Three wholly owned merge functions into one new unit

DakotaHC8

Member
Aug 20, 2002
64
0
In this coming March, the three wholly owned carriers will consolidate their various support functions under one roof.
This new division named (SSO) will be based in Harrisburg, PA and reside at the headquarters of Allegheny Airlines.
Areas such as staffing, IT, Human resources, and various purchasing functions will now be handled by this one organization for all three wholly owned express carriers.
 

aj04878

Member
Feb 8, 2003
57
0
[blockquote]
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On 3/3/2003 7:52:28 PM DakotaHC8 wrote:

In this coming March, the three wholly owned carriers will consolidate their various support functions under one roof.

This new division named (SSO) will be based in Harrisburg, PA and reside at the headquarters of Allegheny Airlines.

Areas such as staffing, IT, Human resources, and various purchasing functions will now be handled by this one organization for all three wholly owned express carriers.
----------------
[/blockquote]

This seems to make a whole lot of sense. Why spend the extra money to fly three separate airlines when they can all be flown as one. Will this consolidation eventually result in the creation of a single wholly owned carrier (since MDA is now mainline)? This seems very convienient for an upcoming RJ order.

any significant info would be great. Where did you hear this DakotaHC8?
 

Non Rever

Member
Dec 20, 2002
88
0
As part of this process, an independent consulting firm
(Accenture) was engaged to look into possible areas of cost reduction. As a result of their analysis a
decision has been made that will allow us to reduce certain administrative costs.

It took a consultant to come up with this???

Ive wondered for years why there is so much duplication w/3 wholly owned.

Hopefully its yet another step in the right direction.
 

psacowboy

Newbie
Mar 4, 2003
1
0
www.usaviation.com
It appears that all administrative positions will be combined in Harrisburg, thoough all flight operations will remain independent with regard to crews, aircraft, scheduling, etc. I know we have talked about merging the wholly owneds for years, now lets see if it is going to be a good thing or not! Our office types got there pink slips yesterday. There is an unofficial combined pilot seniority list (by date of hire) floating around. Seems to me that this may be the next step once Jet for Jobs goes into effect. Good luck to all affected by this!

Holy Wholly Owned Info

Date: March 3, 2003 Interoffice
Correspondence

To: Allegheny, Piedmont, PSA and MSC Employees

From: Michael Scheeringa
Vice President Express Division

Subject: Reorganization

As you are aware, US Airways Group, Inc. continues its restructuring process to lower costs, become
more efficient, and return to profitability. As part of this process, an independent consulting firm
(Accenture) was engaged to look into possible areas of cost reduction. As a result of their analysis a
decision has been made that will allow us to reduce certain administrative costs.

Beginning May 1, 2003, several functions within the wholly owned carriers, Allegheny, Piedmont, PSA
and MSC will transition to a new Subdivision within Allegheny referred to as the Shared Services
Organization (SSO). The affected areas are Recruiting, Benefits Administration, IT, Purchasing,
Accounting and Payroll. The SSO will be operated out of Allegheny’s Headquarters in Harrisburg.
Below is a summary of the functions that will be completed by the SSO.

PURCHASING - SSO FUNCTIONS
The SSO will issue Purchase Orders for all purchases. A partial list of SSO responsibilities will be
purchases of aircraft parts, shop supplies, office supplies and equipment, tooling, test equipment,
computer hardware, software and outside services, telecommunications equipment and services, crew
(RON) hotels and transportation, aircraft chemicals, aircraft cleaning supplies, paper supplies,
skydrol/oil, and aircraft hardware. In addition the SSO will purchase such items as de-ice fluid POs
and usage through Merlin and all component repair agreements.

HUMAN RESOURCES – RECRUITING AND BENEFITS - SSO FUNCTIONS
The SSO will be responsible for staffing recruiter positions at the carriers and will liaison with carriers to
establish hiring requirements, participate in recruiting sessions and forward candidate recommendations
to Carrier management. The SSO will contract administration of benefit plans and will be responsible for
employee enrollments, changes, all other claims processing as it related to benefits.

FINANCE –PAYABLES, RECEIVABLES, AND PAYROLL – SSO FUNCTIONS
The SSO will generate all payments and cash disbursements for all purposes including manual checks.
This includes processing all invoices through the accounting systems and following up on invoices. The
SSO will prepare all cash planning schedules and will initiate all wire transfers. The SSO will generate
final invoices and process through the accounting system. The SSO will prepare all financial statementsand generate internal reports. The SSO will compile final versions of budgets. The SSO will process all
payroll hours and generate paychecks for each Carrier's employees.

IT - SSO FUNCTIONS
The SSO will ensure that existing computer and phone systems continue to function properly. They will
work with end-users on problem resolution and also outside support vendors where appropriate. They
will make sure that systems are properly maintained and backed up.

Unfortunately, this reorganization will result in employee reductions at the wholly owned carriers. Each
carrier will be working with their employees affected by this transition in an effort to minimize the impact.
The SSO will offer many new opportunities to the affected employees and they are anxious to discuss
these possibilities with the affected employees. Over the next few weeks, the SSO we will be actively
recruiting to fill the positions. Postings for the available positions will be distributed to all employee
locations by March 4, 2003. If you are interested in any of the positions, please contact Michelle
Foose, Director of Human Resources at Allegheny at DN 948-5410 who has been tasked with the
SSO transition. It is anticipated that all vacant positions will be filled by March 28, 2003.
I realize this change will impact the way each Company does business. Your management will make
every effort to keep you advised of the progress of the SSO and assist in making the transition as
smooth as possible for all involved.


__________________
 

WSurf

Senior
Dec 12, 2002
365
0
Yea, but will they allow us to File for Single Carrier status?? Divide and Conquer is managements tatic. There should be now reason we don't become a single carrier.

PDT