"The biggest reason: The airline is restricted on how much it can cut back flying under labor agreements made after the US Airways/America West merger.
They dictate a minimum fleet size and flight hours for pilots and flight attendants." End quote. . .
Other airlines are cutting back where USAirways cannot due to old labor agreements.
From Jerry Glass's: "My Way" Chapter 2
Repeat after me:
"blame it on labor"
It is due in large part due to the fact that our aircraft are all LEASED (means we don't own them)and there are lease restrictions. That's how they mitigated our long term debt with leases and balloon payments. Looks good now.....well it did until FUEL went up. Try taking your leased 2007 4x4 F250 Diesel truck back to the dealership when you get laid off and see how much "relief" you get. After all the termination penalties and fees....it's not cost effective and you are still stuck with a vehicle you don't need or can afford.
The "braintrust" did low ball some of the 757 lease holders. The result: we lose 8 757s to FedEx when we needed these A/C the most. "The high cost of cheap" strikes again, FedEx was more than willing to step up and pay the going market value.
Citing the "Transition Agreement" and "Min Fleet" count are the reason US Airways now finds itself in peril is absolute bullocks.
Labor has been more than willing to give relief regarding these issues. How do I know? Because we ALWAYS have. ....ALWAYS. The question is:
Will they now? Doubtful. Whats the old saying "Screw us once, shame on you" Screw us twice (and to infinity) shame on US".
Heck we are fighting over what call sign to use, and trying to rationalize why someone with 6 years seniority should go before someone with 20 years seniority because a senile arbi-traitor said so. Our airline has been transformed into BUS SERVICE and we have alienated our highest yield BUSINESS TRAVELERS. Meanwhile Tempe is laughing at and exploiting all of us, and we are letting them. Why? What has the management team accomplished in three years? Been there and done that and have the T-Shirt....we don't need to go there now.
Our management team can't even seem to take control of of the simple things: two geriatric shareholders at an annual meeting. Why would one expect they could manage the "merged operation" or handle a real crisis?
If the "leadership" had been working proactively with the labor groups and earnestly trying to merge the airlines instead of trying to extract blood from a turnip, exploiting the EAST. Yeah that's the reason we had such a good cash position.
What they forgot to mention in the press release it was because the EAST was working under draconian work rules and pay rates for the past 4 years and that CASH came directly out of the EAST'S back pocket. Our high yield BUSINESS TRAVELERS, high yield EAST COAST, and INTERNATIONAL ROUTES didn't hurt either ......not $89 leisure fares to LAS.
TEMPE is trying say: SWA is making money because they painted their airplane's orange and blue......not the fact their LEADERSHIP ran a good operation, they hedged fuel through 2013, and they treat their employees like an asset not a liability. The latter point is probably the reason they were able to hedge fuel so far out. The employees and leadership are the business.....not management. We prove that fact everyday.
What astonishes me on this thread: more than the anti-semetic ramblings and the comments regarding geriatric shareholders that obviously skipped their daily medications, is that Parker (and Lakefield) were both given another three year term. Lakefield is definitely the money guy. What we need as CEO is an AIRLINE GUY. God Help US. The two initiatives before the BOD requesting transparency, were quashed. Why am I the only one that finds that disturbing?