Another Question Answered

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May 18, 2003
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Another Question Answered

ARLINGTON (theHub.com) - Because time constraints prevented Dave Siegel from addressing many of the questions that were e-mailed in for the March 24 webcast, US Airways Today is printing answers to questions that were asked most often. Here's today's entry:

Q. What did US Airways do with all the concessions employees already have made? Why didn't you get what you needed then?

A. We made tremendous progress in reaching our cost reduction goals as set out in our plan of reorganization. The problem is that revenue has not rebounded as expected. The company took a conservative approach back then and experts working for the Air Transportation Stabilization Board, GE and Retirement Systems of Alabama agreed with our assumptions at the time. The world, however, has changed more rapidly than anyone had anticipated. These developments included:

--Explosive LCC growth and financing for new aircraft;
--Other legacy carriers matched or exceeded our cost reductions;
--Industry pricing remains weak;
--Fuel prices remain high; and
--The war in Iraq persists.

The bottom line remains that US Airways' costs exceed revenue, and we have to reverse that.

These questions and answers are being compiled on theHub. Look on the home page under the "About the Company" icon and click on the Q&A link for Dave Siegel's webcast.
 
As usual, the question was not answered. None of us knows where all of that money has gone. :down: