For anyone that has heard Dave's weekly message this week, any thoughts? If possible, please keep the thoughts constructive ... we don't need another Dave bashing thread. We've established he's lost the support of many employees.
Dave's Weekly Message & Thoughts
- Thread starter USFlyer
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That's certainly what I got out of his message too. This will be an interesting fall/winter. I would not be one bit surprised if US asks ALPA to speed up the productivity improvments and I would not be one bit surprised if this new FA reserve system doesn't result in more layoffs in the near term.
Instead of layoffs, though, perhaps they'll finally offer the senior employees in each employee group early retirement. Take the severance that would have been paid to less senior employees and fund an early retirement package. It'll be a short term hit but would help long term (I would think).
Instead of layoffs, though, perhaps they'll finally offer the senior employees in each employee group early retirement. Take the severance that would have been paid to less senior employees and fund an early retirement package. It'll be a short term hit but would help long term (I would think).
USAirBoyA330
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He doesn't have the acorns to ask us for a red cent. He is delusional if he thinks he will ever get anything else. I don't care where he cuts cost as long as it doesn't cost 1 job or the employees anything out of thier pockets. He should start with his salary and half of CCY. Just listening to his message made my dinner regurgitate.
robbedagain
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why does dave seem to think that cutting costs is the only problem this airline has?
i'd would have to guess that may be the fares are too high and may be if it were lowered, then may be US would make money and post profits?
i'd would have to guess that may be the fares are too high and may be if it were lowered, then may be US would make money and post profits?
USA320Pilot
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I just listened to Dave Siegel’s message and I believe he was being open, frank, and truthful.
For example, American’s employees are paid on average 13% less than US Airways and United employee contracts are now more productive than US Airways. These two carriers continue to restructure, but they face enormous challenges as well with items such as their underfunded pensions.
The first quarter industry wide 2003 labor Costs, when expressed as a percentage of total costs are:
Average Network Carrier - 34.1%
Highest Network Carrier - Northwest – 37.9%
Lowest Network Carrier - US Airways – 30.4%
Average Low Cost Carrier - 30.6%
Highest Low Cost Carrier - Southwest - 37.6%
Lowest Low Cost Carrier - ATA – 21.2%
Source: Aviation Daily
In regard to LCC – network carrier comparisons, JetBlue’s CASM is 6.0 cents, Southwest’s is about 7.5 cents, and AirTran’s is about 8.0 cents. US Airways is about 9.5 cents, excluding fuel.
Unfortunately, Siegel is right that our costs remain too high, but it’s not due to labor expense.
US Airways biggest problem continues to be the route network even though the stage length is being increased with Caribbean, Central American, and European expansion.
However, to sustain consistent and long-term profitability the company must cut costs in every area of its operation.
To address this issue the company will lower its unit costs in Pittsburgh and MDA will average down US Airways Group unit costs.
The new electronic pilot and flight attendant “Pref Bid†system will increase productivity and will eliminate about 300 pilot positions. In addition, there will be Crew Scheduler and Flight Attendant positions lost, however, the specific number is unknown due to the VLA program.
Although not good for labor, other employee groups will see their headcount reduced and labor expense lowered due to IT automation, e.g. Kiosks and the internet.
The wholly owneds will be consolidated creating economies of scale and lower RJ costs.
Long-term, I suspect there will be further fleet rationalization with the B767s, B757s, and B737s removed from service. The 29 A332 and A320 family order, the parked A320 family aircraft, and the EMB-190/195s will create basically two fleet types: A330/A321/A320/A319s and the EMB-170/175/190/195s. This will drive down training, parts inventory, and maintenance costs.
US Airways, United, and Star alliance partners are looking at cost synergies for areas such as joint purchasing, joint advertising, and facility integration. For example, US Airways just took custody of two United gates in Seattle lowering the Chicago-based airlines facility expense.
But, these cuts are probably not enough due to the rapidly changing fundamentals with the dramatic LCC growth.
However, in the end US Airways needs to be cost competitive and the single biggest area the company is likely to focus on to lower CASM is to increase long-haul flying, which could be the reason behind the company's interest in United's Dulles and Miami operations (more transatlantic and South American flying) and the UCT airports/operations.
The route network problem and LCC exposure is the key issue on now the UCT would solve many of United's and US Airways' key corporate and cost problems.
US Airways will need more cost cuts in the future to compete and will probably need to drive the CASM down to about 8.5 cents. At this point, the company's revenue premium, RJ expansion, and alliances, should provide the RASM to sustain permanent profitability.
The good news is the company has the liquidity and time to restructure, but the airline and its unions must find mutually acceptable ways to lower US Airways' unit costs.
Regards,
Chip
For example, American’s employees are paid on average 13% less than US Airways and United employee contracts are now more productive than US Airways. These two carriers continue to restructure, but they face enormous challenges as well with items such as their underfunded pensions.
The first quarter industry wide 2003 labor Costs, when expressed as a percentage of total costs are:
Average Network Carrier - 34.1%
Highest Network Carrier - Northwest – 37.9%
Lowest Network Carrier - US Airways – 30.4%
Average Low Cost Carrier - 30.6%
Highest Low Cost Carrier - Southwest - 37.6%
Lowest Low Cost Carrier - ATA – 21.2%
Source: Aviation Daily
In regard to LCC – network carrier comparisons, JetBlue’s CASM is 6.0 cents, Southwest’s is about 7.5 cents, and AirTran’s is about 8.0 cents. US Airways is about 9.5 cents, excluding fuel.
Unfortunately, Siegel is right that our costs remain too high, but it’s not due to labor expense.
US Airways biggest problem continues to be the route network even though the stage length is being increased with Caribbean, Central American, and European expansion.
However, to sustain consistent and long-term profitability the company must cut costs in every area of its operation.
To address this issue the company will lower its unit costs in Pittsburgh and MDA will average down US Airways Group unit costs.
The new electronic pilot and flight attendant “Pref Bid†system will increase productivity and will eliminate about 300 pilot positions. In addition, there will be Crew Scheduler and Flight Attendant positions lost, however, the specific number is unknown due to the VLA program.
Although not good for labor, other employee groups will see their headcount reduced and labor expense lowered due to IT automation, e.g. Kiosks and the internet.
The wholly owneds will be consolidated creating economies of scale and lower RJ costs.
Long-term, I suspect there will be further fleet rationalization with the B767s, B757s, and B737s removed from service. The 29 A332 and A320 family order, the parked A320 family aircraft, and the EMB-190/195s will create basically two fleet types: A330/A321/A320/A319s and the EMB-170/175/190/195s. This will drive down training, parts inventory, and maintenance costs.
US Airways, United, and Star alliance partners are looking at cost synergies for areas such as joint purchasing, joint advertising, and facility integration. For example, US Airways just took custody of two United gates in Seattle lowering the Chicago-based airlines facility expense.
But, these cuts are probably not enough due to the rapidly changing fundamentals with the dramatic LCC growth.
However, in the end US Airways needs to be cost competitive and the single biggest area the company is likely to focus on to lower CASM is to increase long-haul flying, which could be the reason behind the company's interest in United's Dulles and Miami operations (more transatlantic and South American flying) and the UCT airports/operations.
The route network problem and LCC exposure is the key issue on now the UCT would solve many of United's and US Airways' key corporate and cost problems.
US Airways will need more cost cuts in the future to compete and will probably need to drive the CASM down to about 8.5 cents. At this point, the company's revenue premium, RJ expansion, and alliances, should provide the RASM to sustain permanent profitability.
The good news is the company has the liquidity and time to restructure, but the airline and its unions must find mutually acceptable ways to lower US Airways' unit costs.
Regards,
Chip
bigbusdrvr
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So Chip what are you saying? Are we gonna expand to lower our costs? Or are we gonna shut this place down, cause aint no way this group's gonna take any form of concession!! The way management has treated all employees to date after what we gave up to save this company?? Dave has been smokin somethin!!
Phantom Fixer
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Chip ,
Open and frank maybe?....Truthfull ???? That would have to be a first !!
Was he open and frank about concessions ? No He lead ALPA to believe that pay cuts would do it all...along with the pruning of your ranks. Your group drew Dave's praise for showing leadership during this time , Then what happened? You got clobbered on your pension ...is this an example of truthfullness?
The IAM took two votes for Dave to have his way with us....but when it was agreed upon , we lost our work in TPA...and then he tried to back door us with outsourcing our work....Is this an example of truthfullness too???
I agree....and I believe that Dave is coming after more W2's...and he's going to lower the headcount wherever possible again as well...we can call that a given for arguement sake...to accept lowering our incomes yet again , while the slash and burn is coming again , Thanks much but no !!!
We can give till we bleed from every orifice....and these clowns won't gross nickle one but for themselves.....and then it's splitsville par usual.
DAVE....You can't run an airline....and your projections on everything it takes always fall way short....and I'm not here to subsidize this again....I'm certain that I'm not alone on this either.
Open and frank maybe?....Truthfull ???? That would have to be a first !!
Was he open and frank about concessions ? No He lead ALPA to believe that pay cuts would do it all...along with the pruning of your ranks. Your group drew Dave's praise for showing leadership during this time , Then what happened? You got clobbered on your pension ...is this an example of truthfullness?
The IAM took two votes for Dave to have his way with us....but when it was agreed upon , we lost our work in TPA...and then he tried to back door us with outsourcing our work....Is this an example of truthfullness too???
I agree....and I believe that Dave is coming after more W2's...and he's going to lower the headcount wherever possible again as well...we can call that a given for arguement sake...to accept lowering our incomes yet again , while the slash and burn is coming again , Thanks much but no !!!
We can give till we bleed from every orifice....and these clowns won't gross nickle one but for themselves.....and then it's splitsville par usual.
DAVE....You can't run an airline....and your projections on everything it takes always fall way short....and I'm not here to subsidize this again....I'm certain that I'm not alone on this either.
Maybe its time for everyone to contact their "Board Representative" and let them know what you're thinking about Dave (or the rest) sticking around. Granted the 4 of them arent going to be able to do anything with the other 11 in charge, but it would be nice to let the rest of them know that the warm fuzzies aren't still here.
IAM- Joesph J Mantineo
ALPA- Capt. William D Pollock
CWA- Magdalena Jacobsen
AFA/TWU- Couldnt find at the website.....
No contact info there for them either, but if someone knows maybe they can post it here so our representatives on the board can express the views of those they represent at the next Board Meeting?
Its worth a try.
IAM- Joesph J Mantineo
ALPA- Capt. William D Pollock
CWA- Magdalena Jacobsen
AFA/TWU- Couldnt find at the website.....
No contact info there for them either, but if someone knows maybe they can post it here so our representatives on the board can express the views of those they represent at the next Board Meeting?
Its worth a try.
T-bone
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Chip,Chip Munn said:
Nice article---REALLY-----STILL
Answer me this; Other than The citizens of Beaver county Pa, Allegheny Co, Butler Co, Washington Co, the state of PA, North Carolina, Senator Specter, Senator Santorum. Govenor Rendell, Co. Executive Rodney, Federal Judge Cindrich, The PBGC, ALL OF UASRIWAYS EMPLOYEES and his mother, who else has DAve lied to! :angry: :angry: :angry: :angry:
There can be no way you are serious of trusting this hood, especially after seeing which direction your own pension went.
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oldiebutgoody
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I'm thinking that maybe this is Dave's chance to scare the labor groups into voiding any protections left in their contracts. How convenient, now that these new scheduling systems are on the verge of being implemented, and the outsourcing just got nixed, to just whine and cry again to squeeze more blood from the turnip. U's other CEOs had to deal with the contracts that THEY negotiated, now Dave should as well. In my opinion, it's the hired help that's kept this sinking ship afloat this long. Maybe a management team better than this inept one could make it profitable. :angry:
allegheny1
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Chip
It sounds like a lot of cost savings are already in place and will be implemented
shortly. The pit negotiations will finalize in the near future as well. It does not
appear that any employee wage cuts are needed.
It does appear that we could bring back all the airbus equipment in the boneyard
and fly it without any additional crew cost given the productivity enhancements
you have outlined.
As far as the "transaction"....well.....I for one would like to see everyone,
including you, stiffle themselves!!! Is there something in the works, who knows.
What we do know is that it inflames our codeshare partner s employees.
Remenber they are going through the same amout of angst and bloodletting
that we have /are going through. It serves no purpose. Let Lorenzo and
Tilton do their thing and we employees stay out of the fray for now.
Remember the word....EMPATHY
regards
It sounds like a lot of cost savings are already in place and will be implemented
shortly. The pit negotiations will finalize in the near future as well. It does not
appear that any employee wage cuts are needed.
It does appear that we could bring back all the airbus equipment in the boneyard
and fly it without any additional crew cost given the productivity enhancements
you have outlined.
As far as the "transaction"....well.....I for one would like to see everyone,
including you, stiffle themselves!!! Is there something in the works, who knows.
What we do know is that it inflames our codeshare partner s employees.
Remenber they are going through the same amout of angst and bloodletting
that we have /are going through. It serves no purpose. Let Lorenzo and
Tilton do their thing and we employees stay out of the fray for now.
Remember the word....EMPATHY
regards
I agree with this post 100%!T-bone said:
Chip, I don't understand you at all, period!?
You have a love/hate relationship with this scoundrel and a joke of a CEO.
It's time for this failure of a CEO to let someone run this airline with true people skills, this guy blew it beyond repair and there is no coming back to labor with his sad song and dance. I refuse to give this joke of a CEO one red cent and know for a fact I speak for the majority of this beat down labor force. You had your chance Dave, your inept leadership term has expired and is pass due, do the only right thing and resign immediately giving this airline a fighting chance of survival.
oldiebutgoody
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Why not?Justair said:
