What's everyone's honest opinion as to what will happen with MidAtlantic Airways. I saw that EMB's are being suspended. What does this mean for MDA employees? Should we expect furloughs?
Midatlantic's Future
- Thread starter MrBelding
- Start date
Everyone's in trouble, but I would think MidAtlantic division employees that are already there are probably in a better position than most...
PITbull
Veteran
There is no seperate entity, but as a division, MA is already an ultra low cost carrier. Its staffed for the amount of aircraft it has, there are just enough people for the 22 aircraft currently flying. Its much cheaper to use MDA and offer a similar if not better product than the mainline narrowbodies, with what management views as more "cooperative" (or at least more willing) employees.
The contracts for every group are more productive and flexible than any LCC out there. Plus the employees are paid crap.
The mainline could still operate the same amount of aircraft with a lot less employees if the company had thier way. Or a lot less aircraft.
The company only wishes the whole thing could be "MidAtlantified". Which is likely the plan in one way or the other.
The contracts for every group are more productive and flexible than any LCC out there. Plus the employees are paid crap.
The mainline could still operate the same amount of aircraft with a lot less employees if the company had thier way. Or a lot less aircraft.
The company only wishes the whole thing could be "MidAtlantified". Which is likely the plan in one way or the other.
BoeingBoy
Veteran
- Nov 9, 2003
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"MA is already an ultra low cost carrier"
And that's one point where we disagree. The actual unit operating cost of the airplane is about the same as the mainline airplanes, but the other costs (gates, reservations, airport facilities, etc) are not lower. So fully apportioned, the total unit costs are higher than mainline since there are fewer seats to spread those fixed costs over.
As for the company wanting to "MidAtlanticize" mainline employees, no argument there. But the fixed costs still remain.
Jim
And that's one point where we disagree. The actual unit operating cost of the airplane is about the same as the mainline airplanes, but the other costs (gates, reservations, airport facilities, etc) are not lower. So fully apportioned, the total unit costs are higher than mainline since there are fewer seats to spread those fixed costs over.
As for the company wanting to "MidAtlanticize" mainline employees, no argument there. But the fixed costs still remain.
Jim
Light Years said:
What about the ones that aren't there yet (but are waiting for a class date?)
Any hope at all?
h34r:Good point BB. Smaller aircraft on the same mission will always have a higher cost.
But the key here, is that labor costs are way way lower with the Mid folks, and thats what the management seems to think is the only key to being a successful carrier.
If they could get thier ducks in a row and convince Embraer to go back to giving them a brand new airplane a week, they would have the 90-100 seaters under MidAtlantic, ditch the 73's, and graciously offer the mainline employees a flowback to MDA, or "Airways 2.0".
But the key here, is that labor costs are way way lower with the Mid folks, and thats what the management seems to think is the only key to being a successful carrier.
If they could get thier ducks in a row and convince Embraer to go back to giving them a brand new airplane a week, they would have the 90-100 seaters under MidAtlantic, ditch the 73's, and graciously offer the mainline employees a flowback to MDA, or "Airways 2.0".
Much of it depends upon what the company files for, and gets approved by Judge Mitchell this next week (If the rumored 1113e petition occurs then)
And into the future much will depend upon negotiations between the company and Embraer/GE. Additional aircraft may or may not find their way here inside of BK. But once again, not without the approval of these creditors and the BK judge.
Until then anything is speculation...
Nothing will happen this week, so you might as well just wait and see. Out of BK, there would be some direction as to MDA's staffing, but inside BK nothing happens until the judge sez so and chances are better than not he will go with whatever the company asks for upon this specific issue.
Guess we will find out soon.
And into the future much will depend upon negotiations between the company and Embraer/GE. Additional aircraft may or may not find their way here inside of BK. But once again, not without the approval of these creditors and the BK judge.
Until then anything is speculation...
Nothing will happen this week, so you might as well just wait and see. Out of BK, there would be some direction as to MDA's staffing, but inside BK nothing happens until the judge sez so and chances are better than not he will go with whatever the company asks for upon this specific issue.
Guess we will find out soon.
The company will likely seek ways to limit expenses to conserve cash during the proceeding, since it entered bankruptcy without DIP financing.
One option is to furlough out of seniority and to ask the court for J4J relief. This would permit current MDA employees to remain in position with no furloughs or training expense for new MDA employees.
US Airways entered bankruptcy II with a current cash position of approximately $1.45 billion in cash, cash equivalents and short-term investments.
That's $450 million more than when it entered bankruptcy I. In addition, the company realized a $19 million savings from not paying the pilot's September DC plan contribution nor did it make its required $110 million DB pension payment to the AFA, IAM-FSA, & IAM-M plans.
Finally, I understand that if US Airways can emerge from bankruptcy, the plan of reorganization could include exit financing from RSA who would then take the company private.
Expect more news on this potential outcome later this fall.
Respectfully,
USA320Pilot
One option is to furlough out of seniority and to ask the court for J4J relief. This would permit current MDA employees to remain in position with no furloughs or training expense for new MDA employees.
US Airways entered bankruptcy II with a current cash position of approximately $1.45 billion in cash, cash equivalents and short-term investments.
That's $450 million more than when it entered bankruptcy I. In addition, the company realized a $19 million savings from not paying the pilot's September DC plan contribution nor did it make its required $110 million DB pension payment to the AFA, IAM-FSA, & IAM-M plans.
Finally, I understand that if US Airways can emerge from bankruptcy, the plan of reorganization could include exit financing from RSA who would then take the company private.
Expect more news on this potential outcome later this fall.
Respectfully,
USA320Pilot
BoeingBoy
Veteran
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"US Airways entered bankruptcy II with a current cash position of approximately $1.45 billion in cash, cash equivalents and short-term investments."
Sometimes the media really does get it wrong....
Try $750 million per the company's filing to the BK court.
Jim
Sometimes the media really does get it wrong....
Try $750 million per the company's filing to the BK court.
Jim
PITbull
Veteran
BoeingBoy said:
Jim,
Actually, our representatives in Bk Court said it was $1.45 billion reported by the attorneys for the company.
PITbull
Veteran
USA320Pilot said:
I am hoping for major legislation reform in Congress from these self-induced U bk. The impetus to major reform will start with the PBGC. Companies who seek protection in BK to rid themselves of pension obligations will find it very hard to do so with new reform that the PBGC is currently seeking.
I equate Bronner with Lorenzo.
When U files that 1113e motion, you will see a major deterioration of employee morale, and many will cease to be productive, as they look elsewhere for employment. During this process, U will find it quite difficult to emerge from BK, if at all.
