Bankruptcy Coming?

[luvn737s]

Airline tickets are a commodity. The sensible thing to do would be to shut down USAirways and start up fresh since there seems to be no value in a name or reputation, only being the first airline to pop up on Travelocity.

That would reward UAir management for poor performance and prove to any future employees of UAirs successor that loyalty and pride are antiquated "legacies" that have no place in the modern airline world.

I hope you UAir employees continue to fight, not just for your airline but for an industry that doesn't deserve to be a victim of incompetence. Good luck and thanks for trying!

 

[<./']>]

Sarcasm, I'm sure. Either that, or you must be new here

Actually I'm very senior to him and I voted NO for LOA91. I like to see his thoughts as well as others on this board.

 

[crazyincanton]

This company had every intention of revisiting BK. They will fake negotiations and tell the BK judge how hard they tried to come to an agreement with labor. It's all in their grand plan to break contracts.

The employees are aware of their scheme....I just wonder how soon this will end ????

I agree. I believe that the numbers that they are asking from each group is so ridiculous that they know no one (except alpa) will go for it. Then bk, liquidation, etc. can be blamed on the employees.

 

[Reservation Agent]

I think the last thing this company wants is another bankruptcy...
The perception by the public is a company that is lacking direction, in finiancial difficulty...Are burning their frequent flyer miles now with thoughts that it is use it or possibly lose it...

I don't think the company would risk losing what public confidence remains in another bankruptcy...more a tactic to squeeze every drop from the employee to try to demonstrate profitability instead of eliminating waste and expense costs in its operationional beaucracy...

How many vice-presidents does it take to screw in a lightbulb?

 

[<./']>]

How many vice-presidents does it take to screw in a lightbulb?

All 37 of them + 1 IAM rep.........to sign it off

 

[Tim Nelson]

[quote name='<' date='./'']>,May 29 2004, 11:00 AM]
All 37 of them + 1 IAM rep.........to sign it off[/quote]
USA320Pilots says, "Bankruptcy....it's your choice"

The above statement is possibly the most inaccurate, juvenile thinking I have seen on this board. The responsibility, and accountability is management's.

regards,

 

[NewHampshire Black Bears]

I have and others have posted numerous times to refute him, he chooses to ignore when you post FACTS to dispute his OPINIONS, he ignores them and still continues to post phony information and believes he is a secret CEO of US Airways.

700UW,

As a general rule, I stay off of this US board when it comes to USA320PILOT's posts.

I'm(personality wise), closer to you, than 320 !!!

And we all know the old fable about the "boy who cried wolf too often, and then NO ONE believed him when the wolf was at the door"


I've got news for you 700UW. The friggin' wolf IS AT THE DOOR, and it ain't Steven(WOLF) !!!!!!!!

This time "320" is dead on target !!!!!!!!!!!!!!!!!!!!!

Good luck,

NH/BB's
AA/retired(Thank God) !!!

 

[USA320Pilot]

Tim:

USA320Pilots said: "Bankruptcy....it's your choice."

Tim said: "The above statement is possibly the most inaccurate, juvenile thinking I have seen on this board. The responsibility, and accountability is management's."

USA320Pilot reponds: With all due respect, I disagree. Many of our posters are in denial about the fundamental changes needed to restore the legacy carriers to profitability. Every one of them, 100%, are losing hundreds of millions of dollars while the LCCs continue to make money in a difficult environment.

It is simplistic to say that it is management accountability to drive profitability and a typical union comment. Union contracts can hamstrung management from making the plans necessary to adapt and both management and labor adapt this time, or the company will end up in bankruptcy.

Therefore, "Bankruptcy....it's your choice" on whether or not to participate in the new business plan and if bankruptcy occurs.

Respectfully,

USA320Pilot

 

[700UW]

Round one Company says:

To Pilots:
Vote for concessions to save your jobs and pension

To IAM:
Vote (twice) to save your scope language.

Round Two:

Bronner to everyone, take concessions or we will shut the door.
MDA start up to give ALL furloughees a job, reality, LOA 91 permits 70 seaters to be placed at affiliates with only 50% ALPA J4J and screw the rest of the employees.

To Pilots:
Vote to save your pension.

Pension GONE!

To IAM:
Vote to save your scope.
10/03 sends Airbus overhaul to ST MAE@BFM.

All through chapter 11 this company has told us this is enough we can save the company, and they keep coming back for more and they always will as long as you are willing to cower to them in fear.

They cannot be trusted, they have no honor and have violated all contracts that they have signed.

They have made the employees the enemy of the company.

 

[diogenes]

Just curious.

All unions had 1113 letters during the last BK.

Are those letters applicable to future BK's?

 

[MrAeroMan]

Just curious.

All unions had 1113 letters during the last BK.

Are those letters applicable to future BK's?

No, I don't believe they are.

 

[USA320Pilot]

Repeet:

USA320Pilot said: “I suspect the company will aim its double barrel shotgun at the CWA, IAM, and any other union who fails to participate in the new business plan with a S.1113 motion.â€￾

Repeet said: “Since you've singled out the I.A.M. yet again, let me be clear.

USA320Pilot: With all due respect, I did single out the IAM. I first mentioned labor groups who I believe will strike a new accord with management. Then I mentioned two unions who have publicly indicated they are not willing to negotiate and then said “any other unionâ€￾. That is an inclusive statement, thus I mentioned two unions and covered the rest. Thus, I take exception that I singled out the IAM, which I clearly did not.

Repeet said: The I.A.M. contract, as grievous as it is, is more than sufficient for the company to make a profit, and is the bare minimum wage we choose to receive.

USA320Pilot: Management has said it takes 13 days for a contractor to conduct a narrowbody overhaul and US Airways mechanics 18 days. In addition, the US Airways IAM costs are greater than Southwest and America West when you factor in all aspects of compensation, pay, benefits, retirement, work rules, and seniority (TOS).

By the way, the IAM is not alone, every US Airways work group is in the same boat.

Respectfully,

USA320Pilot

 

[USFlyer]

It boggles my mind why the Company and IAM can't resolve this mess. Both sides have a point in the argument, but it seems like if heads cooled a bit a solution could be found. Or, is everyone just waiting for the arbitrator's decision before blinking?

 

[USA320Pilot]

Mwereplanes:

Mwereplanes said: “Lakefield will enter or avoid C11 based on what he and the board think is best for this company. The employees have little say in the matter. 320's fear of losing his job is driving his banter. Some of it factual, some of it opinion. We have no more control over this process than the man in the moon.â€

USA320Pilot comments: It’s obvious you do not have a business background nor have you talked with ALPA’s legal and financial advisors or E&FA. One of US Airways major cost problems is work rules (in all work groups by the way) that prevent productivity and permit an efficient schedule. For example, why has ALPA not approved scheduling changes in the past (until Restructuring II)? It will cost jobs, hundreds of them. But do not take my word. Why don’t ask Steve Smyser or Chip Mayer, who are coordinating the “Pref Bid†Program.

This is one example in our work group, but management has made three major mistakes:

1. Buying PSA and Piedmont to create the world’s largest, most inefficient regional airline, which at one time had more takeoffs and landings than any other carrier in the world. The structure of the network has created an enormous CASM problem.

2. Two billion in stock buybacks that de-capitalized the balance sheet.

3. Focusing on M&A activity and not running the airline.

For US Airways to be successful in today’s rapidly changing environment is must be competitive across all work groups. For example and I do not like this more than anybody else, but Southwest, JetBlue, and America West pilots have no DB or DC Plan. Just this year, the pilot DC Plan will cost US Airways $140 million and that figure increases in following years.

With all due respect, let’s talk facts versus rhetoric such as I am “fearful of losing my jobâ€. By the way, would you PM your name and phone number so we could talk in person?

Respectfully,

USA320Pilot

 

[USA320Pilot]

700UW:

What you refuse to recognize, even you know it's true, is that industry fundamentals keep deteriorating. Do I like it? Nope, not one bit. However, that does not make management "liars".

Since Restructuring II let's look at some issues that have occured in about 1-year.

1. SARS.

2. Iraqi War.

3. Skyrocketing fuel prices that have jumped 40% year-over-year. Each one cent increase of fuel increase US Airways fuel expense by about $10 million per year.

4. Internet booking.

5. Southwest's entry into PHL.

6. Enormous LCC expansion.

Let's look at how AirTran, JetBlue, and Southwest have grown and where they’re headed:

2002 2003 2008 (1)
AirTran
Jets 51 67 158
Departures (2) 294 408 900

2002 2003 2008 (1)
JetBlue
Jets 5 44 173
Departures (2) 24 186 520

2002 2003 2008 (1)
Southwest
Jets 324 379 567
Departures (2) 2,600 2,800 4,252

Source: USA Today, Airlines listed

(1) – USA Today estimates
(2) – Average daily departures

700UW, the facts above does not make management lairs, it's cyclical and fundamental changes to the business that every legacy carrier is experiencing. SARS, the Iraqi War, and Fuel prices are all cyclical problems, but Southwest's arrival in PHL, LCC expansion, and Internet booking are all permanent structural changes to the industry that will depress yield forever.

Either US Airways changes the way it does business with management and labor creating the first every network carrier/LCC hybrid or the airline will fail, period.

Interestingly, Dow Jones published a report about this yesterday:

Former AMR CEO: Airlines Need Radical Restructuring

NEW YORK (Dow Jones) - Financial problems at "legacy airlines" are evidence of the fact that the industry needs to be radically restructured, said Donald Carty, former chairman and chief executive of AMR Corp. (AMR).

Speaking on CNBC Friday, Carty said new and profitable low-cost airlines have taught older companies that they need to reconsider their business model and relationships with unions.

For example, "for years and years" airlines have been fighting over market share at the expense of profitability, Carty said.

During the same conversation, AirTran Holdings Inc. (AAI) Chairman and Chief Executive Joe Leonard said that one of the problems in the industry is the gross mismatch between supply and demand.

That's why increases in ticket prices can't "stick," Leonard said.

To Leonard, that means the industry as a whole should be reviewing unprofitable routes and pare them back.

There is no short-term solution to rising energy costs, Leonard said. The only effective way for airlines to lower those costs is to upgrade their aircraft fleets.

Respectfully,

USA320Pilot