perserverance
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The following is an excert out of an article by Dan Reed from ''USA Today''
''When Parker and his management team at America West were promoting their merger proposal in 2005, they promised to generate an extra $600 million a year in operating profit. They planned to do that through cost savings and additional revenue that would come from offering more non-stop flights and better connecting service than either the West-Coast-oriented America West or the old, East-Coast-centric US Airways had before.
The merged carrier has exceeded that goal already, he says, in large part by eliminating duplicate flights to reduce capacity about 15%; shutting down its underperforming hub in Pittsburgh (US Airways' original hometown); and better matching aircraft size and daily flight frequencies with actual passenger demand. As a result, the airline earned $427 million last year on $11.7 billion in revenue. Though both of its predecessors were perpetually cash poor, the new US Airways now has $3 billion in cash.But the merged US Airways has quietly benefited from labor costs that have remained artificially low while the unions representing mechanics, bag handlers, flight attendants and pilots from both airlines have battled over how to integrate their seniority lists. Until that's resolved, new contracts with higher pay rates and improved benefits can't be put into place."It's not a matter of if their labor costs will go up," says Michael Derchin, a veteran airline analyst at FTN Midwest Securities in New York, "but how much and when."
It seems everyone but the Tempe management team is aware of our struggles. $3,000,000,000.....
in cash and they still do not see to thank the employees'. IAM and the Company both. I include
the IAM for thier lack of leadership in negotiations. They finally see that the group will not accept
a TA less that what we believe our ''value'' is and they didn't see that in the beginning and should
have all along.
Thanks
''When Parker and his management team at America West were promoting their merger proposal in 2005, they promised to generate an extra $600 million a year in operating profit. They planned to do that through cost savings and additional revenue that would come from offering more non-stop flights and better connecting service than either the West-Coast-oriented America West or the old, East-Coast-centric US Airways had before.
The merged carrier has exceeded that goal already, he says, in large part by eliminating duplicate flights to reduce capacity about 15%; shutting down its underperforming hub in Pittsburgh (US Airways' original hometown); and better matching aircraft size and daily flight frequencies with actual passenger demand. As a result, the airline earned $427 million last year on $11.7 billion in revenue. Though both of its predecessors were perpetually cash poor, the new US Airways now has $3 billion in cash.But the merged US Airways has quietly benefited from labor costs that have remained artificially low while the unions representing mechanics, bag handlers, flight attendants and pilots from both airlines have battled over how to integrate their seniority lists. Until that's resolved, new contracts with higher pay rates and improved benefits can't be put into place."It's not a matter of if their labor costs will go up," says Michael Derchin, a veteran airline analyst at FTN Midwest Securities in New York, "but how much and when."
It seems everyone but the Tempe management team is aware of our struggles. $3,000,000,000.....
in cash and they still do not see to thank the employees'. IAM and the Company both. I include
the IAM for thier lack of leadership in negotiations. They finally see that the group will not accept
a TA less that what we believe our ''value'' is and they didn't see that in the beginning and should
have all along.
Thanks