E190's going bye bye?

[Poug Darker]

I agree, get rid of the contract carriers. The last balance sheet I saw (not the latest one, haven't seen that yet) showed that employing the contract carriers actually cost us money - The RASM for the little jets was around 19 cents and the cost was above that....
Here's a thought - It was suggested a few years back that LCC become more like LUV's operation. The response from management was that they would have to eliminate half of the current fleet if they implemented point-to-point flying ala LUV. Guess what folks, half our 'fleet' is CRJ's.....
Talk amongst yourselfs....don't get vaclempt.
Cheers.

 

[RowUnderDCA]

gosh... c'mon peeps. What the man says is easily understood, clearly explained and very plausible.

If times get worse, or fail to get better, the best business plan is just to survive to a better day. To survive, slashing capacity in a manner that is cheapest, easiest, fastest and yields the greatest very short term benefit (wich may be liquidity) may be the best strategy, while you watch your competitors bleed cash.

That's all he was saying to a group of journalists that, not surprisingly, want to talk about worst case scenarios. It helps avoid the topic of 'liquidation strategies.'

Of course, I'm not so naive as to think it doesn't have follow on labor effects, regarding strategy, but it is also, independently plausible. It may suck, it may be wrongheaded, but I think it's clearly supported by the reasoning offered.

 

[autofixer]

Actually this is about the minimum fleet count in the pilot contracts. The E190s are not included in the minimum fleet count and management plans to use the elimination of the E190s and the furlough of more pilots as a negotiating tactic in the upcoming negotiations...it is that simple. All we have been hearing is how the company loves the E190s, etc., etc. Now they may have to go? No, they plan to use more furloughs as a negotiaing tactic.

 

[Diamondbacks2004]

Sell 25 US Airways Embraer 190 jets for about $875 million dollars or less value to new owner???

Parker and Kirby, please thinking about order new Boeing 737NG (-700, -800 or -900ER) for the first time. Unless if they said NO. Sad...

 

[HPDriver]

Actually this is about the minimum fleet count in the pilot contracts. The E190s are not included in the minimum fleet count and management plans to use the elimination of the E190s and the furlough of more pilots as a negotiating tactic in the upcoming negotiations...it is that simple. All we have been hearing is how the company loves the E190s, etc., etc. Now they may have to go? No, they plan to use more furloughs as a negotiaing tactic.

Absolutely nothing to do with negotiations.

Parker has all the leverage he needs and even more so with the injunction.

No, its purely a means of satisfying creditors and showing them the can reduce capacity and raise money quickly if need be.

USAPA is dead in the water when it comes to being able to make any demands at the table.

 

[ROACLT]

Absolutely nothing to do with negotiations.

Parker has all the leverage he needs and even more so with the injunction.

No, its purely a means of satisfying creditors and showing them the can reduce capacity and raise money quickly if need be.

USAPA is dead in the water when it comes to being able to make any demands at the table.

If the large SJ grievance is won by the union, the company is going to have to offer some kind of settlement. How about one that costs them nothing? They were going to sell the EMB 190's but theywill keep them and raise the min fleet requirement to include them if you raise the large SJ limit. Sounds like par for the course. Hopefully your union will do the right thing and just say sorry, if that is your business plan so be it, we aren't going to keep playing this game with your cards face down.

 

[JayBrian]

Does USAirways even own the E190s?

Even if they do I wouldn't think there is much equity, they have not been with the airline very long.

 

[FWAAA]

Does USAirways even own the E190s?

Even if they do I wouldn't think there is much equity, they have not been with the airline very long.

They are owned, but as you point out, they are encumbered (as are all airplanes in the US fleet). I wouldn't think there would be much equity either. Guess it depends on how valuable 25 late-model 190s are in the aftermarket.

 

[Nor-CalSurfer]

They are owned, but as you point out, they are encumbered (as are all airplanes in the US fleet). I wouldn't think there would be much equity either. Guess it depends on how valuable 25 late-model 190s are in the aftermarket.

They can sell them and raise cash if needed. But to get get a decent price they would need to sell them while they are not perceived as needing the cash to survive. So now is a good time to float the idea and see if any one is willing to take them off our hands at a fair market price.

The idea that doug needs them as a bargining pressure is absurd. The economy, $2 stock price and the unspoken threat of bk is plenty of pressure to get usapa to accept a lowball contract, if they are interested in a contract.

 

[oscarjazz]

Parker was asked by Jamie Baker if selling the 190's would generate additional cash. Parker said it wouldn't as they still had significant debt on those aircraft. I think this is a capacity/small fleet issue rather than a cash issue. Parker may also be trying to pretty up the airline for a merger/fragmentation. It seems that he is working pretty hard towards that outcome.

 

[Poug Darker]

It's contract time boys, this is how its played. Pressure and fear, divide and conquer. Resistance is futile, that sort of thing. Been there, done that, every contract, same thing. Yes, I believe all the other blather about capacity, blah, blah, blah. But it was very convenient to 'casually' mention this at this time, just after reporting a profit - to make sure the pilots and f/a's know exactly where they stand.
My take - the airplanes are replacing 737's and are cheaper. Same fare.....more profit than a 737. Only if he's ready to burn the furniture will he sell these.
He'd rather buy more and ground more 737's. Nah, it's negotiations 101 - plain and simple.
Cheers.

 

[Schultz]

It's contract time boys, this is how its played. Pressure and fear, divide and conquer. Resistance is futile, that sort of thing. Been there, done that, every contract, same thing. Yes, I believe all the other blather about capacity, blah, blah, blah. But it was very convenient to 'casually' mention this at this time, just after reporting a profit - to make sure the pilots and f/a's know exactly where they stand.
My take - the airplanes are replacing 737's and are cheaper. Same fare.....more profit than a 737. Only if he's ready to burn the furniture will he sell these.
He'd rather buy more and ground more 737's. Nah, it's negotiations 101 - plain and simple.
Cheers.

Agreed, 100%

 

[Elevation]

Disagree 100%

 

[flyer63]

He is a liar... One meeting says no plans and another meeting says they are studying it.
Pathetic

 

[luvthe9]

The company would be forced to bring back approx 40 mainline aircraft for violating the contract (17 RJ's over the limit) the ruling will easily go in USAPA's favor. Thiis was the expected response to from the company, the threat of getting rid of the 190's. It's game time!!!!!