Mda Groundschool Shutdown By Faa

[ClueByFour]

They also had the notion a manager was a manager was a manager, and that you could take the manager out of a potato chip factory, drop him into an airline, and he, with his MBA, would do just as well.

I'm certainly not anti-intellectual, but I do believe you can be educated beyond your capacities. We have several cases in point!

There exists a group of folks who from an operational standpoint, can be dropped into just about any situation and do well with it. The firm I work in (diversified manufacturing) is big on this, because it will weed out the week and inflexible very quickly. It also means that when/if those folks do make it to the executive ranks, they have been exposed to a multitude of different operational challanges, and are in a position to deal with them more effectively.

If you look at the folks in the airline industry, they tend to stay in the airline industry. This leads to the groupthink problem ("We've always done it this way, it must be right"). Dave's stint at Avis does not really count as a great diversion in career course--he was not there long enough and it was too close to the airline industry.

I'm not anti-intellectual by any means. However, school (even business school) does not mean that you can fathom how things work in the real world.

I'm an operational guy. I solve operational problems for a living and build systems to help other people solve operational problems. Design processes to deal with problems the systems might have and how that might impact the business. I'm going to eventually get my very own MBA (if I can get moved back to PIT--got accepted to CMU and then tranferred out of "tahn"). But, you have to be able to manage the execution of any great plans.

 

[Smartest Loser]

I do believe you can be educated beyond your capacities.

That is a great statement...!!!

In my opinion, the mgt. at U is a perfect example of this.

They are NOT people persons. They are $$$$ men. :angry:

 

[diogenes]

Certainly so, Cx4. The Army posts its promising young officers in a variety of commands for the reasons you state, and in the hopes of developing responsible senior officers.

However, they generally don't bring in the Navy guys. Although at this point at U, I'd take my chances with the top district manager at Wendy's.

And you're right. The mere possession of a Ha'vad MBA does not confer competence.

 

[USA320Pilot]

MDA has apparently temporarily stopped pilot training, however, reports inidcate the FAA problem is how the Flight Manuals were written, which is interesting since the people who objected were the same Feds who told them to write them that way.

Solutions are being implemented and should not cause much of a delay. The EMB-170 should be certified in November and the company's staff is operating under the assumption that the airline is proceeding as planned.

In my opinion, the EMB-170 will be instantly profitable and will be a significant part of US Airways' recovery.

Regards,

Chip

 

[Teflon]

Chip the Neal Cohen and his cohorts will cook the books, so they don't show a profit and they have all those nice new airplanes to pay for.

 

[AP Tech]

Chip,
I agree with you in regards to MDA being instantly profitable, but how could it not with the average employee making 60% less than there counterparts at mainline. I am sure your tone would change a bit if you were displaced from your current left seat to left seat of the EMB-170. Read the proposed contracts of those unlucky enough to be called for MDA. The pay is less than what I was making before I came to mainline years ago!!! :down:

 

[USA320Pilot]

A&P Tech:

I fully understand the sacrifices all of the employees are making, whether it's at MDA or the mainline. It has nothing to do with "singing a tune", it's about an industry and company restructuring.

Here's the problem: The growing presence of low-cost carriers.

Lcc's represented 12.3% of industry ASMs in the first quarter of 2001, which has now reached 18.1% in the first quarter of 2003. Analyst forecasts believe LCC market share will rise to 27.5% in 2006 and could be as high as 50% by the end of the decade.

Compounding the problem high yield business travel is probably gone forever with internet booking and LCC's providing a quality service, little ticket restrictions, and low cost flights.

Interestingly, with the recent news that Delta's Song is under producing and will slow its growth, it appears the only viable network carrier LCC response is MDA.

Do I like it? No, but the LCC CASM's are about 6.1 cents for JetBlue, 7.6 cents for Southwest, and 8.5 cents for AirTran. With the LCC growth network carrier's must find a way to compete in the LCC domestic market, otherwise the will not survive.

Do I like it? Nope, but it’s today’s reality and economics.

Finally, in regard to US Airways concessions, I lost 42% of my pay and about 50% of my retirement. Moreover, like many I have been displaced and I am seeing my profession's jobs outsourced to the RJs and MDA. Suffice it to say, we all have our story's and all have taken deep cuts.

My point is that MDA will have break even load factor of 50% and will likely be more profitable than JetBlue's EMB-190s, where David Neeleman said his company's Enbraer's will have a 60% break even load factor.

Regards,

Chip

 

[USA320Pilot]

Today I was talking with a former Eastern and Trump Shuttle pilot who told me that when the Trump Shuttle started up, a great deal of effort went into writing the manuals. The FAA's POI had said he didn't want Trump just copying the Eastern manuals and changing the name where it said "Eastern" to "Trump." When all was completed, and finally approved, the FAA then asked why we didn't just take the Eastern manuals and change the name to "Trump."

I guess some things never change. :unsure:

Regards,

Chip

 

[tadjr]

Compounding the problem high yield business travel is probably gone forever with internet booking and LCC's providing a quality service, little ticket restrictions, and low cost flights.

Have you looked at a fare quote recently? Its amazing that in many markets the ONLY business fare offered is the highest of high. You go from the super cheap excursions to the $500-$1000 ow tickets. There are a couple of market exceptions, but we really dont even appear to be trying to get any of the business traffic thats appearantly headed to the low cost carriers. I guess $0 in a seat is much better for us than part of that high $ traffic taking up our time and resources when if we charged 1/2 as much as we do now we might be getting some more business customers that are taking AirTran or jetblue or Soutwest. If the fares ARENT working the way they are, then change them. I've noticed that in the PIT- West markets this has happened and I know its only because of America West. I seemed to recall that when we were flying Metrojet offering the one way nonrefundable fares, it seemed like we had more people paying the higher fare to go one way as opposed to buying the cheaper r/t fare and not using the back half. Anyway, take a look at some various fares around the system and then cry about no business customers again.
And just to keep it on topic, if we're going to still charge the fares now on MAA, we will be making money with the wages the way they are.

 

[diogenes]

I'll happily make a contribution to counter the LCC threat. I'll stipulate to Wn's contract, lock, stock and barrel.

Wait........................that'd mean a raise?!?!

Perhaps it's not the labor costs, Chip.

As a matter of fact, for the past decade labor costs have been about 40% of total costs at BOTH u and WN.

Go figure.

 

[USA320Pilot]

Diogenes:

I would take the Southwest (pilot) contract too, and receive about a 30% pay raise.

However, I do not believe the mechanics would because Southwest contracts out most of its maintenance. Nor do I believe the Flight Attendants (F/A's) would either because I believe the Southwest F/A's have pay and benefits are less than US Airways' F/A's.

In regard to labor costs, it's not pay/benefits, its the employee to aircraft ratio and productivity that's the difference. For example, JetBlue has about 70 employees per aircraft, Southwest has about 91 employees per aircraft, and US Airways about 103 employees per aircraft (post bankruptcy).

The labor cost difference is not in W-2, but in headcount.

Respectfully,

Chip

 

[PHL]

There is a school of thought that Harvard (and particularly MBAs from) is directly responsible for the downfall of the corporate excellence in the United States. I believe it.

Many successful companies have been run extremely well by executives from Harvard. Many more rank-and-file employees have enjoyed prosperous, long, stable careers under these successful companies. On the other hand, many well run companies have also been non-Harvard MBA's. Anyone can get an MBA. It's really all about how the graduate applies what they learned in the real world. Some just fail to "get it", and that includes graduates.

I'd be curious where this "school of thought" that the Harvard MBA has contributed to the downfall of corporate excellence originates. The school pioneered the idea of case studies and revolutionized the way principles are taught and practiced. Having not gone to Harvard (Temple U., thank You), I still have a lot of respect for the curriculum.

 

[diogenes]

It's a little more complex than that, Chip. JB and WN do not operate hubs, nor do they have overlapping hubs (PIT/PHL).

You cannot operate a station with fewer personnel than we have, and I'd bet my farm AND yours WN and JB are not turning a flight with fewer personnel than we are. Perhap an employee/flight ratio would be illuminating.

 

[USA320Pilot]

Diogenes:

I fully understand the hub and spoke and point-to-point concepts. In fact, I have a daily bird’s eye view of the operation.

In regard to total unit costs you're correct, but that's not what we were talking about. We were talking about employee costs and my point was its not fair comparing apples to apples with W-2 when discussing labor expense.

Labor expense is expressed as a ratio by dividing total labor expense by revenue and total head count is in the equation.

Respectfully,

Chip

 

[diogenes]

Fair is not an applicable concern at U. Let's try pertinent.

I certainly think it's pertinent to compare W2's, and associated costs to the company - pension contributions, health care, etc.

If my W2 is significantly lower than my counterpart at WN's, why is that so?

It is not because WN is more productive in the micro. Come to my station, watch fleet and customer service do their thing, and I guarantee you WN CANNOT do it better.

What it boils down to is employees are being asked to subsidize poor management, and a failing business plan.

I don't mind the sacrifice, if there were a believable plan going forward that appropriately restored my sacrifice when conditions improved. I'd rather pull the plug than make the permanent sacrifice that Dave is asking.

Chip, actually I'm in the same boat you are. I have enough seniority to ride this thing to the bitter end, if I elect to transfer.

I will not. And I have great empathy for my fellow agents (and if the farmout goes thru, fellow mechs) who's sole option will be furlough.

It didn't have to be this way. U is a test bed for union busting, and it is NOT over by a long shot.

Chip, be prepared for more sacrifices to be required of ALPA.