USA320Pilot
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Bronner Optimistic About Future Of Airline After
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savyinvestor
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Lower costs than Sothwest? What about the human costs? Morale costs? He doesn't mention that. Do you think those costs might be important too? 🙁 Savy
BoeingBoy
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USA320Pilot said:
One can only assume that he is talking about labor costs being lower than WN, not U's unit costs, cause there's no way U's system CASM is going to be lower than WN's - it'll be nearly impossible for mainline unit costs to approach WN's.
Jim
320 Seems Mr. Bronner thinks the IAM is free to strike {if they choose to} if this take it or leave it offer is voted down....USA320Pilot said:
Also, Bronner admits that FUEL cost is the problem with this industry..
He forgot to mention that the only reason Southwest is making money is due to fuel hedging, which enables SW to "set" the fares...
A bigger question is what he means by "lower costs." Lower CASM? I find that exceptionally hard to believe. Lower labor costs? Yeah, that will be true on a per-hour basis. Will it be true on an ASM basis? And even if it is, what about the non-labor costs...the ones that have yet to be touched?
USA320Pilot
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As I said last week, when fully implemented US Airways' Transformation Plan calls for a CASM lower than Southwest Airlines and AirTran Airways, but higher than jetBlue Airways.
In regard to a labor disruption, I believe we all know that another Christmas action like what happened in PHL would sink the airline. If that occurs and a specific union was found at fault, members would not only lose their jobs, but in many states unemployement too. For those being laid off they would lose severance pay, medical benefits during the transition, COBRA, J4J (if available), FSA positions (if desired), travel passes, and unemployement.
Regards,
USA320Pilot
In regard to a labor disruption, I believe we all know that another Christmas action like what happened in PHL would sink the airline. If that occurs and a specific union was found at fault, members would not only lose their jobs, but in many states unemployement too. For those being laid off they would lose severance pay, medical benefits during the transition, COBRA, J4J (if available), FSA positions (if desired), travel passes, and unemployement.
Regards,
USA320Pilot
BoeingBoy
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"Will it be true on an ASM basis?"
IIRC, the company's supporting documentation for the 1113c hearing said that labor CASM would be something like 2.4 cents if they achieved the labor savings they sought. Again from memory, that's something like 1 - 1.5 cents below WN (as shown in their documentation, also). Of course, mainline only.
Jim
IIRC, the company's supporting documentation for the 1113c hearing said that labor CASM would be something like 2.4 cents if they achieved the labor savings they sought. Again from memory, that's something like 1 - 1.5 cents below WN (as shown in their documentation, also). Of course, mainline only.
Jim
BoeingBoy
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"As I said last week, when fully implemented US Airways' Transformation Plan calls for a CASM lower than Southwest Airlines and AirTran Airways, but higher than jetBlue Airways."
I'd still like to see the numbers supporting this statement. If you have any, that is.....
Jim
I'd still like to see the numbers supporting this statement. If you have any, that is.....
Jim
USA320Pilot
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BoeingBoy:
The numbers are confidential, but when the TP is fully implemented the company believes its CASM, including fuel, will be lower than Southwest and AirTran.
Regards,
USA320Pilot
The numbers are confidential, but when the TP is fully implemented the company believes its CASM, including fuel, will be lower than Southwest and AirTran.
Regards,
USA320Pilot
320, Does this mean you now agree with Mr. Bronner that the IAM is free to strike {if they choose to} IF these "impositions" are voted down ????USA320Pilot said:
Previously, you indicated some doubt about a union able to strike in this situation.
High Iron
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Of course, the hybrid vision, with its RJ-intensive fleet will conspire ( literally maybe? ) to continue to put upward pressure on the CASM....and downward pressure on mainline employee compensation.
Maybe that's what the "hybrid" theme is all about: Remaking US as a high cost/low wage carrier.
Maybe that's what the "hybrid" theme is all about: Remaking US as a high cost/low wage carrier.
USA320Pilot
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Insp89:
Insp89 asked: "320, Does this mean you now agree with Mr. Bronner that the IAM is free to strike {if they choose to} IF these "impositions" are voted down ????
Previously, you indicated some doubt about a union able to strike in this situation."
USA320Pilot answers: If the union officially or unofficially has a job action, I believe the company will go to court and seek and injunction to prevent such action. It's unclear if and how the RLA could apply, if there could be a PEB, or even Congressional intervention.
The S.1113/S.1114 process has never been tested, thus there is no true anwer to your question.
However, from a practical sense a job action would effectively cause the airline to shut down and liquidate. Then everybody loses including the IAM and its 3 units. In that case every IAM member would lose their job and if it's due to a "job action", then in many states members would lose their unemployment too.
Nobody likes what is happening, but I believe throughout this process every union needed to cut the best deal possible. That has not happened, according to ALPA MEC chairman Bill Pollock.
However, is it better to have more than half of the IAM members working if desired, some of the contract left, severance pay, medical benefits, COBRA, J4J, passes, and unemployment or nothing?
That's the real IAM question...
Regards,
USA320Pilot
Insp89 asked: "320, Does this mean you now agree with Mr. Bronner that the IAM is free to strike {if they choose to} IF these "impositions" are voted down ????
Previously, you indicated some doubt about a union able to strike in this situation."
USA320Pilot answers: If the union officially or unofficially has a job action, I believe the company will go to court and seek and injunction to prevent such action. It's unclear if and how the RLA could apply, if there could be a PEB, or even Congressional intervention.
The S.1113/S.1114 process has never been tested, thus there is no true anwer to your question.
However, from a practical sense a job action would effectively cause the airline to shut down and liquidate. Then everybody loses including the IAM and its 3 units. In that case every IAM member would lose their job and if it's due to a "job action", then in many states members would lose their unemployment too.
Nobody likes what is happening, but I believe throughout this process every union needed to cut the best deal possible. That has not happened, according to ALPA MEC chairman Bill Pollock.
However, is it better to have more than half of the IAM members working if desired, some of the contract left, severance pay, medical benefits, COBRA, J4J, passes, and unemployment or nothing?
That's the real IAM question...
Regards,
USA320Pilot
Other than labor cuts, what has US really done to cut costs?
PIT has too many flights to be a focus city, but too few to be a hub. Because of this, US will continue to bleed at PIT. This bleeding will accelerate in May when WN begans to pick off the higher yielding O+D markets.
PHL is just a congested mess. US is still trying to push a ton of connecting traffic through while at the same time trying to do more O+D. The end result is heavy delays which cost US money.
CLT is still a low O+D hub. What's the average mainline gate utilization at CLT? From my recent experience, I'm guessing maybe five flights a day per gate....not real efficient and certainly not cost saving.
In many markets, U has cut capacity as fast as they have cut costs. The end result is that U's CASM will NOT drop in these markets.
U will be replacing many mainline planes with smaller RJ's. These RJ's won't have a lower CASM (despite the cheaper labor) and offer fewer seats (meaning less revenue for the system).
Other than adding some flights at DCA/FLL, what restructuring has US done to lower costs AND RAISE REVENUES? Tell me what I'm missing here, because the plan so far seems incomplete.
PIT has too many flights to be a focus city, but too few to be a hub. Because of this, US will continue to bleed at PIT. This bleeding will accelerate in May when WN begans to pick off the higher yielding O+D markets.
PHL is just a congested mess. US is still trying to push a ton of connecting traffic through while at the same time trying to do more O+D. The end result is heavy delays which cost US money.
CLT is still a low O+D hub. What's the average mainline gate utilization at CLT? From my recent experience, I'm guessing maybe five flights a day per gate....not real efficient and certainly not cost saving.
In many markets, U has cut capacity as fast as they have cut costs. The end result is that U's CASM will NOT drop in these markets.
U will be replacing many mainline planes with smaller RJ's. These RJ's won't have a lower CASM (despite the cheaper labor) and offer fewer seats (meaning less revenue for the system).
Other than adding some flights at DCA/FLL, what restructuring has US done to lower costs AND RAISE REVENUES? Tell me what I'm missing here, because the plan so far seems incomplete.
