Someone fill me in? Y2000 / "Repeat of" - Dougie

[Fly4Free]

"They said they are working furiously to turn the operation around so the airline doesn't lose passengers in a repeat of a costly scenario at the old America West Airlines in 2000, under some of the same leadership including CEO Doug Parker." (US Airways Exec Christ) on this article.

Actually, I spoke too soon. "In that case, maintenance problems spiraled and forced unprecedented flight cancellations and delays. The company's earnings were hurt as business travelers booked elsewhere. The airline temporarily shrank its operation to get things under control."

Why is Dougie still CEO if he has this history?

 

[PHX PHLyer]

"They said they are working furiously to turn the operation around so the airline doesn't lose passengers in a repeat of a costly scenario at the old America West Airlines in 2000, under some of the same leadership including CEO Doug Parker." (US Airways Exec Christ) on this article.

Actually, I spoke too soon. "In that case, maintenance problems spiraled and forced unprecedented flight cancellations and delays. The company's earnings were hurt as business travelers booked elsewhere. The airline temporarily shrank its operation to get things under control."

Why is Dougie still CEO if he has this history?

Doug Parker may have been part of the leadership, but he wasn't the CEO. He was made President during the maintenance fiasco to fix it. And he did. They won maintenance awards from the FAA after Parker was instated to fix the problem. He didn't become CEO until right before 9-11 if I remember correctly. Here is a little history of that time period from cactuswings.com

"February 17, 2000 would prove to be an omen for the year. Eagle, the automated dispatch system, went down for over five hours. At the time, America West had no backup dispatch system, leading to over 280 cancellations over three days. Passengers were left stranded around the system, boosting the industry-high complaint rate. America West was rapidly becoming known as "America Worst" for its customer service and operational problems.

The relationship with the FAA was poor, leading to further restrictions on growth until the FAA was assured maintenance could handle the extra aircraft. The airline was not in good shape.

Changes needed to happen, and fast. Doug Parker was elected president of the airline in May, replacing Mook, and given the mandate to fix the airline. Immediate changes were put into place, focusing again on maintenance. The line maintenance staff was doubled, flight schedules were reduced to allow additional spare aircraft and more time to maintain the fleet, new systems installed, and new maintenance bases established in San Diego and Baltimore. Management began looking at the causes of problems and trying to solve them at the root, rather than fix the problems after they happened.

On the labor side, the Fleet Service Agents ratified their contract on June 12. Shortly thereafter, additional fleet service employees were hired in Phoenix, to support the initiatives designed to reduce delays at the hub.

Franke was taking a hands-off approach to the airline, and took over all corporate duties in August. Parker was given total control of the airline, and named CEO in December. Franke did keep the financial side of the airline in excellent shape, reducing long-term debt to $145 million in 2000.

The initiatives helped restore America West's relationship with the FAA. America West's Internal Evaluation Program was named a best practice by the FAA, and Maintenance would continue to win awards from the FAA during 2001 and 2002.

N902AW, Teamwork, was repainted into a new scheme in 2000. An employee contest came up with the winning design, designed by analyst Amy O'Rear, featuring landmarks from across the United States. The repainted aircraft was unveiled on June 12.

Profits were dramatically affected by the summer of 2000, and years of operational problems. America West Holdings made $7 million, but had a $12 million operating loss. America West would enter 2001 with hope for improvement, despite the open pilot contract which became amendable on June 12, 2000.

The industry entered a recession, and average fares began dropping dramatically. Airlines were losing money, but holding their own. America West was no exception, but they were also trying to restructure their operation. The TWA alliance ended before it really could start, with TWA's bankruptcy and subsequent purchase by American Airlines.

Something happened in the summer of 2001. America West ran a reliable operation. The changes paid off in on-time performance, decreased expenses, a more reliable fleet, and better customer service. Parker's initiatives were working, and working well. America West seemed to be turning the corner."

 

[Fly4Free]

Something happened in the summer of 2001. America West ran a reliable operation. The changes paid off in on-time performance, decreased expenses, a more reliable fleet, and better customer service. Parker's initiatives were working, and working well. America West seemed to be turning the corner."

I am thankful for that entire post you posted. It has given me an insight on the operational status of Amercia West pre- 9/11 and it's interesting. I have often wondered why my ex-coworkers called the company "America Worst" and I just laughed and scratched my head basically afterwards.

Yeah, it was a real shame what happened to TWA. I often thought I'd be working for TWA as I was living in St. Louis and I really admired the airline industry. This was pre-9/11 btw.. before the buyout and all the changes made nationally to every airline to stay in the air.

I flew TWA in Oct 2001. All the FA's / Staff were friendly. I was forced to fly United in Dec 2001 (very miserable on that airline. Staff were mediocre.) It was a real shame.. the whole TWA story.

I didn't realize Parker hadn't been CEO prior to merger.. thought he was America West's CEO pre-merger and got to keep his job .. lol.

 

[luvn737s]

I didn't realize Parker hadn't been CEO prior to merger.. thought he was America West's CEO pre-merger and got to keep his job .. lol.

He was CEO prior to and following the merger.

His focus has been too much on cost control at the expense of long-term operational consistancy. I think he wants to insure that the costs that were established before the merger, exist once the two airlines are fully integrated.

That's being overly optimistic, given the labor environment that exists. Investments need to be made that will yield tangible returns vis a vis operational improvements. Giving in to labor demands for more money could work if there is a quantifiable way to measure results (how much is enough?).

While he doesn't get credit for it, many of his incentives (A&B raffle, Hat trick, profit sharing) are lifted right from the Bethune CAL playbook. The merger makes implementing much of anything more difficult. Once the certificates/labor contracts merge, I would expect to see more overtures to labor for incentives versus automatic increases.

But those overtures will only be met with hostility if some type of fence mending isn't embarked on soon.

 

[CV580ETOPS]

He was CEO prior to and following the merger.

His focus has been too much on cost control at the expense of long-term operational consistancy. I think he wants to insure that the costs that were established before the merger, exist once the two airlines are fully integrated.

That's being overly optimistic, given the labor environment that exists. Investments need to be made that will yield tangible returns vis a vis operational improvements. Giving in to labor demands for more money could work if there is a quantifiable way to measure results (how much is enough?).

While he doesn't get credit for it, many of his incentives (A&B raffle, Hat trick, profit sharing) are lifted right from the Bethune CAL playbook. The merger makes implementing much of anything more difficult. Once the certificates/labor contracts merge, I would expect to see more overtures to labor for incentives versus automatic increases.

But those overtures will only be met with hostility if some type of fence mending isn't embarked on soon.

If you were smart you would take the automatic increases vs. the incentives. Incentives exist because of sub-standard payscales and are unilaterally set by management outside the collective bargening agreement most of the time and never make up the difference for a sub-standard payrate. You really should stop drinking the kool aid out there and develop more of a "show me the money" attitude.

 

[2clippedwings]

He was CEO prior to and following the merger.

His focus has been too much on cost control at the expense of long-term operational consistancy. I think he wants to insure that the costs that were established before the merger, exist once the two airlines are fully integrated.

That's being overly optimistic, given the labor environment that exists. Investments need to be made that will yield tangible returns vis a vis operational improvements. Giving in to labor demands for more money could work if there is a quantifiable way to measure results (how much is enough?).

While he doesn't get credit for it, many of his incentives (A&B raffle, Hat trick, profit sharing) are lifted right from the Bethune CAL playbook. The merger makes implementing much of anything more difficult. Once the certificates/labor contracts merge, I would expect to see more overtures to labor for incentives versus automatic increases.

But those overtures will only be met with hostility if some type of fence mending isn't embarked on soon.

I agree. While the incentive programs are nice gestures, they cannot substitute for settling contracts in a timely manner. You can't run an airline without passengers and an airline's most valuable asset are its employees. Apparently Tempe needs to be reminded.

 

[luvn737s]

You really should stop drinking the kool aid out there and develop more of a "show me the money" attitude.

An attitude doesn't change reality. A person whose perception of reality is shaped entirely by their attitude sounds like someone under the influence of "Kool Aid". Unless you learn from history and the context in which the company chooses it's priorities, your "show me the money" attitude is just blowing off alot of steam. Steam, I might add, that could be put to more productive use.

 

[CV580ETOPS]

An attitude doesn't change reality. A person whose perception of reality is shaped entirely by their attitude sounds like someone under the influence of "Kool Aid". Unless you learn from history and the context in which the company chooses it's priorities, your "show me the money" attitude is just blowing off alot of steam. Steam, I might add, that could be put to more productive use.

Seem's like your company was built on the backs of people willing to work for less than the going rate,hence it's artifical cost advantage. Now that it purchased USAir,it will have to learn how to run an airline so as to show a sustained profit based on the operation of the airline alone. The USAir east folks will not subsidize Doogie's follies any longer,and rightly so . Something else to consider is Delta coming out of Chapter 11 this spring. With a product that puts USAir's (both old and new) to shame and costs a fraction of what they once were,watch for them to put a major hurt on USAirways up and down the east coast unless Parker and his frat house buddies take a crash course in Airline Operations 101. Have another Kool Aid, Mrs Parker...this round is on me <_<

 

[philly rocks]

PINEY, MAYBE YOU SHOULD GO TO TEMPE INSTEAD OF ART, WE ARE REALLY COUNTING ON YOU BOTH TO BACK THE EMPLOYEE GROUP.

 

[Fly4Free]

So, question.. was "kool aid" something used to describe America West both pre-merger under the direction of Dougie or is it just the combined airline that caused this kool aid craze?