Us Airways' Troubles Hit Home

[USA320Pilot]

US Airways' troubles hit home

Carrier's $3.3-billion order for Bombardier in limbo amid crisis

Montreal (The Gazette) - The financial crisis blanketing US Airways is casting a shadow of uncertainty over plane-maker Bombardier Inc., which counts the airline as one of its major customers.

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Respectfully,

USA320Pilot

 

[USA320Pilot]

Who first reported this news on this message board?

Respectfully,

USA320Pilot

 

[AOG-N-IT]

Who first reported this news on this message board?

Respectfully,

USA320Pilot

Get over yourself ..Rome is burning and you are patting yourself on the back for being the delivery boy of bad news with the fastest bike. What a joke :down:

 

[737nCH11]

Who cares?

Respectfully,

737

 

[TheLarkAscending]

Whom first reported this? Why do you always do that? What do you want for the continual self-promotion? I am at a complete loss as to why you repetitively persist. What purpose does it serve and how will it best benefit the welfare and well-being of the airline or their employees?

 

[AP Tech]

Why not just have Dave threaten and intimidate them like he does with his own employee group? Cut the price in third or I will liquidate?

 

[AKA_trvlr64]

You bet Chicken Little to the punch. Well Nero you'd better start hoping you can find a job somewhere. Maybe you can fly for that phantom start up called Project Roam.

Just another in a long time of DOOM & GLOOM threads.

 

[magsau]

Before you get the hand too far around to pat yourself on the back, Is this not akin to predicting the sun will come up tommorow?

Of course if the UAL business partner with numerous orders for aircraft shows "shocking" losses and a shaky footing the manufacturer of said planes would probably expect some impact.

 

[dragonbravo]

Did I miss something in the article? I fail to see how the CRJ orders are in "limbo". Yes it simply rehashes what is common knowlege with problems at U, but it doesn't really give anything except implications towards the RJ order. Yes a majority of the orders have yet to be delivered. It does take a while to build those things. PSA didn't get the first one till Dec.

 

[USA320Pilot]

The issue is that some of the naysayers "shoot the messenger", but there have been reports of modified RJ accords that could place US Airways in a much stronger position.

It's not patting myself on the back, it's to prove a point to those doomsday -- "shoot the messenger types.

For example, the sale of PSA, the Allegheny/Piedmont consolidation, RJ orders shifted to affiliate carriers, yesterday’s grievance settlement between ALPA and the company on RJ issues, the ALPA MEC's charging order for the Negotiating Committee to enter into scope clause modifications regarding RJs, and the eventual sale of the "wholly owned" divisions that would then eliminate the UAL AFA scope clause problem if the companies merge.

In addition, the proceeds could be used to pay down the loan guarantee, reduce forth coming ATSB EBITDAR requirements, and provide an option for US Airways to help its Chicago-based business partner fix its Dulles problem.

According to Monday's Wall Street Journal, US Airways is weighing options such as reducing orders for jets and repaying debts early to help meet loan (guarantee) covenants. Moreover, GECAS which provided lease financing for U.S. Airways, has been in discussions with the airline, (who with US Airways' help could be used to assist United to emerge from Chapter 11).

That's the point(s)...

Separately, if US Airways can get its unit costs down to about 8.5 cents with the "transformation plan" and with labor involvement and Untied can prove it can emerge from bankruptcy, do not be surprised if RSA provides United Airlines with an equity investment in exchange for control of the company. Then RSA would merge US Airways and United with intent is to further lower unit costs through economies of scale and create "S" curve revenue synergies to compete long-term as a combined business enterprise.

Respectfully,

USA320Pilot

P.S. Expect more RJ news in the not-so-distant future.

 

[EyeInTheSky]

Who first reported this news on this message board?

Respectfully,

USA320Pilot

USA320Pilot, oh my god, is that why you post? For "Internet atta-boy" affirmation? Any nimrod can sign up for Google Aviation News and get emails about stories regarding US Airways or the airline of their choice. Sorry to say, but this isn't rocket science. No money, no planes. Of course, that reality doesn't apply to the Bush administration. :blink:

 

[USA320Pilot]

EyeInTheSky:

EyeInTheSky said: "Any nimrod can sign up for Google Aviation News and get emails about stories regarding US Airways or the airline of their choice."

USA320Pilot asks: Over one week before the news appears on Google Aviation News? Enough said. By the way, who predicted the recent IAM A320 outsourcing news before the courts ruling was announced?

Respectfully,

USA320Pilot

 

[Light Years]

http://images.google.com/images?q=tbn:ZNCO...mages/cleo5.jpg

 

[USA320Pilot]

Just one more point...it's time to stop "shooting the messenger" and focusing on the problems at hand. Do I like the present situation? No, but management and labor need to come to grips with the reality of the situation for network carriers.

Management is making incremental changes in the business plan, which in my opinion, should have started earlier. For example, for pilots and F/A’s "Pref Bid" and the change the reserve system are two examples of best business practice tools. In addition, affiliate RJ deployment and alliances create incremental revenue without much if any cost -- just like everybody else in the business. Little things, here and there, add up.

Granted, the hard part will be re-tooling this legacy airline and I believe it should have
started in earnest immediately after the USAir/PSA/Piedmont mergers, which created the whole problem in the first place with the consolidated structure of the three airlines.

Ed Colodny brought on this enormous cost problem and Seth Schofield, Stephen Wolf, and now Dave Siegel are trying to fix this high cost mess.

As a colleague of mine recently said, "Where 'Perception is Reality', we also have to re-tool the way we communicate/respond to management. The employee unions of this company will be blamed for the demise of this airline. Period. We cannot give management or the creditors any excuse for not investing in this company."

This company is ours, it's not management's, it's ours to work at, save, and prosper.

Respectfully,

USA320Pilot

 

[Cosmo]

Separately, if US Airways can get its unit costs down to about 8.5 cents with the "transformation plan" and with labor involvement and Untied can prove it can emerge from bankruptcy, do not be surprised if RSA provides United Airlines with an equity investment in exchange for control of the company. Then RSA would merge US Airways and United with intent is to further lower unit costs through economies of scale and create "S" curve revenue synergies to compete long-term as a combined business enterprise.

USA320Pilot:

You're spewing double-talk. Contrary to your nonsensical statement, if United can "emerge from bankruptcy," it will not need an equity investment from RSA or anyone else, and certainly not "in exchange for control of the company." Indeed, United's senior management, from Tilton on down, have been very clear that they neither want nor need an equity investor if the ATSB loan is approved.

More importantly, IMHO, Bronner has clearly shown that he doesn't know anything about running an airline, as graphically evidenced by US Airways' results since emerging from bankruptcy 10 months ago. Why would the ATSB approve his control of United, a much larger and complex operation, given his "stellar" track record at US Airways?