What has the company done to reduce costs

bagosh

Member
Oct 9, 2002
32
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Other than to ask for concessions from labor what has the company really done to control cost. Recently in Bos AA announced to it''s workers there would be no overtime after Jan.1, that they would be reveiwing all employees sick leave etc. Other companies I worked for would always look at work hours and ways to reduce them. Most workers look at the concessions and say I''ll work a little ot to make up the difference.How many stations have part timers working 25-30 hours per week?? If management just limited part timers to 20 hours per week the savings would be tremendous.
How about the HUB system does it really work? Handling freight and baggage twice changing aircraft ,there must be a better way,just ask Southwest or Jetblue.
Lets look at our competition and see what''s working for them, JetBlue uses one type of aircraft, saves on maintenence and training. Southwest point to point service. Delta non-stops to popular destinations!!!
Come on USAIRWAYS management lets try to become creative and make this airline work.
 

ITRADE

Veteran
Aug 19, 2002
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DCA/IAD US2
www.geocities.com
[P]
[BLOCKQUOTE][BR]----------------[BR]On 12/27/2002 3:16:47 PM bagosh wrote:
[P]Lets look at our competition and see what's working for them, JetBlue uses one type of aircraft, saves on maintenence and training. Southwest point to point service. Delta non-stops to popular destinations!!![BR]Come on USAIRWAYS management lets try to become creative and make this airline work.[BR] [/P]----------------[/BLOCKQUOTE]
[P]US has gotten rid of at least four fleet types recently: DC-9-30s, MD-80s, 732s, and F-100s.[BR][BR]If US dropped down to one fleet type, the employees would scream bloody murder as we'd be down to about 110 aircraft.[BR][BR]US has done a codeshare deal, has reduced fleet types, cut money-losing destinations, reduced redundancy, attempted to reduce some of the absurd workrules, and streamline.[BR][BR]Unfortunately, passengers are still not coming back as they could have and fuel is still expensive.[/P]
 

JonC

Advanced
Sep 9, 2002
102
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Well for one, they STILL haven't looked into compressed work weeks and other cost saving measures with labor contracts.

Oh, yeah, they laid people off while they found money to paint some airplanes.

Then, I almost forgot, they lied to a whole facility and showed up with all the kindness of Nazi stormtroopers and shut the TPA maintenance base down. Under no circumstances is dishonesty acceptable - you lie to your employees, they forever treat you with suspicion. It is morally wrong.

Lastly, they still haven't addressed the fares and revenue problem. We are flying empty airplanes and trying to "match capacity with demand", instead of stimulating demand. Did any of our leadership even attend high school economics?! Sometimes I think we have Corky the McDonald's mop-boy running US Airways.

In short, I think management sees wages as the only cost-cutting measure and they have an aversion to doing anything like "thinking outside the box". Besides the chainsaw method, nothing has changed.

We have the same old, same old in management style. They don't want change or anything like it - perhaps because it involves risk and our 20+ vice presidents are awfully cozy right now.
 

JayBrian

Senior
Aug 20, 2002
464
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USAirways also now allows booking of frequent flyer awards online, they tend to take a lot of time to book via phone. Kiosk check is also now available in some cities. Unfortunately these two items cut down on the need for people.


Jay
 

AP Tech

Veteran
Sep 4, 2002
1,661
246
[blockquote]
----------------
On 12/27/2002 8:30:30 PM JonC wrote:

Well for one, they STILL haven't looked into compressed work weeks and other cost saving measures with labor contracts.

Oh, yeah, they laid people off while they found money to paint some airplanes.

Then, I almost forgot, they lied to a whole facility and showed up with all the kindness of Nazi stormtroopers and shut the TPA maintenance base down. Under no circumstances is dishonesty acceptable - you lie to your employees, they forever treat you with suspicion. It is morally wrong.

Lastly, they still haven't addressed the fares and revenue problem. We are flying empty airplanes and trying to "match capacity with demand", instead of stimulating demand. Did any of our leadership even attend high school economics?! Sometimes I think we have Corky the McDonald's mop-boy running US Airways.

In short, I think management sees wages as the only cost-cutting measure and they have an aversion to doing anything like "thinking outside the box". Besides the chainsaw method, nothing has changed.

We have the same old, same old in management style. They don't want change or anything like it - perhaps because it involves risk and our 20+ vice presidents are awfully cozy right now.
----------------
[/blockquote]
I'll have to agree with you 100%. On Pit line they now have more supervisors and managers with B con and Intl+Hgr than they did with the full A+B+Intl+hgr and many more flights! Someone explain the reasoning? I also noticed certain people worked on the maxi merlin start up an now that is finished they have been sloted in to various created positions around the system. Just answer me this, how many directors, managers and foreman does the Pit tool room require? All working daylight? Things are changing...yea right!!!!!!!!
 

REACC1

Veteran
Aug 20, 2002
514
0
"We have the same old, same old in management style. They don't want change or anything like it - perhaps because it involves risk and our 20+ vice presidents are awfully cozy right now."

Were these "key" vp's retained to keep the status quo management style that has hamstringed this company almost to death? I'd be "awfully cozy" with a cut of that 6 mil.
I'd wager it is easier to abuse the, "dedicated" help.
Even Corky could do better than that.
 

conwntob

Newbie
Nov 22, 2002
5
0
I'll have to agree with you 100%. On Pit line they now have more supervisors and managers with B con and Intl+Hgr than they did with the full A+B+Intl+hgr and many more flights! Someone explain the reasoning? I also noticed certain people worked on the maxi merlin start up an now that is finished they have been sloted in to various created positions around the system. Just answer me this, how many directors, managers and foreman does the Pit tool room require? All working daylight? Things are changing...yea right!!!!!!!!

First,I dont post much but this issue I must shout out!!!!.The reason for more supervisory positions is they are police not supervisors.I work in clt and the ratio of police to rank and file after 9/11 is higher than pre 9/11. you may ask why?,just look at TPA!JERRY GLASS, HE IS A @#$%^&* !The supervisory positions are held by people that don't have clue!!!!!! The supervisor's that were let go in clt were much better all around people,adminastrators,technitions. The hammer fell from CCY.A bean counter I think.THE company still is not fixing the problems and to much management is one of them!!!!!! reguards.
 
C

chipmunn

Guest
US Airways POR and Confirmation Statement indicates the airline has cut $1.8 billion from its annual budget with $1.04 billion in savings from labor. Some of the other $760 million in annual savigns comes from:

1. Management concessions.

2. Eliminating the MD-80, DC-9, F-100, and B737-200 aircraft. Court documents indicate the company saved over $600 million by rejecting some aircraft leases for equipment previously removed from service.

3. Reduced aircraft parts inventory.

4. Closed excess maintenance, reservation, and CTO facilities 41 or 56 CTO's closed).

5. Implemented maintenance infrastructure reductions by reducing heavy maintenance tracks for the B-737-300/400 in PIOT and B757/767 in CLT.

6. Implementing "fuel savings" programs such as tankering, adjusted cost indexes, tactical cost indexes, and reduced APU operation.

7. Adjusted on-board service.

8. Reduced aircraft lease expense by about $450 million per year.

9. Re-negotiated agreements such as lower CCY headquarters lease expense.

10. Outsourced engine overhaul with Rolls Royce, GE, and Pratt & Whitney power-by-the-hour contracts.

11. Closed 5 of 26 airport clubs.

12. Reduced distribution and purchasing costs.

13. Monetized surplus facilities and assets.

14. Re-negotiated flight crew hotel expenses to increase savings.

15. Re-located some ATO's to lower lease expense, for example MHT.

Chip
 

coolflyingfool

Veteran
Aug 20, 2002
1,192
1
www.usaviation.com
chipmunn - as an outsider I must say - it sounds like Enron math. I'm sorry, I want U to survive but I am not seeing the big picture I guess.
If $1.04 BB is from the ground level employees and all that has been saved is $1.8 BB from total expenses, some piece of the puzzle eludes me.
If 4 types of a/c have been eliminated and a/c leases that were rejected saved the company $600 MM then the total is now $1.64 BB.
Some 40 CTO's have been closed, a/c mx facilities closed, a/c spare parts reduced, airport clubs closed, in-flight service adjusted, office space rent reduced, and some other small adjustments to save U money has to total about $50 MM. So that makes the total save now $1.69 BB.
Now there is the $450 MM saved from renegotiated a/c leases, so the total saved is now $2.14 BB.

And lastly, let us not forget some 10,000 employees that are now gone saving the company another $250 MM or more.

And to me that makes the total in the area of $2.4 BB
 

ClueByFour

Veteran
Aug 20, 2002
3,566
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www.usaviation.com
[P]
[BLOCKQUOTE][BR]----------------[BR]On 12/28/2002 1:28:44 AM chipmunn wrote:
[P][BR]4. Closed excess maintenance, reservation, and CTO facilities 41 or 56 CTO's closed).[BR][BR]....[BR][BR]7. Adjusted on-board service.[BR][BR]...[BR][BR]11. Closed 5 of 26 airport clubs.[BR]----------------[/P][/BLOCKQUOTE]
[P][BR]None of the cost savings from these three items will come anywhere close to the lost revenue, particuarly closing the CTOs and the Clubs.[BR][BR]Both represented relatively low cost ways for customers to GIVE THE COMPANY MONEY. Oops.[/P]
 

Biffeman

Senior
Nov 25, 2002
447
0
www.usaviation.com
Awesome![BR]They sold 97 aircraft to jettran at way below market prices and threw in millions of dollars worth of spare parts for nothing. And I use to be in distribution there is waste, waste and more waste. [BR][BR]
 

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