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[JAMAKE1]

Do I hear round three of contract concessions?

According to Merrill Lynch's preliminary estimate, the 2005 revenue shortfall at major carriers could be as follows:

AMR, $600 million
Continental, $250 million
Delta, $600 million
Northwest, $400 million
United Airlines, $500 million
US Airways, $200 million.

 

[gatemech]

ROUND 3. I WOULD PUT MONEY ON IT. USAir is the blueprint for all this. Anyone that thinks this is the last round of concessions is a fool.

Just my opinion. At my house doesn't amount to much.

 

[The Gopher]

AMR, $600 million
Delta, $600 million
Northwest, $400 million

[post="235937"][/post]​

Those are not small numbers, and two are larger than UA's loss (due to our larger int'l network). I would be more concerned about being at AA since they have that southern-east coast thing going on like DAL (AA trying to build a hub out of RDU). But with $299 walk-up ORD-LAX fares, DAL has thrown down a gauntlet that will shake out this industry like the fare wars of 1992. That crippled more than one carrier, and hasn't been seen since.

I believe this move is to put even greater pressure on USAirways, which has a lot of north-south traffic like DAL. With USAirways matching DAL on the east coast, and Southwest hitting hard at PHL and now PIT, USAir is as good as done. Apparently they are giving away tons of seats to frequent fliers, making for extremely low yields per flight. I have heard that by Feb. 1, USAir will be in Ch. 7.

If that happens, we can go after aircraft leases yet again, as the market will be flooded with 737s, A320s, and some 757s. It will drive lease rates down, which may offset the loss UA faces from the code share.

This, of course, predicated on the AFA getting a sense of reality. My bets are on NO.

 

[robbedagain]

Those are not small numbers, and two are larger than UA's loss (due to our larger int'l network). I would be more concerned about being at AA since they have that southern-east coast thing going on like DAL (AA trying to build a hub out of RDU). But with $299 walk-up ORD-LAX fares, DAL has thrown down a gauntlet that will shake out this industry like the fare wars of 1992. That crippled more than one carrier, and hasn't been seen since.

I believe this move is to put even greater pressure on USAirways, which has a lot of north-south traffic like DAL. With USAirways matching DAL on the east coast, and Southwest hitting hard at PHL and now PIT, USAir is as good as done. Apparently they are giving away tons of seats to frequent fliers, making for extremely low yields per flight. I have heard that by Feb. 1, USAir will be in Ch. 7.

If that happens, we can go after aircraft leases yet again, as the market will be flooded with 737s, A320s, and some 757s. It will drive lease rates down, which may offset the loss UA faces from the code share.

This, of course, predicated on the AFA getting a sense of reality. My bets are on NO.

[post="235982"][/post]​

[/quot
i think that usair will be around but unfortunately for ual i dont think they will be from what i hear. usair has agreements with all except the iam and that will probably be done by a judge

 

[goingboeing]

ROUND 3. I WOULD PUT MONEY ON IT. USAir is the blueprint for all this. Anyone that thinks this is the last round of concessions is a fool.

Just my opinion. At my house doesn't amount to much.

[post="235959"][/post]​

You are right. Read the USAir forum and you will see that the prevailing attitude is to give management as many concessions as wanted to "SAVE THE AIRLINE".
More rounds of concessions are on the way at ALL the legacy carriers because USAir and its employees have set the new wage and benefit standards for the airline industry.

 

[gatemech]

NEW YORK (Dow Jones)--US Airways (UAIRQ) backed off from its plan to eliminate its retirees' medical benefits and agreed to continue paying for some of their health care, The Washington Post reports in its Thursday edition.

Canceling the retiree benefits was part of US Airways' attempt to cut about $1 billion a year in labor-related costs to avoid liquidation. Details of the retirees' agreement were not made public, the Post reported.
________________________________________________________


Maybe UA will back down on some screwing of its retiree's benefits. Just follow the blueprint.

 

[whlinder]

Was that preliminary estimate done before or after Deltaflot decided to cut fares?

 

[Bob Owens]

ROUND 3. I WOULD PUT MONEY ON IT. USAir is the blueprint for all this. Anyone that thinks this is the last round of concessions is a fool.

Just my opinion. At my house doesn't amount to much.

[post="235959"][/post]​

The industry will continue to seek concessions from labor as long as the unions do nothing to stop them. The sooner widespread labor disruptions begin the sooner this madness will stop.

 

[whatkindoffreshhell]

[post="235982"][/post]​

[/quot
i think that usair will be around but unfortunately for ual i dont think they will be from what i hear. usair has agreements with all except the iam and that will probably be done by a judge

[post="236001"][/post]​

Remarkable thinking! Your moniker is appropriate.