Fleet Plan

[chipmunn]

US Airways current fleet-count is 301 aircraft. The company is in receipt of authority from the Bankruptcy Court to reject or abandon 67 surplus aircraft to date, including 57 aircraft retired after the September 11 attacks, and an additional 10 as part of the announced retirement of 32 more planes.
US Airways asked the Court to reject up to 150 additional Boeing leases despite strong objections from 18 lessors. At the second omnibus hearing it was revealed that the Seabury Group had settled 16 of those objections with the parties and Judge Mitchell said he would rule on the other two lessor's objections as soon as possible. It appears the remaining two lessor's not yet reconciled hold the paper on the remaining 22 announced retirements. A 60-day bankruptcy code deadline that makes it easier for the company to dispose of aircraft leases expires on October 9.
It’s unclear how many aircraft the company will operate upon emergence, but there is reason for optimism the airline will exceed its target aircraft lease concession required for loan guarantee approval and will cost effectively operate the fleet with a lower unit cost.
Chip

 

[USAirBoyA330]

Chip:
Of the 31 aircraft that all our new furlough numbers are based upon, I take it the judge has allowed 10 of those 31 to be returned. What is to become of the 21 other aircraft? Also, with the leases being renegotiated, is there a chance that these 21 or 31 airplanes might be kept flying or are they gone no matter what? I know Dave says 279 but, it's all a bit wishy washy.

 

[chipmunn]

USAirBoy330:[BR][BR]USAirBoy330 asked: Of the 31 aircraft that all our new furlough numbers are based upon, I take it the judge has allowed 10 of those 31 to be returned. What is to become of the 21 other aircraft? Also, with the leases being renegotiated, is there a chance that these 21 or 31 airplanes might be kept flying or are they gone no matter what? I know Dave says 279 but, it's all a bit wishy washy.[BR][BR]Chip answers: USAirBoy, the intent of my comments were to create a thought-provoking discussion. Multiple reports indicate the Seabury Group, led by John Luth in particular, have been holding very nasty discussions with aircraft lessors. However, Luth's work appears to be paying dividends for the corporation and its employees.[BR][BR]Dave Siegel has said he will fly the largest fleet possible and I believe him. But, he will only fly an aircraft if he can do so profitably and that will require lower costs (primarily in aircraft rental fees) and higher revenue, which will require a return of the passengers and higher revenues. Per the bankruptcy code Siegel has 60 days after the formal filing before he can return the unwanted jets with high lease payments and if necessary, obtain other used aircraft like A-320s sitting in the desert for a lease payment more than half of the current expense.[BR][BR]The 60-day window closes in 12 days on October 9. [BR][BR]It's to early to tell, but there is reason to believe the return of the 32 aircraft and the request to reject all Boeing leases were to get lessor attention, which in 16 of 18 cases plus RSA has been accomplished.[BR][BR]The bankruptcy court is giving two remaining aircraft lessors and the company another chance to reach a settlement before the court will issue an order. Regardless, this issue will be resolved by October 9, which gives US and the Seabury group leverage during negotiations.[BR][BR]There is reason to believe the November 4 pilot furlough will occur, but the first quarter 2003 furlough could be cancelled based on the company's ability to profitably fly its mainline fleet.[BR][BR]Just one more point...it's important to note that Siegel has one chance to lower the aircraft lease expenses and the period to do expires on 12 days. Siegel will lower the expense one way or another. Either the two-lease company's and US reach an accord on the remaining jets in question or the aircraft could be returned and when appropriate replaced with other equipment at fair market value. [BR][BR]Chip[BR]

 

[USAirBoyA330]

Chip:
Thanks for the insight. The company is scheduled to furlough 500 Pilots total correct? 250 in November and 250 in January. I know that the F/A furloughs will take place in 1 lump December 2nd totaling 724. If the second round of Pilot furloughs are canceled, I am hoping that the 724 Flight Attendant furloughs will be reduced as well.

 

[usfliboi]

Usairboy, The 723 is not the lump sum .. there were 4oo and some odd number flight attendant positions sced for furlough based on the latest figures. The additional numbers that brought it up to 723 were a resultof flight att coming off the last furlough.. If needed as stated by sherry hendry, there may {more likelybe} additonal furloughs in the first quarter..

 

[USAirBoyA330]

Thanks. I am aware how we got to the 724. From the VOLF1 people returning DEC 2nd. However, I was told by several people in the union that for 31 airplanes the staffing formula was the 400ish FA's. The pilots are going in 2 rounds. 250 Jan...250 Nov. But as I understood it, too minimize displacements, the flight attendants would all go on DEC 2nd. (for 31 aircraft off the property)
So what I am getting at is if we come to agreement on these 31 aircraft leases, will the still fly them to the desert? Or will we revise some furlough numbers?

 

[chipmunn]

Usfliboy:

The company has not announced a 250 pilot furlough. The specific language is a 250 November pilot furlough and in the forward looking area a first quarter 250 line pilot reduction.

There is an important distinction, which may not include additional layoffs, but this information is confidential.

Chip

 

[usfliboi]

I think originally it was to be nov and because of possible displacements, they moved it to dec and offered vploa's in nov to cover that . If you do the numbers though, vf2 wouldnt be less than the total number of pilots? but....?

 

[usfliboi]

Yeah Chip that sort of goes along with what Hendry said as far as a possible future or 1st quarter furloughs. I guess in other words, they dont know yet ..That information is confidential too! lol kidding

 

[chipmunn]

Usfliboi, it's confidential within ALPA.

Chip