Major Carriers May Fail In 05

[BoeingBoy]

Major Carriers May Fail in 05

Helane Becker, a transportation analyst at the Benchmark Co., a New York brokerage, believes there's a 50-50 chance US Air will be the one that closes its doors — as early as the beginning of 2005.

"Unless they are able to reach a labor agreement by the end of the year, I would expect them to shut down early next year," she said. "They have asked their employees for pay cuts so many times. At some point, their flight attendants and mechanics have to realize that they can make more money elsewhere."

Jim

 

[USA320Pilot]

Helane Becker is right, without the required cost cut targets met, either by consensual or imposed agreements, US Airways will shut down in mid-January.

John Luth, chief executive of the Seabury Group, and the company's last witness on Friday, told the court GE is the driving force behind the company's decision to raise its labor demand from $800 million to almost $1.1 billion per year. Luth said that GECAS had found US Airways' lower labor-savings target "unacceptable."

This should not come as a surpirse because every ALPA advisor told the MEC this would happen and it has been repeatedly stated on this message board.

The recent GE-US Airways agreement requires court approval by December 17 and requires that by January 14 the airline achieve a series of cost reductions and restructuring milestones.

What's too bad is that the labor cost cuts did not have to be so severe, but as ALPA's advisors predicted and the labor leaders were told as time went on the labor cost cuts would be required to be more severe and that is what is being told to the bankruptcy court.

Becker is right, without the additional cost cuts US Airways could shut down next month. What do you think Judge Mitchell will do? Support the Debtor and Creditors or the "hold out" unions? Moreover, could the company seek even deeper cuts with a final proposal submitted to the court this week before the S.11113 proceedings are scheduled to end?

I believe the CWA leadership got it right when they said, "Considering the bankruptcy of the airline, and the past decision of the bankruptcy judge, which clearly showed us the hard realities of bankruptcy law as it applies to employees, your Local Presidents believe that this agreement is the result of your solidarity and the hard work of the bargaining team and CWA staff. They held their ground and made some gains over the extreme demands the company was originally proposing. For those reasons, the Local Presidents recommend that you thoroughly review and understand the enclosed materials, and then vote Yes for this agreement."

See Story

Regards,

USA320Pilot

P.S. Are you ready for some football?

 

[AP Tech]

Impose contracts and just see what type of workforce you get. h34r: I'm sure all those involved would give 110% As much as I dislike my current position I still go to work and give 100% as it make the day go quicker than sitting around trying to avoid work for 8.5 hrs. And for those who say quit....I have too much time invested.....its not going to happen....I am here till the end, and I tend to agree that will come in January.

 

[pitguy74]

Everyone is an "Expert" these day's.

 

[firstamendment]

This should not come as a surpirse because every ALPA advisor told the MEC this would happen and it has been repeatedly stated on this message board.


What's too bad is that the labor cost cuts did not have to be so severe, but as ALPA's advisors predicted and the labor leaders were told as time went on the labor cost cuts would be required to be more severe and that is what is being told to the bankruptcy court.


See Story

Regards,

USA320Pilot

Must beat dead horse!! <_<

 

[North by Northwest]

"Southwest has managed to avoid most of the problems that have plagued other airlines — high labor costs, fluctuating fuel prices and excess capacity. " This statment kills any credability this person might have. Tell this to SW FA's whom just went to the bank with a 31% pay increase. Not to mention the Pilots and Mechanics pay. SW has hood winked people into thinking that they are cheapest on all domestic routes vs. a Major. Good on ya SW! Moreover, SW has one of the most advanced fuel hedging programs in the industry. SW does a lot of good things operationally. However, I do not see this being duplicated in the international arena. Ryan Air is a Intra-Euro domestic LCC. It is ecomoically impossible to use the same formula on long-haul. That said, US international carriers cannot support their long-haul (in their present state) without their domestic operations. Unlike KLM or Singapore (geo polictcal forces prevent US carriers from being welcomed or pax feeling safe onboard i.e terrorism) that have built a product based on a small home market, having been forced to go after the international business/ tourist markets outside of their home turf. All LCC will eventually HAVE to pay the SAME wages as SW ... if they last. The American Business traveller will NOT like what is offered down the road when and if the majors disappear. Americans are the only group (that I know of) in the world that have come to expect "quality" for cheap. It is this misguided sense of "entitlement" that will sink this nation far far faster than the Roman Empire. You get what you pay for (cheap=outsourcing), till you don't have a job to pay for it. The End.

 

[twoturnin]

"Southwest has managed to avoid most of the problems that have plagued other airlines — high labor costs, fluctuating fuel prices and excess capacity." I heard from another pilot " SW pilot negotiator said we(SW) try to present the pilot to the company as an asset to the company to help them make money--you dudes just seem to try to $crew the company all the time". Truth hurts dont it. Weve had some real boners in management but the unions--all of them---are right up there also. Keep up the 100% work AP TECH thx. My .02$

 

[PITbull]

"Southwest has managed to avoid most of the problems that have plagued other airlines — high labor costs, fluctuating fuel prices and excess capacity. " This statment kills any credability this person might have. Tell this to SW FA's whom just went to the bank with a 31% pay increase. Not to mention the Pilots and Mechanics pay. SW has hood winked people into thinking that they are cheapest on all domestic routes vs. a Major. Good on ya SW! Moreover, SW has one of the most advanced fuel hedging programs in the industry. SW does a lot of good things operationally. However, I do not see this being duplicated in the international arena. Ryan Air is a Intra-Euro domestic LCC. It is ecomoically impossible to use the same formula on long-haul. That said, US international carriers cannot support their long-haul (in their present state) without their domestic operations. Unlike KLM or Singapore (geo polictcal forces prevent US carriers from being welcomed or pax feeling safe onboard i.e terrorism) that have built a product based on a small home market, having been forced to go after the international business/ tourist markets outside of their home turf. All LCC will eventually HAVE to pay the SAME wages as SW ... if they last. The American Business traveller will NOT like what is offered down the road when and if the majors disappear. Americans are the only group (that I know of) in the world that have come to expect "quality" for cheap. It is this misguided sense of "entitlement" that will sink this nation far far faster than the Roman Empire. You get what you pay for (cheap=outsourcing), till you don't have a job to pay for it. The End.

[post="228326"][/post]​

100% agreed.

 

[Winglet]

Bruce Lakefield looks-on while wondering why his new business model isn't working. Blames employee for not being willing to pull hard enough.

 

[USAirUnited]

Southwest now has industry leading wages, let see what happens when they try to strip their employees of that... It has to happen sooner or later. With all legecy carriers getting labor costs in line it will put downward presure on WN.

 

[Winglet]

Southwest now has industry leading wages, let see what happens when they try to strip their employees of that... It has to happen sooner or later. With all legecy carriers getting labor costs in line it will put downward presure on WN.

[post="228352"][/post]​

Not really. SW is running a point-to-point, high market density operation. They don't have yield killing, high ASM RJs, or serve money-losing low density markets. They don't operate many kinds of completely different aircraft. They have a much better corporate culture. They have leaders in management instead of self-serving incompetents. They have lots of cash. They hedged fuel.

The legacy carriers don't have all those things . . . . and U none of them . . . . nor will slashing and burning employees get it for them.

 

[robbedagain]

since sw has some of the higher paying jobs now, just how long will it be before they come knocking on the doors of their unions and just how much are the employees paying their union dues? also i wonder if they will ever down size any cities to a term that we at usair call mainline express???? i doubt that it will happen but i could be wrong

 

[North by Northwest]

"At Southwest Airlines, the most unionized airline in the industry, employees are viewed as a key ingredient in the organization's success. Our latest flight attendants' contract sets an industry standard for fair wages, benefits and work rules. Perhaps most important, Southwest's recent labor agreements prove that a well-managed airline can pay its workers and still generate a sizable profit.

The leaders of the legacy carriers don't get it. They say they want to be like Southwest, but cutting fares doesn't turn you into the luv airline. If they want to compete, they need to understand that labor costs are part of doing business and that flight attendants and other airline workers are essential -- not disposable cogs" The corporate culture at American Major carriers is one that views labor as slaves to support top tier management's greedy, protected million dollar compensation packages. Southwest owes a large part of it's success to it's sharing of the largesse. The disparity in compensation ratio between Top Airline Mangagement and the rank and file of Labor ( the nuts and bolts, that is the airline itself) is strataspheric. How about setting a formula that ties everyone @ the company to performance, and under NO circumstance should Top Management be given anything outside of the formula. The BOD governances MUST be reformed...ultimately it was they, and the exsisting laws that created this mess. The US government cannot talk ETHICS and MORALITY out of one side of it's mouth and then allow US corporations to steal (legal coruption that makes the Mafia look like Sunday School Boys) from, then destroy the livlyhood of millions of Americans. Americans that have worked in good faith, for years and years, only to be set into the streets UNEMPLOYED with pennies for pensions. One is correct in saying that the " problem" is LABOR...it is with the LABOR that we the American people employ in Washington and whom we employ to run our corporations. Bravo SOUTHWEST for getting it right!

 

[Heinrich]

Not really. SW is running a point-to-point, high market density operation. They don't have yield killing, high ASM RJs, or serve money-losing low density markets. They don't operate many kinds of completely different aircraft. They have a much better corporate culture. They have leaders in management instead of self-serving incompetents. They have lots of cash. They hedged fuel.

The legacy carriers don't have all those things . . . . and U none of them . . . . nor will slashing and burning employees get it for them.

[post="228356"][/post]​

None of which could have been fixed THIS YEAR. It could've been fixed 10 years ago but that's not the point.

The point is either get paid less short term with fewer benefits NOW while you look for another job at your own leisure in the next coming weeks or be forced to find another job IN A HURRY with 0.00 on your paycheck.

 

[repeet]

​

Bruce Lakefield looks-on while wondering why his new business model isn't working.
Blames employee for not being willing to pull hard enough.

[post="228351"][/post]​

Winglet,

This is just perfect. And just like "some" Pilots complain about, this employee is just "hanging around" "doing nothing".