Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
US Airways New Survival Strategy  
User currently offlineAlphascan From United States of America, joined Nov 2003, 937 posts, RR: 13
Posted (10 years 8 months 2 weeks 2 days 8 hours ago) and read 3279 times:


Linked below is an interesting article on US Airways' new survival strategy. I applaud their efforts to concentrate on improving the service on the mainline and not taking their eye off the ball by creating an "airline within an airline" again.

That being said, I was shocked to see their CASM is still over 10 cents NOT including fuel expense. I have no idea how they rank in labor costs but it seems odd to me that their CASM is still considerably higher than DL's after the much publicized wage cuts. How do wages at US compare to UA and AA? Is there any more fat to be cut out of other expenses?

One thing is for sure. They won't survive with CASM that high and WN coming into their markets to cut their yields considerably.


http://cnniw.yellowbrix.com/pages/cnniw/Story.nsp?story_id=47038266&ID=cnniw&scategory=Aviation%3AAirfares&


"To he who only has a hammer in his toolbelt, every problem looks like a nail."
10 replies: All unread, jump to last
 
User currently offlineSsides From United States of America, joined Feb 2001, 4059 posts, RR: 21
Reply 1, posted (10 years 8 months 2 weeks 2 days 7 hours ago) and read 3198 times:

USAirways has consistently had the highest labor costs in the industry, primarily because their focus is in the Northeast. Three factors make this region a difficult place to do business, particularly for an airline: (1) unions are very powerful, especially in Pennsylvania, home to two US hubs; (2) the cost of living in the region is higher than just about anywhere in the United Staets, meaning higher wages; and (3) the region has been stagnant economically over the past decade, at least when compared to the rest of the country. All these things make it difficult for US to turn things around. A few years ago, USAirways flight attendants threatened to strike, rejecting a "Parity +1" pay package that would have made their pay 1% higher than flight attendants throughout the rest of the industry. With labor costs like these, it's no wonder their CASM is so high.


"Lose" is not spelled with two o's!!!!
User currently offlineAA717driver From United States of America, joined Feb 2002, 1566 posts, RR: 13
Reply 2, posted (10 years 8 months 2 weeks 2 days 6 hours ago) and read 3066 times:

I believe U's pilot pay is about the same as UAL's. Plus, they aren't paying out retirement benefits.

The labor costs cannot possibly be the root of the high CASM. If they are, their bankruptcy lawyers and CEO should be shot.TC



FL450, M.85
User currently offlineNIKV69 From , joined Dec 1969, posts, RR:
Reply 3, posted (10 years 8 months 2 weeks 2 days 4 hours ago) and read 2969 times:

It's an uphill battle, this spring will be key for USAir, I think WN starting service in Philly this May is going to be the final nail in their coffin. If they can survive that well who knows..

User currently offlineConcordeBoy From , joined Dec 1969, posts, RR:
Reply 4, posted (10 years 8 months 2 weeks 2 days 4 hours ago) and read 2944 times:

Its costs per available seat mile, or ASM -- a common benchmark in the industry -- were $10.22 in the fourth quarter of 2003

hmm, a ten dollar CASM.... correct me if I'm mistaken: but aren't Eastern's, PanAm-I's, and Vanguard's CASMs all lower than that?  Big thumbs up


__________________
Faire du ciel le plus bel endroit de la terre c'est impossible sans Concorde!
~ConcordeBoy

[Edited 2004-02-14 00:26:56]

User currently offlineN670UW From United States of America, joined Jul 2003, 1605 posts, RR: 8
Reply 5, posted (10 years 8 months 2 weeks 2 days 4 hours ago) and read 2874 times:

Its costs per available seat mile, or ASM -- a common benchmark in the industry -- were $10.22 in the fourth quarter of 2003



Clearly a mistake in the syndicated article. The real article from the PIT PG is here...

http://www.post-gazette.com/pg/04044/272452.stm

...which displays 10.22 cents.




670


User currently offlineElwood64151 From United States of America, joined Feb 2002, 2477 posts, RR: 6
Reply 6, posted (10 years 8 months 2 weeks 2 days 3 hours ago) and read 2803 times:

Actually, NJ's CASM was lower than 10.22 cents per mile. The real problem was revenue...

Cheers!



Those who fail to learn history are doomed to repeat it in summer school.
User currently offlineTOLtommy From United States of America, joined Dec 2003, 3299 posts, RR: 4
Reply 7, posted (10 years 8 months 2 weeks 2 days 1 hour ago) and read 2662 times:

US is facing the same problem. They've had the highest costs in the industry for years. But it was offset by the high revenue biz traveller. But like all the legacy carriers, they killed their golden goose. Their quest for lower distribution costs open all their fares to public scrutiny over the web. The public had begun to find ways around those last minute full Y fares when 9/11 occured. Thet drove the remaining biz travellers into their cars. The smart carriers are the ones who can be profitable carrying leisure travel. The biz travel is gravy.

User currently offlineUSAir734 From United States of America, joined Jan 2004, 57 posts, RR: 0
Reply 8, posted (10 years 8 months 2 weeks 2 days ago) and read 2623 times:

Pretty refreshing considering the last news i heard from USAir; selling off shuttle, possibly a hub and certain Express routes.

User currently offlineNWAFA From United States of America, joined Dec 2003, 1893 posts, RR: 15
Reply 9, posted (10 years 8 months 2 weeks 2 days ago) and read 2615 times:

I just hope US makes it! WN saw a week place and pounced on it..as much as I dont like WN, it was a strong business move.

Keeping my fingers crossed for US! They can do it!



THANK YOU FOR FLYING NORTHWEST AIRLINES, WE TRULY APPRECIATE YOUR BUSINESS!
User currently offlineTOLtommy From United States of America, joined Dec 2003, 3299 posts, RR: 4
Reply 10, posted (10 years 8 months 2 weeks 2 days ago) and read 2602 times:

Posted by NWAFA-

"as much as I dont like WN"

----------------------------------------------

Yet in another thread you talk about how you've commuted on them for years. How nice of you to spit on the hand that flies you to work.


Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
US Airways New Website posted Mon May 22 2006 04:29:27 by Transtar01
US Airways New SNA Service posted Wed May 3 2006 03:20:52 by Wnsocal
US Airways New Colors posted Wed Jan 11 2006 17:48:07 by Ejaymd11
US Airways... New Livery... Are New Uniforms Next? posted Tue Aug 23 2005 23:08:01 by Richardnhsv
Pics Of US Airways New Retro Schemes posted Tue Aug 23 2005 16:45:07 by MAH4546
US Airways , New Flight To Venice posted Mon May 9 2005 13:15:41 by LXsaab2000
US Airways New Front Lavatory Policy posted Fri Sep 3 2004 16:59:24 by PHLBOS
US Airways New FLL-BDA Service..a Test? posted Tue Apr 15 2003 22:33:29 by John
US Airways New Ticket Policy posted Wed Aug 28 2002 02:23:45 by UAL747
US Airways New Cities To St. Kitts posted Wed Apr 24 2002 21:20:19 by ScottysAir