Scott Kirby's CLT Crew News Update - July 29

[USA320Pilot]

On July 29 US Airways President Scott Kirby addressed US Airways’ pilots in the CLT Training Center. Two focus points in the discussion were the potential LGA transaction and the E-190 sale. Scott said he can’t comment on rumors or a lot of specifics, but he can talk about LGA and the E-190s in general.

Regarding the LGA (NYCCT) Corporate Transaction Scott said:

• “We do not own the LGA terminal technicallyâ€￾, but we have a long-term lease and can more control over our own destiny than our competitors. Basically this is the only place in the airport that there is long-term terminal lease and other airlines covet the facility. “It is great location and great terminal.â€￾

• “LGA, however, is an operation that loses a lot of moneyâ€￾ and it loses a lot of money for two reasons. “It is the least or most unprofitable flyingâ€￾ we have for two reasons. “There is a lot more competition in New York than there used to beâ€￾ and “they have competitive advantage we do not haveâ€￾, because unlike US Airways, they are not “shackledâ€￾ with the perimeter rule in New York. “Large markets are off limits to use.â€￾ CAL and JetBlue have operations out of JFK and EWR that are an advantage in large markets with their frequent fliers.

• The current “LGA operation is not sustainable for the long-term.â€￾

• US Airways has tried for four years to lift the LGA perimeter rule without success. The Company wants to take Express slots to fly to the West Coast.

• LGA perimeter rule is controlled by Port Authority and “we are working on that in DCA (perimeter rule)â€￾ that is controlled by Congress. Scott believes US Airways will get some relief on DCA perimeter rule which will be a “really big deal for the company.â€￾ The Company will replace some of its DCA Regional flights with mainline flights “which is a good opportunityâ€￾ and “a big deal for the mainline.â€￾

• Have has talked over the years about selling LGA slots or subleasing the terminal over the years.

• There are not enough large markets inside the LGA perimeter rule to make LGA profitable. US Airways either needs to get perimeter rule lifted, which is “there no near-term prospects of doingâ€￾ or “we need to do something to addressâ€￾ LGA.

• Mainline is profitable during the current economy and Shuttle is down a lot but is profitable, not by much but it is still profitable.â€￾

• The "company needs to address the LGA Regional problem."

"That is the background on what the company thinks about LGA."

Regarding the potential E-190 sale Scott said:

• The Company is exploring the possibility of selling the E-190s.
• Starting the process is a long way off from doing a deal.
• It’s the only flexibility the company has to reduce capacity.
• For the E-190s to be sold the economy has to stay bad and the company has to find somebody willing to buy the aircraft.
• US Airways is a “long way from selling the aircraft.â€￾
• The company likes the airplane.
• The company will only “do itâ€￾ if it’s the only option to reduce capacity (if necessary).

Regards,

USA320Pilot

 

[Furloughd4now]

Frist of all, your grammer is horrible...... This is just "flamebait".

You call this the "Big Announcement". Dont think so.

This strikes me as being YOUR interpretation of a meeting, not anything actual. If so, please post a link to the minutes or what was produced by Mr. Kirby's office.

Try buying a ticket from LGA to anywhere in Florida and see your fare results. I'm NOT saying any other airport BUT LGA. I firmly believe LGA can/should be a highly profitable airport, we just choose (like always) to give it up to the neighbors.

:blink:

 

[USA320Pilot]

Furloughd4now,

I quickly typed notes from a Webcast and I'm not very good at dictation. If I could listen and type at the same time I could use better grammer; however, in many instances I directly quoted Scott. I tried to quote Scott and type, which is not easy to do. Have you ever tried to do this?

All you need to do is show some initiative and go to theHub.com or Wings.com to listen to the Webcast. But, since you do not seem to know how to do this here are the links. Click here for the Wings presentation and click here for the presentation on theHub.com.

Maybe after you listen to the Webcast your self then maybe you will not make smart-aleck comments like "This strikes me as being YOUR interpretation of a meeting, not anything actual."

Finally, people are concerned about LGA because of the potential job loss at Piedmont and the Mainline. LGA is a close knit group where Pilots, Flight Attendants, CSAs, FSAs, Mechanics and others are friends on a first name basis. Every person there is concerned about the NYCCT, which makes it important to get information out ASAP.

Regards,

USA320Pilot

 

[JFK Fleet Service]

Perhaps LGA would actually be profitable if three quarters of the flying there wasn't done by fee for departure lift providers with cost plus contracts...

 

[AP Tech]

Finally, people are concerned about LGA because of the potential job loss at Piedmont and the Mainline. LGA is a close knit group where Pilots, Flight Attendants, CSAs, FSAs, Mechanics and others are friends on a first name basis. Every person there is concerned about the NYCCT, which makes it important to get information out ASAP.

Regards,

USA320Pilot

Sounds like your station is about to become toast!! Join the club of those who have been furloughed, displaced whatever you call it!! The company could care less about what kind of tight knit group you have going on up there!! Nobody is anything more than a number when it comes to the corporate structure. I worked with many who I was on a first name basis who are now fragemented all around the country just trying to make a living!!

Prepare to "Feel the Pain" as I recall the famous quote!!! Commuting is not that bad.......... :blink:

 

[Ramp Rogue]

Would it be profitable to have nonstop service from LGA to the biggest cities inside the perimeter? Such as MIA, MCO, DTW, ORD, PIT, TPA, DEN, MSY, STL, MCI, DFW, IAH, ATL, or BWI? We may go to some of these already, I didn't check. We should be able to make money flying to some of them. What is the perimeter distance for LGA, and also DCA?

Rogue

 

[crusher]

I believe the DCA perimeter is 1250 miles

 

[USA320Pilot]

JFK Fleet Service said: "Perhaps LGA would actually be profitable if three quarters of the flying there wasn't done by fee for departure lift providers with cost plus contracts."

USA320Pilot comments: JFK, your comment is accurate. And, with high fuel prices RJs have an even more difficult time producing profits. If US Airways can get out of LGA RJ/Express flying management could replace a lot of RJ high frequency markets with mainline flights to help LGA become profitable.

For example, LGA-BUF has a combination of nine RJ/Dash 8 flights per day that are unprofitable. If the company replaced those 400 seats with 3 or 4 A319 flights then the market could become profitable with less takeoff and landing fees and with an improved operation. The same type of capacity/equipment mismatch problem exists in markets like LGA to ROC, SYR, PIT, RIC, ORF, etc.

However, with fee for service contracts in place at companies like Air Wisconsin, Trans States, and Colgan reducing Express capacity becomes more problematic because management has less flexibility to reduce Express capacity. One area that could be reduced is Piedmont and PSA, which are US Airways Group wholly owned operations that are not "fee for service" restricted.

In addition, I know LGA Mainline Station Manager Loretta Bove has been lobbying Tempe to increase LGA-CLT service to hourly service. Maybe this will happen with some of the remaining slots, if slots are sold to Delta Air Lines at all.

I'm hoping the final NYCCT language (if a deal is consummated), of the 5 or 6 being discussed, permits US Airways to swap LGA terminals with Delta and for the Tempe-based company to not use the MAT. This option would dramatically drop US Airways’ facility rental expense because the current Delta terminal has 11 Mainline gates and 4 Express parking spots. US Airways’ terminal has 22 gates and 25 total parking spots. With the potential reduction in Express flying Scott alluded to in his Webcast maybe there can be an increase in mainline flights and an increase mainline utilization with the company's inability to reduce Group II flying because of the minimum fleet count.

With the Mainline Minimum Fleet Count governed by union contracts, the pending reduction of higher CASM RJ flying at both LGA and DCA, the pending reduced LGA facility expense/lack of vendor revenue, and increased Mainline DCA flying; maybe the pending deal could create an increase in LGA Mainline flying to cities inside the perimeter, which could make LGA profitable.

Regards,

USA320Pilot

P.S. It is my understanding the LGA Mainline Crew Base will remain in place and Mainline Flying will remain intact (who knows it might even grow).

 

[wopr21]

<_<

I believe the DCA perimeter is 1250 miles

So why are there perimeter rules anyway? Why does the airport care where you go with your slot?
You would think they would welcome competition , but thats another thread.

wopr

 

[OTslave]

Would it be profitable to have nonstop service from LGA to the biggest cities inside the perimeter? Such as MIA, MCO, DTW, ORD, PIT, TPA, DEN, MSY, STL, MCI, DFW, IAH, ATL, or BWI? We may go to some of these already, I didn't check. We should be able to make money flying to some of them. What is the perimeter distance for LGA, and also DCA?

Rogue

MIA, MCO, PBI, PIT, TPA, MSY, MCI, BWI
At one time there was mainline service to the above and others.
The "Shrinking to Profitability Syndrome" struck and they were gone.
Oh I forget, the "we don't have enough RJ period".
If this management team were in charge during WWII, we'd be speaking German now.

 

[crusher]

It is my understanding that the perimeter rule in DCA was initially instituted around the time IAD was opening so as to force all long haul traffic there and to sort of justify the airport. DCA is quite constrained in both runway length and real estate in general . Congress has essentially used DCA as it's own private airport for years and dictated the rules . The relaxation in perimeter is quite limited however with US having 4 (3xPHX, 1XLAS). I know we would love to have more as all 4 of these flights are sold out nearly every day.

 

[hp-csr-phx]

I wonder why we don't use East 757's on the long hauls out of DCA to PHX and LAS? Does using the A319 keep the yield up? We complain about lack of service beyond the perimeter, but use a small plane on the route.

 

[Dog Wonder]

No news here.

Kirby may be a less reliable source than certain posters.

 

[back2CLT]

I wonder why we don't use East 757's on the long hauls out of DCA to PHX and LAS? Does using the A319 keep the yield up? We complain about lack of service beyond the perimeter, but use a small plane on the route.

I doubt the runway at DCA is long enough for a fully loaded 757.....

 

[crusher]

757'a are not a problem at DCA , it is a fully load 737 that is . We would love to have more 757's here. Give us 757's and Airbus , keep all the 737's away.