Funguy2:
Funguy2 said: So if I am reading this right... The company's Transformation Plan has not worked...
USA320Pilot answers: The TP has not been fully implemented and there are many more steps in the process. One of the big issues is having to stop large RJ aircraft orders, which will be used to attack OA hubs and permit mainline aircraft redistribution.
Funguy2: They already have concessions from all labor groups (as they will get the concessions from IAM one way or another tomorrow).
USA320Pilot answers: The company almost has all new contracts in place, but many of the changes such as facility closure, economies of scale, and headcount reduction have not yet occurred. The company has only realized a part of the total labor savings, with more to come. It will take time to realize all of the savings.
Funguy 2 said: They have a reduced PIT hub, semi-rolled PHL hub, and a new focus city at FLL starting next month...
USA320Pilot comments: PIT flying has been reduced, but there still needs more work to be done to cut more costs out of PIT. PHL is not rolled until February 6, and FLL does not begin to spool up until next month.
Funguy2 asked: “So what exactly will it take for the company to get a competitive cost structure?
Funguy2 answered: “Apparently something other than the ‘Transformation Plan’â€.
USA320Pilot comments: When the TP is fully implemented, the company’s CASM will be less than Southwest and AirTRan and greater than jetBlue. The financial community, who has seen the business plan and the “booksâ€, understand this point, which is why the ATSB, GE, Bombardier, Embraer, Govco, Citigroup, and Airbus have provided assistance to the airline.
Best regards,
USA320Pilot
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