calls for a 10% reduction in flying.

Chip

 

[1ab]

At the rate of this shrinking airline I have the feeling the only southern destination U will serve will be the Caribbean.
There will be further reductions in florida ....I heard Jacksonville was closing down ..I have no way of confirmation ...
If U makes it pass June of next year they will be very lucky.....