Us Airways Pilots Struggle To Agree

[BoeingBoy]

Well, not the last 20 - that would be going back to 1984. But certainly the last 13 or 14. IIRC, 1989 was the last profitable year before the economic downturn of the early 90's.

I think the key phrase from Doc was "in spite of itself". Then you may be able to go back 20 years since the 80's were profitable.

Jim

 

[700UW]

We made money in 93 and 94 as we got our concessions from 1992 paid back to us.

See we took concessions 12 years ago also to keep this place afloat.

 

[jimntx]

Let me address your points one by one:

1) I did not say the company was profitable. It is not. My point is that with all the high costs and incompentence in the operation it eked out a profitable quarter when no other legacy carrier could do so.

Correction: AMR made a profit also. Of course, it was only $6 million, but it was a profit.

2) Whoever is holding their stock must feel reasonably sure it is worth more than it is selling for or they would sell. Only morons hold stock "hoping" things will get better. I doubt everyone holding the stock are morons. But you never know. You could be right about this one.

[post="173041"][/post]​

Or, maybe there are no buyers for the stock. If you have a house for sale, but no one wants to buy it, it doesn't mean you are a moron for "holding on to it." It's more a case of not being able to get rid of it. Only a moron would buy stock in a company that the "conventional wisdom" says is headed for Ch. 11 for sure, and possible Ch. 7--see also recent statements by the Chairman of the Board.

 

[sfb]

Exactly WHEN was that. IIRC US has had 2 ful year profits in the last 20?

[post="173067"][/post]​

Actually, they've had five in the last ten. US Air(ways) Group was (full-year) profitable from 1995 through 1999. The actual net income figures:

1995: $119 million
1996: $263 million
1997: $1,025 million
1998: $538 million
1999: $197 million

The problem was that US Air(ways) was a high-fare, high-cost airline that survived largely by virtue of extremely limited competition in its core markets. The company's yields were far above any of the other major carriers, but then, so were its costs. And it's clear that the company's strategy in the late '90's was aimed less at preparing for the oncoming threat from the LCC's, and more at pumping up the stock price and getting the airline ready to be sold. The company bought back nearly $2 BILLION in its stock, rather than paying down some of its nearly $7.8 billion in debt. The new aircraft, paint scheme, refocused route system, etc. all pointed to getting the operation cleaned up for a sale. Arguably, the Airbus purchase limited the potential merger partners to UA and NW.

I believe that the current stock price, at under $2/share, has the prospects of a bankruptcy factored into it. TWA traded for months in that range until its inevitable demise, and it was no secret that they were in deep trouble. Folks who are in the stock at present are either gambling on a miracle or simply unable to unload their shares.

And yes, US Airways was horribly inefficient for years. In 1999, the company generated 1.42 million ASM's per employee. Compare that to Southwest who generated 1.91 million ASM's per employee. They generated 169 million ASM's per aircraft, compared to 154 million at US, in spite of a 25% shorter average stage length and no widebodies in the fleet. And Southwest had about 1/3 as much debt on their books as US Airways Group.

The pricing policies used by US Airways in the markets it dominated led to a lot of resentment from the folks forced to pay some of the highest fares in the nation. Is it any wonder that people ended up flocking to Southwest and the other LCC's? I mean, look at the reaction in Philadelphia!

 

[USA320Pilot]

Mwereplanes:

I find it interesting that you post information that is in conflict with comments made by ALPA's President, the ALPA MEC Chairman who is a Director, ALPA E&FA, ALPA Legal, and ALPA's financial advisor.

Earlier this month I signed a confidentiality and non-disclosure agreement and I have seen the company's confidential financial, business plan, and bankruptcy information.

Your information is far from accurate and is misleading.

Here's the issue for the pilot group. The company asked ALPA for $295 million cost cut and the NC's last proposal (provided on the last day of scheduled negotiations to comply with the ALPA Policy Manual restrictions) was about 80% of the ask. Furthermore, the NC's CPA agreed with the numbers I have listed and the Committee now believes there must be DC Plan changes, but the RC4/5, who all are near mandatory retirement, now disagree with their hand picked NC too.

In response to ALPA's last offer, the company provided a last, best offer greater than a $295 million cost cut because the NC did not meet the "Transformation Plan (TP)" cost cut targets. Surprised?

The "rookie" RC4/5 (Pittsburgh F/O Rep excluded) and an "all rookie NC" have now backed themselves into a corner and they do not know how to get out. However, we will see what happens today because the MEC sentiment may have shifted last night.

An additional challenge is the company has now strengthened their hand to serve a S.1113 motion on ALPA where the cuts could be even deeper because of ALPA's inability to meet TP cost cut targets.

Without a deal before next month’s probable bankruptcy filing, you and every other US Airways pilot will lose the remainder of their retirement, which is so near and dear to you. I'm sure glad I have my Air Force retirement and my wife has her retirement too. How about you?

Maybe before you post you should attend an ALPA meeting so you could be informed and provide accurate information on this message board.

Best regards,

USA320Pilot

 

[hp_fa]

Oh God, he's back.......

 

[mwereplanes]

He's childlike. Quite humerous actually. Can you hear the panic?

I have this and you don't. I know what I'm talking about and you don't. If we don't give more.................................

yadda, yadda, yadda.

Why would anyone be surprised that the company has demanded millions more than they told us they wanted? Guys like you are willing to give it to them. Except, of course, the fellows who represent the majority of pilots on the list. I believe you referred to them as "rookies".

The company doesn't need the DC plan to survive. They know it but more importantly the "rookies" know it.

mr

 

[michael707767]

Without a deal before next month’s probable bankruptcy filing, you and every other US Airways pilot will lose the remainder of their retirement, which is so near and dear to you. I'm sure glad I have my Air Force retirement and my wife has her retirement too. How about you?

[post="173178"][/post]​

Sounds like you are all set then. If the people who are not set think its worth calling thier bluff, and it is a bluff, what do you care? See, no one else has to agree with you are vote the way you want them to. At some point we have to stand up and say no, we are not working for any less money. The employees are not the problem.

 

[700UW]

It is actually an 1114 motion, not an 1113.

 

[delldude]

this could go one way or the other over the flip of a coin.
it would be very very interesting if mec refuses to send the t/a to the masses and then wishes to go back into negotiations.....and U says take it or leave it .then what? :huh:

 

[jimntx]

Earlier this month I signed a confidentiality and non-disclosure agreement and I have seen the company's confidential financial, business plan, and bankruptcy information.

USA320Pilot

[post="173178"][/post]​

Isn't this how we got entangled in Iraq? "I know something you don't know. I can't tell you what I know, but you will just have to trust me."

 

[mwereplanes]

this could go one way or the other over the flip of a coin.
it would be very very interesting if mec refuses to send the t/a to the masses and then wishes to go back into negotiations.....and U says take it or leave it .then what? :huh:

[post="173213"][/post]​

Then 320 craps his pants.

mr

 

[delldude]

Then 320 craps his pants.

mr

[post="173227"][/post]​

oh dear ... oh my .. oh dear :blink:

 

[USA320Pilot]

Mwereplanes:

I find it interesting how you spout your uninformed comments and then call someone childish. It would be better for you to be informed and then provide constructive commentary.

Regards,

USA320Pilot

 

[usfliboi]

Well at least alpa is trying!!