Cost Reduction

[CS AGENT]

USAirways has stated it needs 1.5 billion in cost reductions to save the airline.
$800 million from labor, and $700 million from non-labor related items. My question is if our survival is so dire, then why on earth must labors $800 million be obtained before the $700 million in non-labor related items by September or its bankruptcy?
If this company was in such a dire situation, would it not be doing everything in its power to avoid bankruptcy? Would it not be acting upon its targeted $700 million in non-labor related items that do not need labors approval while negotiating with the unions?
Would the unions not be more receptive to cost reductions if they saw the company doing this and really trying to save this company?
Someone please help me understand this. What is the real agenda.

 

[usair_begins_with_u]

UAir needs to hire someone that knows how to operate a LCC if they are to have any chance of survival.. Lakefield and Bronner have great financial management skills but.. how on earth are two non airline guys going to over see the kind of transformation necesary to switch UAir into a true LCC.

I think bronner knows he F'ed up and is now looking for an exit strategy.

 

[UseYourHead]

Do you believe that the "real agenda" is something other than getting the operating cost down to LCC levels?

The Transformation plan will not recieve financial backing of the ATSB, GE Capital, American Express, or others without the labor costs falling in line. This is our problem, as well as DAL, AMR, UAL, NWA...the list goes on.

Due to our specific situation (loan Covenants) we are extremely limited in the TIME department...the clock is ticking for everything to falll into place...plan B, pay off the loans, and read about US Airways in the next chapter of "Hard Landing", detailing our demise.

An interesting point to consider, is that we are the first of the legacy carriers to attempt this transformation. This could work in our favor if we are successful, or we will be a lesson to other legacy labor groups as to why they must embrace the concept of labor cost vis-a-vi the LLC's.

In fact look at AMR and the radical cuts they took to avoid bankruptcy after seeing what occured on our property.

The industry is changing (in fact it already has), will we participate going forward?

Contrary to what many say, there has been a constant morphing of the route system, adding countless point-to-point, and weekend only city pairs...there is much work to do for our historically weak management team.

That does not release us from the reality that we must be amongst the most competitive of labor groups if we are to survive...hopefully and agressive profit sharing plan can help close the gap in our piggy banks after all is said and done.

Good luck to us all!

USAirways has stated it needs 1.5 billion in cost reductions to save the airline.
$800 million from labor, and $700 million from non-labor related items. My question is if our survival is so dire, then why on earth must labors $800 million be obtained before the $700 million in non-labor related items by September or its bankruptcy?
If this company was in such a dire situation, would it not be doing everything in its power to avoid bankruptcy? Would it not be acting upon its targeted $700 million in non-labor related items that do not need labors approval while negotiating with the unions?
Would the unions not be more receptive to cost reductions if they saw the company doing this and really trying to save this company?
Someone please help me understand this. What is the real agenda.

[post="169650"][/post]​

 

[usfliboi]

How do you know they havent acted on that 700 mill ?

 

[CS AGENT]

How do you know they havent acted on that 700 mill ?

Ask the IAM

 

[28yrsnojob]

everyone must agree to about a 35% pay reduction or its going to be over
soon . U has days not weeks or months to get its act together.