Where's The Growth From Efficiency

BoeingBoy

Veteran
Nov 9, 2003
16,512
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Just dropping in for a short peek and wanted to add this....

After all the talk about depeaking PHL, flying the planes more, etc, giving the equivalent of 25 or so "new planes", here's what the company had to say today:

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Regulation FD Disclosure

US Airways Group, Inc. (the Company) has provided the following guidance on expected 2005 Available Seat Mile (ASM) growth:

For 2005, the Company expects Mainline ASM growth to be in the 2% range, mainly from productivity improvements. The Company expects Express ASMs (including ASM purchases) to grow about 24% with the addition of 12 new regional jets. The Company expects System ASMs to be up about 5% full year 2005 vs. 2004.
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So what happened to all the big plans for added mainline flying?

Jim
 
What happened you ask?

I'll tell you what happened , reality set in. Mainline is going to be spanked severely with shortages of Aircraft and spare parts while planes go in and out of Mobile as opposed to being sources of ready spares while in work in PIT and CLT.

These issues have already presented themselves with the little Buses and the A330-300's...just wait , our first 767-200ER is there now , with 757's heading that way. All are picked over like a cows carcass while in the heavy check phase....or flying would cease in many cases otherwise. Ask anyone in PHL , CLT or PIT how true this is...they'll tell you honestly and quickly how true it is.

Even before 9-11-01 and the first Chapter 11 took place...Base Maintenance aircraft have often been the go to source for needed parts...this is compounded itself since then , with no signs of the need EVER decreasing...but certainly increasing at a higher cost in transportation and lost time and productivity on both ends of the spectrum.

U has painted itself into a very tight corner...and nothing short of a total re-think of how they elect to do business will ever change that. Sadly...todays choices for our collective future are not making things better or brighter...they are in fact becoming worse and even tighter.

Calling 'em like I see them.....Your friendly nieghborhood Phantom Fixer.
 
Thanks. Let me see if I can put this so I can understand it....

In the drive to do everything cheap, management has pretty much destroyed any chance of doing things efficiently.

Does that about sum it up....

Jim
 
Hey all Presti knows is to outsource, that is what he did at CAL.

They will spend million to save a penny.
 
Phantom Fixer said:
What happened you ask?

I'll tell you what happened , reality set in. Mainline is going to be spanked severely with shortages of Aircraft and spare parts while planes go in and out of Mobile as opposed to being sources of ready spares while in work in PIT and CLT.

These issues have already presented themselves with the little Buses and the A330-300's...just wait , our first 767-200ER is there now , with 757's heading that way. All are picked over like a cows carcass while in the heavy check phase....or flying would cease in many cases otherwise. Ask anyone in PHL , CLT or PIT how true this is...they'll tell you honestly and quickly how true it is.

Even before 9-11-01 and the first Chapter 11 took place...Base Maintenance aircraft have often been the go to source for needed parts...this is compounded itself since then , with no signs of the need EVER decreasing...but certainly increasing at a higher cost in transportation and lost time and productivity on both ends of the spectrum.

U has painted itself into a very tight corner...and nothing short of a total re-think of how they elect to do business will ever change that. Sadly...todays choices for our collective future are not making things better or brighter...they are in fact becoming worse and even tighter.

Calling 'em like I see them.....Your friendly nieghborhood Phantom Fixer.
[post="245544"][/post]​
Phantom couldn't be anymore right on the $$$$$$$$ :up:
 
BoeingBoy said:
Thanks. Let me see if I can put this so I can understand it....

In the drive to do everything cheap, management has pretty much destroyed any chance of doing things efficiently.

Does that about sum it up....

Jim
[post="245547"][/post]​


That's it in a Nutshell Jim.....Paper Shufflers formulating eye-wash is all that is taking place. Just wait till your B737 has an MEL that you aren't thrilled with flying with for any number of reasons....and a spare isn't sitting on the shelf to clear said MEL , then maybe a Base Plane in CLT is the only hope for suedo quick resolve...then again maybe it won't be , due to effectivity code issues for compatabilty reasons.

Believe me...between the USAF and USAir....I've seen my share of robbing Peter to pay Paul...but this BS taking place is without fail the most counterprouctive crappola I have ever witnessed. We are as some have said...throwing dollars after dimes.
 
Michael,

That was my thought. 2004 ASM's were up 3.5% over 2003, with no depeaked hubs, big push of p2p flights, etc. Sure sounds like the other half of the cost reductions (the TP) have gone out the window.

Jim
 
Seems to me the TP was and is "take from the employees, and Oh, yeah, add a few FLL - Carribb. " nothing else. We are still in the same mess and there is no proactive plans, only reactive.
 
Lest we forget....A/C 674 was sent to Mobile to have an "S" Check performed. While there it was damaged during a "routine" weighing, thus extending its visit To Bronners favorite state. It is then "ferried" to PHL with only a partial "S" Check performed. The A/C has to spend more time on the ground, losing more revenue, because you can't make $$$$$$ when you can't carry passengers and freight across the pond. The folks in PHL had to complete the job the "idiots" in MAE could not.
When will somebody in Management (and I use the term loosely) wake up :blink:
 
its obvious the fix was in our pocketbooks.....shake 'em down and that will fix everything.....
lot of deleted about transformation ....all i ithink its about is a yardsale...

or more like fatten the cow up for sale...stay tuned...
 
Boeingboy,

What is projected for mainline through 2008 is "stagnation" on mainline.

Most , if any, of the airline growth will be in obtaining RJs and giving them to the affiliates and MAA through 2008.

From everything I've seen, the only prospects for U is a buy out and new management that goes along with that.

I think the company knows this too, and are waiting for an investor to purchase the airline. The execs are counting their stock, that is why the stock is not "zeroed out".

U is just treading water, and trying to stay a float until they can attract an investor.
Creditors just want their money, and if they can obtain some return, they will let it float.

My take: "there is no plan".
 
Jim -

Trying to get back to your original post.....

Looking at the Feb schedule for mainline, we took mainline airplanes off routes like PIT-ALB, BUF, ROC, BDL, SYR, MDT, etc and put them on routes like FLL-BOS, EWR, BWI, BDL, SDQ, SJU, SAL, GUA, KIN, etc. So in essence what we have done is farmed out the short haul flying to express and increased the stage length in flying for mainline. Where an airplane used to fly 8 segments a day, it may now only fly 4-5. Thus reducing ASM's, even with the increased productivity.

Just my thought.....