Day of Reckoning-The Judge

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ChairPrefRes

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Aug 19, 2002
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My take on this whole situation is that Dave and U are trying to do everything they can to prove to the BK court that U is a going concern and will emerge succesfully next year...Unfortunatley he''s not getting help from revenues, the economy and pending Iraq war to prove his case...thats why your probably seeing all theses anouncements...The bidders who are out to poach U are going to try to prove to the Judge that their plan is best and will satisfy the creditors while possibly trying to force a Chptr 7 and let the pieces sold off to the highest bidders...Example NWAC bids for PHL and the airbuses because they need replacemnt AC and east coast presence...Just my take... Fasten your seatbelt Heavy chop ahead...
 
Dave has to ensure the feds that U will have a 7% profit margin after re-emergence. I still do not see how this is achievable even after the restructuring. The industry is lucky to ever achieve a 3% profit margin in an excellent year. U flies Airbus equipment which are 3% LESS effiecent than Boeing new generation equipment [(thanks Wolfe) according to the Boeing website]. This puts U at a 3% dissadvantage from day one in a head to head with SWA. U still will have a .10 per mile cost vs. SWAs .07. I am not being not here to rain on everyone's parade, just to point out facts. I just do not see how a 7% margine is EVER going to be achieved.
 
Just my .02 worth....but I see us being able to achive the required profits if just a few things were to take place.


(1) Standardization of our Wide-Body Fleet ...Ditching the A330-300's and thier tremendous logistics deficiences and costs would help us alot. Airbus is part of the problem...the non-Airbus vendor related items are another. The distance and time frame of Point A to B movements when stuff is required only compounds the issue. Then of course we have bonded couriers, frieght forwarders and customs red-tape eating into things. The purchase/lease of the current CF-6 powered Asiana B767-300's in the desert would resolve having two entirely different Acft and Engine types to support....not to mention the learning curve the A330 has brought into the mix. The B767 would also be a marked decrease in the actual lease fees too. The final aspect would be the return on the money for all the spare parts , tooling purchased for a second wide-body type....then we wouls see a noteable decrease in Inventory taxes on an annual basis. Keep in mind...we are already prepared for B767's both domestically and abroad. We could never boast the same comments in regard to the A330's


(2) Increase the training program to cut down on Ground Damage to both Acft and company vehicles. Both are areas that we pay dearly for. Added training....and some real teeth in the rules would help curb this problem.



(3) Re-instate an alike program that was once known as Ideas that Fly...input and a sense of being listened too , would create a more favorable work enviroment...and I'm sure tons of waste and replicated effort could be exposed and eliminated by vertue of such a program.



(4) Have un-believable work rules abolished. I firmly believe that Over-time should be paid for any work past 40 hours....situations that allow payment of Double-Time and the alike..or paid rest is being abused in a number of areas. Tighter riegns on situations like this , would certainly cut down on our operating costs. Those that depend on these scenarios , are living beyond thier means to begin with....Note the term of Dependence I used.


(5) Develope programs of training to decrease wear and replacement costs on our Acft and equipment ....UPS and Fed Ex have taken such measures for thier pilots and ground personnel....and the savings on Fuel Burn and Acft Brake wear during the Taxi phase , has saved them bundles of cash over the years. This is not to suggest our pilots are un-disciplined...but things can be addressed to achieve somewhat alike results.


(6) Inventory Control...USAirways loses literally hundreds of thousands of dollars per year by tools/parts growing legs...and never being seen again. This is a direct reflection of the lack of control between Stores and Maintenance in some of our key cities. (This can also be termed as Loss Prevention).


(7) Respect for company property and facilities.....I will site the CLT Hangar as a classic example...and something I have viewed from a first hand perspective. Last year the lower level main entrance area...and the Elevator areas were painted , and the place was looking real good. Less than 3 months later , the place looks like a poverty pocket in a disaster area. Why is this? Do your feet belong on the walls? Simply put , Hell No!!! Abuse of company property takes away from the bottom line as much as anything else. The previous cost of paint and labor in my CLT Hangar example has now effectively been wasted...and this will require additional money and labor to correct. Sounds like nothing? Multiply this scenario times the number of other facilities and pieces of equipment that USAirways has to maintain...and attempt to keep in a presentable manner..and you can clearly see how this adds up ...and devistates the ability to achieve profits.


(8) Folks....If you just think for a moment about what I have mentioned....You will see that everything wrong with U is not simply issues of Labor Costs , Fuel Costs or Acft and facility lease rates. Everything we do has an impact on the cost of doing business....consider your actions in kind. This might save a job or two....and it might aid in saving the airline. Don't take things for granted!!
 
AOG-N-IT - I must commend you on your last post. (on your .02 worth) I would say you are 99.9 % correct. I must say that what you wrote has been going on since the Allegheny days. Don't you think much of this can be taken care of by middle and lower management ? It always seemed that the management just didn't want to cause waves. And if the lower management did do anything, some higher ups would have it dropped. They didn't want to get involved. In regards to parts.- I know from personal experience that over the years, U was taken over the coals in purchasing. Example: Years ago-I had to borrow a part one night for a DC-9. I was doubtful that I could, due to the price of the part . Well, I borrowed it. I saw the other airline's manager several days later. (was also a friend) and thanked him for letting us borrow the part. Even though it was expensive. He said expensive ? Its only $1100. ! . I told him that we pay about $3000. for the same part. I wrote a letter about this and was told thats what we pay for it and its not my job and department to question how things are run in another department. I do hope things have improved since that time. But it shows you how some things are run with U . And another thing that was a fault with U over the years. There was never any trust between the workers and management. Sure the workers have some bad apples but most are honest and wanted to help the company. AOG-N-IT- your right in suggesting that programs like Ideas that fly and I also believe a program like The Ambassadors should be tried again. What harm could it do ? With people like Dave at the helm, I don't think the money would be wasted like before. Thats my .02 worth
 
AOG-N-IT here's a suggestion for #6. At WN stores we use the same inventory system as U (WIZ). We have a Transaction that a tool can be issued and returned by a mechanic using his or her employee number. If it doesn't return....two words...payroll deducted. This is used at our hangars and we can even give the mechanic a reciept once it's returned ensuring it's off his account.
 
Dark Cloud and WNbubbleboy, Thanks for the replies!! Regarding the costs of Borrows and Loans. This I can assure you is well in control. U and WN have an excellent relationship regarding this issue....and it works famously for both of us. My counterparts in DAL are some really great folks....and we tend to work real hard to help on another. It's a relationship that both parties gain great benefit from.


Regarding our cost Vs. another carriers. This again is an area that we are very strong on....maybe this has become a lesson learned over the years?


I regard to WNbubbleboys comments about tool accountability....We do share an alike capability....but getting those in the out lying stations to use it....and then have nothing like the actual individual accountability enforced , like you are speaking of....Well that's all the difference in the world.


You can obviously tell by my focus....that I see these problems all too frequently....but the chances of me being In Dutch are far greater for voicing concern....than those that cause the actual problem would ever be subject too. This is why WN makes money....and we bleed it.


Thanks again for your support...and understanding of my views.....finally someone gets it!!
 
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On 10/28/2002 7:21:08 AM wnbubbleboy wrote:

AOG-N-IT here's a suggestion for #6. At WN stores we use the same inventory system as U (WIZ). We have a Transaction that a tool can be issued and returned by a mechanic using his or her employee number. If it doesn't return....two words...payroll deducted. This is used at our hangars and we can even give the mechanic a reciept once it's returned ensuring it's off his account.
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Jeez, I was wondering why my paycheck was so short after I mis-placed that Mode Control Panel, ha,ha,ha.
 
AOG-N-IT,

Outstanding post, in my opinion. You should be commended for offering up numerous ideas to help US save on costs and improve their efficiency. Even if some of those measure are unable to be implemented, for whatever reason, at least it shows that you're thinking ahead. Your company and mine need a lot more of that, along with those in the upper ranks who are not only willing to listen to these ideas, but also willing to explore them. After all, who knows better how to save on costs and improve efficiency than the worker bees who perform the jobs each and every day.
 
AOG-N-IT:

All of your points in this thread are valid and well thought out. Employee costs are not the only problem and I do not mean to imply that they are the only issues.

The challenge is getting through the short-term and the pending Middle East War so the airline can emerge from Chapter 11.

I do not want to see any further labor cuts, but we have to compete in all areas of our unit expenses. I also would like to see management and the employees create win-win relationships that take costs out of the airline while maintaining meaningful employment.

Thanks for your well-written post.

Chip
 
A lot of good points, by most of the previous posters.
I'd like to concentrate on 1 issue, that was mentioned by several of the above folks.
The impending war w/Iraq.

When the first explosive devise lands on Bagdad,(Which will be the death knell of at least a couple of companys), I hope all you Independant, and Democratic voters, who voted for the little fraudulent TURD(just so you could send Clinton, WHO WASNT EVEN RUNNING, a message), will like the image that stares back at you , in the mirror(as you agonize over your lost airline job).
I don't mean to sound COLD.(I may be among you).
What's pissin' me off is that constant opinion polls are CLEARLY showing the US population TRYING to tell DUMBYA that he needs to get as many allies on board, as he can, before he starts pushin' any buttons on his own !
 
NHBB....I am concerned about the way this has been handled from an international relations point of view..We MUST obtain the approval of the UN to go forward....What we have here is NOT an IMMINENT threat so therefore we cannot go in unilaterally without violating UN charter. Characterizing this as an imminent threat would set a precedent for other nations worldwide and destabilize the UN rules and regulations. SHAHEEN 2002...YOU GO GIRL (what a great slogan, eh?)!
 
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On 10/29/2002 12:08:07 AM NewHampshire Black Bears wrote:
A lot of good points, by most of the previous posters.
I'd like to concentrate on 1 issue, that was mentioned by several of the above folks.
The impending war w/Iraq.
When the first "explosive devise" lands on Bagdad,(Which will be the death knell of at least a couple of companys), I hope all you Independant, and Democratic voters, who voted for the "little fraudulent TURD"(just so you could send Clinton, WHO WAS"NT EVEN RUNNING, a message), will like the image that stares back at you , in the mirror(as you agonize over your lost airline job).
What's pissin' me off is that constant opinion polls are CLEARLY showing the US population "TRYING" to tell DUMBYA that he needs to get as many allies on board, as he can, before he starts pushin' any buttons on his own !
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The message being sent was to Gore, who supported and defended the biggest s*bag to ever serve as President. He even had the incredible gall to call Clinton one of the greatest Presidents in history (at the impeachment pep rally held at 1600 Pennsylvania Ave after the House voted to impeach). If extra credit is given for rape, lying under oath, obstructing justice, selling pardons, etc., then I suppose Clinton is one of the greatest, but not to folks like myself for whom a candidate's character counts for something.
As far as get as many allies on board before attacking, what exactly did these allies (except the Brits) do during the '90 Gulf War? Practically nothing. I'd guesstimate that we did 90-95%, the Brits 4-9%. and the rest 1% or less. What a laughable term coalition is. The French, Germans, Saudis, etc are practically worthless in terms of anything they could contribute. The only opinions polls which would show anything like what you're saying are biased ones paid for by the DNC. Face facts, the Republicans won in 2000, no matter how many dimpled ballots are counted in favor of Gore and how many military absentee ballots are thrown out by the Dems. Every chance I get to vote against a Clinton apologist, I will do so...and so will many thousands like me. You had your guy in there from '92-'00. Now live with the repercussions!
 
Well, now George W. can do anything he wants...The GOP has three green...House, Senate, Presidency...Good luck since there are no excuses anymore. I am not a Clinton apologist in the least just for the record...Sorry, NHBB, Jeanne is a classy gentlewoman.
 
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On 11/6/2002 1:32:19 PM La Treal wrote:

Yeah, but what about about his performance on the job?
How do you feel about that? Seriously.
I know of not one person that approved of what BC did pertaining to his personal/family life.
But what about the way he did his job.
I have yet to hear how bad he ran the country.
I do know that some blame 9/11 on his administration, but those that dislike the administration did so before 9/11.
So besides his personal mishaps, how did he or his administration destroy this country?


I already have a list for GB and he is only half way done.
Oh and he will be done in 2004.
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Maybe so, but for now the GOP is all smiles. The same can't be said for US Airways. So who will out last who, Bush or US Airways? Lets get back to the airline and not cry about who's at fault with the country. Bush or Clinton!!!!!!!!!!!!!!
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