Vp Meeting In Phl

hack73

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Jan 17, 2003
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One of the VP's was in PHL this morning talking to the employees.He said that if there were not more concessions from the employees that we would be out of business in 2 years.Can anyone from PHL who was at this meeting confirm this statement?It's amazing the nerve that these jerks from CCY have..
 
Hack73:

US Airways senior vice president of marketing and planning Ben Baldanza conducted a Senior Officer Outreach meeting today in Philadelphia. The purpose of the quarterly Outreach visits are to conduct informal discussions between senior management and employees. Senior officers rotate their visits in US Airways' largest employment centers on a quarterly basis and the relaxed style of the visits encourages questions and one-on-one conversations.

I'm not sure what Baldanza said because I was not at the meeting, but like every network carrier, I believe US Airways' costs must come down or our company and other airlines will simply perish.

For example, United Airlines recently had an executive make comments that several network airlines could face liquidation going forward. Jeffrey Stanley, manager of economic analysis and regulatory affairs at United, recently said, "If things stay the way the are now, there will be several Chapter 7 (bankruptcy liquidations) down the road, and that's not good for anyone. The most feasible solution to the situation is consolidation in the domestic airline industry," he said.

In addition, US Airways CEO Dave Siegel addressed the annual Citigroup/Smith Barney Transportation Conference this morning and according to Bloomberg News Siegel said the company (which cut expenses by almost 7 percent last quarter) will reduce costs by $200 million to $300 million next year.

In regard to Philadelphia, yesterday I spoke with US Airways senior vice president of employee relations Jerry Glass who flew on my flight. Glass said the company is going to announce major changes shortly (my guess is we could here about this in a couple of weeks) and I suspect they could include new rolling hub patterns (international transatlantic bank exception), new runway patterns, and a LCC competitive response. Glass' operational cost cut comments were intriguing, however, for competitive purposes I do not want to post them on this website.

Glass indicated the company knew of Southwest's plan to begin Philadelphia operations before the public announcement, the company will not run from Southwest and will vigorously defend this key market.

Regards,

Chip
 
737nCH11 said:
Chip,

I hope you're right. It would do my heart good to see U stand and fight for PHL.
We have no choice but to fight. PHL acconts for 25% of our annual revenue...nowhere left to run or hide in this situaton.
 
Chip,

Believe me when I say, no one want's Usairways to succeed more than me, I believed in your dream of UCT/ICT with UNITED. I felt the arguments pro outweighed the con's. However it appears from my perspective that UNITED is lining up their ducks without the help of usairways nor Dr. Bronner. What gives??

From a completely selfish point of view I don't see Usairways succeeding without the hook-up with UNITED. If we are to relie on more cost cuts from labor to garner 200-300 million per anum, if this is the big announcement, well my friend we shall be in deep kimshee quickly. It will not happen from w-2's and you know it.

So with UNITED lining up exit finiancing thru the likes of banks mind you, and dave saying we will be gettin 2-3 hundred mill,......

Without releasing any of CCY's dark sercret way's of loosing money, what is your spin on USAIRWAYS plan and chances of survival.
 
Chip said, " I suspect they could include new rolling hub patterns (international transatlantic bank exception), new runway patterns, and a LCC competitive response. "

This is a phenominal idea! They should get a bunch of 737s to do it with. Make it a single-class service! They should get the pilots to fly it for less than the mainline 737s.

They should paint them all red and base them in Baltimore.

I even have a pretty good name... Metrojet! (I didn't think of it myself.)
 
Bigbusdrvr:

I believe we are all a little bit tired of the debate regarding a United - US Airways corporate transaction, but I know from the highest sources within the company that network airline consolidation is inevitable and will occur.

In addition, there is strong reason to believe that a corporate transaction will occur between US Airways and United, however, due to rapidly changing industry events -- the potential consolidation could change format.

I have been thinking about writing another post on this point, but I do not want to get into what I believe could become an argumentative debate with certain posters.

Meanwhile, there is more interesting news regarding similar United - US Airways restructuring events and from a strategic perspective, is this coincidental or part of a broader plan? I'll write more on this later too.

Regards,

Chip

P.S. Go Miami (Ohio) -- my alma mater -- beat the Thundering Herd from Marshall tonight on ESPN2!
 
"I'm not sure what Baldanza said because I was not at the meeting, but like every network carrier their costs must come down or they will perish."

Life according to Ben B. Blah, blah, blah...please give the man a "clue" that our employee costs are already down, and way below the competitors. I hope someone stood up at this meeting to say that the employees will no longer act as "fall guys" for the lack of performance in his dept! Or for the lack of hindsight, insight, and foresight by this management team.

This mangement better damn well protect their turf in PHL, but it better not be behind, or on the backs of the employees.

No more/additional concessions will come from labor. If they "dare" open their mouths and ask, than this is a clear indication that they do not have a clue how to operate this airline or address the revenue end of the equation! Bronner will need to get them off the property.
 
Chip Munn said:
I have been thinking about writing another post on this point, but I do not want to get into what I believe could become an argumentative debate with certain posters.

Meanwhile, there is more interesting news regarding similar United - US Airways restructuring events and from a strategic perspective, is this coincidental or part of a broader plan? I'll write more on this later too.
Chip:

You can run but you can't hide! :p

And what's wrong with debate? It's one of the foundations of our democracy. If you have your facts straight, if your ideas are logical, and if you have credible evidence to support your position, then you have nothing to worry about. On the other hand, ... well, you get the idea.

In any event, I await the next installment of your "United - US Airways Corporate Transaction" saga with great anticipation.

BTW, what's your opinion of "Ted"?
 
Bob,

I have to agree with you on one standpoint. The costs of doing business in PIT and PHL have got to come in line ....and again I agree that the more achieved from that end should in theory take less out of the hides of the employees...but in light of how we've been "Hood-winked" on previous concessions leading us to more concessions...and more being asked coming , who knows if this will work any better?


I do have to take issue with one comment you made reagrding the failure to think outside of the box. I see that as incorrect Sir.

I can recall a number of suggestions made on this board , that if acted upon? would show near immediate results. I'm sure you will have some of the same recall ..and note the frustraton that many have posted about in regards to employee suggestions falling on deaf ears and blinded eyes. So much for tapping natural resources and thinking outside the box huh?

I know for one , I have made comments regarding some of the assinine work rules that stiffle things....and that is something that both the company and the unions need to come to peacefull and respectable terms with. I'm sure with little effort , all represented union groups know of something that can be tweaked or improved upon to achieve better results. This may not be thinking outside the box...but using the space within the box more wisely.
 
Chip Munn said:
In regard to Philadelphia, yesterday I spoke with US Airways senior vice president of employee relations Jerry Glass who flew on my flight. Glass said the company is going to announce major changes shortly (my guess is we could here about this in a couple of weeks) and I suspect they could include new rolling hub patterns (international transatlantic bank exception), new runway patterns, and a LCC competitive response. Glass' operational cost cut comments were intriguing, however, for competitive purposes I do not want to post them on this website.
A few notes:

US has absolutely zero control of runway configurations, and Glass knows it.

You should post whatever you want--nothing this management team has dreamed up or shows the acumen to dream up is going to change the industry. Further, if it were that sensitive, he would not be telling a line pilot, either.
 
Bob,

Quite frankly, I am sick of hearing about U going into oblivion. I believe you repeated yourself on here numerous times and implied that if Labor gives (both concessions) then it would be up to this management to take those savings and make it work, and prove themselves.

Now you say, we need to be more efficient once again, and give, give, give, or we will perish.

We will not do more duties to create more furloughs. We will not take on more duties and clean more stations, to create even more job losses in other groups. Period.

I personally am not here to just save a few jobs, for the purpose of ensuring that all of senior management stays on and collects all the perks, bonuses, stock, and benefit of 1 corporation. 20,000 jobs are gone from U, at this point, ITS ALL NOW OR NOTHING! We all stay, or we all go. I am not sure you understand this. But I will NOT waiver in this position. Because, Bob, if we go with your theory, eventually, the employees will slowly bleed to their individual demise. Now why would we purposely expedite that process.

If management wants to change their plans for PHL, then they should do it. Buy the RJs, bring them in, roll the damn Hub or whatever you want to call it, BUT WE ALL STAY! No compromise with that. I've had it.

They either make it work, utilize the savings and the non-human assets they have, or shut it down!
 
PineyBob:

Your first post in this thread is accurate.

The primary difference in LCC and US Airways' labor expense, when measured against the industry established benchmark comparison of labor expense as a percentage of revenue, is productivity.

For example, JetBlue employs 70 people per aircraft and US Airways about 101 employees per aircraft.

US Airways' pay and benefits are not out of line, but the total headcount accounts for the higher labor expense.

In my opinion, labor and management must strike a mutually acceptable accord or US Airways and the other network airlines could slowly die.

Could there be a way to incorporate productivity changes to permit headcount reduction to eliminate positions, but not jobs or to involuntarily furlough, to permit the unions and management to come to a reasonable accord? Moreover, could these productivity enhancements be incorporated into more ASM's so the aircraft can is in the air more producing revenue to lower unit costs?

Regards,

Chip
 
Chip,

Your just nuts, if you think we will allow the company a"free hand" to furlough.

They had two opportunities to get the cost savings required for the "business plan". Trust that 20,000 of our junior folks who lost their jobs, felt it but good.

If management didn't have the insight then, what makes you think they have any insight or foresight now? And who is to say that after another round of major furloughing for these productivity enhancements, that they won't once again change the business plan, AND SELL THE DAMN AIRLINE TAKING YOUR JOB WITH IT?

Can you ensure it wouldn't happen, Mr. Crystall ball of the 21 century????????
 

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