Us Airways Still Bleeding

[700UW]

US Airways still bleeding
By: Karen Ferrick-Roman
10/09/2005

The new US Airways is poised to fly into the future with $2.5 billion of cash tucked under its wings.

But the old US Airways, as of August, was still losing nearly a half-million dollars a day. And it is expected to operate separately from its merger partner, America West Airlines, for at least two years.

The old US Airways' August monthly operating report filed with the Securities & Exchange Commission showed a loss of more than $14 million for the month - a daily loss of about $455,000.

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Long-term merger plans also call for the combined fleet of 411 planes to be reduced to 360 planes. The airline has no target number for employees, Gee said, but clearly if the number of planes is being reduced, not all 37,800 workers will be needed. If the airplane-employee ratio remains the same, nearly 5,000 more employees will be trimmed from the work force.

 

[airlinedivalish]

You love posting this kind of sh***t don't you? I bet Southwest and our other competitors love reading this.

:angry:

 

[calibrator]

Speaking of SW: (And they don't really give two thoughts to the new U by the way) They will be at 700 A/C in the not to distant future as we read the never ending woes that is U.

And to think that statements were made that this "new" airline would be king LCC passing SW, what a moronic prediction.

SW recently held employee meetings announcing continue profits, growth (700 A/C) and hiring of mechanics and other personnel. While U continues to look at downsizing.

I predicted as did others that this "new" airline, U, will never get off the ground. The curse of U continues. Two years of these kinds of problems coupled with two different employee groups and cultures does not equal a successful airline by any stretch. I feel bad for the employees who have no other options but to live this nightmare.

Doug may have good intentions but in reality he is only a child who was tossed into the midnight jungle filled with lions tigers and bears, all flesh-eating mammals, all starving.

 

[700UW]

It is a relevant story concerning US, take off the rose colored glasses that is reality of what is going on in the airline industry.

Don't like it, don't read it. It is a newspaper story from a PIT area paper.

 

[markkus757]

This just goes to show you that an airline on the east coast still needs to go out of business. Your new cash will help protect you for those two years, but maybe one of your competitors will?

 

[PropPiedmont]

Speaking of SW: (And they don't really give two thoughts to the new U by the way) They will be at 700 A/C in the not to distant future as we read the never ending woes that is U.

And to think that statements were made that this "new" airline would be king LCC passing SW, what a moronic prediction.

SW recently held employee meetings announcing continue profits, growth (700 A/C) and  hiring of mechanics and other personnel. While U continues to look at downsizing.

[post="310463"][/post]​

According to the SWA website they only have 429 737s right now. 194 (300s), 25 (500s), and 210 (700s). Adding 271 more 737s (or a 63% increase in fleet size) is not going to happen in the, "not too distant future." It's going to take a while if they plan on growing that big.

 

[delldude]

You love posting this kind of sh***t don't you? I bet Southwest and our other competitors love reading this.

:angry:

[post="310461"][/post]​

you think WN isn't already aware of this?
they probably funded the reporter.
i'm curious what ,if any provisions Doug and comapny have in place if their 500 pound canary keeps eating them out of house and home?

 

[BoeingBoy]

Actually, on the operational side things weren't so bad - a $5.75 million dollar profit. Interest expense of $23.28 million is what hurt the bottom line.

The cash burn was what was eye-opening - surprising the article didn't mention it. About $80 million for the month of August, and that's after getting the last $25 million installment of the Air Wisconsin DIP financing during the month.

Jim

 

[delldude]

well i bet it keeps up.i heard several posters from HP amazed at the state of some of our equipment and tooling.....i know first hand most is/was in a sorry state.

 

[calibrator]

According to the SWA website they only have 429 737s right now. 194 (300s), 25 (500s), and 210 (700s). Adding 271 more 737s (or a 63% increase in fleet size) is not going to happen in the, "not too distant future." It's going to take a while if they plan on growing that big.

[post="310476"][/post]​

W_A_T_C_H and behold the future......

They don't take example from U, and lie to their employees

They are growing while the dreamers dream

 

[usair_begins_with_u]

Actually, on the operational side things weren't so bad - a $5.75 million dollar profit. Interest expense of $23.28 million is what hurt the bottom line.

Comon boeing boy... you're smarter than that. Without those interest payments there is no airline. Thats why I shorted this POS airline... They will never make enough to cover their interest payments and spend down the principal. There is very little left for equity, and it dwindles every time they liquidate some asset, which apears like a monthly thing.. No dividends, plus no capital appreciation, plus negative EPS, = $20 is a freaking joke. I understand stupid employees drinking koolaid, but wise investors wont.

 

[delldude]

I understand stupid employees drinking koolaid, but wise investors wont.

ahhh,the words of a true realist.

 

[elixir]

Can't speak to the cash flow position of Airways, but a 20 year WN CA friend has told me that WN's growth plans have been consistent over the years..10% per year..forever..(well almost)
You may note that 10% growth is exponential...and we have a capacity problem in the US. WN's plan is to have ALL capacity be a WN aircraft...

 

[PITbull]

According to the SWA website they only have 429 737s right now. 194 (300s), 25 (500s), and 210 (700s).  Adding 271 more 737s (or a 63% increase in fleet size) is not going to happen in the, "not too distant future."  It's going to take a while if they plan on growing that big.

[post="310476"][/post]​

uh, not really. If DELTA and NW decrease their operation, and take out a/c,furlough etc...that's a "hole" for carriers like WN to fill.

WN, hightest paid labor in the industry, 80% union, and efficient 32-year LCC legacy as all get-out with a brilliant manament team. Their employees drip with Company loyalty.

And they are front and center in this business. They experienced the same environmental conditions as all the rest that are limping across the stage. And IMO, U is the worst of the bunch as they took all the advantages that the gov. and legal system had, and still they lose half a million per day.

 

[diogenes]

You love posting this kind of sh***t don't you? I bet Southwest and our other competitors love reading this.

:angry:

[post="310461"][/post]​

You reckon WN couldn't read the paper for themselves?

HP/US were never going to make it 'as is'; hence the merger (you may recollect Parker said so).

If there is a prayer of making it going forward, you can't do it with blinders on.

More change is coming.