New Liquidity Initiative
- Thread starter ebwgs
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redheadtempe33
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Let the paranoid merger talk begin! 🙄
Seriously, seems like good news. While new is always better, if our older planes are working fine then I don't see a reason to replace them.
Do we really have one of the younger fleets in the US as the e-mail says?
I think this action speaks more to our possible sustainability as a going concern than it does to any possible future merger. I think it's a little frightening, and I'm not one for doom and gloom prognostication. We are obviously in a cash crunch right now, and if--God forbid--oil dramatically spikes(which we have no hedges in place)and the economy continues to lag through 2010 we may find ourselves in a really tough spot. Just being realistic. It is never good news to hear new aircraft deferrals or cancellations.
Jimmy Neutron
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It's no different than you going out and replacing your older car with a new one scenario....even though you may put some money in the older one, the cost difference between the new one and what you would put in the old is no comparison......
I see this as a smart (for a change) move by management....Fleet size stays stable, just not replacing old for new at a pace that was planned in a different financial environment.
Here's a link to the news story - the OP's link takes me to the Google mail sign-in page:
http://finance.yahoo.com/news/US-Airways-d...ml?x=0&.v=4
Here's the press release from US:
http://finance.yahoo.com/news/US-Airways-C...ml?x=0&.v=1
Does anyone think the A350 will ever be delivered?
http://finance.yahoo.com/news/US-Airways-d...ml?x=0&.v=4
Here's the press release from US:
http://finance.yahoo.com/news/US-Airways-C...ml?x=0&.v=1
Does anyone think the A350 will ever be delivered?
There is probably no oil hedge in place because futures contracts are probably overpriced...give that there is no strong evidence that there will be a pick up in economic sectors influencing oil demand, but everyone keeps parroting that there will be a spikein gas prices again....
Either the hedge price will have to fall, or there will have to be some evidence that we are closer to a point where gas will take off....speculators seem to want to push gas prices now, but its a bubble....especially as China struggles....if they stop manipulating their currency, then we will see a real correction.
Either the hedge price will have to fall, or there will have to be some evidence that we are closer to a point where gas will take off....speculators seem to want to push gas prices now, but its a bubble....especially as China struggles....if they stop manipulating their currency, then we will see a real correction.
I'd say probably yes, since it is the launch order for this aircraft, but more than likely NOT in US Airways colors.
Tiger 1050
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Oil will continue to rise as investors see this as a more profitable commodity due to the $'s weakness. As long as the Fed continues to print money (essentially devaluing the dollar) oil will rise as its a safer bet. Worldwide demand is a bonus. Wall Street's greed and their cronies in the Gov that allow such behavior have killed this economy and it appears at first blush they haven't learned a thing yet...
L
luvn737s
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Israel only has so much patience for 'bambi's waiting on a call from Pelosi to let him know what he can and can't do. If something blows over there is "Katy-bar the door" on oil.
US has no money to buy hedges, regardless of their price.
Glucose Intolerant
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Looks like Team Tempe is coming up short on cash again. Guess all their prognostication on "ancillary revenue streams" fell a little short yet again. It also tells me one undeniable thing: It's must be BONUS TIME.
Well here's another link - Look at #2 - this one shows what we are getting as a ROI (return on investment) for OUR money. It shows the compensation Parker and the rest of the Delta Delta House compared to other "legacy" (you know the real airlines) carriers and SWA.
LCC Executive Compensation Vs. Peers
As you know, as someone who is glucose intolerant to the company Kool-aid, I find it interesting that the only ones that still haven't taken a haircut financially (compared to their peers....and that is a stretch) is the frat house in Tempe. Any other remarks about any other groups would be considered flame bait and are not pertinent to this discussion - merely the result.
When you compare US Airways of TODAY with:
UAL
DAL
CAL
SWA
What does the competition offer over US Airways?
UAL - Global airline using dual aisle aircraft. Legroom in coach and premium amenities in business and first class. LCC has proposed WiFi installation dates for the 321 ("sardine seating"). LCC can't even get you from the East coast to the major business markets out west without stopping in PHX or LAS and wasting the day. We now offer 82 more flights a day out of DCA ......and a 125 less in LGA, and the terminal is going away, and did we say that the shuttle is moving operations to the MAT. Good times.
DAL - The WORLD on a dual aisle aircraft and LARGEST and about to get larger. In comparison to LCC you don't have to go through ATL, but you have to go through PHL or PHX.
Makes ATL look really good. Remember LCC was going to buy DAL - think how great DELTA would be if only our SUPERIOR management were running things over there. Imagine. It almost takes your breath away.
CAL - Global Airline with real airplanes (you know BOEING - the ones built in the US. Offering food and amenities, WOW!! now there is a concept - Customer Service actually does trumps lip service in the market place. Shocking. 😱
However, LCC researchers (interns) found elite travelers didn't want premium food or accommodations in Coach, Business Class, or First Class.
So we are eliminating all food service completely in lieu of the "siesta snack" service (we hope you sleep through it and not recall that we never offered it). " You know CAL management is "SO LEGACY" , they have good labor relations, still providing excellent service and amenities and elite business passengers prefer CAL" said the SVP of Marketing. "We (LCC) are a lot smarter than they (CAL) are and we seems more handsomely compensated - who cares if the passengers like them".
SWA - International service.....and ALL the cities we no longer serve because we gave them (and the HUBS) to SWA. If SWA did offer international, they WOULD STILL offer more legroom than US Airways.
Just thought it was interesting LCC is STILL one of the HIGHEST compensated management teams compared to our competition for our size. Yet I am wondering WHY anyone at this company deserve that kind of compensation? What have they ACTUALLY DONE? When everyone else has taken pay cuts and had their benefits slashed - why is the Tempe Inner Circle immune to any kind of sacrifice?
We have been told repeatedly that "our passengers don't want In flight Entertainment AND WiFi ....because they don't want to pay for it". Well every other airline has some form of IFE and LCC on board - now LCC "might possibly have WiFi" in 2010...well 2011...OK maybe 2012....truth be told, we have a better shot at getting a JNC inked between the East and West before we see WiFi on an airplane. Remember the revolutionary fiber optic entertainment (that didn't work anyway) system we were going to install when on all of our fleet yet already had IFE system and power ports on all the AB before they were removed...got what was the reason? I mean turned off to save weight and thereby FUEL. How exactly do you save weight when the WEIGHT is still on board? Does turning the system off some how now make it WEIGHTLESS? Hrrmmm. :blink:
Every other airline with the exception of SWA has some form of in flight entertainment. What do you mean - people do want amenities after all? Another brilliant and CHEAP decision by our over compensated executive team. How much are we now paying out for that pearl of wisdom?
But alas, "Tempe announced today these services will be postponed indefinitely, but instead will be launching "A-Train Seating" featuring executive "hold on straps" in Envoy Class and plans also rolling out the new "SRO Class" (standing room only) vertical "standing" cabins on domestic routes in 2011. Doug Parker said today "no more anxiety about what seat your going to have on your US Airways flight - since we will no longer have any seats, just think how fast we can board these flights.
More bonuses for OTP (or is it OPP?) "We feel it will be a great value for our target market and against our major competitors....Greyhound and the MTA (good thing we are decimating LGA and New York)." "We expect to save millions in catering and cleaning cost that no can re be reallocated for more executive bonuses." We will also begin selling juice boxes and methadone along with our signature "Green" (past expiration date and actually green) epicurean snacks from our new partner 7-11."
"Just hose down the cabin clean out the microwave every six months and they can even do that in San Salvador" Scott Kirby said, "We are really excited about the ancillary revenue these ENHANCEMENTS will provide. In addition to the savings we are now able to mitigate a substantial amount of legal expenses stemming from the lawsuits our passengers have filed since we "maximized" our on board seating. These claims of DEEP VEIN THROMBOSIS from passengers taking our flights are preposterous , in fact I find US Airways airbus seating quite comfortable for a man of my stature.This is a WIN WIN solution for the company!"
All you TEMPE pom-pom wavers please weigh in.....Please - Please explain to the rest of us the logic of why this level of compensation is remotely acceptable. Is it merit based or performance based? - what are the benchmarks? WHO appointed WHO to the BOD and are they the same individuals voting on the executive compensation packages? When we miss our cash on hand targets we simple offer more stock and continue to dilute stock price. That's a plan? :blink:
Please do us all a favor and save the obligatory quips like: "if you don't like it, then why don't you quit"- that has become so TEMPE, Do yourself and all the rest of us a favor and educate yourself or read a book or something. I am just looking for some honest dialogue on justifying paying these kind of salaries and what THE COMPANY is actually getting in return. You know the "shareholders" (that weren't appointed to the BOD) and employees.
Happy Thanksgiving,
GI
BMIBABYgirl737
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AMEN to that
I really hope that the chess moves made over the last 100 days will raise some cash just not to pay bonuses.
Also, check out "Ryan Air Caught Napping" a documentary by BBC or Channel 1 filmed around 2006. It's on YouTube. Reminds me of this place....
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