No Plan By Us Airways To 'pack Up' And Leave Pit

[ClueByFour]

http://www.post-gazette.com/pg/03353/252973.stm

A few notes:

1. US Airways Chairman David Bronner yesterday reiterated the importance of Pittsburgh to the ailing airline, saying it was "an integral part" of the US Airways' system and "too big a city" not to be hub.

2. Bronner points out that the airline is going to struggle for survival over the next 30 to 90 days.

3. He further points out that by canning Dave and Neil, he'd have to waste time finding a replacement, thus endangering the airline's survival, and that would be lunacy (he compares it to "turning on gun on myself."

Based on what I read from the article, it sure sounds like this is a guy who is absolutely not looking to spend more money on buying parts of other airlines and moving into their space in ORD.

Of course, YMMV.

 

[cavalier]

Guess I better retract all my posts about kicking out Dave, UNTIL we improve over the next 30 to 90 days. Ever notice how we forever have these drop dead times issues and we are always on the brink of extinction. U is not for the weak at heart. 🙄

 

[PITbull]

Well, some of the article was inspiring and some of it "sucked".

I applaud Pollack for his unwaivering stance on the issue of ridding U of this CEO and CFO.

I can say without a shudder, that management culture MUST change. Implementing NEW harsh policies on employees and then implying that lowering costs to the tune of $300 million is necessary to survive doese not bode well with employees and will not come across any Labor group's table.


As sure as I'm sitting here posting , I can say with no hesitation that the AFA MEC will not entertain any disucssions when management continues to violate the restructuring agreements they put inplace last year in order to steal more cost savings from the employees.

NOPE, not happening.

 

[USFlyer]

30 to 90 days?! That sounds like we could see a Chapter 7 or Chapter 11 filing in short order if things don't improve materially.

 

[tug_slug]

Of course U's going to struggle for the next 30 to 90 days. After Jan 1 passenger loads generally drop off and usually dont pick up until late March or early April

 

[PITbull]

30 to 90 days?! That sounds like we could see a Chapter 7 or Chapter 11 filing in short order if things don't improve materially.

USFlyer,

Yup, I guess they could. Slow time for airline industry. Your point is no different than last year at this exact time. Managment had a business plan that they presented to Judge Mitchell and ATSB for absolute approval. Someone got snowed other than the employees.

We are a business that competes every single day. Nothing new with regard to competition in PHL by LCC. U employees are accustomed to fierce comptition. It is only NEWS to those who are not accustomed to competiton and do not have a plan that allows for competition. So what happened to this management on that end?

Management stated last year that they needed concessions (2) or we would go out of business. One year later, after being given everthing they asked for, including a BK to free themselves from creditiors, termiantion of pilot pension plan, furloughs of 50% of the employees, and they state WE ARE STILL GOING OUT OF BUSINESS.

And the point is....we are forever going out of business.....now that, this management knows how to do best.

 

[to much time to quit]

It looks like everyone missed this quote from the article. Pit will be a much reduced mainline station in the future. 🙁

In the end, the biggest change in Pittsburgh, where US Airways employs more than 8,000, may be just the type of aircraft that flies into and out of the airport, Bronner said, referring to the airline's desire to make the airport a hub for smaller, regional jets that are less costly to operate.

And the request for more employee hand outs are getting louder and louder. :down: Time to get your financial house in order.

 

[Light Years]

Wasted time looking for a new leader? Theres ALREADY been tons of wasted time. Better start looking! Now. Tonight. He shouldnt sleep until he finds a new leader.

The next 30-90 days will be huge. More time will be wasted with a new plan and more threats and intimidation. What part of no dont they understand?

Right or wrong, the employees have already SAID N-O, we dont believe you, we dont trust you, we dont want you.

Dave could ask for a single $ from each employee and show proof that we would become the most profitable entity in the world and the group would still tell him to @%^& off.

 

[delldude]

MORE HANGAR MEETINGS...I JUST LOVE HANGAR MEETINGS.
why i remember one a year or so ago where dave stood there and stated how he wanted to keep heavy maintenance....wow,he must have changed his mind.

 

[PITbull]

Tomuchtime to quit,

Tomorrow, the local labor coalition of U meets with the new county Executive.

MAA will not be the only jets darkening the skies of our tri-state area.

Its "mainline hub status" remaining (150 min big jets) or no half billion dollar cost savings to U. If PA can't keep livable wage jobs in Pittsburgh, then they can't afford to give out tax payer dollars, which will end up impoverishing the remaining employees at U mainline as well as ADDING an extra tax burden on the community to make up the difference.

Somewhere, there has got to be a compromise.

 

[to much time to quit]

Tomuchtime to quit,

Tomorrow, the local labor coalition of U meets with the new county Executive.

MAA will not be the only jets darkening the skies of our tri-state area.

Its "mainline hub status" remaining (150 min big jets) or no half billion dollar cost savings to U. If PA can't keep livable wage jobs in Pittsburgh, then they can't afford to give out tax payer dollars, which will end up impoverishing the remaining employees at U mainline as well as ADDING an extra tax burden on the community to make up the difference.

Somewhere, there has got to be a compromise.

Good luck to yins in PIT. But the county is dealing with a bunch of LYING crooks. :down:

 

[tug_slug]

MORE HANGAR MEETINGS...I JUST LOVE HANGAR MEETINGS

HANGER MEETINGS.... HANGER MEETINGS.... You guys get hanger meetings?

The west coast is so far out of the loop I dont think DS even know's we have a hanger. :blink:

 

[MarkMyWords]

Dave B said

"Siegel, according to Bronner, proposed a "two-pronged" attack. "We know in order to be competitive we can survive with a spoke-and-hub operation," in which feeder flights come into a hub airport and connect passengers to other flights to their final destination.

"But we also have to be able to fight the low-cost carriers," Bronner said, by using more point-to-point flying -- that is, nonstop flights between two cities that don't depend on feeder traffic from a hub.

I guess this doesn't bode well for the rolling hub concept eh?

And wasn't it Rakesh that called all the point-to-point flying "goofy flying" in the hangar meetings? Why is it we try to fix things and then go back to some of our original ideas. I guess this would mean the return of flights like LGA-BUF and ROC, or the return of NYC, BOS flights to Florida.

I guess time will tell.

 

[ClueByFour]

LGA-X and (longer ago) BOS-X made some sense. "Focus City" type stuff (or, mini hub, if you will).

Without going "back into" these two locations, I don't see where U is going to fly, considering that DCA and LGA both have perimeters--kind of hurts some of the point to point stuff that I'd be thinking about.

 

[USA320Pilot]

US Airways has a loan guarantee covenant to have $1 billion unrestricted cash on hand on June 30, 2004. On September 30, 2003 the company had $1.94 billion in total and $1.38 billion in unrestricted cash on hand.

Thus, the 30 to 90-day problem, however, America West is in violation of this covenant and the ATSB has not taken action against the Phoenix-based airline.

I suspect that liquidity should be sufficient to permit operations until traffic picks up in the second quarter, but US Airways cannot mess around. Furthermore, there needs to be urgency to complete a deal with the ACAA to preserve the hub so US Airways' 2004 Pittsburgh hub costs do not climb by 20%.

Let me reiterate two points: The ACAA should not mess around because US Airways could reject an agreement and move its assets westward. Second, the Pittsburgh hub negotiations have been held hostage by United's exit financing, but with today's news that United's loan guarantee is in doubt, US Airways may have leverage over the ACAA sooner than thought.

Again, for the benefit of all concerned in Western Pennsylvania, the ACAA must cut the debt and reach an agreement now.

In conclusion, I believe there will be a deal that cuts the debt, permits the current mainline size to continue to operate, there will be some facility lease rejection/consolidation, and RJ capital improvements.

Regards,

Chip