Execs Say Cost-cutting Necessary

USA320Pilot

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May 18, 2003
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US Airways execs say cost-cutting necessary, but not asset sale

ALPA: "The pilots shouldn't be expected to carry this loadâ€￾


PRATTVILLE (AP) - The two executives trying to lead US Airways to profitability said Wednesday more cost-cutting is necessary, but selling some assets is not an option they want to pursue.

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Regards,

USA320Pilot
 

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One of the major LOA 91 company objectives was to permit the sale of PSA, MDA, and their aircraft delivery positions. During negotiations ALPA was told that PSA and possibly Allegheny/Piedmont would be sold.

The company wants to keep MDA on the property because it has the highest RJ margin and a 50% break even load factor, but if necessary MDA could be sold too.

Other assets that are for sale are the former Orlando Reservations facility, one B737 simulator, and one A320 simulator.

The corporate motivation is to pay down short-term ATSB loan guarantee debt, reduce long-term aircraft acquisition costs, eliminate potential M&A scope clause issues, and boost liquidity, while maintaining revenue.

Regards,

USA320Pilot
 

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From the story in question (bolding is mine):

But Bronner and Lakefield, without mentioning any specific assets, said Wednesday they don't want to raise revenue that way.

(that way refers to sellings assets)

Oh, and Pollock is beating the drum:

But he said the airline's next round of cost cutting shouldn't be focused on one group. "The pilots shouldn't be expected to carry this load," he said.

Sooner or later it's going to dawn on those who clear $80k/year and north that very few people are willing to turn a $35k/year job into a $30k/year job with no upside--indeed, the US folks I talked to in PHL and PIT and the back of both of my flights today seemed to indicate that it's better to ride it out and collect unemployment.

I'm curious as to what the MEC President might do if the rest of the unions on the property flip the bird and opt for the judge.
 
Clue:

Clue said: "Sooner or later it's going to dawn on those who clear $80k/year and north that very few people are willing to turn a $35k/year job into a $30k/year job with no upside."

USA320Pilot: I recently had a discussion with the LGA Station Manager who had openings for 8 part time customer service positions that had a starting pay of about $8 per hour. Guess how many people interviewed for these positions?

Over 400.

There are people beating the door down to obtain these positions, therefore, if any employee group does not want to participate in the "Transformation Plan" -- management knows there are willing replacements.

Regards,

USA320Pilot
 

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well why is it fair that the greedy pilots who make 80k a year and HIGHER up want to keep the high pay while helping the mgmt team ask the other three unions to take further paycuts?????? it is bad enough the company wont give the iam's work of heavy maintaince back, turned a number of cities into the mickey mouse circus called expressed mainline, but wants to further bury what is left of their own employees in a casket 6 feet below the plane's belly!
 
ClueByFour said:
From the story in question (bolding is mine):



(that way refers to sellings assets)

Oh, and Pollock is beating the drum:



Sooner or later it's going to dawn on those who clear $80k/year and north that very few people are willing to turn a $35k/year job into a $30k/year job with no upside--indeed, the US folks I talked to in PHL and PIT and the back of both of my flights today seemed to indicate that it's better to ride it out and collect unemployment.

I'm curious as to what the MEC President might do if the rest of the unions on the property flip the bird and opt for the judge.
IMO, your company newspaper articles putting out the ole 'lions, tigers, and bears, oh my' have no meaning anymore to many and dare I say 90% of IAM members. I'm sure the IAM knows this. I don't know, it's pretty much like nobody really cares and they already know this time next year there will be no more. My guess is that talk of chap 7, asset sales, etc will start being screamed on a hill, almost in a desperate way, since nobody is close by. I just don't see anything happening that will make even a measurable amount of IAM members to start hearing, no matter how loud things are screamed. Can't say I have seen anything like this before.

On the other hand, what is interesting and does have meaning to the rank and file and is picking up more meaning daily is unemployment benefits. protecting unemployment benefits is the last option.

I'm not saying I support this type of thinking by fellow IAM members but nonetheless it makes 'good sense' in an end game.

Difficult situation indeed for this company or anyone who wants to further their professional flying career.

regards,
 
USA320 will do anything and sacrifice anyone to further his flying career. In addition, why do you think he continually harps about UAL? He sees an opportunity to fly a larger aircraft and make more money at the expense of UAL pilots. He won't admit to this, but anyone who has followed his posts knows this to be true. Savy :down:
 
USA320Pilot said:
Clue:

Clue said: "Sooner or later it's going to dawn on those who clear $80k/year and north that very few people are willing to turn a $35k/year job into a $30k/year job with no upside."

USA320Pilot: I recently had a discussion with the LGA Station Manager who had openings for 8 part time customer service positions that had a starting pay of about $8 per hour. Guess how many people interviewed for these positions?

Over 400.

There are people beating the door down to obtain these positions, therefore, if any employee group does not want to participate in the "Transformation Plan" -- management knows there are willing replacements.

Regards,

USA320Pilot
I wonder how many folks would beat down the door to do your job for $50K? does that make it right? Acceptable?
 
USA320Pilot said:
USA320Pilot: I recently had a discussion with the LGA Station Manager who had openings for 8 part time customer service positions that had a starting pay of about $8 per hour. Guess how many people interviewed for these positions?

Over 400.
When LUV had a job fair in BWI a few years back, they got something like 8,000 apps for 40 positions. I'll bet many of those folks are still there.

OTOH, I've watched the turnover at some of the more, well, wretched express stations in the system, and you do get what you pay for.

Indeed, those 400 folks won't be able to get trained and up to speed in time to save the airline from a self-help walkout if an S1113 motion is granted, so it's all kind of moot. With the FAs, you have the training costs. Heck, with the CSAs you have a training cost--maybe not in certification, but it's easy to tell the stations where an affiliate or contract holder handles US and where the real folks are. This is an intangible that US cannot afford to underestimate--the small group of folks who still buy the "BOHICA" fares and who buy 100 trips a year of any kind generally do so for a number of reason, but a large part is the US frontline folks. In the past 5 years, I've had some kind of VFF elite status with US, UA, AA, CO, DL, and BA. With the exception of BA (who treats me ok simply because I give them the kind of fare action that would make B. Ben pitch wood), the folks in the trenches at US are the only thing that keeps me flying US at all, since I no longer have any other real incentive to do so.

It's important to note that US does not have an upside like LUV, for instance--the stock is not worth the paper it is printed on and there are no profits to share. If you start a job at $8 bucks an hour, and have a million bucks in equity in 20 years it's an entirely different thing than starting a job for an airline that has not really made money regularly in 15 years and has no signs of "getting it."

Finally, and I think it's worth noting--I'm willing to wager that US could dig up 4,000 guys with the ATP and a few thousand hours of turbine PIC time who are more than willing to work for $50k, as Busdrvr points out. Are you willing to work for $50k?

If you pay 8 bucks an hour with no possible upside, you will get what you pay for. If that happens, it's a massive failure on management's part, since it's quite clear that the only airlines making money also happen to be the ones with the (relatively) happiest employees.
 
Usa320pilot,

Care to tell us about all the problems US has had with stations that were expressed in the last two years? :eek:

IS US really saving money?
 
USA320


How many of the 400 would pass the drug test and 10yr. background check?
Heard from F/O yesterday 737 sim in CLT was sold to FedEx.Is this true?
Thought you would know.
 
Clue, many thanks for your continued support. I really enjoy reading your posts and getting your perspective of things.

It really concerns me, that if labor does indeed have to conceed to this next round of concessions, that company morale will be even lower than it already is. There are very few happy people that I see anymore. At least where the company and our jobs are concerned. What I am also seeing more and more of is an "I Really don't care", attitude. People are Tired. :(
 

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