Us Air To Delay Airbus Plane Deliveries

Sep 9, 2002
1,881
57
Art at ISP 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.

[post="240759"][/post]​


Take that to DL's board we don't need it on here
 

mweiss

Veteran
Aug 28, 2002
3,440
4
delldude said:
after they've finally reduced us to kmart wages then and only then will they raise ticket prices.
[post="240729"][/post]​
The fares and wages are independent.
 

DCAflyer

Veteran
Aug 27, 2002
821
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usairways_vote_NO 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.
[post="240731"][/post]​

Capacity doesn't have anything to do with pricing, except that if you price something low enough demand may increase (the key to LUV's success, by the way). Capacity is making sure you have the right size equipment for a flight, based on ready, willing, and able customers to purchase tickets. With pricing, ideally, you want to fetch the highest price the customer is willing to pay. If ready, willing, and able butts are being left behind at the gate because the A/C is too small, then that's a capacity issue, and if it's happening on a consistent basis, then A/C size needs to be reevaluated... upsize to a E170, and if that's still too small, then look to the 319. It's the same thing as if you have only 40 butts on a 319.
 
Sep 9, 2002
1,881
57
DCAflyer said:
Capacity doesn't have anything to do with pricing, except that if you price something low enough demand may increase (the key to LUV's success, by the way).  Capacity is making sure you have the right size equipment for a flight, based on ready, willing, and able customers to purchase tickets.  With pricing, ideally, you want to fetch the highest price the customer is willing to pay.  If ready, willing, and able butts are being left behind at the gate because the A/C is too small, then that's a capacity issue, and if it's happening on a consistent basis, then A/C size needs to be reevaluated... upsize to a E170, and if that's still too small, then look to the 319.  It's the same thing as if you have only 40 butts on a 319.
[post="240771"][/post]​


Sorry those were meant to be to seperate issues

1. Lower fares to cockroaches and all others keep losing money come ask for more from small employees. Oops that should be take and steal more.

2. Use smaller a/c as was proposed because not a lot tickets on that flight meanwhile when the aircraft get downline it ends up leaving flyers at the gate.
 
OP
U

USA320Pilot

Veteran
May 18, 2003
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www.usaviation.com
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
 

FA Mikey

Veteran
Aug 19, 2002
4,421
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miami
goldwatermiller08.com
USA320Pilot said:
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
[post="240797"][/post]​
With this grand low cost structure at U, accented with the same high morale, fun to be around love there job employees like SWA?
 

funguy2

Veteran
Aug 20, 2002
1,755
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Are you referring to the $6mil (or 6 days or so of cash) support? Or the "we will lend cash to you because the ATSB will reimburse the bank for any default on the guaranteed loans" support. The fact that some lenders of loans guaranteed by the ATSB backed out speaks volumes in terms of support.

As to the head-count and facility reduction... What are they waiting for?

As for the schedule changes... PHL rolling hub and reduced PIT are cost reduction measures for sure. But FLL is not a cost reducer... its a revenue generator (we'll try to go to higher yielding markets like the caribbean). Thus, FLL is no indication of further cost cuts.

It seems to me that we've been talking about the "Transformation Plan" since BK #1. This plan should have been implemented long before now.
 

justaumechanic

Veteran
Dec 15, 2003
578
0
USA320Pilot said:
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
[post="240797"][/post]​

Not to throw a rock at your head..

US Airways cost structure will never be lower than Southwest or AirTran.

Never is spelled with a big N to!!! Never..

Multiple Fleet Types, RJ operations, International operations.. You will never see the 7 cents a seat mile that Southwest, AirTran or JetBlue have.. Never..

The very best you can hope for is CASM around Continental and with that you still lose money because the US Airways Operations are in crap locations!! Lets Face Facts PHL and CLT do not compare in any way to Houston or Newark in terms of operational scale..

Ticket prices are also a big driver.. With the limited International travel base and the massive east coast domestic operation US Airways is getting hammered by the LCC's and of course Delta and CO..

USA320 you need to get a grip on reality.. You need to study up on RJ's and Turbo Props because thats what your going to be flying very soon.. My guess is though you will run to JetBlue the first chance you get..