Good Read - Us Airways Supplemental Brief

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If you have not seen it, this document outlines why US Airways' first plan did not succeed, why labor costs are not competitive, and what they need to do to be competitive:

http://www.transformingusairways.com/html/...rstDayBrief.pdf

 

[RowUnderDCA]

Hey, how come nobody notices my posts!? I posted this link yesterday in some thread.

I agree, it's well written and obviously for public consumption. It's rhetorically convincing and will have its facts and conclusions rebutted in my opinion..

 

[Formatman]

Hey, how come nobody notices my posts!? I posted this link yesterday in some thread.

I agree, it's well written and obviously for public consumption. It's rhetorically convincing and will have its facts and conclusions rebutted in my opinion..

[post="179917"][/post]​

Surely someone besides me can see that when the company says that LCC's are currently offering a successful level of service at the lower wages and benefits for employees...that the level of service which is being offered by the LCC's is not the same as what US wants to offer. US still wants to offer a "first class" product and service by paying second class wages. US still wants to belong to Star Alliance, offer first class seating, offer clubs, offer FF benefits, etc., etc., etc. If they want to be a LCC, then be one. Stop trying to be a world class carrier strictly on the backs of labor. It ain't gonna' happen...

 

[vc10]

World class carrier? Southwest and JetBlue aren't world-class carriers? They have some of the highest customer satisfaction ratings in the business. Ever fly Alaska Air? Great service, yet they're turning themselves into an LCC.

Gotta break out of that mindset. LCC does not mean poor service.

Surely someone besides me can see that when the company says that LCC's are currently offering a successful level of service at the lower wages and benefits for employees...that the level of service which is being offered by the LCC's is not the same as what US wants to offer. US still wants to offer a "first class" product and service by paying second class wages. US still wants to belong to Star Alliance, offer first class seating, offer clubs, offer FF benefits, etc., etc., etc. If they want to be a LCC, then be one. Stop trying to be a world class carrier strictly on the backs of labor. It ain't gonna' happen...

[post="179927"][/post]​

 

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The findings in the Brief are consistent with what the GAO says in its paper "Legacy Airlines Must Further Reduce Costs to Restore Profitability"

A key argument "Its the Revenue Stupid"

When revenue goes down, costs must go down (I have an MBA I know that!!!)

http://www.gao.gov/new.items/d04836.pdf

 

[RowUnderDCA]

I thought that section referring to other analyses of the industry, including public policy was particularly effective.

 

[Oliver Twist]

I thought that section referring to other analyses of the industry, including public policy was particularly effective.

[post="179952"][/post]​

This was the first time I have read - and understood a document of this type. It protrays a simple and logical progression of events and results with a strong conclusion as to what needs to be done. Many of the items discussed, I have been aware of for some time. It is the "revenue stupid". It has always been the revenue in my opinion. Price your product attractively and they will buy it. Gouge folks and they will run.

It is so unfortunate that the previous managers did not see what was coming. If little ole agent "me" could see it several years ago, why couldn't they? Opps I forgot, THEY know it all. The evidence and legacy they have left U's employee's clearly shows they had their butts in the air and heads in the sand. Thats why I left after 20 years. Good luck to my friends at U, they will surely need all the luck they can get.