Us Airways Ceo Aims To Finish Labor Negotiations

Pragmatic said:
Why are you guys picking on USA320? Why can't you guys just have a normal discussion like normal human beings? Are you scared that he may sway your opinions or those of other employees?
Because the unofficial rule of this board is that if you say anything anti-union, you're pegged as management or someone who doesn't care about the employees or someone who just wants to screw with people. Folks are already saying "no new contract" yet no one really knows what the company wants and/or needs. How can you say no to something you have yet to see? And, let me tell you, if the job market is so great, why on earth are "you" still at US given the uncertainty and pay and benefit cuts?! Oh wait, turnover is highest in CCY where folks have some mobility ... interesting.
 
Pragmatic said:
Why are you guys picking on USA320? Why can't you guys just have a normal discussion like normal human beings? Are you scared that he may sway your opinions or those of other employees?
I agree 100%. I am sometime in complete disagreement with what USA320 posts (his own comments and opinions) but why not behave like adults and have a constructive dialogue about the issues at hand? I appreciate anyone's opinions and ideas even if I don't agree with them. This me vs. you thing ruins what could be a great place to exchange information and ideas that just might allow us to formulate our own opinions. Maybe I'm seeking too much but I certainly hope for better.
 
The September restructuring needs to occur with or without new labor agreements. I am sure that management feels it would be better to restructure with the labor agreements, but it needs to be done either way. If management refuses to restructure the routes/fares/hubs/focus cities/fleets, etc based on labor participation, it is corporate suicide.
 
What exactly is this new strategy? If it's simply cutting fares to match the low-cost carriers, forget about it! They have the resources to weather a fare war much better than US (from their standpoint, they may as well let US cut it's wrists and bleed itself to death).
 
usflyer, geo, funguy...its a great forum. Just have to "tune out" those perpetuating the same ol one sided jaded jibberish.
 
I believe Lakefield's time frame is aggressive, but can be accomplished if Labor Relations does not conduct the upcoming discussions like those from the past (from a historical perspective).

Lakefield has a very strong reputation on Wall Street and at Lehman Brothers. He is regarded as an honest person, therefore, I am hopeful there will be a different tune to these negotiations than in the past, especially after talking with Bill Pollock.

I have known Bill for over 25 years since we were in basic Navy pilot training together and there is not a man with more integrity than Bill. When Bill provided strong support for Lakefield I was encouraged and now believe the aggressive timeline will be met.

In my opinion, the date to kick off the entire "Transformation Plan" will be October 2, which I believe is a schedule change day. US Airways has committed to operate in Pittsburgh through October 1 at current levels, but on October 2 will shift many flights to the Northeast focus cities and Philadelphia. In fact, the company will restore more than 50 Saturday for the evening bank on June 12 through August 21.

One of the major issues in increasing service, increasing aircraft utilization from 10 to 11.5 hours per day or 15%, and reducing or closing Pittsburgh as a crew base, is pilot training.

Therefore, I expect some news on ALPA training relief with "E" period training authorized, the August bid rolled over into September, and a new permanent bid published for October in the not-so-distant future, once marketing finalizes the October 2 schedule.

Respectfully,

USA320Pilot
 

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Funguy2:

Funguy2: "The September restructuring needs to occur with or without new labor agreements. I am sure that management feels it would be better to restructure with the labor agreements, but it needs to be done either way. If management refuses to restructure the routes/fares/hubs/focus cities/fleets, etc based on labor participation, it is corporate suicide."

USA320Pilot comments: As ALPA MEC Chairman Bill Pollock has publicly said, the plan will not work without labor participation and you cannot have one without the other. Why? One of the major components of the plan is to shift 75% of hub flying to point-to-point service and to increase aircraft utilization by 15%. For both pilot's and flight attendants, the company is lean, therefore, without new work rules the company cannot take advantage of the single largest cost reduction item, which is to average down unit costs and generate more revenue through productivity enhancements.

Respectfully,

USA320Pilot
 
JetClipper said:
What exactly is this new strategy? If it's simply cutting fares to match the low-cost carriers, forget about it! They have the resources to weather a fare war much better than US (from their standpoint, they may as well let US cut it's wrists and bleed itself to death).
From the tid-bits we've heard, the new strategy seems to be shaping up this way:

~ PIT becomes a "focus city" rather than connecting hub
~ PHL becomes a rolling hub
~ Renewed focus on point-to-point service from LGA/BOS/DCA
~ New, more rational fare structure, currently being test at SYR
~ New reduced labor costs, via these concessions.

While I beleive these are all prudent moves, the questions remains as to how substantial the changes will be. For example, the renewed focus on LGA/BOS/DCA. If this means just adding more ILM, TYS, and SAV type markets nonstop, I would call that an non-substantial change. If the renewed focus on LGA/BOS/DCA results in service to ORD, DTW, and DFW, well that would be a substantial change. Same for PIT, if PIT remains largely in tact, with a few mainline jets being downgraded to E170's, that is not a substantial change. If PIT loses most of its feeder network, and only has service to Florida, the NE, LAX/SFO, and other UAL/USAir hubs, then I would call that substantial. For this, we must wait and see.

Also, I think there are a few "unaddressed" pieces of the puzzle:

~ Fleet rationalization
~ Express carrier rationalization
~ US Airways role in Star*

We will have to see if we hear any tid-bits about these items, or maybe these get worked out as the implemented changes begin to work (or not work) as a Phase 2. We'll have to wait and see here too.

* my comment here is that while US Airways is in Star, with its hubs at PHL and CLT, its difficult to see it becoming an intricate part of the Star network. Do more Star members add PHL as a gateway? Does US Airways return to JFK to provide feed to Star? Does BOS become a key US Airways/Star transfer point? All things which have not yet been spelled out.
 
Many of the connections to Star Alliance carriers are already in place where US has a presence (with UA codeshare and on US metal).

Actually, US is one of a few Star members who fly to a city served by EVERY Star Alliance carrier. UA doesn't.
 
geo1004 said:
Many of the connections to Star Alliance carriers are already in place where US has a presence (with UA codeshare and on US metal).
You're right -- it's called IAD, serving the Washington "focus city"!

geo1004 said:
Actually, US is one of a few Star members who fly to a city served by EVERY Star Alliance carrier. UA doesn't.
That doesn't make sense -- this mythical city can't be served by "EVERY Star Alliance carrier" if it is not served by United. What city were you thinking of?
 
There is no such thing as integrity in corporate America . . . . and especially not in the airline industry. Lakefield is part of the gang. He's been part of the leadership that squandered the last 2 years of time and treasure.

What the unions are going to get is a "bum's rush" contract. Wait wait, wait, then the contact get slapped on the table by Lakefield and he says sign it or else. Maybe in nicer words, but the affect is the same. They don't want labor to think about it. They just want them to sign it. They don't want them to analyze the hidden trojan horses in the contract. They don't want the union leaders to go to the membership.

Fool me once (concessions I), shame on you, fool me twice (concessions II) shame on me, fool me three times (concession III), well, I guess I'm just an idiot.
 
USA320Pilot said:
Funguy2:

Funguy2: "The September restructuring needs to occur with or without new labor agreements. I am sure that management feels it would be better to restructure with the labor agreements, but it needs to be done either way. If management refuses to restructure the routes/fares/hubs/focus cities/fleets, etc based on labor participation, it is corporate suicide."

USA320Pilot comments: As ALPA MEC Chairman Bill Pollock has publicly said, the plan will not work without labor participation and you cannot have one without the other. Why? One of the major components of the plan is to shift 75% of hub flying to point-to-point service and to increase aircraft utilization by 15%. For both pilot's and flight attendants, the company is lean, therefore, without new work rules the company cannot take advantage of the single largest cost reduction item, which is to average down unit costs and generate more revenue through productivity enhancements.

Respectfully,

USA320Pilot
1. US Airways needs to cease unprofitable flying. I assume that this is part of the Reorg Plan. US Airways does need to do this with or without labor participation.

2. Aircraft scheduling, such as reorganizing flying from hub/spoke to point-to-point is, as far as I know, is not regulated by a contract. If this helps point 1, then it needs to be done with or without labor.

3. Increased utilization. While it would be cheaper for the company to increase ultilization of existing employees, primarily FAs and pilots, to essentially require more work for the same pay, this is not an end all - be all. Employee costs are less than 40% of CASM. By retaining the same work rules for employees, and reducing furloughs to cover the added flying, the company would still realize non--labor reductions in CASM based on spreading more ASMs over the same fixed costs: CCY/general/administrative costs, aircraft ownership/lease costs (direct ownership costs do not vary with utilization), facility lease costs, etc. It would be better (i.e. less costly) to reduce labor costs, but increased utlization will result in other gains on CASM reduction without labor participation. In other words, this plan "should" move forward regardless of whether or not there are signed agreements in June. That's my opnion.
 
geo1004 said:
Many of the connections to Star Alliance carriers are already in place where US has a presence (with UA codeshare and on US metal).

Actually, US is one of a few Star members who fly to a city served by EVERY Star Alliance carrier. UA doesn't.
While I will not pretend to know all the details, if SAS flies to EWR, so does US Airways, but that hardly makes EWR a good connection point, as any connecting passengers would have to stop in EWR and CLT before getting to Florida or Caribbean. However, if SAS moved their EWR service to PHL (unlikely) it would provide much better connectivity to the US Airways network. That is what I meant by US Airways' role in Star.

I also would consider connections requiring the change of airports from JFK to LGA not feasible, unless Star plans on having a free shuttle service like BA has (or had) from LGW to LHR.
 
Cosmo said:
That doesn't make sense -- this mythical city can't be served by "EVERY Star Alliance carrier" if it is not served by United. What city were you thinking of?
Sorry. Poorly worded on my part. Star touts itself as an alliance for the global traveller. What I should have said is that US Airways can fly you non-stop from its main hub in PHL to SOMEWHERE that will allow you to connect to the Star partner of your choice. ANY Star partner.

In addition to its hubs, many of the larger non-hub cities US serves are also serviced by Star carriers. So the business traveller based in BOS and who normally flies the Shuttle to DC can now earn miles on his LH flights from BOS-FRA-CPT.
 

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