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GeezLouis said:Has anyone heard what U's new CASM is and how it compares to the other airlines since the last rape and pillage took place?
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mweiss said:If the two answers are different, then somebody's not doing their homework...and it's not the company.
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I'm sorry...I forgot mechanics were reading this. Let me put it in terms you can understand.justaumechanic said:Now thats a company response if ever I heard one.
GeezLouis said:Has anyone heard what U's new CASM is and how it compares to the other airlines
sky high states:http://usairways.com/about/press/nw_05_0131.htm
usairways.com -> about us airways -> press releases
US AIRWAYS GROUP, INC. REPORTS FOURTH QUARTER RESULTS
$236 Million Net Loss for the Quarter; $611 Million Net Loss for Full Year 2004
Mainline Cost per Available Seat Mile, Excluding Fuel, Down 14 percent to 8.79 cents
I didn't suggest that they have no reason to. I'm suggesting that, if they do have reason to believe that the company is lying to them, it's nothing but pure laziness that prevents them from finding out the truth.REACC1 said:Why in the world would they think that the company is lying to them? :unsure:
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funguy2 said:Airline (Mainline only) - CASM - CASM ex-fuel
NW - 11.36cents - 8.87cents
US - 10.96 - 8.79
AS - 10.79 - 7.83
UA - 10.68 - 8.34
DL - 10.40 - not listed [actually 8.14]
AA - 10.25 - not listed [actually 7.71]
CO - 9.98 - 7.82
FL - 8.32 - 6.00
HP - 7.98 - 6.00
WN - 7.59 - 6.22
B6 - 6.32 - 4.74
So, $1.1bil in annual concessions represents about 15% of total costs. Thus, we can expect CASM (all else equal) to drop by about 15% next quarter. That would be 9.31cents CASM and 7.47cents CASM ex-fuel. So, the concessions get US Airways firmly to the lowest cost legacy carrier and within 15% of the LCC's. Of course, the employee concessions were the "easy" 15% from management's standpoint. Other structural changes to get more is much more difficult to acheive.
Again, the problem with this for US Airways is that mainline capacity is being reduced, and higher cost E170's and CRJ700's are being added.
I guess the questions now revolve around the revenue impact of the DAL restructuring. It seems clearer to me now, that DAL's fare restructure is a full assault on US Airways. An attempt by DAL to get US Airways' cash balance even lower, before it can attempt to generate cash using the new, lowered cost structure. Its become a game of chicken, with the goal to be that US Airways goes away.
US Airways prospects today are much brighter than three months ago... Although, again, success is not assured. The new reduced revenue picture, particularly at smaller cities where US Airways was not competing as intensely on price (the Binghamtons, and Roanoake, and Charlestons), remains gloomy, and thanks to Delta, a wild card.