Another Crossroad



Have you heard Siegel’s message (1 800 USDAILY).

Siegel gets Paid Hundreds of Thousands of Dollars more than the LCC CEOs. His total Compensation Package makes other Airline Executive’s – Pale. He’s building a get-away Palace on an Island in the Caribbean. He’s got more Senior Executives than any other LCC and the number is increasing. Compensation wise, he stands above the Executives of some of the most successful Full Service, Hub-Spoke Airlines not to speak of those most successful Executives leading profitable Corporations in other industries.

American Airlines was on the ropes yesterday and today they are rising above the Red Ink. One of American’s former Chief Executives, Robert Crandall, when asked about USAir’s strategy in Bankruptcy in the wake of 9-11, “You can’t shrink to profitability. Never abandon your Markets.†What did USAir’s management do? – Shrank and Abandoned. What did Siegel admit in his weekly message as factors in the success of other Major Airlines, as he steers USAir to a dismal performance – That other Major Carrier’s cost structure is on Par with USAir’s, however their diverse Route Structure has supported the operational concept of a Full Service Operation. The kind of Route Structure this Management has withered to a small corner of the Northeast.

Siegel, in his message, is out of ideas and unable to shrink or retreat any more as he stands up to his neck in high-tide off the shores of the East Coast. What’s left to shrink? Where else to run? He pounds out his message, comparing the cost structure with the LCCs. At the same time he doesn’t mention the night and day difference in the operations of USAir as compared to Southwest, Airtran and JetBlue! With the inherent inefficiencies of Hub-and-Spoke, Full Service Airlines; Mr Siegel wants the LCC cost structures... It cannot physically or economically happen. So what will Mr Siegel do? Will he rationally try to retool his Airline into a single Fleet type, fly Point-to-Point, give up the inefficiencies of the Hub concept and the dreams of sitting at the helm of a prestigious, full service, Internationally ranked Airline? Will he cut himself an austere pay and benefit demotion, let go – the overpaid, overrated and over-numbered army of Executives? Will he operationally mirror the Airline concept for which he strives to achieve a mirror cost structure? The Answer in his message – NO!

NO – I don’t want to operate like a LCC. That’s not prestigious enough for this Chief Executive. NO – I will not market, promote nor advertise this airline. NO – I will not increase the utilization of my Aircraft or Flight Crews – I’m quite satisfied with letting Aircraft sit for 3 hours between turns and Crews sit in hotels for 36 hours and fly aircraft on short hops, sometimes with Crews scheduled for only one or two legs in a day. NO – I don’t want to match my complete wage and benefit package with those of Executives at the LCC whom I whish my employees to emulate in costs alone. NO – I don’t want to give up my Army of Vice Presidents. NO – I shall not leave my exurbanite Corporate headquarters in Washington -- I will not abandon my big desk and comfortable Executive’s chair for the bland, yet relative appropriate scale of Executive suites in some hangar in Pittsburgh or Charlotte. No – I will not re-expand the Mainline of our Full Service, Hub network to mimic that kind of diversification of route structure which has help to rebound other Major airlines. No – I will not abandon the Regional Jet Market, because, although risky and unproven in a potentially re-expanding and progressively re-overcrowding Air Commerce Market; I would like to further dilute the remaining economic strength of one concept of USAir Mainline operation with the divided attention and division of resources, to competing in a growing competitive market of Small Jet – Regional Operations --- I would rather fight for my life on two fronts with limited resources rather than accept the axioms of noted successes in the industry who tout simplicity of operation, diversification of markets, long stage lengths and promotion of employee morale and loyalty. No – I will not subdue my celebration by not taking another holiday to a vacation retreat whenever I successfully devour another employee welfare or benefit package. No – I will not emphasize nor focus primarily on the revenue side of the equation nor the organizational structure of this Airline (he said this).

So what will I do? What’s my Focus?

I will prepare my men and women for the grim news to come in defiance and contrast to the upbeat messages of other Airline Executives steering their carriers on the same seas and in the same environment as USAirways without the advantages of breached agreements exploited through the Courts.
YES – I will make the employees PAY for a plan which I have devised but is not working as intended because I cannot grasp the concept nor anticipate the alternatives in a dynamic industry.
YES – I will make the employees PAY because a reversal of strategy now would make me look foolish – It’s best to be consistent -- plunge ahead when rewarded by failure. FAME, REPUTATION, ACCLAIM and NOTARIETY – has a price.
YES - I will make the employees PAY because I will ignore proven conventional wisdom and conservative strategies in favor of my unproven wisdom, risk of venture and unbalanced strategy.
YES – I will make the employees PAY because I will defy the incongruence of product branding and become a master of a hybrid Low-Cost, Full Service, Small Jet/Large Jet, Regional, Hub-and-Spoke, International Airline with the lowest paid, over taxed, under staffed employees with the highest Morale, respect and admiration for a CEO, who, has offered them, as an alternative and bare minimum, a way of keeping off the streets, with the only prospect after retirement of survival on Federal and social programs and WallMart employment.
YES, YES, YES – I’m coming back for more. Yes – As simple as I can SAY, I will make the employees PAY because My plan is not working, but I can force it to work if I can get employees to give more.
YES - YES – the Politicians hate me. YES – the customers are putting me at the bottom of the industry in satisfaction and performance surveys.
Yes – I blame everyone and everything from Competitors, Congress, Unsympathetic Federal Courts, Airport Authorities, Counties, States, the PBGC, the Weather and of course – employees.
YES – I will make the employees PAY because I will never SAY, “It’s me... I’m making mistakes... It’s compounding... and I don’t know how to fix it without... MAKING THE EMPLOYEES PAY!

Did you listen to Siegel’s message (1 800 USDAILY)?

For you colleagues and customers are you inspired by the Product this Executive team is offering?
For our Competitor’s Executives and you Analysts; In your opinion, does this Executive Team inspire customer brand loyalty and generate industry respect for Executive direction and strategy?
Do any of you intellectual observers believe this executive team has the chemistry to inspire dedication, trust and loyalty to the corporation from it’s employees.
Did Siegel’s message mention any programs to boost employee morale and find the ingredient of cooperation which has and is working at all of these successful LCC which Siegel wants to copy.
For you employees, do you feel tired, exhausted and burned out by unimaginative executives? Do you feel you’ve run a marathon and now gluttonous, self-serving, blundering Corporate Leaders want you to hoist them on you back and carry them to the finish line where a feast will be only shared among the elite corporate few. Do you really believe that the corollary of “failure requires employee sacrifice†means that “success breeds employee rewards and returns of normalcy�
Are the employees focused and motivated to achieve ambiguous Corporate Strategies?
Are the Employees leery of ratifying new labor contracts with this Executive team. Contracts with these Executives, which have thus far proved only to assist Management in downsizing the Airline, outsourcing jobs, underperforming the Industry and reducing trust and morale by hundreds of breaches of past agreements with labor?

The answer will come soon. And like others have stated – It may be time for new Management to replace an Executive team who’s only talent is that of piloting a transitional bankruptcy process. In a perfect world where companies operate in a vacuum of stability and constancy, Siegel’s plan might work. But the risks are too great to experiment with exotic strategies, the market is too dynamic for declining trends in Executive direction, Time is too short and the consequences are too costly to change another Corporate misdirection, Money is too tight to attempt to rebuild, once again, a failed experimental Corporate Model, and the probability of success is low with an uninspired, untrusting workforce.

Perhaps the best, most motivational, message Mr Siegel could have delivered, was that this was to be his farewell message.

He tried... but his brand of leadership inevitably fails as sophisticated employees, especially in this day and in this industry have come to quickly recognize this kind of Executive entity whenever it rears it’s head in every so many decades. The unity in discord and success of legal and morale opposition will only grow more in distrust and defeat of his cloaked intentions for USAir’s heart and soul.

All employees feel this Airline today has great potential, with superb talent for customer satisfaction, to deliver an exceptional product. We have a unique advantage with a market and a solid base, like no other in this country. From this solid foundation we could construct an outstanding Airline and a leader in the Industry where customer satisfaction, efficiency and quality personal services are the rule. Each employee would work twice as hard, generating economics for a growth minded Management team with the right formula. We have the strength, respect and financial backing of one of the most prominent and insightful investment groups in the country. All the ingredients are here, however someone is pouring bitter-apple into the mix. If there is one point, one window of opportunity, in history where success or failure is determined in ones life, it is now. This window, this limited opportunity, will close soon. So it’s time for everyone listed above to choose wisely. Who should guide this organization with the necessary trust and confidence of those interested parties as we move forward -- at this cross road?

We are united. We have a voice. Other Airlines have deposed their leadership for breaches of trust and confidence. It's starting here as well. Our will and our deeds are not for Evil. It's for our pride, our self respect, the good of our futures and for the good of the communities we serve and the communities we reside in.
Thank you for clearly defining what my post was trying to convey, which is, we are all doomed if you don't get rid of this current management team which is failing miserable and blaming everyone except themselves.


Ditto !!! :up:

To quote the tune in the bladder control problem commercial for Detrol.

"He's gotta go gotta go gotta go right now" !!!! (LOL) :ph34r:
Greg Brenamen, former President of CO, the employees at AA got rid of carty, the employees at UAL got rid of Goodwin, grassroots effort will work to get rid of Seigel, don't think Bronner wants to lose his investment.
Traveler, Pitbull is gone for a week and wanted me to convey to you she salutes you and stands united.
cavalier said:
Traveler, Pitbull is gone for a week and wanted me to convey to you she salutes you and stands united.
Ditto here. Enough!! There are only two words for Sleezgle......GET OUT!!
This is becoming real depressing. I thought U would have been a leader among the network carriers at the moment but the route structure is not balance like the other network carriers and U is paying the price for past management mistakes. I am begining to feel the U may not last too long if they keep losing too much money. Dave has his work cut out for him. TC
Another thing I might add to this discussion is the belife that Dave may have had a vision for U to turn out just like Continental. When you look at it Continental has a very small fleet size (about the same as WN) in comparison to giants like AMR, UAL and DAL but they fly to more international cities and have good revenue yields and that was the main reason why he wanted U to have the characterists of a major network carrier and not just turn to be another LCC like America West which would have meant less revenues but everything is backfiring since U does not have the route structure like continental for it to happen.
US could get back a lot of the routes, especially west coast routes and probably get back into the string of things if we get a real mgmt team willing to run this airline. I for one would love to see us in a similar type of position as co!
We'll never get rid of these "BUMS"!!

Look at how long it took to get rid of Wolf and Gangwal!
And we all knew these guys could never run an airline.
They never did!! And how much did they drain from US?!?!

Well, here we go again!!
This "buddy system" in upper mgmt and friends taking up space on the board of directors will never work in any company.
No one has the guts to stand up and show one of these bums the door!!
They're all afraid of cutting the hand that feeds them! And why face the chance of losing their ride on this "gravy train"! Would you?

When was the last time you ever heard of someone in upper mgmt fired from this company? How about NEVER!!??!!
Yet they're always awarded performance bonuses - and the employess that do the work are given the bone!

This company has back pedaled more than we could ever imagine.
And if we all came in and worked for free, they'ed piss that money away, too!
Of course after the golden parachutes and bonuses are awarded!!

So let's see what's in store for ole labor friendly Lorenzo wanna-be Dave.
If you ask me, it's more employees on the chopping block!
That's easiest to do - any other changes would require BRAINS!

BTW, anyone try to figure out what this Airbus farm out mess is going to cost the company?