Vicious Cycle

[deltawatch]

Something to think about….

1- There seems to be no new (real) domestic markets or passengers available. An airlines growth must come at another expense.

2- Airlines need to keep growing in order to keep cost down. New employees coming in on the bottom of the pay scale to balance the pay of SR employees.

3- Due to mismanagement at U our company has been cut in half over the past ten years, nothing but SR employees left.

4- LCC continue to steal market share, increase fleet size and hire JR employees to work it. Cost stay in balance.

5- Let’s say U gets squeezed out of the picture. You end up with Southwest, Blue Jet and a few more new LCC’s.

6- The same thing will happen again in 15 years, markets saturated, no growth potential, SR employees at all the LCC’s (by the way senior ground employees at Southwest make more than U today).

7- Once again PEOPLE that have work very hard for 20 plus years, building a future and banking on a retirement get axed to make room for new start up airlines with young bottom of the pay scale new hires. New hires that look at what there company’s promising them 20 years down the road, something they will probably never see because on the vicious cycle…

 

[whatkindoffreshhell]

You cannot place all the blame on US mismanagement. All the warning signs were present during the 90s decade but the problems were overlooked because ridiculous fare ($1100 PHL-CLE walkup fares when WN is now going to charge $150 for the same product??) and no airline employees wanted to diminish their cushy wages.

Sure, you cannot fly internationally on WN, B6 etc and you the legacy carriers have several other advantages.

I'm sorry for your hardship but this is market reality. But to suggest that in 15 years WN and the other LCCs will be in trouble is not facing up to reality. That's what got US in trouble in the first place.

 

[deltawatch]

Once pone a time the deregulation babies like Usair and Piedmont were adding new routes at Eastern’s expense. They had new employees low on the pay scale. Eastern had the same problem. Too much seniority and couldn’t match the Usair’s and Piedmont’s. The deregulation babies did well for 15 years filling the hole Eastern left behind. After that there was little growth potential. Now here comes Southwest doubling in size hiring new people (JR) a long the way. Squeezing the mature carriers, that see little opportunity for domestic growth. LCC’s will do well until they are the only game in town, and markets become saturated with LCC’s. Then you will see a new bunch of LowerCC’s appearing, with JR employees and temporary lower cost as a result. Time will tell. You better keep your head on a swivel if you want to retire from this industry.

 

[OldpropGuy]

Yes it's life in the food chain! In order for any business to survive in the current dog eat dog world, a dynamic, creative business plan and management style is a must. Unfortunately, the remainder of the industry will not stand by while we play catch up.

I'm afraid management's plan to implement the RJ's which we should have had ten years ago, as we continue to outsource flying to contract carriers, will not be the ultimate plan which saves US Airways!

Would a new quick-thinking, leading-edge head that is able to rally the troops for battle be the answer? We may never know as it appears that the current team is lacking in these areas.

 

[AOG-N-IT]

Yes it's life in the food chain! In order for any business to survive in the current dog eat dog world, a dynamic, creative business plan and management style is a must. Unfortunately, the remainder of the industry will not stand by while we play catch up.

I'm afraid management's plan to implement the RJ's which we should have had ten years ago, as we continue to outsource flying to contract carriers, will not be the ultimate plan which saves US Airways!

Would a new quick-thinking, leading-edge head that is able to rally the troops for battle be the answer? We may never know as it appears that the current team is lacking in these areas.

Precisely !!!!

 

[deltawatch]

A good CEO in this industry is someone that loves airplanes and people more than his own wallet. Is willing to accept a VERY modest salary until the company is healthy. One like that could rally the troops and get as much corporation as needed from the employees to fight the battle. We don’t have him yet.