US better get those RJ's fast...........

[chipmunn]

[P][FONT face=Times New Roman size=3]I do not agree with those who believe US Airways cannot survive. However, one thing is for sure, if we do not pull together as a group the task will be much more difficult if not impossible.[/FONT][/P]
[P][FONT face=Times New Roman size=3]Yes times are tough and this whole situation sucks, but the company has $1.33 billion in cash of which $897 million is unrestricted and if it can cut another $200 to $300 million in annual expenses receive further funding. The airline is scheduled to receive $200 million in DIP financing tomorrow, $500 million in the loan guarantee ($1 billion minus the $500 million credit facility), and the $240 RSA equity investment.[/FONT][/P]
[P][FONT face=Times New Roman size=3]The challenge is to get the cuts required to permit balance sheet re-capitalization.[/FONT][/P]
[P][FONT face=Times New Roman size=3]Tomorrow the Mainline ALPA MEC will meet to discuss and provide options to the RJ and underfunded pension. I expect ALPA will provide relief that will increase traffric, feed, and revenues, as well as lower our costs.[/FONT][/P]
[P][FONT face=Times New Roman size=3]On Thursday the company will have its third Omnibus Hearing where there should be additional positive news and we are starting to see code share benefits. Yes the cuts are tough and this whole thing is bad, but this ship can be saved. [/FONT][/P]
[P][FONT face=Times New Roman size=3]Chip[/FONT][/P]
[P] [/P]

 

[wings396]

The ship may be saved, but the pilots will be the only group left when it sets sail.....

 

[whatkindoffreshhell]

Dave Segal had a good interview in Airline Business magazine that I read yesterday. I'll try to find a link.

Anyway, Dave made his rep in the business with CO Express.
He knows those planes work. He's going to try and replicate that success at US. It is the only hope.

Don't start throwing all kinds of numbers and unencumbered words around either. Doesn't matter.

Revenue does.

 

[autofixer]

P.O. ed W. O. ed, You are of course refering to U management? RJs are Just a fad.

 

[Winglet]

First off, If US Airways does cease to exist, so will much of the service it provides today. Many small cities that rely on US Airways may never see another carrier fill in the void, and our large hub cities such as PIT, CLT, and PHL will probably not return to the same number/frequency of direct flights they enjoy today.


Dakota -
If U is making so much money or feed off these small cities, why wouldn't a competitor step and serve them? If PIT CLT and PHL need the seat capacity, then other airlines could easily step in and provide it, considering the excess seat capacity existing now.

There would be still plenty of competition without US Air. US Air's problems ARE competitive and it's viability IS in question because of management's ineptitude. US Air couldn't even make money when the rest of the airline industry was going great guns. I see almost zero hope of U turning the required 7% profit in the near future to comply with the restructuring deal.

If this industry is going to be unregulated, then survival of the fittest is valid. Unfortunately, that is extending to worker compensation as well, as U leads the pack in concessions with UAL not far behind.

 

[ITRADE]

[BR][BR]
[BLOCKQUOTE][BR]----------------[BR]On 11/7/2002 12:03:39 PM Winglet wrote:[BR][BR][BR]US Air couldn't even make money when the rest of the airline industry was going great guns. I see almost zero hope of U turning the required 7% profit in the near future to comply with the restructuring deal.[BR][BR]----------------[/BLOCKQUOTE][BR][BR]Winglet, check your facts.[BR][BR]Q1 1999, US earned (net) $46 million; Q2 1999 US earned $317 million; US lost money in Q3 and Q4 1999.[BR][BR]US made money in every quarter of 1998 as well - with a yearly net income of $538 million. Same with 1997.

 

[DakotaHC8]

Winglet,

Many of the small cities that we now serve will lose all or most of the current level of service if US Airways disappears.

The reason is that our competitors are focused on higher revenue city pairs. Examine the recent growth of Delta out of DCA for example. They are utilizing RJ's to add frequency or reduce capacity on current routes or add new flying between DCA and mid to large sized markets.

Along with the massive restructuring already in progress, the loss of a major air carrier would free up ample market share in larger markets that would supercede any desire to operate into small cities. There is a long list of routes that our competition wants to place new RJ's onto before they consider flying into Johnstown, Altoona, or Presque Isle.

US Airways is the only airline system on the east coast that has retained turboprops to connect small markets to our hubs. not Delta, not American, and not Continental. Other carriers have rid themselves of such equipment or shifted them out of the hubs, not Airways.

Recent posts on here wondered why keeping the PIT E gates was necessary, or missed the other part of the recent agreement with Mesa to continue to operate turboprop flying. This is the kind of flying that WILL be lost if US Airways goes away. Just plain economic reality.

 

[Cosmo]

[blockquote]
----------------
On 11/7/2002 5:32:51 PM DakotaHC8 wrote:

US Airways is the only airline system on the east coast that has retained turboprops to connect small markets to our hubs.
----------------
[/blockquote]
Not true. United Express/ACA still flies about 30 J41s from United's IAD hub, some of which serve smaller cities like Charlottesville, VA, and State College, PA.

 

[N628AU]

ACA is actively retiring these aircraft. I have not seen a final reitrement date, but I believe they will not be around much longer.

 

[p.o.-ed w.o.-ed]

[blockquote]
----------------
On 11/6/2002 4:00:57 PM autofixer wrote:

P.O. ed W. O. ed, You are of course refering to U management? RJs are Just a fad.
----------------
[/blockquote]
autofixer

Pilots were the ones that blocked the RJs (excuse me, small jets)for years. Management has wanted them for a long time. An intelligent assesment of the industry at that time would have produced a much better structured U rather than all the bloodletting required now. No, it wouldn't have eliminated it, but it might have prevented the BK and it would have had the MDT and/or WO small jet structure in place so that it could have been expanded, instead of starting from scratch. This reorganization has to be done from the viewpoint of the entire organization and not selfish piecemeal, as it appears it is happening. If this isn't done right, WE ALL LOSE.

 

[DakotaHC8]

United seldom utilized ACA's turboprops to serve small communities, and when they did it was to high yeild opportunities such as State College (Penn State). The majority of the IAD turboprop flying has been into larger markets that already had a mainline United station in place, but no service to the Dulles hub.

Can you name one city that ACA serves as the sole air carrier at that airport...? I can think of quite a few with US Airways Express. Your example of State College has US Airways Express to PHL and PIT, Northwest Airlink to DTW, and United Express to IAD. Not exactly what I was talking about.

 

[Pacemaker]

During the 1996-97 ALPA negotiations the pilots were reading and willing to address the Rj issues with Mr. Wolf but he was singularly focused on his Parity +1% plan and showed no interest in RJ's.

 

[BillLumbergh]

[SPAN class=headline][A href=http://biz.yahoo.com/prnews/021108/laf036_1.html]Bankruptcy Court Approves Mesa Increase of US Airways Express Regional Jet Flying[/A][BR][BR][SPAN class=headline][A href=http://biz.yahoo.com/rf/021108/airlines_mesa_usair_1.html]Mesa says load factor rises, US Airways pact to continue[/A][/SPAN][/SPAN]

 

[ITRADE]

[P]
[BLOCKQUOTE][BR]----------------[BR]On 11/7/2002 8:08:49 PM N628AU wrote:
[P]ACA is actively retiring these aircraft. I have not seen a final reitrement date, but I believe they will not be around much longer.[/P]----------------[/BLOCKQUOTE]
[P][/P]ACA *was* actively retiring these aircraft. My understanding is that the process got bogged down when FaiDor went belly up and stopped producing DO-328Jets.[BR][BR]Any idea why Boeing hasn't decided to enter into the lucrative RJ arena and take over FaiDor???

 

[Cosmo]

[blockquote]
----------------
On 11/7/2002 8:08:49 PM N628AU wrote:

ACA is actively retiring these aircraft. I have not seen a final reitrement date, but I believe they will not be around much longer.
----------------
[/blockquote]
According to ACA's most recent Quarterly Analyst Conference Call, the J41s will be around until at least April 2004.

DakotaHC8-

I responded to your comment as it was written. But I see now that you really meant to have a more narrow focus. And you have a valid point -- to my knowledge, ACA isn't the exclusive carrier at any of the cities it serves.