Us Air To Delay Airbus Plane Deliveries
- Thread starter USA320Pilot
- Start date
delldude
Veteran
i just emailed ashby and told him you need a drug test,he agreed...AP Tech said:I just emailed Ashby and gave him another suggestion on how to free up some more cash. Go back to Judge Mitchell and explain to him that due to the high price of oil and low ticket yields the company is in a cash crunch. Ask him to let the company cancel the severence and benefits package just offered to the mechanics and related as U really needs the cash. Just explain how its better screw over 4000 persons vs what is it 25000 now? If not we will liquidate and all will suffer more?h34r: I'm sure Mitchell will concur!!!!!!!
[post="240694"][/post]
that is amazing....i'll laugh my butt off when and if you suddenly find yourself in the unemployment line without your severance.....
- Thread Starter
- #19
The Airbus deal is good for the company and the employees because it provides a portion of the $100 million required to meet the terms of the GE Bridge Financing agreement. The accord resolves various claims between the two companies, provides US Airways with $6 million, and improves cash flow during a difficult time with an extension on most of a $9 million payment that had been due Dec. 1, 2004. The company has paid $3 million of the total and can pay the remainder on Jan. 27.
US Airways will not be able to expand mainline flying until it has a competitive cost structure and is profitable. Then the company can return to the capital markets to finance new aircraft, which could include A330s for B767 replacement and additional growth opportunities in South America.
US Airways can finance large RJs because they're profitable aircraft, but until the TP is fully implemented I do not see Group 2 aircraft and above being added to the fleet count.
Look at the Airbus deal as short-term and a bridge to help get the airline out of bankruptcy. Once out of bankruptcy and profitable, then the company can look at other mainline aircraft growth opportunities.
After tomorrow, the company will still be on life support, but in stable condition. The positive news is that yet another financier is supporting the company's formal reorganization.
Regards,
USA320Pilot
US Airways will not be able to expand mainline flying until it has a competitive cost structure and is profitable. Then the company can return to the capital markets to finance new aircraft, which could include A330s for B767 replacement and additional growth opportunities in South America.
US Airways can finance large RJs because they're profitable aircraft, but until the TP is fully implemented I do not see Group 2 aircraft and above being added to the fleet count.
Look at the Airbus deal as short-term and a bridge to help get the airline out of bankruptcy. Once out of bankruptcy and profitable, then the company can look at other mainline aircraft growth opportunities.
After tomorrow, the company will still be on life support, but in stable condition. The positive news is that yet another financier is supporting the company's formal reorganization.
Regards,
USA320Pilot
RJs are not profitible, US paid Mesa $232,000,000 in year 2003 for 50 RJs flying, please show me how that is a profit?
An RJ costs more to operate on a % basis then a mainline jet.
And if RJs are so profitable then why is US Airways back in bankruptcy 18 months after emerging with RJs up the ying yang?
An RJ costs more to operate on a % basis then a mainline jet.
And if RJs are so profitable then why is US Airways back in bankruptcy 18 months after emerging with RJs up the ying yang?
- Thread Starter
- #22
The company does not have a competitive cost structure yet and is still forecast to lose money. The cost structure will not become competitive until the new business plan is fully implemented, especially with energy prices back on the rise.
I understand the need, especially for those on the bottom of the seniority list, for some sort of instant gratification, but the company must become profitable before anybody will be wiling to invest into the company.
Today’s industry fundamentals are horrible and once the company is financially stabilized it will be not hard to find new Group 2 and above aircraft and financing. There is “no way†US Airways can get big airplanes financed with the current state of affairs for a bankrupt business enterprise. One the company is fixed and has sustained profitability then the airline can return to the capital markets and worry about expansion. I understand that management would like to obtain more A330-300 & 200s for South American Expansion and B767 replacement aircraft, but that is probably now going to occur until 2006 at least considering the current financial picture.
In regard to the EMB & CRJ large RJ aircraft orders, those aircraft have already been built and were sitting one the ramp in Brazil and Canada, which is why they are being delivered before the end of the month. Bombardier and Embraer did not want to repaint and reconfigure them for a new customer and the manufacturers waited to see if US Airways had a future before delivery’s, but large wholesale aircraft orders/delivery’s are likely not on the horizon yet. Once we emerge, then maybe they will come, but not now.
Do I like this? No, of course not, but I understand the fundamentals with Delta cutting fares up to 50%, max domestic round trip ticket prices now $499, and Crude Oil trading at about $47 per barrel on the NYMEX.
We’re lucky to be flying and hopefully when the new business plan is fully implemented, we can then talk about adding mainline aircraft.
Regards,
USA320Pilot
I understand the need, especially for those on the bottom of the seniority list, for some sort of instant gratification, but the company must become profitable before anybody will be wiling to invest into the company.
Today’s industry fundamentals are horrible and once the company is financially stabilized it will be not hard to find new Group 2 and above aircraft and financing. There is “no way†US Airways can get big airplanes financed with the current state of affairs for a bankrupt business enterprise. One the company is fixed and has sustained profitability then the airline can return to the capital markets and worry about expansion. I understand that management would like to obtain more A330-300 & 200s for South American Expansion and B767 replacement aircraft, but that is probably now going to occur until 2006 at least considering the current financial picture.
In regard to the EMB & CRJ large RJ aircraft orders, those aircraft have already been built and were sitting one the ramp in Brazil and Canada, which is why they are being delivered before the end of the month. Bombardier and Embraer did not want to repaint and reconfigure them for a new customer and the manufacturers waited to see if US Airways had a future before delivery’s, but large wholesale aircraft orders/delivery’s are likely not on the horizon yet. Once we emerge, then maybe they will come, but not now.
Do I like this? No, of course not, but I understand the fundamentals with Delta cutting fares up to 50%, max domestic round trip ticket prices now $499, and Crude Oil trading at about $47 per barrel on the NYMEX.
We’re lucky to be flying and hopefully when the new business plan is fully implemented, we can then talk about adding mainline aircraft.
Regards,
USA320Pilot
USA320Pilot said:
And never will because they refuse to change in the ways they need to and blaim the employees for everything and ride them into a state of dispair and hopelessness while the bigwigs come and go and take and take .
When there is no more to take from the employee's then what plan are they going to use? Now that the employee's have given yet a third time I expect an announcement from CCY that Brue Lakefield will be retiring and will be replaced by ?????. I am sure when he retires he will get a bit more than 15 weeks severence and I'm sure he will receive a retirement package. The new CEO will get a pile of cash, stock options and a retirement plan and the cycle will begin all over.......employee giveback #4
700UW said:
Hardly rocket science, my friend. If you are running a flight where only paying 40 butts are wanting to get from point A to point B, doesn't it make more sense to to put those 40 butts on a 50 seat SJ, rather than a 119 seat Airbus? There are markets where it's much more profitable to run smaller A/C. Now the way this company operates those smaller flights is another story. We should have only one wholly-owned operating SJ's, ONE contract carrier, and mainline.
-DCAflyer
delldude
Veteran
after they've finally reduced us to kmart wages then and only then will they raise ticket prices.AP Tech said:
DCAflyer said:
Yes makes sense and then lower fares more to the crying cockroach club then come back to employees for more. Almost forgot about the downline customers you left standing at gate without a ride.
USA320Pilot said:
Let's be clear... It provides $6mil in additional liquidity, or 6% of the terms required to meet GE's requirements (a week late too)... And IF the burn rate is $1-2mil/day, well that's 3-6 days cash losses.
Secondarily, they have gotten an 1.75month extension on $6mil in debt, which they have technically been in default on for 1.5months. They have agreed to pay for this next week, although I hope they had their fingers crossed when they signed the papers...
Next, Airbus must have some other customers or potential customers lined up to take the delivery positions. Perhaps this is why Airbus is willing to work with US Airways in a manner which delays aircraft deliveries... They can actually re-sell those delivery positions to some other company which might be able to pay for them. This is very much different from the situation with Bombardier and Embraer, who's orders have been slower than Airbus'.
Speaking of Embraer and Bombardier... This shows that US Airways immediate Transformation Plan is to expand with higher CASM "Regional Jets" or smaller-cabin jets, rather than the lower CASM and larger Airbus jets.
I think this is probably the right move for the company, but it also shows that the company is grasping at straws and shaking the trees for every last orange.
USA320Pilot said:
So if I am reading this right... The company's Transformation Plan has not worked... They already have concessions from all labor groups (as they will get the concessions from IAM one way or another tomorrow). They have a reduced PIT hub, semi-rolled PHL hub, and a new focus city at FLL starting next month...
Question: So what exactly will it take for the company to get a competitive cost structure?
Answer: Apparently something other than the "Transformation Plan"
USA320Pilot said:
DL's plan is that maximum ONE WAY fares are $499, which still leaves room for profit. They did not max out at $499 r/t, although on shorter stage lengths those are most likely profitable.
The RATIONALIZATION of fares can be revenue positive in the long run, but I won't get into it again..........
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