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Topic: US Air Has To Make "dramatic Changes" - Parker
Username: LAXintl
Posted 2008-04-16 15:01:02 and read 12519 times.

Dont want to be left in the cold.

Quote:
US Airways chief talks to employees about deal speculation
April 16

PHOENIX (AP) -- US Airways chief executive Doug Parker warned employees Wednesday that airlines will have to make "dramatic changes" as oil prices rise and the economy sours, though he wouldn't comment about speculation that his airline is in deal talks with other carriers.

In a letter to employees, Parker mentioned a news report that US Airways was in talks with United Airlines and another that said it would be good partner for American Airlines.

"I can't comment on any specific discussions or transaction," Parker wrote. However, "we can't ignore what's happening in the world around us. Oil has risen to over $113 per barrel and Wall Street is anticipating a recession that, if it happens, will lower all airline revenues."

"If done properly, (consolidation) could result in a much healthier industry which would be good for our employees, our customers and the communities we serve," Parker said.

http://biz.yahoo.com/ap/080416/us_airways_ceo.html?.v=2

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Rolo987
Posted 2008-04-16 15:05:02 and read 12501 times.

http://www.airliners.net/aviation-fo...eneral_aviation/read.main/3939529/

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: TN757Flyer
Posted 2008-04-16 15:06:48 and read 12492 times.

Just a hunch, but if US doesn't find someone to go to the altar with, I would not be surprised to see them in Ch11 again, and possibly stop flying altogether. At the very least, one of the hubs will go. They won't survive alone if the big guns ahead of them find partners. Three years into the merger they still don't have their act together - there's something wrong there. Yes I would say dramatic changes are in order.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: LAXintl
Posted 2008-04-16 15:07:48 and read 12490 times.

Rolo, Thanks for the link, however the news story and Parkers comments tpday are beyond United, and actualy also mention American Airlines along with need to review the entire business model as it seemingly will not work under current conditions.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: IliriBDL
Posted 2008-04-16 15:23:13 and read 12337 times.

Yeah, LAXintl, I was thinking of doing the same thread, because this is not just speculation, its actually Parker, letting the employees know that US will not stand still and will take part in the merger(s). Also when asked about the UA or AA, he said he cannot comment on that topic for now. (meaning something is under work)

I myself think it'll be US and UA that hook up, and the pieces that are left (DCA, etc) bought by CO and/or AA or other smaller domestic airlines.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Flyorski
Posted 2008-04-16 15:26:14 and read 12287 times.

I wonder if CO could merge with AA? That would leave UA to merge with US. AA and CO both have large Boeing fleets, and UA and US both have large Airbus fleets. From that standpoint such mergers could make sense.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: IliriBDL
Posted 2008-04-16 15:27:03 and read 12289 times.

Well here is Doug Parker's message to US Airways employees that was sent earlier today. (taken from usaviation.com)

http://www.usaviation.com/forums/index.php?showtopic=41042


With the recent news of a potential Delta/Northwest merger, analysts and media are speculating about the next potential combination. While we had hoped to remain on the sidelines of this speculation, today’s Wall Street Journal suggests we may be in merger talks with United and another article in the Dallas Morning News suggests we might make a good merger partner for American.

While I can’t comment on any specific discussions or transaction I certainly didn’t want you to hear this speculation without hearing directly from me about what this might mean for US Airways.

Most of you know my views on consolidation and those have not changed. Our industry is far too fragmented and consolidation, if done properly, could result in a much healthier industry which would be good for our employees, our customers and the communities we serve. Rest assured if US Airways chooses to participate in any industry consolidation, we will do so because we believe it is the best interests of our employees and our airline.

Despite all of the challenges of merging two airlines, we are a much stronger company today as a result of the merger of US Airways and America West. We posted the highest pre-tax margin of the big six airlines in 2006 and even with our operational challenges we posted the second highest pre-tax margin in 2007.

But we can't ignore what's happening in the world around us. Oil has risen to over $113 per barrel and Wall Street is anticipating a recession that, if it happens, will lower all airline revenues. And the DL/NW combination potentially creates a formidable competitor. In that world, all airlines are going to have to make dramatic changes to their existing business models in order to be viable.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Clipper136
Posted 2008-04-16 15:27:51 and read 12259 times.



Quoting LAXintl (Reply 3):
seemingly will not work under current conditions.

That is true for majority of the airlines. No one......including WN....... can continue with the same business model and projections when their 2 biggest expenditures are rapid increasing beyond control (Fuel and Wages)

I think, especially in light of the DL/NW deal.....you will see a few unexpected changes by all the airlines.

I think the fasten seat belt sign just dinged on.........industry wide.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Pnh2atl
Posted 2008-04-16 15:29:00 and read 12259 times.

I can't imagine US doing well w/ AA. AA uses a stapler to merge seniority lists and US and AWA can't work things out now. My guess is that US will be back in BK and will eventually enter Chapter 7.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: IliriBDL
Posted 2008-04-16 15:37:03 and read 12179 times.

US Airways, United Discussed Merger
http://www.thestreet.com/story/10412...discussed-merger.html?puc=newshome


CHARLOTTE, N.C. -- Not surprisingly, US Airways talked recently with UAL, the parent of United Airlines, about a potential merger, which would revive a deal that was rejected by regulators in 2001.

The two companies were in fact having discussions before Delta and Northwest announced plans Tuesday to combine, according to a person familiar with the situation.

A deal between United and US Airways would provide United with two things it has always lacked: a Southeast hub in Charlotte and a strong presence at key Northeast airports. Additionally, the two carriers already code-share in 270 markets, and are both members of the Star Alliance.

That could make a difference. As Delta CEO Richard Anderson said on Tuesday, existing code-shares and membership in the same alliance give Delta and Northwest a leg up as they move toward their more-than-$3-billion merger.




He makes a good point in the article about the alliance, and that it could help the UA/US merger, just like for DL/NW being in the same alliance makes things much easier.

If DL/NW is accepted by the DOT, I would except the *A members pushing for the UA/US merger, so therefore they can deal with the new "biggest airline" Delta and compete with them.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Hondah35
Posted 2008-04-16 17:09:58 and read 11782 times.



Quoting Clipper136 (Reply 7):
That is true for majority of the airlines. No one......including WN....... can continue with the same business model and projections when their 2 biggest expenditures are rapid increasing beyond control (Fuel and Wages)

How do you know what WN can and can't do? They've posted a string of profitable quarters unmatched in the history of deregulated aviation, and you've posted some comments on a.net

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Flighty
Posted 2008-04-16 17:35:57 and read 11636 times.

CO and AA might feel a strong attraction because together, they would control Texas aviation, and a great deal of Latin America-USA traffic, plus some very tasty European assets.

CO-AA is not blatantly unacceptable in terms of anti-trust. However, it is hard to determine which side would be the manager. CO and AA each figure to be alpha management with lots of success.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: TN757Flyer
Posted 2008-04-16 17:55:15 and read 11497 times.



Quoting Flighty (Reply 11):
CO-AA is not blatantly unacceptable in terms of anti-trust.

IMO, of all the conceivable combinations of mergers left, this would be the hardest to get past DOJ. Getting any legacy into AA would be hard, but stranger things have happened. I think in a few years, people may regret this merger mania the industry seems hellbent on every 10 years or so. The same problems will still plague the industry down the line. Why not just nationalize all the airlines now and call it Ameriflot?  duck 

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: WorldTraveler
Posted 2008-04-16 18:11:33 and read 11381 times.

While alot of people like to point out the strength of CO-UA, it still has no real presence on the east coast south of DC. It has no viable launching points for Latin America service from the South. And there is the fleet issue.

UA/US is not as bad of an idea as some people think, esp. given the systems and alliance commonalities that being in Star already provides.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Ncflyer
Posted 2008-04-16 18:22:50 and read 11282 times.

why would anyone want to link with US? They offer very little in the way of an international network, and that's what everyone covets. The big reason US is in trouble is they aren't as diversified internationally. NW/DL is all about linking NW's Asian presence with DL's European and South American one. CO and UA would offer similar international synergies.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: PHXmd80
Posted 2008-04-16 19:01:29 and read 11097 times.



Quoting TN757Flyer (Reply 2):
At the very least, one of the hubs will go.

Adios LAS.  tombstone 
http://www.usairways.com/common/reso...pressroom/factsheets/factsheet.pdf

PHXmd80

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Clipper136
Posted 2008-04-16 19:02:10 and read 11085 times.



Quoting Hondah35 (Reply 10):
How do you know what WN can and can't do? They've posted a string of profitable quarters unmatched in the history of deregulated aviation, and you've posted some comments on a.net

Because WN has said so themselves.......what WN did them was then....this is now.......this is a new ballgame...

The industry changes are effecting everyone.....no one is immune.......

you have to adapt... or take your toys and go home..........a fact of life.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: D328
Posted 2008-04-16 19:10:32 and read 11001 times.

I hope they file Chap 11 or 7 and just shut down, they are the worst airline in the USA!

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: DL Widget Head
Posted 2008-04-16 19:28:29 and read 10908 times.



Quoting Clipper136 (Reply 16):
Quoting Hondah35 (Reply 10):
How do you know what WN can and can't do? They've posted a string of profitable quarters unmatched in the history of deregulated aviation, and you've posted some comments on a.net

Because WN has said so themselves.......what WN did them was then....this is now.......this is a new ballgame...

Indeed, the old US airline industry is being compelled to change (mostly by forces beyond their control). No doubt, WN recognizes the new paradigm in the airline industry and will change and adapt themselves. But, the status quo will not cut it. Here's what their CEO said...

http://www.dallasnews.com/sharedcont...s/020108dnbusairmerge.3774ee7.html

"We have enough exposure to other airlines in the U.S. that if they shrink, we'll benefit. And of course, I wouldn't eliminate the possibility that we would participate in some form or fashion in consolidation."

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Rolo987
Posted 2008-04-16 19:44:40 and read 10822 times.



Quoting PHXmd80 (Reply 15):
Adios LAS. tombstone
http://www.usairways.com/common/reso...pressroom/factsheets/factsheet.pdf

Just because LAS is not on the list in that document doesn't mean they don't have a significant presence there.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Hondah35
Posted 2008-04-16 19:59:40 and read 10738 times.



Quoting Clipper136 (Reply 16):
Because WN has said so themselves.......what WN did them was then....this is now.......this is a new ballgame...

The industry changes are effecting everyone.....no one is immune.......

you have to adapt... or take your toys and go home..........a fact of life.

I am only aware of one major industry change...that is higher fuel prices. With flights running at near capacity, just exactly how does a merger deal with higher fuel prices?

And of course Southwest is going to say they are open to acquisitions, what do you expect the CEO to say....."No, we are not going to look at it." That's a good way to shave 25% off of the share price.

My point is that if any airline is going to be OK through all of this, it is probably going to be WN. They have the history of profitable operations, even before the fuel hedging benefit; other airlines DO NOT. And the most laughable thing is that they have been profitable without even flying international, the supposed savior of the industry. They are miles ahead of most of the legacy carriers.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Flyusairways
Posted 2008-04-16 20:07:34 and read 10689 times.



Quoting D328 (Reply 17):
I hope they file Chap 11 or 7 and just shut down, they are the worst airline in the USA!

Sorry you feel that way, my friend. Regularly flying US may have its challenges, but they get me from point A to point B conveniently, and that is what I require. Besides, the number of vouchers they throw at me for every letter and email I write is enough to keep me coming back. Of course, this is only my opinion.

I don't know if a US/UA combination is the answer (and I certainly wasn't for US/DL), but I do agree with Parker that US needs to reposition itself to maintain a competitive stance. It is certainly no secret that oil prices are wreaking havoc on the industry. Just as drastic change came in the wake of deregulation, it has again become necessary. I would not be surprised in the least to see US make an effort to hook up with someone in the coming months.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Falcon84
Posted 2008-04-16 20:12:37 and read 10648 times.



Quoting Flighty (Reply 11):
CO and AA might feel a strong attraction because together, they would control Texas aviation, and a great deal of Latin America-USA traffic, plus some very tasty European assets.

Sorry, but the DOJ would NEVER let CO/AA merge unless 1. The new company dropped either IAH or DFW as a hub, and 2. Dropped either JFK or EWR as a hub. The government, even under a conservative DOJ would say no way to one airline controlling NYC and Texas.

The best fit, route-wise, is CO/UA. They compliment each other better than any other combination.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Khobar
Posted 2008-04-16 20:16:07 and read 10629 times.



Quoting Clipper136 (Reply 16):
you have to adapt... or take your toys and go home..........a fact of life.

The problem is that airlines think "adapt" means "cut and cut and cut" which ultimately leads to CFIT.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Falcon84
Posted 2008-04-16 20:18:35 and read 10610 times.



Quoting Khobar (Reply 23):
The problem is that airlines think "adapt" means "cut and cut and cut" which ultimately leads to CFIT.

What else are you going to do with oil at $114? You cut; you come up with new ways to generate revenue; you ground older aircraft.

The dramatic rise in oil is, I'm beginning to think, threatening air travel itself. It's becoming so expensive just for the oil, that the airlines as a whole are going to have trouble surviving.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Socalfive
Posted 2008-04-16 20:47:45 and read 10505 times.



Quoting Hondah35 (Reply 10):
How do you know what WN can and can't do? They've posted a string of profitable quarters unmatched in the history of deregulated aviation, and you've posted some comments on a.net

This is only going to go one way. These guys manage to actually pull off these mergers during what's going to be the worst recession anyone ever thought possible, there's going to be huge, massive layoffs and planes headed to the desert. These mega-carriers won't be mega for long. Again it's only about the money to be made to the managements of the airlines in merger and to the major stockholders. This is a last-ditch opportunity for THEM to make money, they don't give a rat's ass about the rank and file. Once they've made the big bucks, they'll run from these things like rats from a burning barn. The confusion and disarray of the mergers are going to distract them from the minute by minute survival of operations during this upcoming recession and then come the huge cutbacks, planes and people. It'll take YEARS to recover from this recession and the companies that bite off small chunks now are going to be the victors in the long run I think, not those trying to be a mega-carrier in this economy. This is the time for Southwest and Continental to remain pat and focus on the status quo because it's going to take every effort possible to SURVIVE in the next two-three years.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Nucsh
Posted 2008-04-16 21:51:41 and read 10900 times.



Quoting D328 (Reply 17):
I hope they file Chap 11 or 7 and just shut down, they are the worst airline in the USA!

I hope that thousands of people lose their jobs just because a company's management/product might not be the best! How foolish.  Yeah sure

Quoting Flyusairways (Reply 21):
Sorry you feel that way, my friend. Regularly flying US may have its challenges, but they get me from point A to point B conveniently, and that is what I require.

And as long as an airline can do just that, fly the average person from point A to point B at a reasonable level of service and at reasonably low cost, they will survive.

If something does happen with US Airways though, it will be interesting to see how the city of Charlotte handles it. US is all we've really got, and if they leave our connectability (for the most part) goes down the drain. Personally, I'm for the solution that saves the most amount of jobs/money with the least amount of hassle. No one should ever want to see an airline go - it's counter to what we love.  Smile

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: RyeFly
Posted 2008-04-16 21:54:13 and read 10939 times.

I think it was pretty clear when US Airways opted not to order A340's when it was awarded the China route that they had no intentions of operating it under the US Airways brand. Doug Parker must have felt pretty confident that by the time the route would need to be started it would be deep within a merger process or it even approved by then. While they have been painting aircraft and slowly refurbishing interiors with leather seats, a lot of upgrades are clearly done cheaply as if to say "who cares, it won't be our problem in a few years."

I think if US Airways has any thought of remaining independent for the long haul if a merger partner falls through, there will be a huge initiative to settle all the disputes with employees and focus heavily on improving the level of service it provides. It will be difficult to pull off but not impossible.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Khobar
Posted 2008-04-16 22:33:47 and read 10710 times.

Quoting Falcon84 (Reply 24):
What else are you going to do with oil at $114? You cut; you come up with new ways to generate revenue; you ground older aircraft.

Hmm, perhaps offer a product people might want to buy? Seems to work for everything else. The way the airlines are "handling" the current situation is a recipe for failure. Of course the heads of such airlines don't care - they get golden parachutes anyway. You think any of these cuts are designed to help the airlines? Not really - in reality they are designed to find the tipping point - what are the customers willing to put up with before they turn away from your product and go with someone else's, and if everyone is the same, what will it take to stop people from flying?

As for parking airplanes in the desert, it has less to do with fuel economy and more to do with limiting capacity.

[Edited 2008-04-16 22:37:30]

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Nucsh
Posted 2008-04-16 22:40:04 and read 10683 times.



Quoting Khobar (Reply 28):
The way the airlines are "handling" the current situation is a recipe for failure.

And how can an airline update it's product across an entire fleet when so much cost is going into keeping the business itself alive?

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: F9Animal
Posted 2008-04-16 23:07:04 and read 10635 times.



Quoting TN757Flyer (Reply 2):
Just a hunch, but if US doesn't find someone to go to the altar with, I would not be surprised to see them in Ch11 again, and possibly stop flying altogether. At the very least, one of the hubs will go. They won't survive alone if the big guns ahead of them find partners. Three years into the merger they still don't have their act together - there's something wrong there. Yes I would say dramatic changes are in order.

I actually have to argue your hunch. I think US has made some amazing improvements since the merger, and yes, there is still alot of work to be done. But, as far as not surviving, I have to disagree. Really, the merger has done good to their numbers, and profits were unheard of before the merger on the US side.

Quoting D328 (Reply 17):
I hope they file Chap 11 or 7 and just shut down, they are the worst airline in the USA!

That is a little dramatic, and uncalled for. How could you hope to see so many lose jobs, and lose another airline? You may not like them, so just don't fly them. I have always had a great experience on US, and I have yet to have a bad experience on them. I will be happy to book them anytime. I really like to fly them from SEA to LAS. I also flew them from LAX to LAS once (think it was HP then), but I got 5 drinks in about 30 minutes flying FC. The crew was awesome, and it was an old 737-200. I was in heaven. Flew them from PHX to SEA coach about a year ago, and had the last row in the plane. I got not just a can of soda, but was asked several times during the flight if I wanted more to drink. You don't get that kind of service in coach anymore! Except on good old US Airways!  Smile I admit, I am fan of them.

Quoting IliriBDL (Reply 6):
Well here is Doug Parker's message to US Airways employees that was sent earlier today. (taken from usaviation.com)

Doug Parker is no dummy. He has a hell of a challenge, but so far, I would mark his work very high. He is also very good at communicating with his employees. I have a feeling he picked that part of the job up from the old US, but not sure. Maybe some old HP employees can shed some light on his communications prior to the merger.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Gigneil
Posted 2008-04-16 23:09:18 and read 10631 times.



Quoting Falcon84 (Reply 22):
Sorry, but the DOJ would NEVER let CO/AA merge unless 1. The new company dropped either IAH or DFW as a hub, and 2. Dropped either JFK or EWR as a hub. The government, even under a conservative DOJ would say no way to one airline controlling NYC and Texas.

I think you overestimate them.

A combined CO/AA would still have less than 20% of the US market, and no barriers to entry.

Southwest alone provides more than sufficient competition in Texas.

NS

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Mainliner
Posted 2008-04-16 23:28:38 and read 10580 times.



Quoting F9Animal (Reply 30):
I actually have to argue your hunch. I think US has made some amazing improvements since the merger, and yes, there is still alot of work to be done. But, as far as not surviving, I have to disagree. Really, the merger has done good to their numbers, and profits were unheard of before the merger on the US side.

Finally, a voice of reason amid all the unfounded "US is the worst airline in the world" clatter. Refreshing, really. Thank you F9Animal.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: San747
Posted 2008-04-17 00:47:58 and read 10260 times.

Quoting Khobar (Reply 28):
Hmm, perhaps offer a product people might want to buy? Seems to work for everything else. The way the airlines are "handling" the current situation is a recipe for failure.

Because what people want to buy in this country is unrealistic. They want a cheap fare (say, $200 r/t LAX-JFK, which I have flown before), but a minimum standard of "frills." And therein lies the problem. I'm finding the more and more I fly, the more I agree with the concept of buy-on-board products and paying for checking a 2nd bag, etc. If you want a bargain fare, then accept that with the lower price comes lower service. The utmost obligation of an airline is to get you from point A to point B safely. That is all. There is no God-given right to a minimum amount of service that most Americans think they're entitled to. If you want to be waited on hand and foot and get a decent meal on the plane, pay more or use miles to upgrade to F or C. No big deal.

So we, as Americans, have to accept a trade-off. Either decent service, or low airfares. I think the folding of SX and TZ are indicative that a) Americans want decent service and b) the ULCC product just isn't going to work in the US because of that first reason. So accept that fares are going to up, and accordingly, airlines can focus on improving their products instead of a cutthroat price war with all the other airlines.

Quoting F9Animal (Reply 30):
US Airways! Smile I admit, I am fan of them.

I agree with Mainliner completely, it is quite refreshing to hear that from... anyone on this forum. As a former employee and one who still has US pride, I thank you as well.

[Edited 2008-04-17 00:50:30]

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: UAL777UK
Posted 2008-04-17 00:52:35 and read 10209 times.



Quoting Falcon84 (Reply 22):
The best fit, route-wise, is CO/UA. They compliment each other better than any other combination.

I cannot see what US brings to the table that UA wants. UA, needs to merge with CO...period!!

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Byrdluvs747
Posted 2008-04-17 01:07:11 and read 10164 times.

The best merger for 2008 would be AA - UA. Admit it... the thought of a network covering Asia, North/South America, Australia, India, and Europe makes any a.netter drool.


Also, don't give me any of that "The govt wouldn't allow it." nonsense either.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Motopolitico
Posted 2008-04-17 01:33:03 and read 10052 times.



Quoting F9Animal (Reply 30):
I really like to fly them from SEA to LAS.



Quoting F9Animal (Reply 30):
I also flew them from LAX to LAS once (think it was HP then)



Quoting F9Animal (Reply 30):
Flew them from PHX to SEA coach about a year ago

The bulk of US complaints stem from their PHL hub. It is truly an abomination. Congestion, late flights, lost bags, and wretched employee attitudes. US west coast is not really US. If you want to know the true US experience, try connecting at Philly sometime.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Gigneil
Posted 2008-04-17 02:03:09 and read 9903 times.

However, if you want to fly on a flight that likely loses money, connect in Phoenix.

NS

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Burkhard
Posted 2008-04-17 02:24:11 and read 9803 times.



Quoting Falcon84 (Reply 24):
The dramatic rise in oil is, I'm beginning to think, threatening air travel itself. It's becoming so expensive just for the oil, that the airlines as a whole are going to have trouble surviving.

Its threating air travel IN THE US itself. It was evident that the leading role in aviation was going away from the US to the new giants in Asia anyways, this has accelerated. After the death of so much industry in the US - why should airline industry survice by magic?

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Warszawa
Posted 2008-04-17 03:04:06 and read 9662 times.



Quoting Falcon84 (Reply 24):
The dramatic rise in oil is, I'm beginning to think, threatening air travel itself. It's

I totally agree, just reading these forums and announcements these days, all you hear about are dwindling profits, bankruptcy, furloughs, loss of airlines, new fees, fare hikes, and more, all in an attempt to generate revenue in a slowing economy. As a result of the increased costs of travel, less and less people are choosing to fly (particularly leisurely, including myself, i'm saving my $$$ this year instead of taking my usual leisure trips to LAX and LAS), which results in less revenues. Meanwhile, fuel keeps rising. Tough times for all, though the airlines? Very tough.

Hell, it just seems like a 100% lose-lose situation all ways around. Nonetheless, 10 years from now, it'll be very interesting to see how and where this industry will go.

Sit back and enjoy the ride, I guess.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: EMB170
Posted 2008-04-17 06:33:31 and read 8367 times.



Quoting RyeFly (Reply 27):
I think it was pretty clear when US Airways opted not to order A340's when it was awarded the China route that they had no intentions of operating it under the US Airways brand. Doug Parker must have felt pretty confident that by the time the route would need to be started it would be deep within a merger process or it even approved by then. While they have been painting aircraft and slowly refurbishing interiors with leather seats, a lot of upgrades are clearly done cheaply as if to say "who cares, it won't be our problem in a few years."

 checkmark  When are they supposed to start PHL-PEK? March 2009, no? They have a year to acquire the necessary aircraft to fly the route. If they don't, it will be all the ammunition the new DELTA needs to demand ATL-PEK or JFK-PEK.

Quoting F9Animal (Reply 30):
Doug Parker is no dummy. He has a hell of a challenge, but so far, I would mark his work very high. He is also very good at communicating with his employees. I have a feeling he picked that part of the job up from the old US, but not sure. Maybe some old HP employees can shed some light on his communications prior to the merger.

 checkmark  Agree here as well. Don't agree with a lot of what Parker has done, but we have to admit, he had his reasons for wanting to buy Delta. I do give him credit here...he saw the writing on the wall, realized that US Airways was the least poised to compete in the impending market, and made a daring leap in an attempt to correct that. US Airways knows that they pretty much have domestic operations covered (with the exception of the central USA); they *are* actually building quite a remarkable European portfolio (especially compared with what they had previously), but they realized that they don't have the crews or the planes to build up a South American, African, Middle Eastern, or Asian route network as quickly as they'd need to in order to stay afloat. So, they attacked Delta, which they perceived was the easiest target, in an attempt to get a hold of Delta's existing S. American and Middle Eastern flights, as well as Delta's very large widebody fleet, with which they figured they'd be able to trim the duplications JFK had with PHL, CLT had with ATL, and send the rest of the aircraft to new destinations in Asia and elsewhere. Unfortunately for Parker, he chose the wrong target, and the whole Delta mess blew up in his face.

Angry labor mess notwithstanding, Parker probably should have made a bid not for Delta but for Northwest. NW would have given US things US did not already have, and would have put the actual pieces of the combined airline in the right places (the Upper Midwest, Central South, and Asia). NW would have also offered a more common fleet, with which if Parker really wanted, he could have shifted some TATL flying from MSP and DTW to PHL and then used the remaining aircraft to send to South America from CLT. But the point is, he didn't, and now US has to hope that a sugar daddy airline will be willing to keep them as opposed to letting them starve on the street.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: ABQopsHP
Posted 2008-04-17 06:34:34 and read 8366 times.

I have a saying that I tell my new coworkers here at COexpress/Expressjet. "The grass may be greener on the other side of the fence, but you still have to mow it." I sadly left US because my family needed me down here in CRP. I am now back under the CO umbrella, and I have to say its just as dysfunctional here as it was at US. The players in the drama are different but it still washes out the same. Yes CO is in a much better position than US, but just this morning CO announced a Q1 loss of some $80M dollars, and plans to park about 15 a/c. Parker is a great communicator and never pulled any punches with the employees when it was HP. US is a good company and yes it has its problems, but so does CO, NW, and all the others, even WN. This business is in for a rough ride, and there is nothing that the average employee can do but hold on.
JD

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: FlyHoss
Posted 2008-04-17 07:33:46 and read 7825 times.



Quoting ABQopsHP (Reply 41):
Yes CO is in a much better position than US, but just this morning CO announced a Q1 loss of some $80M dollars, and plans to park about 15 a/c.

Yes, CO will park 14 additional 737-300 aircraft; this is addition to the 34 737-500s and -300s that were already announced. However, this year, CO is taking delivery of 33 738s and 739ERS and 18 more 739ERs next year. So as it stands today, CO's 737 fleet will be larger at the end of 2009 than today and the average size (seats per airplane) of the 737 fleet will be bigger.

Of course, all this is subject to change pending further changes in cost of fuel, the state of the US and world economy and the state of the industry (especially possible mergers).

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: San747
Posted 2008-04-17 09:43:22 and read 6764 times.



Quoting UAL777UK (Reply 34):

I cannot see what US brings to the table that UA wants. UA, needs to merge with CO...period!!

US brings major presence in the southeast and a large Latin-American network via CLT.

Quoting Burkhard (Reply 38):
After the death of so much industry in the US - why should airline industry survice by magic?

Because what would we talk about on A.net?  Wink

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Ca2ohHP
Posted 2008-04-17 09:50:30 and read 6690 times.



Quoting Pnh2atl (Reply 8):
I can't imagine US doing well w/ AA. AA uses a stapler to merge seniority lists and US and AWA can't work things out now. My guess is that US will be back in BK and will eventually enter Chapter 7.

US sits on $3bln cash...it will be awhile.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: United787
Posted 2008-04-17 12:33:17 and read 5557 times.

UA and US, dumb dumb dumb. UA has little to gain from US from a route structure standpoint.

The two things UA needs most is:

1. A southern gateway for Latin America.
2. A NYC Hub.

1. CLT and PHX will never be what MIA, ATL, IAH and DFW are only a slighy improvement over IAD and LAX.
2. LGA will never be JFK or EWR and US already has PHL.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Cubsrule
Posted 2008-04-17 12:46:10 and read 5412 times.



Quoting San747 (Reply 43):
US brings major presence in the southeast and a large Latin-American network via CLT.

Practically anything that US does to Latin America at CLT could be done better at IAD; the local market is larger and it's not that much worse a connecting location. If UA's priority was Latin America expansion (and I think it's pretty clear that it isn't), they could do that now on their own.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: United787
Posted 2008-04-17 13:02:13 and read 5263 times.



Quoting Cubsrule (Reply 46):
Practically anything that US does to Latin America at CLT could be done better at IAD; the local market is larger and it's not that much worse a connecting location. If UA's priority was Latin America expansion (and I think it's pretty clear that it isn't), they could do that now on their own.

Agreed!

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Flyboy7974
Posted 2008-04-17 15:57:58 and read 4405 times.



Quoting D328 (Reply 17):
I hope they file Chap 11 or 7 and just shut down, they are the worst airline in the USA!

another lack-luster, knowledge-lacking, personal opinion with no relevance to topic which again as I've posted through this forum on other posts, if this were all personal want he said/she said bs, this would be the national enquierer, but it's airliners.net to which most share and interact on a professional level with commercial aviation as the drive to posts, topics, debates, and discussion amongst those of us trying to make it through the most trying times that airlines have seen in quite a while.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: TN757Flyer
Posted 2008-04-17 19:52:29 and read 4098 times.



Quoting Rolo987 (Reply 19):
Just because LAS is not on the list in that document doesn't mean they don't have a significant presence there.

They've all but conceded LAS to WN since the merger. Most all the red-eye's that made HP a household name in Vegas are gone, and what they have left can't compete with Southwest.

Quoting F9Animal (Reply 30):
I actually have to argue your hunch. I think US has made some amazing improvements since the merger, and yes, there is still alot of work to be done. But, as far as not surviving, I have to disagree. Really, the merger has done good to their numbers, and profits were unheard of before the merger on the US side.

Three years into a merger, and they still rank consistently at or near the top (or bottom depending on the category) of every negative ranking available. i.e passenger complaints, on-time performance, cancelled flights, lost baggage. If those are amazing improvements, then I have to question what your definition of improvement means. The only reason they make money is they are a near monopoly in many of their markets. Reality is hitting home, and they have a huge problem that if not fixed soon, will see them back in BK court.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: MSYPI7185
Posted 2008-04-17 20:29:41 and read 4014 times.



Quoting Hondah35 (Reply 10):
How do you know what WN can and can't do? They've posted a string of profitable quarters unmatched in the history of deregulated aviation, and you've posted some comments on a.net

Please read, really read what WN said themselves. Living in the past is what doomed PA, TW, BN, etc..IMO.

Things can just as easily turn at WN, as they say I've been there and done that!

Quoting TN757Flyer (Reply 49):
Three years into a merger, and they still rank consistently at or near the top (or bottom depending on the category) of every negative ranking available. i.e passenger complaints, on-time performance, cancelled flights, lost baggage. If those are amazing improvements, then I have to question what your definition of improvement means. The only reason they make money is they are a near monopoly in many of their markets.

Have you looked at their stats the past several quarters? I guess not. US was a so called monopoly in PIT and lost their butt. Also how would you account for all the years of losses in there so called monopolized markets? However I would like to know exactly what markets they are a near monopoly other than maybe CLT.

Fact is things are improving and like many US haters, love living in the past and cannot give credit where it is due. Do not get me wrong they still have a ways to go, but they are on their way. I can remember when many felt the same way about CO.

MD

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: DL Widget Head
Posted 2008-04-17 21:19:40 and read 3924 times.



Quoting MSYPI7185 (Reply 50):
Fact is things are improving and like many US haters, love living in the past and cannot give credit where it is due.

They made some progress with their on time percentage but ONLY by padding the schedules. For example, I looked at all of the mainline flights between ATL-PHX and ATL-CLT where DL and US go head to head. The average time for a DL flight to fly ATL-PHX is 248.3 min or 4.13 hrs. The average time for US for this route is 259.75 min or 4.33 hrs. Same thing with ATL-CLT; for DL the average time is 71.7 min or 1.20 hrs, for US it is 78 min or 1.30 hrs. These are just two examples. Extrapolate that over US's entire system and it's clear that they're padding the flight schedule to make themselves look better in the on-time rankings. The sad thing is, even with this padding, they are still bottom dwellers with on time performance. Is this the type of improvement that US is proffering?

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Hondah35
Posted 2008-04-17 21:35:08 and read 3879 times.



Quoting MSYPI7185 (Reply 50):
Please read, really read what WN said themselves. Living in the past is what doomed PA, TW, BN, etc..IMO.

Things can just as easily turn at WN, as they say I've been there and done that!

Really now, what did you expect Kelly to say? Of course he is going to indicate they are looking for opportunities whether they are or not....to brush aside the notion is a quick way to seeing your share price drop by 20% the next day. Only a.netters read a quote like that and figure that the next day WN will make an offer for AA because "the whole industry has changed". Let's everybody take a deep breath, and realize that even at the current fuel prices, and even if WN had not hedged so aggressively, if fares increased by about 15% it would probably be enough to cover the extra cost.

All I'm saying is that even if drastic things have to happen in this industry, WN is in the driver's seat because they are profitable, and their changes will have to be the least drastic of any airline. They can sit back and watch other airlines merge and cut themselves into oblivion while continuing to run their tight operations. A.net is a little schizo on this issue....one post will claim that airlines have to merge and get big to survive, the next post will claim that AA is among the airlines in the worst shape. Which is it? Nobody has a clue.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Flyboy7974
Posted 2008-04-17 21:41:09 and read 3855 times.

DL Widget Head


and you don't think every airline does that to match seasonal flow of aircraft through their network? In addition, specific to both those routes listed, especially the ATL-PHX, aircraft utilized must be considered, I think on any route a B757/B767 will outperform an A319/A320.

As to route and flight schedule/time padding, this might be the reason we never, never see SWA in the bottom for ontime arrivals/departures. If you're going to make the comment that US does that through their entire system and schedule, we have to then be a little more open-minded and compare/contrast other airlines in addition.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: VC10DC10
Posted 2008-04-17 21:49:36 and read 3820 times.



Quoting WorldTraveler (Reply 13):
While alot of people like to point out the strength of CO-UA, it still has no real presence on the east coast south of DC. It has no viable launching points for Latin America service from the South.

Um, IAH?

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: DL Widget Head
Posted 2008-04-17 21:56:10 and read 3798 times.



Quoting Flyboy7974 (Reply 53):
If you're going to make the comment that US does that through their entire system and schedule, we have to then be a little more open-minded and compare/contrast other airlines in addition.

I was responding to a post specifically about so called improvement at US, not the entire industry. If you feel compelled to compare and contrast every airline in the USA, go for it.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Flybyguy
Posted 2008-04-17 22:19:12 and read 3746 times.



Quoting D328 (Reply 17):
I hope they file Chap 11 or 7 and just shut down, they are the worst airline in the USA!

What a large vacuum that would make on the east coast (especially with all that small town flying they do). But my question is, what value does US Airways bring to any other airline at best? They have no presence in Asia, poor representation in Latin America, and practically every other carrier flies to their destinations in Europe (and then some). Any carrier snatching up US Airways will be taking it solely for its U.S. domestic routes, which last I remember, account for the majority of the staggering losses for every U.S. airline.

I figure US Airways is probably one of those companies better as parts than whole. If they go Chapter 7, the rest of the industry can just pick up the handful of easter eggs and not have to worry about the company's staggering debt, management, integration and labour problems.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: Aggieflyboi04
Posted 2008-04-17 23:02:13 and read 3660 times.



Quoting DL Widget Head (Reply 51):

They made some progress with their on time percentage but ONLY by padding the schedules. For example, I looked at all of the mainline flights between ATL-PHX and ATL-CLT where DL and US go head to head. The average time for a DL flight to fly ATL-PHX is 248.3 min or 4.13 hrs. The average time for US for this route is 259.75 min or 4.33 hrs. Same thing with ATL-CLT; for DL the average time is 71.7 min or 1.20 hrs, for US it is 78 min or 1.30 hrs. These are just two examples. Extrapolate that over US's entire system and it's clear that they're padding the flight schedule to make themselves look better in the on-time rankings. The sad thing is, even with this padding, they are still bottom dwellers with on time performance. Is this the type of improvement that US is proffering

CLT-PHX is 127miles farther then ATL-PHX which would explain the time diffrent of 11mins. Things in the US hubs have imporved over the past few months. So don't say that US is padding there schedules to make them selfs look better. In acutalltly things are getting better from a operations stand point.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: DL Widget Head
Posted 2008-04-17 23:20:48 and read 3636 times.

Quoting Aggieflyboi04 (Reply 57):
CLT-PHX is 127miles farther then ATL-PHX which would explain the time diffrent of 11mins.

How about rereading my post...I'm not even comparing ATL-PHX flights with CLT-PHX flights. The US schedules are padded which is only masking operational issues at US.

[Edited 2008-04-17 23:37:34]

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: F9Animal
Posted 2008-04-18 00:35:45 and read 3566 times.



Quoting TN757Flyer (Reply 49):
Three years into a merger, and they still rank consistently at or near the top (or bottom depending on the category) of every negative ranking available. i.e passenger complaints, on-time performance, cancelled flights, lost baggage. If those are amazing improvements, then I have to question what your definition of improvement means. The only reason they make money is they are a near monopoly in many of their markets. Reality is hitting home, and they have a huge problem that if not fixed soon, will see them back in BK court.

Rome was not built in a day, and 3 years is pushing it. There are still many things that need to be fixed, and it is not going to happen overnight. Show me a major merger of companies that showed immediate perfection. It could take 10 years for things to smooth out from this merger. Republic and Northwest merger took years to get tweaked, and they had tons of hurdles to jump to get it done.

I am sure Parker and his team are fully aware of the rankings and issues at hand. I also know that Parker and his team are taking the challenge head on, and will tackle ONE issue at a time. Rankings are not going to put US in bankruptcy. Their flights are full, and they are improving daily. They also perform safely (that is the key to it).

Amazing improvements are right in front of your eyes. Look at the financial performance of the carrier. 3 years ago, US Airways was in bankruptcy, and footsteps away from shutting their doors. America West Airlines came around the corner, and took the chance. In 3 years, there have been amazing improvements. Amazing that they are where they are today. Also take into consideration that America West took on a huge mess by swallowing up US Airways east. The problems you mention were inherited, not created.

Improvements will come, it just takes time. In the meantime, I stand tall and thank every employee of US Airways for their hard work. Rankings mean nothing to me, when I am happy with who I choose to fly. US has my business, and last time I looked, had plenty of other customers following me to the ticket counter.

Topic: RE: US Air Has To Make "dramatic Changes" - Parker
Username: F9Animal
Posted 2008-04-18 00:47:28 and read 3550 times.



Quoting Mainliner (Reply 32):
Finally, a voice of reason amid all the unfounded "US is the worst airline in the world" clatter. Refreshing, really. Thank you F9Animal.

You are very welcome. I know US is not perfect, but,,,, show me an airline that is perfect. If I got nit picky, I could find a fault in every single airline. US is a fine airline, with great employees. I love US Airways, and I support them to the fullest.

Quoting Motopolitico (Reply 36):
The bulk of US complaints stem from their PHL hub. It is truly an abomination. Congestion, late flights, lost bags, and wretched employee attitudes. US west coast is not really US. If you want to know the true US experience, try connecting at Philly sometime.

PHL was inherited. I agree, there are some issues there. We know the issues were there long before HP came into the picture. I can put money down that Parker has a team working on these issues. It is going to take a lot of work, but it is fixable. Time and training take time and money. There will be improvements, I know it.

Quoting San747 (Reply 33):
I agree with Mainliner completely, it is quite refreshing to hear that from... anyone on this forum. As a former employee and one who still has US pride, I thank you as well.

Thank you too! I have the US pride, and I am a former US East employee. I can rewind the tape, and look at the current. You bet your sweet candy that US Airways has improved. Still lots of work to do, but it will get better.


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