Us Airways Tp Starting To Be Enacted

[insp89]

The increased flying will improve mainline aircraft utilization by about 10% and reduce CASM by about one cent. This will be the single largest TP cost reduction item.

RJ utilization will increase by about 5%.

Both moves will average down unit costs, increase loads, and increase revenue with the GoFares program. Expect similar DCA moves to occur in both LGA & BOS once the company emerges from bankruptcy.

Regards,

USA320Pilot

[post="192336"][/post]​

Why has management waited until NOW to increase aircraft utilization ??? Seems these kind of moves could of been done YEARS ago ! NOTHING has prevented management from implementing these changes ! Could it be management put off these changes UNTIL they got back into employees pockets once again ? NAA, They wouldn't do anything unethical and sleazy as that, Would They ?

 

[RowUnderDCA]

Whether they were/are right or not, I think their reasoning is pretty clear:

a) doing so with the higher cost structure would have bled more cash
B) doing so would have inspired competitors to decide to put more pressure on yields so that revenue would drop drastically. Gettting costs in line or below market will cause competitors to think twice about out lasting U and inspire investment from dirty rotten capitalists.

So, again, they might have been wrong or just insecure or unsure of their knowledge and ability to run this new business model, but that's what I believe they have said. There remain these concerns :

c) maybe there really isn't room in the market to be another WN; U has to be something else: a hybrid, in order to survive. This by necessity is going to be a higher cost than just being WN and the transition is going to be expensive; and

d) in the post 9/11 environment, post B6 era, really there just isnt any capital out there to float a business plan that doesn't have a transition subsidized by employees.

I have no idea whether these are right or not, but they seem like reasonable areas of concern to me.