AWA Profitable in 2005

[EricLv2Fish]

This is great news from AWA Compass Website!

The airline’s Board of Directors recently approved payouts for eligible employees under America West’s 2005 Annual Incentive Program. As part of that program, the Board awarded Doug a 2005 cash incentive payment of $770,000, which he declined. As part of this same program, eligible former America West employees at grades 23 and above will receive payouts. Details of individual payments will be available from your direct supervisor early next week.

America West’s 2005 Results
America West Airlines produced exceptional results in a very difficult environment in 2005. The Company produced a modest operating profit, excluding special items, in 2005, making it one of a select group of airlines to do so. The combined new management team successfully negotiated and completed the merger, raising more equity than any airline transaction in history and dramatically increasing the viability of both America West and US Airways. America West shareholders, using an LCC equivalent at the beginning of 2005, realized a 132 percent return during the year, the highest of any major US airline.

Day by Day we are turning people away from the darkside. May the force be with us!

Fear No Fish, G-Loomis here I come baby!

 

[awausairtech]

And How Did The US AIR Titanic DO! <_<
We Need A Company Wide CORK Drive To Fix The Holes In HER.

 

[AIRWOMAN]

March 9 , 2006

US Airways CEO Declines 2005 Annual Incentive Payment
March 9, 2006

US Airways today announced internally that CEO Doug Parker has declined his 2005 bonus payment. The airline’s Board of Directors recently approved payouts for eligible employees under America West’s 2005 Annual Incentive Program. As part of that program, the Board awarded Doug a 2005 cash incentive payment of $770,000, which he declined. As part of this same program, eligible former America West employees at grades 23 and above will receive payouts. Details of individual payments will be available from your direct supervisor early next week.

Background
As America West employees will remember, in early 2005, the Company announced it would eliminate AWArd Pay and replace that with a one-time four percent base salary increase for employees below grade 23. Employees grades 23 and higher would then receive part of their compensation through an at risk program, which only pays if the Company achieves certain financial goals. Because America West, on a standalone basis, did achieve its financial goals for 2005, the Board has approved payouts for eligible employees. The Board also elected to make payouts to certain former US Airways employees who are now working as part of the new combined team.

In 2006, the plan will not pay unless payments are also made under the broader profit sharing programs put in place for all represented employees below the director level as part of the merged airline.

CEO Comments
Doug stated, “I am pleased that the America West Airlines annual incentive plan was achieved for 2005. Our team certainly earned and deserves this recognition. While I am honored by the Board’s recognition of my own contributions, I have chosen to decline this award. As CEO of a larger merged airline that has many employees who have taken significant pay cuts and many others still on furlough, I have communicated to our Board that I would prefer to receive an annual cash incentive when our employee profit sharing plans are paying dividends too. In 2006, the annual incentive program will only pay if the profit-sharing plan in place for the majority of our employees pays out.

“I do not take this step lightly as I strongly believe our team has earned this reward. I recognize, however, that deciding to lead the former US Airways team comes with some expectation of shared sacrifice. Unlike most of the team, my total compensation includes some other key elements, including a Long Term Incentive Plan. That Plan paid out a significant amount for 2005 due to America West’s industry leading stock performance from 2002 to 2005. Ultimately, I look forward to the day when profit sharing is a consistent part of our culture and appreciate the efforts of all of our employees as we work to integrate our two airlines.â€

America West’s 2005 Results
America West Airlines produced exceptional results in a very difficult environment in 2005. The Company produced a modest operating profit, excluding special items, in 2005, making it one of a select group of airlines to do so. The combined new management team successfully negotiated and completed the merger, raising more equity than any airline transaction in history and dramatically increasing the viability of both America West and US Airways. America West shareholders, using an LCC equivalent at the beginning of 2005, realized a 132 percent return during the year, the highest of any major US airline.


Here is the ENTIRE article from Compass.
Anyone know who the certain former US Airways employees are??

 

[Dog Wonder]

Would 'exceptional results' for 2005 have anything to do with making money?

 

[Elevation]

Doug is puttin his money where his mouth is! Refreshing for a airline CEO.

 

[BoeingBoy]

And How Did The US AIR Titanic DO! <_<
We Need A Company Wide CORK Drive To Fix The Holes In HER.

A $270 million operating loss, but a $62 million net profit thanks to a rather large paper gain from reorganization items.

Jim

 

[drifterreno]

Grade 23 and higher are sups and higher. Those of us working the front lines get our $50 bonuses if we do good. Wish I had some of the profit sharing right about now.

 

[EricLv2Fish]

Grade 23 and higher are sups and higher. Those of us working the front lines get our $50 bonuses if we do good. Wish I had some of the profit sharing right about now.

Not all are supervisors. Still I think it should be all or none. Profit sharing should be had by all employees. Even part-timers based on some sort of percentage.

 

[Dog Wonder]

Profit sharing

What profits?

 

[MOC A320]

Grade 23 and higher are sups and higher. Those of us working the front lines get our $50 bonuses if we do good. Wish I had some of the profit sharing right about now.

You should have your union put that in the contract.

 

[AIRWOMAN]

Not all are supervisors. Still I think it should be all or none. Profit sharing should be had by all employees. Even part-timers based on some sort of percentage.

It's NOT profit sharing per say, it's America West’s 2005 Annual Incentive Program. This "program" has been changed a number of times over the years. Just as the $50 pay out for performance has changed over the years. There was also some sort of "incentive" pay out for performance BEFORE there was union on the property.

In 2006: In 2006, the plan will not pay unless payments are also made under the broader profit sharing programs put in place for all represented employees below the director level as part of the merged airline.

I read it as ALL employees below director level will participate in the "profit sharing" program. Now what will the director level and above program be?? :unsure:

There are also a bunch of non union people above grade 23 that true, are not supervisors in the true sense. But those pay grades are designated as supervisory pay grades....not necessarily supervisors but in a supervisory capacity. A lot of that came about AFTER the union was established. So when you look at the history behind it, the union coming in to AWA, was benefical to the non union work groups. Many, many of the benefits contained within the contract(s) are similar/the same as the union. So, the current non union/at will employees have also reaped the benefits of a union......directly and indirectly.

 

[rjh]

Grade 23 and higher are sups and higher. Those of us working the front lines get our $50 bonuses if we do good. Wish I had some of the profit sharing right about now.

Not all are supervisors. Still I think it should be all or none. Profit sharing should be had by all employees. Even part-timers based on some sort of percentage.

Remember, when AWARD pay was discontinued, those under grade 23 received a 4% raise in 2005 (in addition to regular merit increases). Grades 23 and above did not get that raise. And, I have a feeling the "profit sharing" won't be a whole lot of money--nothing like we saw in 2004 for the 2003 performance.

And a lot of people grade 23 and above still are sort of "front line" employees. Crew scheduling for example--they don't deal with passengers, but dealing with crew members can certainly feel like the "front line"!