Is This New?

While the announcement is new, I didn't see much new in it.

As an aside, the $200-$300 million in additional cost savings equals approximately 4% based on 3rd quarter mainline numbers and would bring our 3rd qtr CASM down to 10.54 cents (including fuel) or a little over 9 cents (excluding fuel). That leaves a long way to go if Dave wants to become competitive on cost.

Jim
 
Partial quote fromthe document:
"reduce expenses by $200 to $300 million through previously announced and anticipated productivity improvements."



I see nothing new here...except I notice that the $300 million is noted at coming from productivity improvements...which I could live with. But no more salry or benefit give backs...not from me.
 
Speaking only for the pilots, there are very little productivity enhancements left - unless you count vacation and sick time.

According to the Daves, our pilot productivity (average block hours flown per month) is 20 hours less than at Southwest. In 2001, it was only 12 hours less (per the UAL BK filing chart on pilot productivity for major airlines). Our productivity has gotten WORSE in spite of work rule concessions. For pilots (and I think somewhat for the f/a's also) the lack of "productivity" is due to primarily two things - downsizing and the hub/spoke multiple fleet type structure.

Jim
 
removing the itd/domestic fence is one of those things that is getting looked at by the company. its not efficient to have it. the company can utilize f/a's better. it costs to much to have it.