Alpa Mec Meeting Talking Points - 3/30/05

[700UW]

May as well let Johnny O fly his 737's as an Airways connection. I hope I'm not watching events unfold into an "I told ya so"....

SH

[post="259805"][/post]​

Here you go again with Johnny O's non-exsistant 737s that you said last year that they owned and were ready to get operational approval to fly.

Yet to this day there are NO Mesa 737s.

Do I need to post all your postings about these so-called 737s that Mesa has but yet have not been seen by anyone?

 

[Light Years]

Most mainline people (at least F/As) are utterly clueless as to what MAA even is. If they are ignorant to an airplane on thier own certificate with thier own employees, they definately won't notice an outside airline flying 737 sized jets under thier brand.

First it was 50 seats... then 70... now 90/100, nearly the same size as the smallest a/c in the US fleet (which makes up the majority of it).

In three years larger narrowbody and widebody flying will be outsourced too. And to think the "major airline" with the smallest planes and shortest routes is the one that keeps allowing larger and larger outsourced planes.

 

[USA320Pilot]

As more information about US Airways’ restructuring becomes available there are more interesting points.

Today’s bankruptcy court approval of the US Airways – Republic agreement provides for an amendment of the existing Chautauqua JSA, including: a reduction in compensation of approximately 3% on the existing 35 ERJ-145 fleet effective April 1, 2005. That’s a reduction of the current “fee for serviceâ€￾ contract of cost plus 8% to cost plus 5% effective tomorrow, which further lowers US Airways’ costs.

See Story

Meanwhile, the AP reported US Airways senior vice president of corporate affairs, Chris Chiames, said US Airways is talking to several interested parties about investing; he declined to say whether he expects the investment would come from another regional carrier (TSA & Mesa???).

Chiames said the fact that the two investors thus far are regional carriers that could stand to lose business if US Airways goes under does not diminish the significance of their willingness to invest.

"No one's twisting their arm. These are smart business people and they make investment decisions based on what's good for them. We're not a charity case," Chiames said.

Lowell Peterson, a New York-based bankruptcy attorney with Meyer, Suozzi, English and Klein, said it's not unusual for companies with a vested stake in the debtor to be the ones that step forward with a new investment.

Such companies are often preferable, he said, to the other common form of bankruptcy investor: so-called vulture (e.g. MaitlinPatterson) funds seeking a short-term profit.

"This is clearly not a speculative investment," Peterson said of the Republic-US Airways deal. "This is an investment by someone who wants to see the reorganization be successful in the long term."

See Story

Regards,

USA320Pilot

 

[SoldWholeSale]

700,

If you were a bass I would have you stuffed and hung above my fireplace..... LOL I knew that was bait you couldn't resist. Lucky thing this board requires barbless hooks.

 

[700UW]

Main Entry: cred·i·bil·i·ty
Pronunciation: "kre-d&-'bi-l&-tE
Function: noun
Date: 1594
1 : the quality or power of inspiring belief <an account lacking in credibility>
2 : capacity for belief <strains her reader's credibility —Times Literary Supplement>

 

[Rico]

Most pilots at CHQ feel that a J4J thing is what will come out of this. 50% of the pilots will not have jobs has the aircraft leaves MDA

Well, at a mininum that is what will happen, IMO it will be something in between that and a full on senority merger.

With 25 current aircraft being brought onto the Republic property, three more to come, and an agreement in place for an additional 19 to be flown under US Airways Express colors (Including the E-190, which only U's scope allows Republic to operate) it is not like we are coming with nothing to offer. With the other additonal 40 E-Jets I have been told also being brought on for UAL and DAL, it is also not a squeeze for them to blend us into what is basically a new pilot list and new company.

Hopefully the majority of the CHQ pilots have not forgotten that it was US Airways ALPA and ALPA National that went to bat for them, to support the efforts of the Teamsters to prevent Republic from being formed as a stand alone carrier (Alter ego) during their last contract talks...

For if that effort to keep that flying only on the CHQ property was not successful, the CHQ pilots would not have been able to fly either the 48 jets from our order, nor any of the other EMB-170's for DAL and UAL...

Hopefuly something can be negotiated that is good for all involved, not just one group.

 

[luvn737s]

I would not expect Air Wisconsin's and Wexford's investments to lead to long-term success for USAirways. Their combined ownership will allow them to write regional feed contracts that benefit them at the expense of USAirways, sort of a modified Karibu arrangement that the TWA faithful will surely remember. Expect more fee-per-departure and less at-risk flying by these carriers and the elimination of Mesa and TSA as USEx without their equity participation as well. This arrangement allows these two carriers to squeeze revenue out of the USAirways infrastructure with the mainline showing little, if any, profits in the future. This will choke off any further investment in US and limit it's future growth unless these two carriers loan more money and dig themselves in deeper to finance mainline expansion. USALPA will find themselves negotiating with AW and Wexford more so than US management.
Aye carumba!

 

[Winglet]

I would not expect Air Wisconsin's and Wexford's investments to lead to long-term success for USAirways. Their combined ownership will allow them to write regional feed contracts that benefit them at the expense of USAirways, sort of a modified Karibu arrangement that the TWA faithful will surely remember. Expect more fee-per-departure and less at-risk flying by these carriers and the elimination of Mesa and TSA as USEx without their equity participation as well. This arrangement allows these two carriers to squeeze revenue out of the USAirways infrastructure with the mainline showing little, if any, profits in the future. This will choke off any further investment in US and limit it's future growth unless these two carriers loan more money and dig themselves in deeper to finance mainline expansion. USALPA will find themselves negotiating with AW and Wexford more so than US management.
Aye carumba!

[post="259826"][/post]​

Exactly, Wexford just wants to be a parasite on the carcass of US Air for as long as possible. It's too his advantage to keep U hooked up to life support while he drains all blood except that necessary to keep U alive.

 

[Light Years]

This airline could end up with 100 regular-size modern jets, regional airline labor, important slots and gates from US all paid for by US Airways, American Airlines, Delta Air Lines, and United Airlines.

CHQ is pretty much buying itself a huge chunk of US's flying with the money they were paid by US and others to fly for them. They could pull an ACA/Independence Air, but with full size airplanes. A major LCC financed by the major airlines.

 

[700UW]

A airline expert back in Aviation Daily during the first bankruptcy said if US Airways had 30 widebodies, 100 narrowbodies and 300 regional jets, it would be the most profitable US based airline.

Seems US is heading that way.

 

[delldude]

don't get too touchy feely...............
fasten your seat belts dear

 

[Light Years]

A airline expert back in Aviation Daily during the first bankruptcy said if US Airways had 30 widebodies, 100 narrowbodies and 300 regional jets, it would be the most profitable US based airline.

Seems US is heading that way.

[post="259900"][/post]​

It very well could be. Ditch the Boeings, pick up more 330s and you're there. If only the RJs (I'm assuming that includes 100 seaters) would be operated by US employees... an airline of 430 jets which is alot more jobs than an airline of 130 jets with alot of affiliates.

 

[funguy2]

"No one's twisting their arm. These are smart business people and they make investment decisions based on what's good for them. We're not a charity case," Chiames said.

Actually, the fact that the US industry is oversaturated with Regional Jets is "twisting their arms". The facts of the matter are these.

1. There is too much regional jet capacity in a world of $30/bbl oil +
2. Much like the coming shake-out of legacy airlines, there will be a shake-out of small jet providers.
3. Air Wisconsin/Eastlake (or was is Eastshore) and Republic/Wexford see this and want to have more control over that uncertain future.

Obviously, you can tell that I agree with Mike Boyd on these points.

US Airways may not be twisting arms, but the economic reality of regional jets have these companies over a barrel. One needs only to look at Independence Air for an example.