In Res it''s getting tough to go into work with the rumors of upcoming layoffs in Jan and April going back to 1986. CWA needs to either put this one to rest or inform us, so we can take the appropriate precautions...such as looking in the help wanted ads. Morale is at an all time low.
Rumor: CWA needs to squash or confirm the rumor.....
- Thread starter Res
- Start date
On a positive note....I would not be surprised to see anymore layoffs....it does not make sense, but on the other hand with the thinking of our talent that resides in CCY nothing would surprise me. If the company does do the layoff that have been rumored that would leave about 700 res agents left for those who are left if the layoffs do come true get ready to love your job.....you will see manditory overtime......
usfliboi
Veteran
- Aug 20, 2002
- 2,070
- 270
To say that the loan is in significant jeopardy is a little of an over statement... We forget why the loan was set up in the first place and that was to prevent a company from being perm damaged by the events of sept 11.. As i have said before, there are gonna be times throughout this process that at one point and time im sure that many aspects of our ablity to obtain the loan will be in doubt... Im not so sure that the 7% profit margin is set in stone, nor do i believe that the feds will allow airlines to continue to die at the expense of this economy.. Im not saying the company can just sit back and wait to be bailed out or not, Im saying there are many aspects to this loan process and this is one small part of it. As far as future furloughs, who knows, but obviously none of us are safe.
Res,
For the sake of you and your co-workers, I hope this rumor is false. But to consider more furloughs unlikely would be a mistake. As I'm sure you're aware, US' ability to secure the all-important ATSB loan guarantee money is now in significant jeopardy. That's because the continuing revenue decline in the industry has rendered the revenue forecasts in their business plan as no longer achievable. So they're now being forced to find about another $250-400 million in cost cuts to cover the shortfall to achieve the 7% profit margin. And with DIP financing cash being burned through quickly, US could face a liquidity crisis soon. War with Iraq has the potential to make things even worse. So the possibility exists that in order to find those required cost cuts, US may have to make more cuts to their network and infrastructure which would mean more furloughs. I hope it doesn't happen. But the way things look now, it very well could. Best of luck to you. As tough as it is in this situation to be positive, try to keep the faith. As long as the lights are on and the planes are still flying, you have hope.
For the sake of you and your co-workers, I hope this rumor is false. But to consider more furloughs unlikely would be a mistake. As I'm sure you're aware, US' ability to secure the all-important ATSB loan guarantee money is now in significant jeopardy. That's because the continuing revenue decline in the industry has rendered the revenue forecasts in their business plan as no longer achievable. So they're now being forced to find about another $250-400 million in cost cuts to cover the shortfall to achieve the 7% profit margin. And with DIP financing cash being burned through quickly, US could face a liquidity crisis soon. War with Iraq has the potential to make things even worse. So the possibility exists that in order to find those required cost cuts, US may have to make more cuts to their network and infrastructure which would mean more furloughs. I hope it doesn't happen. But the way things look now, it very well could. Best of luck to you. As tough as it is in this situation to be positive, try to keep the faith. As long as the lights are on and the planes are still flying, you have hope.
N513AU
Advanced
- Aug 20, 2002
- 219
- 0
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On 11/10/2002 2
09 PM Res wrote:
In Res it's getting tough to go into work with the rumors of upcoming layoffs in Jan and April going back to 1986. CWA needs to either put this one to rest or inform us, so we can take the appropriate precautions...such as looking in the help wanted ads. Morale is at an all time low.
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[/blockquote]
It seems like we're in a doomed submarine right now. Holes are exploding in the hull, and we're stuffing blankets and pillows in them in a fuitile effort to stop the flooding. As soon as one area seems to be contained, another leaks starts. I know I may be the resident pessimist on the board - but I don't see things getting better.
I know Dave and his henchmen don't have many options, they need to cut costs - but in this business, your primary variable cost is labor. For all the long standing complaint about how difficult US Airways workers are, we are still putting out a fine product - I'd venture to say a better one than when were farcical glory of the W&G days. But, as the stations keep closing and the layoffs keep going, the situation is going to get far worse.
Eventually you cut costs until aircraft reliability and safety become a factor. This has probably already happened, I remember seeing a post a few weeks back about how the company is cutting the people who check the maintenance paperwork before an airplane leaves. This is EXACTLY the type of cost cutting that gets airlines into big trouble. The same problem arises when you cut res agents and create massive hold times to buy tickets; or when there are unreasonable lines at the ATO because of staffing shortages.
If immediate liquidity is the problem, Dave probably should have asked the employees for a short term pay cut with a guarunteed snap back; to get us out of Chapter 11. The layoffs have long term implications, while most of us would be willing to take a cut for 6 months to a year.
I know that is suprising coming from a very proud no voter. But, my biggest problem with the company's proposal was (and is) the lack of the snapbacks. If the economy turns around quick enough to save US Airways, the money being made is going to be skimmed at the top and we'll be left with substandard wage scales, etc.
However, as I wait for my bump paperwork, I almost doubt that I ever will be recalled off furlough. The ship almost seems to be like the Titanic, posed with its tail in the air, about to make the final plunge to the depths.
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On 11/10/2002 2
09 PM Res wrote: In Res it's getting tough to go into work with the rumors of upcoming layoffs in Jan and April going back to 1986. CWA needs to either put this one to rest or inform us, so we can take the appropriate precautions...such as looking in the help wanted ads. Morale is at an all time low.
----------------
[/blockquote]
It seems like we're in a doomed submarine right now. Holes are exploding in the hull, and we're stuffing blankets and pillows in them in a fuitile effort to stop the flooding. As soon as one area seems to be contained, another leaks starts. I know I may be the resident pessimist on the board - but I don't see things getting better.
I know Dave and his henchmen don't have many options, they need to cut costs - but in this business, your primary variable cost is labor. For all the long standing complaint about how difficult US Airways workers are, we are still putting out a fine product - I'd venture to say a better one than when were farcical glory of the W&G days. But, as the stations keep closing and the layoffs keep going, the situation is going to get far worse.
Eventually you cut costs until aircraft reliability and safety become a factor. This has probably already happened, I remember seeing a post a few weeks back about how the company is cutting the people who check the maintenance paperwork before an airplane leaves. This is EXACTLY the type of cost cutting that gets airlines into big trouble. The same problem arises when you cut res agents and create massive hold times to buy tickets; or when there are unreasonable lines at the ATO because of staffing shortages.
If immediate liquidity is the problem, Dave probably should have asked the employees for a short term pay cut with a guarunteed snap back; to get us out of Chapter 11. The layoffs have long term implications, while most of us would be willing to take a cut for 6 months to a year.
I know that is suprising coming from a very proud no voter. But, my biggest problem with the company's proposal was (and is) the lack of the snapbacks. If the economy turns around quick enough to save US Airways, the money being made is going to be skimmed at the top and we'll be left with substandard wage scales, etc.
However, as I wait for my bump paperwork, I almost doubt that I ever will be recalled off furlough. The ship almost seems to be like the Titanic, posed with its tail in the air, about to make the final plunge to the depths.
Here is something interesting...Kerry is coming to MCO on Wed and I believe PIT on Friday. Guess we will have to wait and see what is going on.
- Thread Starter
- #7
Oh ..she never brings good news with her..although you won't know till she shows up...best of luck...I'll pray extra hard for all of us...something tells me we're gonna need it.
genejockey
Advanced
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On 11/12/2002 1
43 PM UAL777flyer wrote:
If US Airways ATSB loan guarantee money isn't in significant jeopardy, than why don't they already have it?
US Airways is in bankruptcy. Under the guidelines of the loan guarantee program, a loan cannot be guaranteed if the carrier is operating under the protection of bankruptcy. When US Airways was granted conditional loan guarantee approval in July, it was contingent upon the airline obtaining history making concessions for each employee union. The concessions were adequate at the time to satify ATSB requirements; however, some unions ratified the concessions after Chapter 11 BK was declared. Therefore, the guarantee is on hold until U emerges from BK. And now we have this revelation about inadequate revenue projections and a cost structure that is once again too high to meet the 7% profit in 7 year target. Someone in management needs to MANAGE this airline. U will not be saved by the constant begging for more money from union employee groups. Maximize efficiency, route structure, and revamp the fare sytem....that's the ticket!
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On 11/12/2002 1
43 PM UAL777flyer wrote: If US Airways ATSB loan guarantee money isn't in significant jeopardy, than why don't they already have it?
US Airways is in bankruptcy. Under the guidelines of the loan guarantee program, a loan cannot be guaranteed if the carrier is operating under the protection of bankruptcy. When US Airways was granted conditional loan guarantee approval in July, it was contingent upon the airline obtaining history making concessions for each employee union. The concessions were adequate at the time to satify ATSB requirements; however, some unions ratified the concessions after Chapter 11 BK was declared. Therefore, the guarantee is on hold until U emerges from BK. And now we have this revelation about inadequate revenue projections and a cost structure that is once again too high to meet the 7% profit in 7 year target. Someone in management needs to MANAGE this airline. U will not be saved by the constant begging for more money from union employee groups. Maximize efficiency, route structure, and revamp the fare sytem....that's the ticket!
usfliboi,
If US Airways ATSB loan guarantee money isn't in significant jeopardy, than why don't they already have it? The mere fact that it's still being withheld is testament to the fact that the business plan no longer works. Hence the need for another $250-400 million in cost cuts. To think that the almight federal government is going to ride to the rescue of each airline is naive. They are not required to approve anybody's loan and are not simply going to hand the money over. If that were the case, US and UA wouldn't still be jumping through hoops to get the money. Without the 7% margin requirement, the ability to repay the loan in a reasonable time frame is difficult for any carrier. If your loan wasn't in jeopardy, your Senior Mgmt team would not be actively asking the unions, lendors and suppliers for more cuts. Remember that they are in constant contact with the ATSB. So, chances are they are acting based on the feedback they're getting from them. But you can only cut so much before you reach the point of diminished returns. That is the true problem US is currently faced with.
If US Airways ATSB loan guarantee money isn't in significant jeopardy, than why don't they already have it? The mere fact that it's still being withheld is testament to the fact that the business plan no longer works. Hence the need for another $250-400 million in cost cuts. To think that the almight federal government is going to ride to the rescue of each airline is naive. They are not required to approve anybody's loan and are not simply going to hand the money over. If that were the case, US and UA wouldn't still be jumping through hoops to get the money. Without the 7% margin requirement, the ability to repay the loan in a reasonable time frame is difficult for any carrier. If your loan wasn't in jeopardy, your Senior Mgmt team would not be actively asking the unions, lendors and suppliers for more cuts. Remember that they are in constant contact with the ATSB. So, chances are they are acting based on the feedback they're getting from them. But you can only cut so much before you reach the point of diminished returns. That is the true problem US is currently faced with.
High Iron
Senior
- Aug 20, 2002
- 495
- 0
[blockquote]
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On 11/12/2002 143 PM UAL777flyer wrote:
usfliboi,
But you can only cut so much before you reach the point of diminished returns. That is the true problem US is currently faced with.
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[/blockquote]
The knowledge of this fact thereby obviates the need for ( gratuitous ) finger-wagging lessons in the politics of airline economics, vis-a-vis cuts then. Therefore, there's nothing anybody can do really- Just watch in respectful silence as we founder and begin to slip beneath the waves.
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On 11/12/2002 1
43 PM UAL777flyer wrote: usfliboi,
But you can only cut so much before you reach the point of diminished returns. That is the true problem US is currently faced with.
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[/blockquote]
The knowledge of this fact thereby obviates the need for ( gratuitous ) finger-wagging lessons in the politics of airline economics, vis-a-vis cuts then. Therefore, there's nothing anybody can do really- Just watch in respectful silence as we founder and begin to slip beneath the waves.
My point was that if US Airways business plan was sound, in terms of revenue projections, they'd be on course to emerge from Ch.11 in early 1Q2003 and they'd get their ATSB money then. The fact that their business plan no longer meets the required 7% profit margin due to the continued worsening industry revenue picture means they technically don't qualify for the ATSB money even if they were ready to emerge from Ch.11. That is what is dictating they seek more cost cuts. That is why the longer the revenue picture deteriorates, the more pressure US Airways will be under in terms of getting the ATSB approval and being able to emerge from Ch.11 and get the funds.
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On 11/12/2002 1:22:46 AM MCORORES wrote:
Here is something interesting...Kerry is coming to MCO on Wed and I believe PIT on Friday. Guess we will have to wait and see what is going on.
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Any news on what Kerry's visit to MCO was about?
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On 11/12/2002 1:22:46 AM MCORORES wrote:
Here is something interesting...Kerry is coming to MCO on Wed and I believe PIT on Friday. Guess we will have to wait and see what is going on.
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Any news on what Kerry's visit to MCO was about?
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[BLOCKQUOTE][BR]
[BLOCKQUOTE]Any news on what Kerry's visit to MCO was about?[BR][BR][BR][BR]
[P]A shift supe in PITRSV stated she was coming to PIT for quarterly management meetings. Who knows, we can only hope that she may rescind some of the furloughs. [BR][BR]Pitrescsd[/P][/BLOCKQUOTE]
[P][/P][/BLOCKQUOTE]
[BLOCKQUOTE][BR]
[BLOCKQUOTE]Any news on what Kerry's visit to MCO was about?[BR][BR][BR][BR]
[P]A shift supe in PITRSV stated she was coming to PIT for quarterly management meetings. Who knows, we can only hope that she may rescind some of the furloughs. [BR][BR]Pitrescsd[/P][/BLOCKQUOTE]
[P][/P][/BLOCKQUOTE]
