This week US Airways implemented a number of Transformation Plan changes to boost liquidity and lower unit costs. Listed below is a summary of those changes:
Philadelphia to buy jet bridges from US Airways
According to the Philadelphia Inquirer, US Airways has boosted its liquidity and has obtained another creditors financial support. The airline and the City of Philadelphia have reached agreement for the company to sell the city and then lease back 30 jetways. The city will buy 30 jetways on B and C concourse for $200,000 each for a total of $6 million. The airport would lease the bridges back to the airline month to month.
The deal will wipe out $3.9 million in rental charges and other fees that US Airways owed airport when the carrier filed for bankruptcy. In addition, the airport will give the airline a onetime $4.8 million credit toward the charges it incurs monthly for use of common airport areas
US Airways will save an additional $500,000 through the airport's paying to help promote the airline's new nonstop flights between Philadelphia and Barcelona, Spain, and Venice, Italy, scheduled to start in May.
The carrier also will be reimbursed $522,000 for airport security, through funding the airport got from the U.S. Transportation Security Administration.
City Commerce Director Stephanie Naidoff, whose department oversees the airport, said the agreement was good for the airline and the airport. The deal was struck Jan. 14, about four hours after US Airways' chief executive officer, Bruce R. Lakefield, called her, asking for quick action by the city to reduce airport costs as part of the company's efforts to secure additional financing (to meet terms of the GE deal).
See Story
US Airways to begin point-to-point service from key East Coast cities to OA hubs
On February 6 US Airways will begin flying its MidAtlantic Airways EMB-170’s from Ronald Reagan Washington National Airport to Chicago O’Hare (UA/AA hub) Dallas/Fort Worth (AA hub), Houston George Bush Intercontinental (CO hub), Atlanta Hartsfield (DL hub), Detroit Metro (NW hub), and Cleveland Hopkins (CO hub) airports.
US Airways is offering new introductory fares, which will undercut fares for the other legacy carriers. New fares from Reagan National Airport to are:
Atlanta $108
Chicago $158
Cleveland#$118
Dallas $198
Detroit $128
Houston $198
(1) Fares are for round trip service!
(2) # Service to and from Cleveland may be on US Airways Express carrier PSA.
See Story
According to US Airways Today, the company’s advertising campaign for the expansion at Ronald Reagan Washington National Airport has kicked in this week, as the company promotes its new nonstop flights between Washington National and Atlanta, Chicago O’Hare, Cleveland, Dallas/Fort Worth, Detroit and Houston beginning Feb. 6.
The campaign mostly targets US Airways’ business travelers, with business ads appearing yesterday in The Wall Street Journal’s Baltimore and Washington edition, and again today in The Washington Post and tomorrow’s Washington Business Journal.
The ads announce “Flying for Business Just Got Easier†and show the number of daily non-stop departures between Washington and these cities, perfect for same-day business trips. The ads also focus on a special Dividend Miles bonus, in which customers can earn double Dividend Miles on these flights through June 30, 2005.
Leisure ads ran, too, in the Wednesday “Escapes†section of The Washington Post and will rerun in Sunday’s “Travel†section, highlighting introductory fares. Both business and leisure ads feature the attributes of the new Embraer 170 aircraft and its many comforts, including all-leather seats with adjustable headrests, generous head and legroom, and ample overhead bin space.
Additionally, US Airways will have air time on selected AM and FM radio stations in the Washington, D.C. metro area. The 10-second traffic sponsorships began on Tuesday, Jan. 25.
Separately, US Airways is expected to increase the point-to-point service from other key East Coast focus cities such as Boston Logan and New York’s LaGuardia later this year, once EMB-170 and possibly EMB-190 aircraft delivery’s resume.
US Airways MidAtlantic Division to begin Northeast Shuttle flights
On February 6 US Airways will begin Shuttle service with its new 72-seat EMB-170 aircraft, with Saturday night service in all three markets. The move is expected to lower unit costs, improve profitability, and increase Shuttle performance by better matching capacity with demand. US Airways senior vice-president of planning Andrew Norcella previously told LaGuardia employees that the company may place the EMB-170 on weekday off-peak Shuttle flights in the future.
US Airways takes delivery of EMB-170s and CRJ-700s
Next week US Airways will complete January delivery’s of three 72-seat EMB-170s and 70-seat CRJ-700s, which be operated by the company’s MDA and PSA units, respectively. In addition, in March US Airways is expected to take delivery of three additional EMB-170s, although financing has not yet been completed by CFO Ron Stanley. Following the March delivery’s US Airways will operate 28 EMB-170s, 8 CRJ-700s, and 37 50-seat CRJ-200s.
In the not-so-distant future, the Arlington-based airline is expected to reach agreements to operate the 97-seat EMB-190 aircraft, with up to 60 aircraft delivered with the option to place 25 of these large RJs at an affiliate carrier. In addition, reports indicate the company may reach a new accord to add 90-seat CRJ-900s to the US Airways Express network. With these delivery’s, US Airways will become the first legacy carrier to operate 97 and 90-seat RJ aircraft.
GE contract changes
According to the Charlotte Observer, US Airways and General Electric Co. have agreed to tweak a few details in their financial agreement that is keeping the airline afloat. In a bankruptcy court filing late Monday, the airline said the two sides have agreed to allow the airline to draw $21.5 million from a credit line instead of $10 million, to reflect a payment to GE of $11.5 million last week. US Airways plans to seek a bankruptcy judge's blessing of the change in a hearing next month.
See Story
US Airways to close Winston-Salem maintenance facility
US Airways will close its Winston-Salem landing gear overhaul, machine, and plating shops. The move will result in the reduction of 50 mechanic positions with future heavy maintenance conducted by vendors.
See Story
US Airways to close Pittsburgh Reservations/Centralized Baggage Centers and move Dividend Miles office
US Airways will close it Pittsburgh Reservations Sales Center, its Pittsburgh RIDC Centralized Baggage Call Center, and its Winston-Salem Dividend Miles Service Center. The Pittsburgh Reservations Sales Center will close in July, possibly August due to call volume, and will further reduce the company’s unit costs.
When US Airways fully implements “GoFaresâ€, average “agent call time†is expected to be reduced by 40% from 5 to 3 minutes. In addition, the company expects Internet ticket sales to grow from 10 to 20% of total sales, which will further reduce call time. These two distribution cost reduction initiatives will result in about 50% RSA headcount reduction. In addition, US Airways will recognize additional savings with less building expense and building utility expense; as well as significantly less 800 number phone call expense to book flights.
The Pittsburgh reservations facility employs 785 people, and only about 10 percent are expected to relocate. During the company’s first bankruptcy, the airline closed its Orlando reservations call center where 400 people were employed. Of those 400, only 63 employees transferred to Pittsbrugh and Winston-Salem and the remainder left the company.
Pittsburgh CWA spokeswoman Chris Fox told the Pittsburgh Post-Gazette last Thursday that about 10 percent of airline employees accept relocation offers and she does not expect that to change much with this group.
The closure of the Pittsburgh Baggage Call and Winston-Salem Dividend Miles Service Centers will result in the loss of 155 jobs. The centralized baggage service center employs 45 people and the dividend miles center 110 people. The new CWA contract permits these positions to be outsourced, and specific plans will be announced by the carrier in the not-so-distant future. Effected Employees in Pittsburgh and Winston-Salem have the option to transfer to the company's only remaining reservations center in Winston-Salem, where 850 people work, although not may are expected to relocate and most will take the new enhanced severance package. Agents who elect to relocate can obtain $500 in moving assistance. Agents can obtain up to $20,000, one-year of comprehensive family medical insurance, lifetime pass privileges, and job relocation assistance.
In a statement, US Airways senior vice president of corporate affairs Chris Chiames said, It came down to the fact that our existing facility in Winston-Salem has the space and features necessary for a consolidated center." Kerry Carstairs, US Airways' vice president of direct distribution said, “Today's announcement ... is a necessary cost-savings initiative and an important step in the successful implementation of US Airways' transformation plan."
More information
According to the Winston- Salem Journal, “Local officials submitted the incentive proposal to the airline on Jan. 11. The proposal will provide the carrier with $1.4 million in additional liquidity.
See Story
Meanwhile, according to the Pittsburgh Tribune-Review noted Ernie Seneca, a spokesman for the North Carolina Department of Commerce, declined to confirm a newspaper report that state officials had offered $1.4 million in cash and incentives to preserve the Winston-Salem facility and its 800 jobs.
See comments
US Airways CWA agents may apply for severance incentive program
Early Out (EO) packets and information were distributed to CWA represented employees on January 26 and were distributed at each US Airways workplace. CSA’s are eligible for up to $15,000, one-year of comprehensive family medical insurance, lifetime pass privileges, and job relocation assistance.
See Story
Per the new CWA contract, Airport, City Ticket Office, Club, Baggage Call Center, Dividend Miles Service Center, and Reservations Employees will have 45 days to decide whether to accept transfers or buyouts. US Airways will then have 30 days to inform employees of their release dates.
US Airways to close Winston-Salem Maintenance facility
US Airways is closing the Winston-Salem landing-gear, a machine, and plating shops and the work will be outsourced.
See Story
In addition, the new IAM District Lodge 142 labor accord permits the company to close 4 of 18 line maintenance stations, although it’s unclear at this time what stations will be closed and what line maintenance will be outsourced.
US Airways could cut 600 Pittsburgh mechanic positions
According to the Pittsburgh Tribune-Review, US Airways will eliminate more than half the 1,150 mechanics jobs at its airport maintenance facility by March as part of its bankruptcy restructuring, local mechanics who have been informed of the plan said Thursday (June 27). Officers of International Association of Machinist and Aerospace Workers Local 1976 have told mechanics that about 600 jobs will disappear when the airline closes two hangars and the hydraulic, electric and instrument shops.
Separately, the Pittsburgh Post-Gazette reported the company expects to close sometime between March 1 and March 28, although the exact dates depend on how quickly US Airways can arrange for outside contractors to do the work. Those outside contracts have yet to be finalized.
See Story
In addition, maintenance on Boeing 737 jets performed at another hangar will be replaced by heavy maintenance on Airbus wide-bodied jets. The Airbus maintenance is less labor-intensive, mechanics said, because the aircraft is newer.
See Story
US Airways reportedly will close at least 2 of 6 Pittsburgh maintenance hangars, begin A320 overhaul in Pittsburgh, and move B737 overhaul to Charlotte and Alabama
As part of the IAM District Lodge 142 contract, which was approved by a U.S. Bankruptcy Court judgeon January 27, US Airways has the right to out-source heavy maintenance B757/767s and A330s. The work has been done in Charlotte, but the overhaul hanger will likely receive B737 work with the widebody heavy maintenance conducted in Alabama.
See Story
US Airways' Pittsburgh job loss
According to the Pittsburgh Tribune-Review, In addition to the 785 reservations agents and 45 baggage center workers (who learned their positions were being eliminated last week) , US Airways by mid-year is expected to locally shed:
About 600 aircraft mechanics
More than 200 pilots
About 400 flight attendants, through voluntary severance
About 1,000 gate and customer-service workers, non-mechanic maintenance workers and other non-union workers.
The Tribune-Review also reported The lack of local job prospects probably will push pilot and Pittsburgh native Fred Freshwater out of the region. "It's not pretty when you've effectively had your career dismantled in front of your eyes," Freshwater said. He flies the larger Boeing 757s to Las Vegas or along the East Coast for US Airways, his employer since February 1978. Freshwater expects to bid for and win a new assignment flying to Europe from US Airways' Philadelphia hub. "I'm pretty senior, so I could fly overseas now," he said. "But Pittsburgh is my home, so I don't relish moving to Philadelphia."
See Story
Liquidity Improvements
US Airways has reached agreements with Airbus to obtain $6 million, the City of Philadelphia to obtain $6 million and over $5 million in savings through March, and Winston-Salem and North Carolina officials to obtain another $1.4 million, for a total of about $19 million. This additional liquidity is likely part of the $100 million in new liquidity required by GE to be obtained by January 15.
US Airways obtains extension to file its Plan of Reorganization (POR) to March 31
See Story
Best regards,
USA320Pilot
Philadelphia to buy jet bridges from US Airways
According to the Philadelphia Inquirer, US Airways has boosted its liquidity and has obtained another creditors financial support. The airline and the City of Philadelphia have reached agreement for the company to sell the city and then lease back 30 jetways. The city will buy 30 jetways on B and C concourse for $200,000 each for a total of $6 million. The airport would lease the bridges back to the airline month to month.
The deal will wipe out $3.9 million in rental charges and other fees that US Airways owed airport when the carrier filed for bankruptcy. In addition, the airport will give the airline a onetime $4.8 million credit toward the charges it incurs monthly for use of common airport areas
US Airways will save an additional $500,000 through the airport's paying to help promote the airline's new nonstop flights between Philadelphia and Barcelona, Spain, and Venice, Italy, scheduled to start in May.
The carrier also will be reimbursed $522,000 for airport security, through funding the airport got from the U.S. Transportation Security Administration.
City Commerce Director Stephanie Naidoff, whose department oversees the airport, said the agreement was good for the airline and the airport. The deal was struck Jan. 14, about four hours after US Airways' chief executive officer, Bruce R. Lakefield, called her, asking for quick action by the city to reduce airport costs as part of the company's efforts to secure additional financing (to meet terms of the GE deal).
See Story
US Airways to begin point-to-point service from key East Coast cities to OA hubs
On February 6 US Airways will begin flying its MidAtlantic Airways EMB-170’s from Ronald Reagan Washington National Airport to Chicago O’Hare (UA/AA hub) Dallas/Fort Worth (AA hub), Houston George Bush Intercontinental (CO hub), Atlanta Hartsfield (DL hub), Detroit Metro (NW hub), and Cleveland Hopkins (CO hub) airports.
US Airways is offering new introductory fares, which will undercut fares for the other legacy carriers. New fares from Reagan National Airport to are:
Atlanta $108
Chicago $158
Cleveland#$118
Dallas $198
Detroit $128
Houston $198
(1) Fares are for round trip service!
(2) # Service to and from Cleveland may be on US Airways Express carrier PSA.
See Story
According to US Airways Today, the company’s advertising campaign for the expansion at Ronald Reagan Washington National Airport has kicked in this week, as the company promotes its new nonstop flights between Washington National and Atlanta, Chicago O’Hare, Cleveland, Dallas/Fort Worth, Detroit and Houston beginning Feb. 6.
The campaign mostly targets US Airways’ business travelers, with business ads appearing yesterday in The Wall Street Journal’s Baltimore and Washington edition, and again today in The Washington Post and tomorrow’s Washington Business Journal.
The ads announce “Flying for Business Just Got Easier†and show the number of daily non-stop departures between Washington and these cities, perfect for same-day business trips. The ads also focus on a special Dividend Miles bonus, in which customers can earn double Dividend Miles on these flights through June 30, 2005.
Leisure ads ran, too, in the Wednesday “Escapes†section of The Washington Post and will rerun in Sunday’s “Travel†section, highlighting introductory fares. Both business and leisure ads feature the attributes of the new Embraer 170 aircraft and its many comforts, including all-leather seats with adjustable headrests, generous head and legroom, and ample overhead bin space.
Additionally, US Airways will have air time on selected AM and FM radio stations in the Washington, D.C. metro area. The 10-second traffic sponsorships began on Tuesday, Jan. 25.
Separately, US Airways is expected to increase the point-to-point service from other key East Coast focus cities such as Boston Logan and New York’s LaGuardia later this year, once EMB-170 and possibly EMB-190 aircraft delivery’s resume.
US Airways MidAtlantic Division to begin Northeast Shuttle flights
On February 6 US Airways will begin Shuttle service with its new 72-seat EMB-170 aircraft, with Saturday night service in all three markets. The move is expected to lower unit costs, improve profitability, and increase Shuttle performance by better matching capacity with demand. US Airways senior vice-president of planning Andrew Norcella previously told LaGuardia employees that the company may place the EMB-170 on weekday off-peak Shuttle flights in the future.
US Airways takes delivery of EMB-170s and CRJ-700s
Next week US Airways will complete January delivery’s of three 72-seat EMB-170s and 70-seat CRJ-700s, which be operated by the company’s MDA and PSA units, respectively. In addition, in March US Airways is expected to take delivery of three additional EMB-170s, although financing has not yet been completed by CFO Ron Stanley. Following the March delivery’s US Airways will operate 28 EMB-170s, 8 CRJ-700s, and 37 50-seat CRJ-200s.
In the not-so-distant future, the Arlington-based airline is expected to reach agreements to operate the 97-seat EMB-190 aircraft, with up to 60 aircraft delivered with the option to place 25 of these large RJs at an affiliate carrier. In addition, reports indicate the company may reach a new accord to add 90-seat CRJ-900s to the US Airways Express network. With these delivery’s, US Airways will become the first legacy carrier to operate 97 and 90-seat RJ aircraft.
GE contract changes
According to the Charlotte Observer, US Airways and General Electric Co. have agreed to tweak a few details in their financial agreement that is keeping the airline afloat. In a bankruptcy court filing late Monday, the airline said the two sides have agreed to allow the airline to draw $21.5 million from a credit line instead of $10 million, to reflect a payment to GE of $11.5 million last week. US Airways plans to seek a bankruptcy judge's blessing of the change in a hearing next month.
See Story
US Airways to close Winston-Salem maintenance facility
US Airways will close its Winston-Salem landing gear overhaul, machine, and plating shops. The move will result in the reduction of 50 mechanic positions with future heavy maintenance conducted by vendors.
See Story
US Airways to close Pittsburgh Reservations/Centralized Baggage Centers and move Dividend Miles office
US Airways will close it Pittsburgh Reservations Sales Center, its Pittsburgh RIDC Centralized Baggage Call Center, and its Winston-Salem Dividend Miles Service Center. The Pittsburgh Reservations Sales Center will close in July, possibly August due to call volume, and will further reduce the company’s unit costs.
When US Airways fully implements “GoFaresâ€, average “agent call time†is expected to be reduced by 40% from 5 to 3 minutes. In addition, the company expects Internet ticket sales to grow from 10 to 20% of total sales, which will further reduce call time. These two distribution cost reduction initiatives will result in about 50% RSA headcount reduction. In addition, US Airways will recognize additional savings with less building expense and building utility expense; as well as significantly less 800 number phone call expense to book flights.
The Pittsburgh reservations facility employs 785 people, and only about 10 percent are expected to relocate. During the company’s first bankruptcy, the airline closed its Orlando reservations call center where 400 people were employed. Of those 400, only 63 employees transferred to Pittsbrugh and Winston-Salem and the remainder left the company.
Pittsburgh CWA spokeswoman Chris Fox told the Pittsburgh Post-Gazette last Thursday that about 10 percent of airline employees accept relocation offers and she does not expect that to change much with this group.
The closure of the Pittsburgh Baggage Call and Winston-Salem Dividend Miles Service Centers will result in the loss of 155 jobs. The centralized baggage service center employs 45 people and the dividend miles center 110 people. The new CWA contract permits these positions to be outsourced, and specific plans will be announced by the carrier in the not-so-distant future. Effected Employees in Pittsburgh and Winston-Salem have the option to transfer to the company's only remaining reservations center in Winston-Salem, where 850 people work, although not may are expected to relocate and most will take the new enhanced severance package. Agents who elect to relocate can obtain $500 in moving assistance. Agents can obtain up to $20,000, one-year of comprehensive family medical insurance, lifetime pass privileges, and job relocation assistance.
In a statement, US Airways senior vice president of corporate affairs Chris Chiames said, It came down to the fact that our existing facility in Winston-Salem has the space and features necessary for a consolidated center." Kerry Carstairs, US Airways' vice president of direct distribution said, “Today's announcement ... is a necessary cost-savings initiative and an important step in the successful implementation of US Airways' transformation plan."
More information
According to the Winston- Salem Journal, “Local officials submitted the incentive proposal to the airline on Jan. 11. The proposal will provide the carrier with $1.4 million in additional liquidity.
See Story
Meanwhile, according to the Pittsburgh Tribune-Review noted Ernie Seneca, a spokesman for the North Carolina Department of Commerce, declined to confirm a newspaper report that state officials had offered $1.4 million in cash and incentives to preserve the Winston-Salem facility and its 800 jobs.
See comments
US Airways CWA agents may apply for severance incentive program
Early Out (EO) packets and information were distributed to CWA represented employees on January 26 and were distributed at each US Airways workplace. CSA’s are eligible for up to $15,000, one-year of comprehensive family medical insurance, lifetime pass privileges, and job relocation assistance.
See Story
Per the new CWA contract, Airport, City Ticket Office, Club, Baggage Call Center, Dividend Miles Service Center, and Reservations Employees will have 45 days to decide whether to accept transfers or buyouts. US Airways will then have 30 days to inform employees of their release dates.
US Airways to close Winston-Salem Maintenance facility
US Airways is closing the Winston-Salem landing-gear, a machine, and plating shops and the work will be outsourced.
See Story
In addition, the new IAM District Lodge 142 labor accord permits the company to close 4 of 18 line maintenance stations, although it’s unclear at this time what stations will be closed and what line maintenance will be outsourced.
US Airways could cut 600 Pittsburgh mechanic positions
According to the Pittsburgh Tribune-Review, US Airways will eliminate more than half the 1,150 mechanics jobs at its airport maintenance facility by March as part of its bankruptcy restructuring, local mechanics who have been informed of the plan said Thursday (June 27). Officers of International Association of Machinist and Aerospace Workers Local 1976 have told mechanics that about 600 jobs will disappear when the airline closes two hangars and the hydraulic, electric and instrument shops.
Separately, the Pittsburgh Post-Gazette reported the company expects to close sometime between March 1 and March 28, although the exact dates depend on how quickly US Airways can arrange for outside contractors to do the work. Those outside contracts have yet to be finalized.
See Story
In addition, maintenance on Boeing 737 jets performed at another hangar will be replaced by heavy maintenance on Airbus wide-bodied jets. The Airbus maintenance is less labor-intensive, mechanics said, because the aircraft is newer.
See Story
US Airways reportedly will close at least 2 of 6 Pittsburgh maintenance hangars, begin A320 overhaul in Pittsburgh, and move B737 overhaul to Charlotte and Alabama
As part of the IAM District Lodge 142 contract, which was approved by a U.S. Bankruptcy Court judgeon January 27, US Airways has the right to out-source heavy maintenance B757/767s and A330s. The work has been done in Charlotte, but the overhaul hanger will likely receive B737 work with the widebody heavy maintenance conducted in Alabama.
See Story
US Airways' Pittsburgh job loss
According to the Pittsburgh Tribune-Review, In addition to the 785 reservations agents and 45 baggage center workers (who learned their positions were being eliminated last week) , US Airways by mid-year is expected to locally shed:
About 600 aircraft mechanics
More than 200 pilots
About 400 flight attendants, through voluntary severance
About 1,000 gate and customer-service workers, non-mechanic maintenance workers and other non-union workers.
The Tribune-Review also reported The lack of local job prospects probably will push pilot and Pittsburgh native Fred Freshwater out of the region. "It's not pretty when you've effectively had your career dismantled in front of your eyes," Freshwater said. He flies the larger Boeing 757s to Las Vegas or along the East Coast for US Airways, his employer since February 1978. Freshwater expects to bid for and win a new assignment flying to Europe from US Airways' Philadelphia hub. "I'm pretty senior, so I could fly overseas now," he said. "But Pittsburgh is my home, so I don't relish moving to Philadelphia."
See Story
Liquidity Improvements
US Airways has reached agreements with Airbus to obtain $6 million, the City of Philadelphia to obtain $6 million and over $5 million in savings through March, and Winston-Salem and North Carolina officials to obtain another $1.4 million, for a total of about $19 million. This additional liquidity is likely part of the $100 million in new liquidity required by GE to be obtained by January 15.
US Airways obtains extension to file its Plan of Reorganization (POR) to March 31
See Story
Best regards,
USA320Pilot
