Dear Fellow Employee & Interested Parties:
The ALPA supplemental restructuring increased the minimum required block hours to 939,600 hours. This provides the 279 aircraft fleet with a daily utilization rate of about 10.01 hours per day per aircraft, which is obviously under utilizing the aircraft. When the company fully implements pilot productivity changes included in the restructuring agreement(s) (Pref Bid, Reserve Time Balancing, and other Work Rule changes) in 2004, the carrier may be able to fly each aircraft another 2 hours per day, which would be a dramatic 20% increase in block hours/ASMs.
US Airways holds firm delivery positions on 85 EMB-170’s that will now arrive between January 2004 and September 2006. For 2004 and 2005 US Airways will accept about 60 EMB-170s.
On December 3 the ALPA code-a-phone said, "Fellow US Airways pilots are now being hired and trained at MidAtlantic. A total of 56 pilots including 34 check airmen and 22 line pilots are now in training in Pittsburgh. The last seniority number for the most junior Captain is currently 3904 and the last seniority number for the most junior First Officer is 4057."
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Pilots in training at MDA report that all of the check airmen are trained and all the line check airmen will be complete by mid January. The first group of line pilots have completed their oral examinations and they will start simulator training in late January. The company intends to hold 3 pilot training classes per month with 10 pilots each every month with 40 Embraer jets in service by the end of 2004. Reports indicate the first delivery will occur in about two weeks, final certification is scheduled for February, and the first revenue flight will be flown on March 7.
On December 5 the Pittsburgh Post-Gazette wrote Analysts still think that off all the possible partners, a marriage between US Airways and United may make most the sense. Mike Boyd, who heads the Colorado-based aviation consulting firm, The Boyd Group, said a full merger doesn't make sense, but that he could envision US Airways, through its major investor, the Retirement Systems of Alabama, attempting to cherry-pick some of United's assets, such as gates at Chicago's O'Hare airport or at Denver International Airport. It would give US Airways a gateway to destinations in the West, Boyd said. And such a move would give United, which is still in Chapter 11, the funding it needs to emerge from bankruptcy.
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On December 17 the Beaver County Times reported US Airways chief executive officer Dave Siegel met in Washington, D.C., with top managers Tuesday (December 16) and was expected to address the need for further cost-cutting. Siegel told managers he wants to grow, not shrink, the airline, and would like to add 60 planes to the mainline fleet within two years, provided costs can be reduced, a company executive said.
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On December 29 US Airways announced that it would furlough 552 flight attendants.
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On December 29, CWA Local 3641 Charlotte President Jim Root said, "The Company has postponed its announcement of the "new business plan" until the first of February. The Company has not called CWA to talk about our roll in the new business plan, yet."
See Story
On December 30 the Pittsburgh Post-Gazette wrote an article titled "US Airways interim deal with county progressing" that dealt with the on-going Pittsburgh hub negotiations. The newspaper said Allegheny County Chief Executive-elect Dan Onorato hopes to have an interim agreement in place soon to cover US Airways operations at Pittsburgh International Airport beyond Jan. 5 while negotiations continue over efforts to reduce the airport's $673 million in debt.
Without a short-term deal, US Airways no longer will be bound by its leases at Pittsburgh International Airport as of Jan. 5. The airline canceled its leases, effective that date, before emerging from bankruptcy in March. The cancellation would allow US Airways to shut down its Pittsburgh hub as of that date, although it has committed to U.S. Sen. Rick Santorum to maintain its current level of service at Pittsburgh until at least Labor Day. A short-term agreement would govern the airline's operations until then. "The bottom line is, you've got to deal with Jan. 5. You can't pretend it's not coming," Onorato said. As part of a short-term agreement, US Airways is exploring the possibility of signing long-term leases for a small number of gates to take advantage of lower fuel prices accorded to carriers with such leases.
In my opinion, the interim Pittsburgh hub negotiations positions US Airways to either reject the hub or operate the hub similar in scope to Delta-Comair in Cincinnati. In addition, to create economies of scale the airline could still reject the pilot simulator facility, pilot ground school (Beaver Grade Road), flight attendant training (Carnot), operations management (RIDC West), reservations (Greentreee), and some maintenance facilities. These facilities could be consolidated with existing vacant space in Winston-Salem and Charlotte.
In an interview with the Pittsburgh Post-Gazette on December 19 US Airways’ chairman of the board David Bronner discussed the unfolding transformation plan and the Pittsburgh hub.
See Story
Meanwhile, today the Pittsburgh Tribune-Review reported Allegheny County Executive-elect Dan Onorato plans to meet with US Airways Monday with hopes of striking an agreement that would preserve the carrier's heavy flight volume and employment in return for keeping airport costs in check. The 11 a.m. meeting will be held in the authority's offices at Pittsburgh International Airport and will be followed by a 2 p.m. press conference, said Ali Detar, an Onorato spokeswoman. Onorato, a Democrat and currently the county controller, will be sworn in Friday as the new chief executive, replacing Republican Jim Roddey.
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Chip concludes: I’m not the brightest mathematician, but it appears a 20% increase in current aircraft utilization, with the current headcount, would be dramatic. This increase in flying would likely include the current supplemental restructuring agreement scheduling/work rule changes plus quit possibly further pilot productivity improvements.
Separately, the rumored 2004 and 2005 60 A320 family aircraft and 60 EMB-170 aircraft would require about 1,200 pilots and dependent upon Airbus fleet composition, about 1,500 to 1,800 flight attendants. From this observer’s perch, it appears reasonable that US Airways would not furlough flight attendants if it was going to dramatically increase organic mainline flying, not to mention the company cannot train 1,200 pilots.
Thus to increase the current 279 fleet flying by 20% and add 60 mainline aircraft, the current pilot work force would have to provide more than a 40% increase in productivity and not have any 2004 and 2005 retirements or attrition.
Therefore, I believe either management has no intention of adding 60 new Airbus/Boeing jets to the mainline fleet, with US Airways employees working these flights, or the company will obtain 60 additional Airbus/Boeing jets and staff these aircraft with personnel from another source.
Separately, with the Post-Gazette reporting that "US Airways is exploring the possibility of signing long-term leases for a small number of gates" in Pittsburgh, the airline could have an agreement in place to operate a small spoke operation, if a deal cannot be obtained to operate a hub similar in scope to Delta-Comair in Cincinnati.
In conclusion, I believe there could be something the rank-and-file members do not know that caused the MEC to publicly call for the removal of Siegel, but the question is what? Thus, I believe there is more to the story than 60 additional mainline jets, which the current pilot workforce cannot man, and the MEC may know something they are not telling ALPA members.
Regards,
Chip
The ALPA supplemental restructuring increased the minimum required block hours to 939,600 hours. This provides the 279 aircraft fleet with a daily utilization rate of about 10.01 hours per day per aircraft, which is obviously under utilizing the aircraft. When the company fully implements pilot productivity changes included in the restructuring agreement(s) (Pref Bid, Reserve Time Balancing, and other Work Rule changes) in 2004, the carrier may be able to fly each aircraft another 2 hours per day, which would be a dramatic 20% increase in block hours/ASMs.
US Airways holds firm delivery positions on 85 EMB-170’s that will now arrive between January 2004 and September 2006. For 2004 and 2005 US Airways will accept about 60 EMB-170s.
On December 3 the ALPA code-a-phone said, "Fellow US Airways pilots are now being hired and trained at MidAtlantic. A total of 56 pilots including 34 check airmen and 22 line pilots are now in training in Pittsburgh. The last seniority number for the most junior Captain is currently 3904 and the last seniority number for the most junior First Officer is 4057."
See Story
Pilots in training at MDA report that all of the check airmen are trained and all the line check airmen will be complete by mid January. The first group of line pilots have completed their oral examinations and they will start simulator training in late January. The company intends to hold 3 pilot training classes per month with 10 pilots each every month with 40 Embraer jets in service by the end of 2004. Reports indicate the first delivery will occur in about two weeks, final certification is scheduled for February, and the first revenue flight will be flown on March 7.
On December 5 the Pittsburgh Post-Gazette wrote Analysts still think that off all the possible partners, a marriage between US Airways and United may make most the sense. Mike Boyd, who heads the Colorado-based aviation consulting firm, The Boyd Group, said a full merger doesn't make sense, but that he could envision US Airways, through its major investor, the Retirement Systems of Alabama, attempting to cherry-pick some of United's assets, such as gates at Chicago's O'Hare airport or at Denver International Airport. It would give US Airways a gateway to destinations in the West, Boyd said. And such a move would give United, which is still in Chapter 11, the funding it needs to emerge from bankruptcy.
See Story
On December 17 the Beaver County Times reported US Airways chief executive officer Dave Siegel met in Washington, D.C., with top managers Tuesday (December 16) and was expected to address the need for further cost-cutting. Siegel told managers he wants to grow, not shrink, the airline, and would like to add 60 planes to the mainline fleet within two years, provided costs can be reduced, a company executive said.
See Story
On December 29 US Airways announced that it would furlough 552 flight attendants.
See Story
On December 29, CWA Local 3641 Charlotte President Jim Root said, "The Company has postponed its announcement of the "new business plan" until the first of February. The Company has not called CWA to talk about our roll in the new business plan, yet."
See Story
On December 30 the Pittsburgh Post-Gazette wrote an article titled "US Airways interim deal with county progressing" that dealt with the on-going Pittsburgh hub negotiations. The newspaper said Allegheny County Chief Executive-elect Dan Onorato hopes to have an interim agreement in place soon to cover US Airways operations at Pittsburgh International Airport beyond Jan. 5 while negotiations continue over efforts to reduce the airport's $673 million in debt.
Without a short-term deal, US Airways no longer will be bound by its leases at Pittsburgh International Airport as of Jan. 5. The airline canceled its leases, effective that date, before emerging from bankruptcy in March. The cancellation would allow US Airways to shut down its Pittsburgh hub as of that date, although it has committed to U.S. Sen. Rick Santorum to maintain its current level of service at Pittsburgh until at least Labor Day. A short-term agreement would govern the airline's operations until then. "The bottom line is, you've got to deal with Jan. 5. You can't pretend it's not coming," Onorato said. As part of a short-term agreement, US Airways is exploring the possibility of signing long-term leases for a small number of gates to take advantage of lower fuel prices accorded to carriers with such leases.
In my opinion, the interim Pittsburgh hub negotiations positions US Airways to either reject the hub or operate the hub similar in scope to Delta-Comair in Cincinnati. In addition, to create economies of scale the airline could still reject the pilot simulator facility, pilot ground school (Beaver Grade Road), flight attendant training (Carnot), operations management (RIDC West), reservations (Greentreee), and some maintenance facilities. These facilities could be consolidated with existing vacant space in Winston-Salem and Charlotte.
In an interview with the Pittsburgh Post-Gazette on December 19 US Airways’ chairman of the board David Bronner discussed the unfolding transformation plan and the Pittsburgh hub.
See Story
Meanwhile, today the Pittsburgh Tribune-Review reported Allegheny County Executive-elect Dan Onorato plans to meet with US Airways Monday with hopes of striking an agreement that would preserve the carrier's heavy flight volume and employment in return for keeping airport costs in check. The 11 a.m. meeting will be held in the authority's offices at Pittsburgh International Airport and will be followed by a 2 p.m. press conference, said Ali Detar, an Onorato spokeswoman. Onorato, a Democrat and currently the county controller, will be sworn in Friday as the new chief executive, replacing Republican Jim Roddey.
See Story
Chip concludes: I’m not the brightest mathematician, but it appears a 20% increase in current aircraft utilization, with the current headcount, would be dramatic. This increase in flying would likely include the current supplemental restructuring agreement scheduling/work rule changes plus quit possibly further pilot productivity improvements.
Separately, the rumored 2004 and 2005 60 A320 family aircraft and 60 EMB-170 aircraft would require about 1,200 pilots and dependent upon Airbus fleet composition, about 1,500 to 1,800 flight attendants. From this observer’s perch, it appears reasonable that US Airways would not furlough flight attendants if it was going to dramatically increase organic mainline flying, not to mention the company cannot train 1,200 pilots.
Thus to increase the current 279 fleet flying by 20% and add 60 mainline aircraft, the current pilot work force would have to provide more than a 40% increase in productivity and not have any 2004 and 2005 retirements or attrition.
Therefore, I believe either management has no intention of adding 60 new Airbus/Boeing jets to the mainline fleet, with US Airways employees working these flights, or the company will obtain 60 additional Airbus/Boeing jets and staff these aircraft with personnel from another source.
Separately, with the Post-Gazette reporting that "US Airways is exploring the possibility of signing long-term leases for a small number of gates" in Pittsburgh, the airline could have an agreement in place to operate a small spoke operation, if a deal cannot be obtained to operate a hub similar in scope to Delta-Comair in Cincinnati.
In conclusion, I believe there could be something the rank-and-file members do not know that caused the MEC to publicly call for the removal of Siegel, but the question is what? Thus, I believe there is more to the story than 60 additional mainline jets, which the current pilot workforce cannot man, and the MEC may know something they are not telling ALPA members.
Regards,
Chip
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