Why Isn't Restructured Us Airways Taking Off?

[USA320Pilot]

Why isn't restructured US Airways taking off?

Company’s unionized workers are senior and paid top scale - the most junior pilots still working at US Airways were hired in the 1980s. Contracts limit productivity and outsourcing

WASHINGTON (US Airways Today) - Inside and outside US Airways, many now wonder whether the nation's seventh-largest airline can be saved.

See Story

Respectfully,

USA320Pilot

 

[USA320Pilot]

USA Today reporter Marilyn Adams wrote, "United Airlines, still in Chapter 11, also has reason for concern. The prospect of a US Airways loan default might discourage the ATSB from guaranteeing a loan for United, which seeks a loan twice the size of US Airways' loan. United also had counted on $200 million a year in revenue from its deal with US Airways to market flights on each other's planes."

USA320Pilot comments: There are Wall Street reports that the ATSB has let US Airways' business partner United Airlines know that its preliminary application -- even without the company articulating its business plan and POR, which is due to be filed with the bankruptcy court in early March, is insufficient. Thus, the company has increased its efforts to cut costs by proposing to reduce retiree medical benefits and to close its Miami crew base.

Respectfully,

USA320Pilot

 

[TheLarkAscending]

You never miss the opportunity do you? :angry:

 

[700UW]

Oh no here we go again.

Mr Moderator the last post was about UAL, move it to their thread.

 

[Light Years]

Thats the most space devoted to US Airways in USA Today I've seen in a while. Too bad it wasnt an advertisment. <_< I'm sure anyone who reads that will be sure to book on US.

Pretty darn grim.

 

[USA320Pilot]

Light Years:

Let's put the article in perspective and think about the timing of events.

US Airways chief executive officer Dave Siegel meets with USA Today reporter Marilyn Adams on Friday, the newspaper does not publish an edition until Monday, and on Tuesday ALPA's MEC Officers, Negotiating Committee, and Financial/Legal Advisors will meet with the Company to obtain the "Transformation Plan" Power Point presentation and examine the books.

From this observer’s perch, we are seeing management once again expertly manage employee expectations, but make no mistake about it -- US Airways' problems are real and either management and labor find acceptable solutions or the company fails.

Respectfully,

USA320Pilot

 

[PITbull]

This management has let to much out to the media with the "doom and gloom". This will hurt our customer base and future bookings.

Management should have kept their mouths shut.

 

[BoeingBoy]

PitBull,

Management is too busy trying to "expertly manage employee expectations" to manage the airline.

Jim

 

[USFlyer]

PIT -

For once, we agree. Why management continues to negotiate via the press is beyond me. Instead of doing its best to keep passengers, we have on one hand Marketing doing almost everything possible to piss them off and, on the other, the rest of management saying nothing but doom and gloom.

Just flew UA to HNL today. You would never have guessed UA is in Chapter 11. Food in F was fantastic (both BWI-DEN and DEN-HNL), planes were spotless, staff seemed proud of the product they offer, etc. US doesn't need to be as fancy as UA, but the product really is going downhill. Please don't take this as criticism of the employees. Just I've been flying UA more and more lately (gee, go figure, they actually fly where I need to go) and I'm starting to notice just how different the products are. (A few weeks ago I was singing a different tune, but today's flights really brought out some major differences.)

Oh, and the UA F/As really do treat the US Preferreds just as well as UA's own elite members. On both flights I got offered my meal selection after the 1ks made their selection. Nice touch, IMHO. Makes me want to come back and fly them again.

 

[ClueByFour]

You know, the correct solution to the problem (if a group, notably ALPA insists on caving again) is to permit "productivity enhancements" for a period of 18 months.

However, in exchange for that:

1. All company officers work for a flat rate not to exceed the yearly earnings of the most senior pilot on the property. Any further compensation has to be based upon revenue growth, not based upon cost-cutting. Or, only cost improvements not wrung from other unionized labor groups.

2. If, at the end of this timeframe, management has not produced enough revenue growth to return the airline to profitability, everything snaps back.

3. Make these demands public, and make sure that the street and the flying public know that all U management has to do is put their money where their mouth (and employee's money) is.

In other words, ensure that labor's givebacks in the realm of "productivity" enhancements don't happen unless management is willing to place their compensation on the line in the name of "productivity."

I don't think Dave and company will do it--I don't think he's got the stones to do such a thing (or, for that matter, the management acumen to make it work, or the comittment to US Airways to try). But it would make for interesting press.

 

[boeing787]

United submitted their business plan a long time ago. Waiting to submit their business plan until March? I think not. They are cash flow positive and the banks like their plans. The closure of MIA was strategic in nature. They will be back when the STAR terminal is complete. The insurance was to even it out among all employee groups. Thanks for your opinions.

 

[AOG-N-IT]

You know, the correct solution to the problem (if a group, notably ALPA insists on caving again) is to permit "productivity enhancements" for a period of 18 months.

However, in exchange for that:

1. All company officers work for a flat rate not to exceed the yearly earnings of the most senior pilot on the property. Any further compensation has to be based upon revenue growth, not based upon cost-cutting. Or, only cost improvements not wrung from other unionized labor groups.

2. If, at the end of this timeframe, management has not produced enough revenue growth to return the airline to profitability, everything snaps back.

3. Make these demands public, and make sure that the street and the flying public know that all U management has to do is put their money where their mouth (and employee's money) is.

In other words, ensure that labor's givebacks in the realm of "productivity" enhancements don't happen unless management is willing to place their compensation on the line in the name of "productivity."

I don't think Dave and company will do it--I don't think he's got the stones to do such a thing (or, for that matter, the management acumen to make it work, or the comittment to US Airways to try). But it would make for interesting press.

Clue....your idea is to say the least interesting.

The downside is....Many feel that the books and figures within those books are cooked or artificially negative at present. This if true? Could easily be cooked in the opposite direction without strict over watch.

 

[USFlyer]

ALPA will cave. Who wants thousands of pilots in their 40s and 50s suddenly on the street? I'm just not sure the caving will do much at this point. As I implied above, all the cost cutting in the world won't matter if the product US offers doesn't meet the needs of its customers.

(I'm still waiting for more west coast stations to close. SEA loads have been very light lately on the flights I've taken. I know it's the usual winter downturn, but, try booking a flight DCA-SEA ... all but 1-2 options are on UAL! No wonder they're doing so well ... the codeshare seems almost one-sided in many markets.)

 

[ClueByFour]

The downside is....Many feel that the books and figures within those books are cooked or artificially negative at present. This if true? Could easily be cooked in the opposite direction without strict over watch.

A couple of million to pay the actuaries and accountants (hired by the unions, but on the company dime) should be part of the package. Oh, and make Bronner certify all SEC filings, in addition to Dave and Cohen (or whoever is playing CFO these days). Since the State of Alabama would then be in on any SEC silliness, and presumably a guy as small as Dave probably does not want to do the perp walk and subsequently end up in the federal prison camp at Allenwood, it should keep book cooking to a minimum.

Oh, and make sure all this makes the press. Play like they do. Make them put their money where their mouth is.

 

[AOG-N-IT]

A couple of million to pay the actuaries and accountants (hired by the unions, but on the company dime) should be part of the package. Oh, and make Bronner certify all SEC filings, in addition to Dave and Cohen (or whoever is playing CFO these days). Since the State of Alabama would then be in on any SEC silliness, and presumably a guy as small as Dave probably does not want to do the perp walk and subsequently end up in the federal prison camp at Allenwood, it should keep book cooking to a minimum.

Oh, and make sure all this makes the press. Play like they do. Make them put their money where their mouth is.

I could get on board with a plan like that. It sounds genuine for a refreshing change...thus our management would never buy into it. <_<