Bank of America/Merrill Lynch 2009 Global Transportation Conference Presentation

[USA320Pilot]

Bank of America/Merrill Lynch 2009 Global Transportation Conference Presentation - June 11, 2009 by Scott Kirby

Ckick here to look at and view the presentation.

Regards,

USA320Pilot

 

[FA Mikey]

There are a lot of asterisk's in that presentation. As long as you dont add in this, and as long as you exclude that no one come close to Usair. I am also not sure I understand the bragging rights of having almost 80% of your ASM's coming from the domestic operation in this economy.

 

[Itestwell]

I am also not sure I understand the bragging rights of having almost 80% of your ASM's coming from the domestic operation in this economy.

Probably because international premium traffic has been the hardest hit, and domestic is therefore performing stronger?

http://online.wsj.com/article/BT-CO-20090415-712336.html

From the above article, incase you do not subscribe:

"Tom Horton, chief financial officer, said American is prepared to cut more routes this fall, if necessary. He said traffic on international routes, including between financial markets in New York and London, has been especially weak as corporations cut business travel and restrict purchases of premium tickets.

Corporate travel revenue is significantly weaker than revenue from leisure travel, he said. Travel to Latin America, where American has the biggest market share among U.S. carriers, is down 8% from a year ago, with European business down 18%."

I don't think Kirby was saying domestic is doing well, just not performing as poorly as international.

 

[DCaf]

I am also not sure I understand the bragging rights of having almost 80% of your ASM's coming from the domestic operation in this economy.

I wouldn't say he was bragging, just saying international is a big loser now and US doesn't have as much of it as the others.

 

[Jimmy Neutron]

http://www.google.com/hostednews/ap/articl...dJURJQD98OL7OG0

A US Airways Group Inc. executive said on Thursday that the dropoff in passenger revenue during the current recession is even worse than the decline that happened after Sept. 11.


US Airways President Scott Kirby told analysts at a conference on Thursday that the outlook for this year is "highly uncertain."

He also expects US Airways to reduce some of its seasonal trans-Atlantic flying and said it may make additional domestic cuts as well, although he made no formal announcement on Thursday. US Airways said previously that it expects to reduce total mainline capacity 4 percent to 6 percent.

Here we go again.....

 

[Itestwell]

http://www.google.com/hostednews/ap/articl...dJURJQD98OL7OG0

A US Airways Group Inc. executive said on Thursday that the dropoff in passenger revenue during the current recession is even worse than the decline that happened after Sept. 11.


US Airways President Scott Kirby told analysts at a conference on Thursday that the outlook for this year is "highly uncertain."

He also expects US Airways to reduce some of its seasonal trans-Atlantic flying and said it may make additional domestic cuts as well, although he made no formal announcement on Thursday. US Airways said previously that it expects to reduce total mainline capacity 4 percent to 6 percent.

Here we go again.....

I believe I heard a few of the European cities that have previously operated year round, have already been cut. Can anyone elaborate on that?

 

[Jimmy Neutron]

I did hear the other day at work that there will be a system wide staffing cut coming and being announced soon.....heard it will be in the 10-15% range

 

[hp-csr-phx]

Wings is stating 100 East and 300 West FA Voluntary Furlough.

 

[Jimmy Neutron]

Which bases will be impacted?
In an effort to mitigate this overstaffing situation through voluntary means, we are offering 300
voluntary leaves of absence to PHX and LAS based flight attendants and 100 voluntary furloughs
to flight attendants based in BOS, CLT, DCA, LGA and PHL. In the event there are insufficient
volunteers, regrettably, we may have no other alternative but to pursue other provisions, including
the reduction in force provisions, outlined in the respective Collective Bargaining Agreements.


Does this mean we should expect more furloughs in other workgroups in the near future?
It is important to understand that the flight attendant furloughs being announced today are the
result of simply too many flight attendants on reserve for our current and near-term flying levels.
With that said, we are constantly assessing our business to ensure that the airline is doing all the
right things to successfully navigate the current recession. This includes making sure we are
running as an efficient operation as we possibly can and that we are properly staffed as our
business and industry conditions change.

 

[FA Mikey]

Probably because international premium traffic has been the hardest hit, and domestic is therefore performing stronger?

I don't think Kirby was saying domestic is doing well, just not performing as poorly as international.

I can see the NY, London dilemma. With 4 flights a day just to LHR from JFK. But AMR is cutting more Domestic than international.

 

[Itestwell]

I can see the NY, London dilemma. With 4 flights a day just to LHR from JFK. But AMR is cutting more Domestic than international.

True, but with the newly announced cuts today, it seems that as of today, AA will be cutting 5.5% of International capacity YOY. That's up from a 2.5% international capacity cut planned YOY in the press release (AA.com) dated 4/15/09.

 

[JFK Fleet Service]

Is anyone really surprised that international traffic fell off a cliff? I'm not just talking about AA here, I'm talking all the airlines.Just like the housing market; apparently airline executives thought they could simply keep piling capacity onto international routes with no problems.

 

[freedom]

hmmm i wonder , here's a scenario for you ....

Right now alot of the planes are empty and people can't afford to fly around the world like they used to , so alot of the airlines are going to start slashing their international routes ....

however , what if , looking down the road we end up seeing that keeping international routes could once again be a money maker becasuse domestic routes could turn less proftable due to the weak dollar and rising price of oil ...

So by keeping our internationl routes we could end up making money off of them later down the road as we repirate sales in euros and yen to USD ....

just a thought ...

 

[hp_fa]

All the news about H1N1 isn't helping at all and it looks as if it will be an ongoing problem for the medium term. (Not short term and not necessarily long term.)

 

[ussnark]

All the news about H1N1 isn't helping at all and it looks as if it will be an ongoing problem for the medium term. (Not short term and not necessarily long term.)

Good news.

Only one factoid wrong in the article. The first human was infected in Mexico. The flu itself was first discovered in the US.