Management Shuttle Road Shows

USFlyer

Veteran
Aug 19, 2002
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I wouldn''t be one bit surprised to see the Shuttle switch to EMB-170s, even if that means operating every half hour during the peak times. There is WAY too much capacity in those markets, with US, DL and AA all competing for traffic (plus CO DCA-EWR, US IAD-LGA, UA IAD-LGA, etc.).
 
US Airways vice president of marketing Stephen Usery and US Airways vice president of scheduling and planning Andrew Nocella will host a series of Shuttle Road Shows in DCA, LGA, & BOS.

The road shows begin tomorrow, June 17 in DCA at 1030 & 1530 and will be held at the airport.

LGA will hold their meeting on Wednesday, June 18 at 1100 & 1400 in the Shuttle Conference Room and the BOS meetings will be on Thursday, June 19, at 0900 and 1515.

Management believes there are not enough passengers post September 11 to operate the old Shuttle system and there are reports there could be major changes announced tomorrow, including removing the Airbus from the operation.

DL has reduced their Shuttle capacity by transitioning from B737-800 to B737-300 aircraft, to match capcity to demand, while US has taken all A320 aircraft off of the Shuttle except I believe N111US. N111US is scheduled for conversion into mainline two-class configuration, then the current schedule will operate only A319s between BOS-LGA-DCA and the B737 will operate between BOS-DCA, at least through August.

Management is considering shifting all Shuttle flying to the B737 and/or the EMB-170 (off-peak times), to better match capacity with demand to have smart costs and bigger profits. If this occurs, the A319s will be redeployed to open new markets.

Best regards,

Chip
 
Maybe true, but you're observations seem to run contrary to the argument that the Shuttles are too big for the routes they're on.

The ERJs would clearly reduce CASM, however.

Were I running Shuttle, I would keep some A-319s for the peak hours, and utilize ERJ-170s for the off-peak hours and for the weekends when demand appears the lowest.

You could cannibalize a few slots and run ERJ-170 flights every 45 minutes but you'd lose the convenience of "every hour on the hour"
 
I flew the Shuttle 17 days last month and the loads were surprisingly very good, post Iraqi war, but the capacity is still probably too much for the market. My flights averaged throughout the day (peak and off-peak times) about a 75 percent load factor, which is better than the loads were during the winter. The challenge is not the AA Eagle or DL Shuttle, but Acela.

Reports indicate the B737 may operate during peak times with the Embraer 76-seat jet during off peak times. In addition, Embraer’s could be used for mainline B737s transferred to the Shuttle and the A319s redeployed to open new long-thin markets, such as the hubs to the Caribbean or places like SLC, ABQ, ELP, COS, RNO, SAC, etc.

The intent is to better match capacity with demand, expand the breath of the network, reduce CASM, and increase revenue.

Best regards,

Chip
 
Changing the Shuttle equipment is a hot topic in LGA and we regularly see Siegel either in LGA or DCA. I talked with Siegel about this last month and I know the aircraft change is under close scrutiny, but I'm not sure if they're going to announce a change this week or later because they may not have made a firm decision, yet.

However, I do know from personal conversations with Siegel that the B737 and/or EMB-170 could easily end up on the Shuttle. There is more to it than just shifting airplanes.

For example, one crew per night for one year over nighting in LGA costs the company $258,000 per year. Closing the LGA crew base could add $2.5 to $3 billion per year in flight crew hotel expense.

By operating the A319 on the Shuttle and having an LGA Airbus crew base, two-day transcontinental mainline trips can be operated through the hubs to the West Coast that are highly productive and eliminate the hotel expense due to crews being based in LGA. Furthermore, this offers CRS direct flights, which provides a marketing advantage over JFK.

There is much more to switching equipment than just the Shuttle and all of this is being analyzed. We'll see how it progresses...

Best regards,

Chip
 
Lavman:

The EMB-170 software problem may delay delivery up to 60-days and could slow the MDA introduction, but the company expects to accelerate 2004 deliveries. In fact, in a press release Embraer said today the delays should boost deliveries in 2004 to 160 jets from 136.

Meanwhile, at last week''s Merrill Lynch Global Transportation Conference Dave Siegel said there would be a major 2004 "take out cost" initiative. I have been unable to identify this effort, but it could be changing the Shuttle to the B737 or outsourcing the A320 overhaul, which is now in dispute between US and the IAM.

Best regards,

Chip
 
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On 6/17/2003 1:01:47 AM Chip Munn wrote:

Lavman:


The EMB-170 software problem may delay delivery up to 60-days and could slow the MDA introduction, but the company expects to accelerate 2004 deliveries. In fact, in a press release Embraer said today the delays should boost deliveries in 2004 to 160 jets from 136.


Meanwhile, at last week''s Merrill Lynch Global Transportation Conference Dave Siegel said there would be a major 2004 "take out cost" initiative. I have been unable to identify this effort, but it could be changing the Shuttle to the B737 or outsourcing the A320 overhaul, which is now in dispute between US and the IAM.


Best regards,


Chip

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AOG-N-IT Replies....If the cost cutting initiative does involve "Outsourcing" of the Airbus Family? This is nothing to get happy about for anyone.

Chip...reflect back on your own cut and paste regarding the turmoil taking place at UA over this exact issue. I hardly think anyone , Revenued or Non-Revenued wants to fly on an aircraft that has had suspect or sub-standard work done on it. I know I sure don''t!!!

Outsourcing our maintenance beyond vendor items is a sure fired way to open up problems that none of us need or can even calculate .

Outsourcing breeds a lack of quality control beyond belief. The Raytheon issue with SMART during the recent CLT crash of the B1900...The current UAL issues (Real or Imagined?)...and the ValueJet disaster spell this out clearly.

Outsourcing will also idle almost half of the current mechanical talent we have on property at present...then you have the support people behind that , whom would also be idled for good too. Care to venture about another 3000 people being on the street.

Just bare in mind....Suspect moves at UA DO NOT always mean profitable moves , or intelligent moves for U.

We need to be doing it better and smarter than the next guy , Being an Industry Leader should be the goal here...NOT follow the leader of sorts.

Maybe U should look at consolidation of our maintenance facilities as opposed to wholesale closure that the supposed Airbus outsourcing will bring in time.

Should U get thier way with the Narrow Body Fleet being outsourced? , Nothing will prevent the A330-300''s and up coming A330-200''s from going the same way. The Boeing Fleet has between 5 to 10 years remaining with us, depending on who''s figures you subscribe to?...So many already see thier career disapation lights flashing. This needs to be stopped now by the IAM

Should the IAM show even remote signs of allowing "Our Work" to leave the property? The Membership should not only work to have the IAM tossed out...but possibly close the airline down for good.

I have always been very much a team player...but when the team deserts you...it''s time to stop playing.

Lets see how others would feel if thier jobs were outsourced? I assume the "Mainline/Express people already know what I''m talking about....but where is it going to stop if not here and now?
 
AOG-N-IT:

I do not believe anybody is happy about the issues facing labor at any network carrier and I fully understand outsourcing. The problem is there are people willing to work at Express carriers or operators like B6 who are willing to work for less.

This puts pressure on both management and labor to find acceptable compromises.

The Airbus heavy maintenance issue is not new information and I fully expect a fight on this issue, just as ALPA fought and continues to fight for its pension.

Best regards,

Chip
 
The scope language is quite clear that any overhaul of airplanes that we fly is IAM work.

The DC-9, MD-80, 737-200/300/400, F-100, 757/767, were new airplanes in the fleet and we overhauled the same goes for the A330 and the A320 Family, it is our work no one elses to do.

I think we should sell the planes to MESA and wet lease them back so we can have Mesa pilots and wages flying them. (satire of course).

Chip your union agreed to give up your pension, our contract specifically states that overhaul of US Airways Aircraft is IAM mechanic and related work, the language in our contract has not changed since 1949 in regards to that issue.
 
Lavman
You truly live in a dream world of copy pasting contract language and referring to the old days. Times are changing. Haven''t you seen, by now, how "the way things have always been" doesn''t apply anymore. If the company seeks to outsource the Airbus heavy maintenance, they will.
Wake up.
 
No the company will not vendor out our work without a fight, we have our language and 54 years of overhauling our own airplanes to back it up, they might try, but they will have the fight of their lives on their hands, enough is enough!
 

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