Problems, hmm, this reminds me of this:
As far back as Ed Colodny mistakes have been made that has probably cost this company millions if not billons if you add all the blunders.
Colodny’s Blunders:
· Mirror Image, imposing US Air’s business methods upon Piedmont and PSA, instead of looking at each respective airline and adapting their successful practices. Some examples would be dismantling of the Piedmont Shuttle which accounted for 32% of Piedmont’s Gross Revenue.
· Not furthering International Service and canceling the last three 767s on order from Boeing, then realizing how much money was made serving international destinations and paying Boeing a $30 million penalty to reorder the three planes.
Schofield’s Blunders:
· Business select, $50 million on wasted seats that never worked properly and we eventually removed from the 737-200 fleet. Operation Highground.
· The IAM Mechanic and Related Strike of 1992 in which US Air lost $35 million and agreeing to pay all the pilots during our strike regardless if they flew or not.
· The hiring of Joe Gorman from United Airlines. Gorman stayed a few months then went right back to United, then United started taking us on head to head in numerous markets where we did not compete before Gorman’s tenure.
· The alliance with British Airways to infuse quick cash, but not on favorable terms to US Air, BA got more out of the alliance then we did.
Wolf and Gangwal:
· Canceling all the Boeing orders and having to pay a substantial penalty to Boeing to this day the dollar amount is not known as it was a confidential out of court settlement after Boeing sued US Airways, but it is believed to be hundreds of millions of dollars.
· Closing of three maintenance bases and trying to accomplish all the work in just three bases, which caused a backlog of airplanes awaiting “Q†and “C†checks and Mod visits. At one point you could see numerous airplanes parked in Charlotte, Pittsburgh and Tampa awaiting maintenance.
· Buying back over $1.5 billon of US Airways stock instead of using the money as operating capital or paying down debt or just having it around for a downturn.
· Selling the company to United Airlines and then for the next 14 months having no direction and running the company into the ground.
· Overreacting to the September 11th tragedy and shrinking the airline by 23% and increasing costs by putting larger airplanes on shorter routes.
Siegel's Blunders
Pilots pension
Airbus Farmout
Shrinking the Airline and increasing costs
Violated every contract.
Leading by threats
Closing of TPA Hangar
And I don't think labor caused any of this or made the decision to do the above!
According to JustPlaneNews.com Siegal just received an $11 million pay package! What say all you critics of Labor and LCC Lovers to that? Yeah .... take away the health benefits of emloyees that worked for 30 hard years and give the savings to the *@%*^$! CEO that is taking this company DOWN!! Hey .... this is the NEW ERA .... it's everyone for themselves, right?
I love you, man!!!!
