The Transformation Plan

[USA320Pilot]

More "Transformation Plan" hints have surfaced.

Apparently, the plan will include 60 additional A320 family aircraft with 30 delivered in 2004 & 30 in 2005, no W-2 cuts, no pilot furloughs, increased ASM's, rolling hubs, new PHL runway traffic patterns, more point-to-point flying with the Airbus fleet, the B737s doing the hub flying, reduced PIT hub fees, facility consolidation (PIT ground schools, simulators, rez, and operations offices could be moved to North Carolina or westward) and major contract changes for all employee groups designed to boost productivity.

There will be 85 EMB-170/175s delivered in the next 31 months, MidAtlantic will initially be based in PIT, and the mainline RJ division will be deployed in the three hubs/focus cities. There will be more Caribbean/European expansion and more alliance development with United, Spanair, Lufthansa, Star, and the GoCaribbean network.

According to today's Pittsburgh Post-Gazette, US Airways' chief executive officer Dave Siegel's goal, as outlined in a private board meeting Dec. 10, is to lower expenses so that average seat costs excluding fuel are 6 cents a mile in the point-to-point, regional jet part of his system and 8 cents in the hub-and-spoke part of operation (its costs excluding fuel was 9.52 cents at the end of the third quarter, vs. Southwest's 6.42 cents). To reach those projections, Siegel has already identified $200 million to $300 million in savings for 2004.

Chip comments: I believe every employee would like to see the intangible benefit of being competitive truly played out, but how can we do that if we do not discuss the issues with management? What would it be worth to have a business plan that could work by expanding block hours and increasing productivity across-the-board to average down unit costs?

I recognize the devil is in the details, but I sure would like to see the details so we can make an informed decision, which should occur shortly after the new year.

Regards,

Chip

 

[HogDriver]

Chip

I just asked this on another thread: Are the Airbus Jets coming new from the factory or another source? It is about time co. leadership took these steps....hope it is not too late.

 

[MarkMyWords]

Chip -

Any ideas on what specifically they are looking at in each contract?

I am very interested to hear the details too. I have heard many of the same things that you talked about, but no real information on specific target items in each contract. All I keep hearing is "if you gave 110% this year, expect to give 125% next year."

I am with you......the devil is in the details and I sure would love to know what some of the targets are....if it means job losses versus job recall...or less W-2 there will be no way they will sell that to any union on the property.

 

[USA320Pilot]

HogDriver & MarkMyWords:

HogDriver asked: "I just asked this on another thread: Are the Airbus Jets coming new from the factory or another source? It is about time co. leadership took these steps....hope it is not too late."

Chip answers: HogDriver, I understand the company is in discussion with Airbus and lease companies, therefore, it's likely the additonal aircraft will come from multiple sources.

MarkMyWords asked: "Any ideas on what specifically they are looking at in each contract?"

Chip answers: Nothing concrete, only speculation. However, I believe it's safe to say the company would like to see changes they requested of each NC during the restructuring and supplemental restructuring agreement negotiations. The intent is to dramatically increase ASMs with the same headcount. For the pilot group, management would like to see increases in reserve pilot productivity, with the total pilot group productivity increased by about 30%.

Regards,

Chip

 

[MarkMyWords]

Wouldn't it be difficult to add 60 airplanes and maintain head count? Would it be possible to add 60 aircraft and increase utilization rates on the current 279, without recalling a good number of furoughed employees?

 

[PITbull]

Chip,

I believe the plan you outlined above is strictly "confidential". How is it that you are permitted to put this out on a public board?

The problem with any plan by this management is you can't trust what they say OR what they put in writing. The are infamous in breaking and violating contract language. Or do you think that 268 grievances outstanding with ALPA is appropriate for a union to submit?

You talk about no more furloughs for ALPA. There can not be any more furloughs for AFA, and, any work rule changes, CAN NOT COST ANY JOBS ON THE GROUND.

 

[USA320Pilot]

MarkMyWords:

MarkMyWords asked: "Wouldn't it be difficult to add 60 airplanes and maintain head count? Would it be possible to add 60 aircraft and increase utilization rates on the current 279, without recalling a good number of furoughed employees?"

Chip answers: MarkMyWords, that question is being asked by the pilot group. "Pref Bid", the reserve pilot time balancing system, and some already requested work rules changes would permit expanded ASMs. In addition, the MidAtlantic and J4J pilot training freezes would give the company some flexibility. However, with continued mandatory age 60 retirements, at some point in the not-so-distant future, there would have to be pilot recalls.

Regards,

Chip

 

[USA320Pilot]

PitBull:

The information I posted has been provided to the pilot group by management in open forums. In regard to furloughs, I can only speak to the pilot group because the information was provided by senior Flight Department personnel.

Regards,

Chip

 

[repeet]

PITbull
Posted on Dec 27 2003, 01:34 AM

You talk about no more furloughs for ALPA. There can not be any more furloughs for AFA, and, any work rule changes, CAN NOT COST ANY JOBS ON THE GROUND.

Thank you PITbull,

I fear that management is trying to manuver the pilots group back on their side. Arranging their forces for the next fight by promising safety, if the pilots will agree not to stand with the other labor groups.

Please remember what the red buttons we are wearing say:

SOLIDARITY

Management is going to have to learn to manage the other resources at their disposal, because:

 

[PITbull]

Bob,

You are a customer that flies our airline, WE WORK ON THE PLANES YOU FLY. I know personally whats in store for us; you don't. Respectfully, please don't tell me my job, and I won't tell you yours.
And don't tell me what I need or have to accept. I know all consequences; we have all lived them, like "ground hog" day.

 

[USA320Pilot]

I understand the plan is to reduce the US Airways & MDA combined CASM, including fuel, to less than 9 cents. Management believes this could be done without W-2 cuts.

Regards,

Chip

 

[A320Pax]

Chip,

That may be the plan on the "outside" but the real plan on the inside is to sell some assets to Virgin America and to pick up some former ACA-flying for UA.

Sort of like how we had the voluntary restructuring plan but the involuntary restucturing (Ch. 11) was the true plan from the start, as Dave later admitted. It was not the "back-up" plan.

You can confirm with your sources that a rep from Virgin America was in CCY last week.

 

[funguy2]

This whole topic has so many flaws... No airplanes, no money to acquire them with, no profitable market to place them in, and on the other hand there is a hub elimination/downsizing going on.

Its hard to imagine where US Airways is going to place 60 aircraft, since they are in the process of eliminating / downsizing PIT.

Maybe 60 mainline aircraft would come out of the elimination / downsizing of PIT... that sounds about right... but still, no evidence as to where they will go...

Its interesting to me that every thought CCY has instantly becomes a "plan" on these boards... I am sure someone is possibly looking at something at CCY... After all, they must do SOMETHING there... Just because they look at it, consider it, doesn't mean that everything they look at happens... I would bet the implementation-to-idea ratio is around 5%. Meanwhile, people on this board get all worked up over the 95% that is discarded for one reason or another...

 

[repeet]

A320Pax
Posted on Dec 27 2003, 02:51 AM

Sort of like how we had the voluntary restructuring plan but the involuntary restucturing (Ch. 11) was the true plan from the start, as Dave later admitted. It was not the "back-up" plan.

Interesting, I haven't heard this before. Do you have a quotable source for this statement?

And here's a plan for the boys in CCY:

 

[ual777fan]

I am still interested on how USAir point to point costs will be 6 cents. I believe that Jetblue's costs are about 6.5 cents on point to point. I could be wrong so please correct me if I am