Us Airways Reports April Traffic

[BoeingBoy]

US Airways Reports April Traffic

Mainline RPM's down 0.2%
Mainline ASM's up 5.0%
Mainline LF down 3.9 points to 75.9%

Express RPM's up 124.7%
Express ASM's up 112.5%
Express LF up 3.5 points to 60.5%

"US Airways said today that effective with an August schedule change, it will reduce its mainline fleet by an additional 10 aircraft."

Jim

 

[Flying Titan]

Ten more mainline planes?! This is perfect IF there is indeed a merger in the offing - "right size" to reduce the waste for the upcoming marriage, but if that doesn't come to pass, this is not good news. I don't see how US can sustain a "real airline" with its current network of cities if its fleet gets any smaller.

 

[USA320Pilot]

Flying Titan:

I agree with your post about merger rightsizing. It's my understanding that both US Airways & America West will lose older, less efficient aircraft and Republic could fill some of the void with 50 EMB-170/190s of which at least 28 will be EMB-170s.

Ameirca West is taking delivery of 5 A319s and 5 A320s later this year and US Airwyas has an order on the books for 29 Airbus jets, including 10 A330-200s, 13 A321s, and 6 A320s scheduled for delivery in 2008 through 2010, although that could change.

In regard to April's numbers, the company said, "the 75.9 percent passenger load factor is a 3.9 percentage point decrease compared to April 2004, reflecting the shift in the Easter holiday and related air travel from April 2004 to March 2005."

May and June bookings look quit good, which is encouraging since the airline had $19.3 million in operating income and $65.1 million in net income for the month of March.

Regard,

USA320Pilot

 

[whlinder]

I agree with your post about merger rightsizing. It's my understanding that both US Airways & America West will lose older, less efficient aircraft and Republic could fill some of the void with 50 EMB-170/190s of which at least 28 will be EMB-170s.

[post="266540"][/post]​

Less efficient how? Is it more efficient to operate fewer seats at a higher cost per seat?

 

[RowUnderDCA]

Flying Titan:

I agree with your post about merger rightsizing. It's my understanding that both US Airways & America West will lose older, less efficient aircraft and Republic could fill some of the void with 50 EMB-170/190s of which at least 28 will be EMB-170s.

USA320Pilot

[post="266540"][/post]​

I wonder if it is possible that the Republic EMB operation would be a subsidiary of a new holding company. Or I guess Republic's other partners couldn't accept that.

 

[BoeingBoy]

I wonder if it is possible that the Republic EMB operation would be a subsidiary of a new holding company. Or I guess Republic's other partners couldn't accept that.

[post="266549"][/post]​

It's looking like it will be Shuttle America, though that doesn't mean the name won't be changed to something else.

Jim

 

[Art at ISP]

Regarding the fleet reduction of 10 aircraft, is this in addition to all previously announced reductions (737 and A319's) or is this merely a previously announced reduction showing up on the fall schedule???

So they plan on 235 main line now???

Thanks in advance for the answer.

If it's an additional reduction, the merger becomes even more critical.

My best to you all....

 

[RowUnderDCA]

oh, I think it's critical.

 

[BoeingBoy]

So they plan on 235 main line now???

[post="266551"][/post]​

Art, that's the way it sounds. The GE deal specifies aircraft to be returned by tail number (although the tail numbers are redacted). Since the announcement says that these 10 new aircraft are still to be identified, I'd guess that there in addition to previous announcements.

Sure sounds like they're placing all bets on some kind of merger (they couldn't be dumb enough to try to "shrink to profitability" again, could they?) or sale of major portions of the assets before liquidating the rest (the only way to dump large parts of the non-aircraft debt).

Jim

 

[Art at ISP]

Jim,

It sure does not sound good does it? At this point, without a merger, I am sad to say it may just be a matter of time....

Then again nothing surprises me any more.......

 

[USA320Pilot]

According to Rueters, "The aircraft will be identified in the coming weeks and will most likely include planes that are not fuel efficient or that have expensive maintenance coming up. US Airways paid $368 million for fuel in the first quarter, more than double for the same period a year ago. US Airways is gradually reducing its fleet to save money. The airline started the year with 281 mainline planes and will have 266 next week. By the end of August, the fleet will stand at 253 planes. The airline says the reduction has had little impact on operations since it overhauled schedules and changed the way it operates aircraft to improve efficiency," the news periodical said.

See Story

Thus, I believe the fleet reduction schedule is:

May - 11 B737s & 1 A319
June - 1 A319
July - 1 A319
August - 1 A319 & 10 unidentified aircraft
September - 3 A319s

There are no aircraft scheduled for removal between October and December of 2005, thus the year-end mainline fleet count will be 250 aircraft.

In 2006, most likely before May 31, the company will lose 10 B737s with 5 more scheduled to leave the property in 2006.

As I indicated in an earlier post, sources indicated that GE wanted an additional 20 to 30 aircraft returned, but it appears so far only an additonal 10 aircraft will be removed from US Airways' mainline operation.

Meanwhile, it's my understanding that America West could lose aircraft too, if the merger proceeds, which could occur before the end of the week.

Regards,

USA320Pilot

 

[justaumechanic]

GE is taking the -300's for Freighter conversion. GE is taking the A319's for Europe. -400's are being scrapped for parts.

Don't plan on ever seeing the A330-200's or the additional Narrowbody Airbus aircraft.. If memory serves me correctly didn't US Airways a few months ago dump the remaining orders.. Seems to me it was a news item that you posted USA320..

Dumping of less fuel efficient aircraft like what? The A319 or the 737-300?? When did they qualify as fuel inefficient?

Maintenance is what is driving the disposals. Has nothing to do with Fuel.

 

[BoeingBoy]

GE is taking the -300's for Freighter conversion. GE is taking the A319's for Europe. -400's are being scrapped for parts.

[post="266577"][/post]​

Maybe the 15 in 2005/06, but 9 of the 11 that are to go this month have been identified in court filings and none are GE birds. Of course, there's no way to tell about the 10 announced today for August.

Don't plan on ever seeing the A330-200's or the additional Narrowbody Airbus aircraft.. If memory serves me correctly didn't US Airways a few months ago dump the remaining orders.. Seems to me it was a news item that you posted USA320..

[post="266577"][/post]​

As I understand the latest agreement with Airbus, the orders are still there but the delivery schedule went out the window. All deposits and progress payments became a cash infusion to US (less a chunk for Airbus' agreement), so to get those a/c would require starting from scratch with deposits to hold a delivery position and continuing progress payments until delivery.

On a similiar thought, the latest change in the 1Q05 numbers had a note that said we have paid $2 million in penalties for not taking delivery of the last 3 Emb-170's - they were supposed to be accepted by Mar 31. Since the financing was supposed to be all in place, wonder what happened....

Dumping of less fuel efficient aircraft like what? The A319 or the 737-300?? When did they qualify as fuel inefficient?

[post="266577"][/post]​

Like you, I suspect that there is a lot more to the story than "fuel efficiency". The A319/320's lease cost is about twice as much as the B737's and they don't produce twice the ASM's, so overall cost of operation is about the same on equivalent routes (remember that all the Airbuses will be entering the heavy maintenance cycle, removing that cost difference). Also, even though the 737's are operated on shorter average stage lengths, the cost of fuel per hour is less than on the A319/320's according to data the company submits to BTS.

Maintenance is what is driving the disposals. Has nothing to do with Fuel.

[post="266577"][/post]​

To tell the truth, I'm not sure that it's even maintenance. I suspect something else is driving this. Could be the leasors, could be attrition in the flight crew ranks, could be something else, but I think there's more to the story than "maintenance & fuel efficiency".

Jim

 

[ClueByFour]

The more the US fleet shrinks, the worse the AAA ALPA career expectations become. I'm sure the HP MEC is paying close attention.

How about that merger, eh?

 

[Rico]

I agree, IMO the 737's are prime for freighter modification, and the Airbuses are a easy airframe to place right now worldwide. either way GE hedges it's bets, and procures new customer bases outside the legacy market.

Obviously it also creates room for growth in places that they can also move airframes. EMB-170/190's placed at a combinded US/HP are also a easy airframe to move elsewhere.

A new E-170/E-190 is also more profitable to lease to someone than what they can get for an old 737...

It is all about GE, and little to do with U...