Us Airways' True Problem Created By

[Hope777]

All the Problems STARTED with MIRROR IMAGE..........thats it in a nut shell.

 

[Dea Certe]

Frankly, it doesn't matter to me who from the distant past is/was responsible for the mess UAIR finds itself in, unless we are still paying those guilty.

Which I suppose we are. How much is Wolf, Gangwal, Schofield, etc getting from pensions? Is UAIR paying those pensions out of company funds? I believe Wolf and Gangwal got "super seniority" credit for pension purposes, didn't they?

If anyone knows, please post here so we all can know the truth.

Thanks,

Dea

 

[oldiebutgoody]

If you look at the USAIR model prior to the PI/PSA mergers, it's vision and structure were VERY SIMILAR to SWA's today. No first class, regional in scope and only a couple of aircraft types. It functioned VERY WELL. In fact, I remember reading something around 1987 or 1988 in valueline or another publication like it which had ranked USAIR as the best managed and financed airline in the US. It was the mergers and the associated changes in the cost structure that were not handled well at all. Colodny was, as has been stated earlier in this thread, forced to buy PI or be swallowed up by Icahn and TWA. The PSA purchase was an attempt to grow USAIR into a national airline from a regional one, and in that regard it worked.

 

[PITbull]

AeroMan,

Since U was in such bad shape from Colodny's days as you imply...

Explain the $$$$$ billions made between 1995 through 1999????? Fluke?

Pit....First of all I didn't say U was in bad shape. I gave an example of what his vision was after the merger that he conveyed to a group of us that met him.
Now, to answer your question as to the profits it is quite simple. It was the economy. Business was so good that even the worst business people with the worst business model could make money...even the dynamic duo. Just because they made billions doesn't mean there wasn't structural defects in the business model to begin with. 9/11 came along and all those weaknesses were magnified.
Ed Colodny was a nice man....maybe too nice imo. What he wasn't was the man to head up US Air after the merger. I don't think he really wanted to do the merger but as you have stated Icahn was hungry and looking to feed again so Ed did it to stop him. The problem was the food (US Air) that Icahn was looking at had so much fat on it even Carl didn't want to attempt to feed on it. Ed should have trimmed the fat and left a lean company that could compete and instead he planted seeds that have morphed to what is left today.
No one has ever tried to fix the core problem with the airline until this group came along. Schofield was so far in over his head he couldn't think straight and everyone knows WolfGang came in to make money selling the joint. Siegle is the one who is actually trying to fix the problem that has existed since cutover day. The problem now is he's made so many mistakes and his trust meter has bottomed out it's most likely to late to actually fix what is wrong.

Aeroman,

I will admit that at one time, we had decent contracts that provided for a "quality of life" that made us secure as workers. As far as the business model, it was sustaning through all types of enconomies. When there was a "downturn", we stepped up to the plate as labor, when their was an "uptick" in profits, our managments thought of us, and we negotiated back what we gave. There have been no "real" improvements since the early 90's to all of our contracts. What management is going after is long sustaining language that basically made these jobs attractive in all groups.

So, I pose the question, with all the "give backs" to the tune of $1.2 billion, NOT counting pension terminations (credit was not given to the pilots for that), all the furloughs (no group got credit for that and pilots and f/as gave up furlough language) where do you see the present" waste" or shall I phrase it.....provisions that just don't allow the company to compete? Keep in the forefront of your mind if you ARE a U pilot that our "duty rigs" have at present ONLY a 3% penalty. Which is now insignificant to c/s thanks to the automated "optimizer". Keep in mind also, that this 7th largest carrier has only 27,000 employees left; down from approx 47,000 in Sept, 2001.

In other words, what's stopping this company from competing?

I wait for your response.

 

[700UW]

Pitbull,

Mechanic and Related gave up no furlough language also and we gave up all the out of seniority force majuere grievances too.

 

[PITbull]

I didn't know that mechanics had "no furlough" language. I was told it was only AFA and ALPA. 🙁

 

[700UW]

Page 124 of the Mechanic and Related contract before concessions:

No Employee, hereunder, on the Company payroll on October 11, 1999 shall be furloughed, from the Company, during the period from October 11, 1999 through October 10, 2004.

 

[mweiss]

The PSA purchase was an attempt to grow USAIR into a national airline from a regional one, and in that regard it worked.

Not really. Well, I guess it worked for a while, but how many flights does USAirways run up and down the west coast? None? Hmmm. How many hubs does USAirways have west of Pittsburgh. None? Hmmm.

Sounds like a regional airline to me. It's the northeast equivalent to America West's southwest regional airline. Sure, there are some long-distance legs, but let's not kid ourselves...USAirways isn't a "national" airline. Really, right now, there are only four airlines I could consider to be truly national: AA, UA, DL, and NW. They all have hubs that allow them to reasonably cover substantial portions of the country's routing.

 

[PITbull]

Not really. Well, I guess it worked for a while, but how many flights does USAirways run up and down the west coast? None? Hmmm. How many hubs does USAirways have west of Pittsburgh. None? Hmmm.

Sounds like a regional airline to me. It's the northeast equivalent to America West's southwest regional airline. Sure, there are some long-distance legs, but let's not kid ourselves...USAirways isn't a "national" airline. Really, right now, there are only four airlines I could consider to be truly national: AA, UA, DL, and NW. They all have hubs that allow them to reasonably cover substantial portions of the country's routing.

mweiss,

I think you need to reread Oldies post again.

Oldie was not talking where the airline is presently. He was speaking to the fact that the premise for purchasing PSA, was at the time (15 years ago) a "plan" to change the image of USAir as "regional" East coast carrier, to "national". Oldie's operating word...attempt. And it did work for awhile for many years.

 

[mweiss]

Oldie was ... speaking to the fact that the premise for purchasing PSA, was at the time (15 years ago) a "plan" to change the image of USAir as "regional" East coast carrier, to "national".

I understood that. Where we disagreed was in the word "worked." Yeah, for a few years they continued the PSA routes, but you can't change that sort of stuff overnight. The old PSA network withered away mighty quickly.

 

[EyeInTheSky]

Ed Colodny was the best CEO this company ever had. What's wrong with you people? Have to go back decades to point a finger? Let's get real. This company is in the worst shape it's ever been. Whose in charge, Siegel. I blame him 110%. Dave you cut the company too much, now everyone is expected to pay for your mismanagement. Go back to Avis!

 

[MarkMyWords]

Eye -

You need to catch a ride on the clue bus. I believe it was Lester that proved it best when he listed all of the "blunders" of all the previous management teams. Dave inherited a huge pile of crap when he got here. Not to say that Dave has not made his own blunders, but to put the sole blame on him is definitly short sighted and living in denial.

 

[openview]

just the statement management (past or present) is to blame, is an invalid one, and prohibitive of positive, reasonable, realistic needed change. The company, the employees, the economy, technology changes, competition etc. is an ongoing, ever changing beast in all businesses. The only static thing seems to be is the mentality that all problems are a result of bad mgmt. If management cannot change an inefficient work rule or policy because of contract language-is that bad mgmt?

 

[MarkMyWords]

Openview -

First of all welcome ot the boards as I see this is your first post.

Second, while I agree that there are many outside influences (economy, technology, etc) that effect the viability of a company, it is also "managements" response to these factors that ultimately pave the path that the company will take. Lack of planning and recognizing these same changes isn't the responsibility of the front line employee.

 

[ITRADE]

Oh god. Can't wait to hear from the zealots on this one.

Can I get a "max pay 'till the last day" from someone?