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Usair Urgent Changes Or Airline Will Die  
User currently offlineKKMolokai From United States of America, joined Feb 2000, 760 posts, RR: 2
Posted (10 years 6 months 9 hours ago) and read 2055 times:

Thursday, 25 March 2004

oneworld news and member airline news

US Airways staff warned major changes needed urgently 'or the airline will die'

US Airways Chief Executive David Siegel yesterday delivered a blunt message to the airline's workforce: Make major changes to reduce cost or the company will collapse.

With Southwest launching services from Philadelphia, one of its three main hubs, in less than two months, small fixes or temporary solutions would not enable US Airways to survive, he told them: "Southwest is coming to Philadelphia in May, and they're coming for one reason: they're coming to kill us. They beat us on the West Coast, and they beat us in Baltimore. If they beat us in Philadelphia, they're going to kill us."

In a webcast address, he said the airline needed to reduce unit costs from 10 cents to 6 cents with new labour agreements in place by this summer to be able to compete.

It would have to compete with Southwest on price or lose its customers, with a fare structure akin to a low-cost carrier. In addition, it would need to make changes to its schedules, fleet, shift to a single-class in-flight service with improved entertainment and revamp its website, to increase its proportion of internet sales.

We are the people of American Airlines. And we know why you fly.
8 replies: All unread, jump to last
User currently offlineSHUPirate1 From United States of America, joined exactly 11 years ago today! , 3670 posts, RR: 16
Reply 1, posted (10 years 6 months 9 hours ago) and read 2040 times:

I can see the headline...

Shareholders Warn: Dave Siegel Step Down Or This Airline Will Die

If Dave Siegel thinks he can actually get the CASM down to six cents, he should be in a mental institution, not running one of the world's 20 largest airlines... Nuts

Burma's constitutional referendum options: A. Yes, B. Go to Insein Prison!
User currently offlineUal747den From United States of America, joined Dec 2003, 2392 posts, RR: 11
Reply 2, posted (10 years 6 months 8 hours ago) and read 1956 times:

He is right! The airline MUST start cutting costs EVERYWHERE or they will die. Employees need to take paycuts and do everything they can to be more productive or they will not longer have a job. All the unions and employees complain about this, but what are they going to do when US is no more? You either take cuts now or you loose everything when the company shuts down. I hate it when unions try to stop airlines from cutting costs and being successful. There is no other option for US at this point, they can choose to work for not so good wages or they can choose to not have a job at all, then how much money are they going to make? For everyone that says they would just go to work for a different airline, Now is the time to do it, you need to leave US right now and start looking elsewhere because any employee that is not willing to take a paycut will ne out of a job very soon because US will die if cuts are not made.......

Also for all the US employees, when you go apply for another job at any other airline do you think they are going to pay you more or even what you are getting paid now? NO THEY ARE NOT, every airline is cutting costs right now and any new employee at any airline will be paid less than what you are making right now, and you will also give up your seniority. Think about your other options, they are not too good....

[Edited 2004-03-25 19:47:31]

User currently offlineSHUPirate1 From United States of America, joined exactly 11 years ago today! , 3670 posts, RR: 16
Reply 3, posted (10 years 6 months 8 hours ago) and read 1942 times:

Ual-That part is indisputable...there are two ways for an airline to become more profitable, either raise revenues or cut costs, and US Airways clearly has to do both (on a unit basis anyway)...that said, I'm not sure that there is a snowball's chance in purgatory that US Airways' unit costs would ever be 6 cents per available seat mile, even if Dave Siegel had a free hand in setting the wages of his employees (which he clearly doesn't)...even if he was paying all of his employees a flat salary of ZERO dollars and ZERO cents, I think that might be enough to BARELY get under his 6 cents threshold...

Burma's constitutional referendum options: A. Yes, B. Go to Insein Prison!
User currently offlineUAL Bagsmasher From United States of America, joined Sep 1999, 2147 posts, RR: 10
Reply 4, posted (10 years 6 months 8 hours ago) and read 1927 times:

There comes a time when you have to decide whether it's worth holding on any longer. True, everyone will be out of a job. But they can begin a new career and move on with the rest of their lives that much sooner. Living with the uncertainty everyday if and when your company is going to collapse can actually be worse than looking for a new employer. You have to draw the line somewhere when enough is enough. Are the employees supposed to work for charity to keep the airline afloat?

User currently offlineUal747den From United States of America, joined Dec 2003, 2392 posts, RR: 11
Reply 5, posted (10 years 6 months 8 hours ago) and read 1838 times:

UAL bagsmasher
I agree with you, however the employees that are at this point need to just quit and get out. They shouldn't take the rest of the airline down with them. Some employees will realize that they are making a few extra cents than they would make if they started out new at another airline. If the airline cuts costs there might even be a chance the airline will be around for a while and the people that have been with US might even have a chance to retire from there. It is just up to the employee and where they want to go and where they want to see the company go. Me personally, I think that I would just find another job and not deal with the stress, but you would never catch me voting against pay cuts when that is the only thing at this point that will keep the airline alive. I would rather let other employees that want the cuts keep their jobs than all of us go down.....

User currently offlinePHLapproach From Philippines, joined Mar 2004, 1244 posts, RR: 19
Reply 6, posted (10 years 6 months 8 hours ago) and read 1824 times:

What I don't understand is that US is now worrying about WN encroaching on PHL, when WN released that news in I think November and US didn't do a thing, still haven't. I guess they are going to wait till May 8th to do something about this.

User currently offlineBicoastal From , joined Dec 1969, posts, RR:
Reply 7, posted (10 years 6 months 7 hours ago) and read 1734 times:

Had you scrolled down a few more topics, you would find this discussion already well underway:


User currently offlineNIKV69 From , joined Dec 1969, posts, RR:
Reply 8, posted (10 years 6 months 3 hours ago) and read 1604 times:

I agree with bagsmasher, USAirways is basically gone as it is. By prolonging this it just makes it worse. They can't compete with WN and B6 and can't pay their debt. So why bother? Free up them gates baby here comes WN!!!

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