Question On Out Of Senority Furloughs

[PSA1979]

With the latest low fare sale, what happens if the company decides or is forced to park all the wide bodies? Aren't most of the sale fares to Europe? Do the pax lose the money they just spent on their tickets? Do they stand in line like the rest of us hoping to get pennies on the dollar for their hard earned cash?

 

[BoeingBoy]

I presume that if the company is still in business on the date of travel, transportation must be provided. Whether it is on a different U flight or on another carrier.

If the company has ceased operations, that is another question entirely.

Jim

 

[USA320Pilot]

Rob:

Rbo said: "My sense is they are doing this in order to park all the widebodies and avoid the training expense for putting the senior guys back into the cheaper airplanes. (Let's face the fact that Europe does not make money most of the year and US can't afford the losses until next May.)"

USA320Pilot comments: Rob, that's part of it. If the union's do not immediately participate in the TP there is an alternative plan that the creditor's are pushing that will double annula profits and it's a 150 mainline fleet, EMB-190/195s at MDA, and DRJs at PSA.

The intent is to pull down PHL, all widebody flying, and all transtlantic flying. Each union knows about the plans, which are being driven by the creditor's who could care less about labor.

The company would restructure itself into a point-to-point operation focusing on Airbus aircraft. The only way to pull this off is to furlough pilot's by equipment type because it would be cost prohibitive to do otherwise.

The ALPA RC4 have known about this plan for months and have elected to ignore the ATSB & other creditor threat.

By the way, the RC4 are now once again focusing on an ESOP that would not only take the company's current requested buts, but even much more to buy the airline. It's being discussed today at the ALPA MEC meeting and will require all union particpation to pull off.

Regards,

USA320Pilot

 

[700UW]

You can't shrink to profitibility. US has tried that before and failed.

You cant shrink and expect profits to double, that is upsurd.

 

[USFlyer]

Pull down PHL? There's almost nothing left without PHL, so you might as well just shut the whole d*mn thing down.

 

[USA320Pilot]

The business plan is to create a JetBlue business model with 150 Airbus and probably B757s that would operate point-to-point out of BOS, LGA, DCA, PHL, PIT, CLT, and FLL.

In fact, that's part of the new strategy in Pittsburgh discussed today in the Post-Gazette.

Complete Story

The company could eliminate most of its facilites through bankruptcy such as the PIT Res and Maintenance Facility, excess gates, and the A330 overhaul line.

It might be to late to stop this plan and the creditor's may have had enough of union hardliners lead by the RC4.

Again, every union knew about this plan months ago and it provides double the annual profits on a percentage basis.

Regards,

USA320Pilot

 

[700UW]

How many times do you have to be told, there is no dedicated A330 heavy maintenance track?

The planes come due for an annual c-check once a year that is about 10 days, then once every 5 years for a S-check, which are not due until next march, the company is bringing in the A330s early to get them done before the heavy travel. The first S-check will be done in late October or early November and the job cards and parts are all ready for the check.

 

[BoeingBoy]

The phrase "grasping at straws" comes to mind....

Let's see, cut the fleet by about 46%.

Will the ATSB cut the loan principal due by 46%?

Will the other creditors (as opposed to leasors) cut their loans by 46%?

Will the number of gates leased system-wide be cut by 46% (remembering that a lot of the outstations only have 1, 2, or 3 gates)?

Will the office space at CCY, res, RIDC, etc be cut by 46% (we're supposed to have market or below rates from BK1)?

I could add more, but you get the point. The creditors are faced with getting their money while it's still there or taking a chance on a "shrink to profitability" scheme and putting their money at risk. Which would you choose?

Jim

 

[whlinder]

The business plan is to create a JetBlue business model with 150 Airbus and probably B757s that would operate point-to-point out of BOS, LGA, DCA, PHL, PIT, CLT, and FLL.

[post="183054"][/post]​

OK lets run with this. I think a jetBlue business plan flying from those cities with those planes would be profitable. However, a jetBlue business plan does not have the following:

1. Codeshares/Alliances.

2. Frequent Flyer elite levels.

3. Interlining.

4. Transatlantic service

5. First Class

6. Bad CEO's

7. Poor IFE.

8. 50 seat RJs

9. Express Service to every podunk town in the east.

10. Unions. (AFAIK B6 has no unions, yet. If I'm wrong please let me know)

So will US actually change all those things? Odds are pretty darn small IMHO.

 

[Winglet]

Lakefield has shown his concession demands to be a moving target and IMHO, that's by design. Even if all the unions came in and agreed, he move the target again, and then again.

U is finished. Sounds like his real goal may be to try and mutate U into a JetBlew clone with a company-union/non-union workforce. In essence, kill the old company, selectively hire back the old meek compliant workers at first year wages.

This may prove to be a watershed case in American business. If it goes through with court protection, then unionization in the United States is completely emasculated.

Any "new" employees of a company like that would deserve disdain and rejection.

 

[Dizel8]

Farnk Lorenzo, the @SS, must be proud to see U management using a page from his book: "How to influence people and destroy a Union".

 

[PITbull]

Don't know how to place a link on here, but here is an exerpt out of today'Pittsburgh Tribune. You can go on the website and veiw the entire Article:


"Airline tightens salary screws": Steve Halvonik

Kirk B. Burkley, a bankruptcy lawyer with Bernstein Law Firm, Downtown, (Pittsburgh), said that USAirways must clear a high bar to persuade Mitchell to void union agreements.

"This is a drastic measure", Burkley said. USAirways hasn't lined up new investors during its Chapter 11 reorganiztion and is instead maintaining operations through cash reserves and part of $717million in federally guaranteed back loans.

Even if Mitchell grants emergency relief, it would only be tempororary, Brkley said. The judge still would require both sides to negotiate new labor contracts.

 

[flyin2low]

Gotta get this place ready by next Spring for VirginUSA, you know...........

 

[ClueByFour]

The business plan is to create a JetBlue business model with 150 Airbus and probably B757s that would operate point-to-point out of BOS, LGA, DCA, PHL, PIT, CLT, and FLL.

In fact, that's part of the new strategy in Pittsburgh discussed today in the Post-Gazette.

Complete Story

The company could eliminate most of its facilites through bankruptcy such as the PIT Res and Maintenance Facility, excess gates, and the A330 overhaul line.

It might be to late to stop this plan and the creditor's may have had enough of union hardliners lead by the RC4.

Again, every union knew about this plan months ago and it provides double the annual profits on a percentage basis.

Regards,

USA320Pilot

[post="183054"][/post]​

So, the creditors that have been burned once are going to accept the snake oil that shrinking the airline to profitiability will work, and it will be brought to you by the same folks that brought you the current gem of a business plan?

And, by the way, this all assumes that the inevitible self-help does not force a liquidation?

Will they sell you the Roberto Clemente bridge with that plan?

 

[700UW]

In all three 1113e letters to the IAM there is no Out of Seniority furloughs.