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lindy field
Posts: 2939
Joined: Tue Mar 27, 2001 1:52 pm

Some Good News For US Airways

Thu Jun 06, 2002 7:35 am

Airwise is reporting today that US Airways' pilots are willing to take pay and benefits cuts to help improve the financial position of the airline.

ALPA's offer would allow US Airways to cut over $320 Million in labor costs over the next seven years. The company proposed cuts which would lead up to $595 million in savings over the same period, but US Airways crews have indicated that they would be willing to make other concessions.

ALPA also indicated that US Airways pilots are willing to allow an increase in the number of regional jets operated by the airline, which would bring the total to over 300.

US Airways also received good news from the US gov't. The US Senate rejected a motion to freeze new federal loan guarantees during the current fiscal year.


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Will US Airways be able to transform itself into a profitable carrier or will these concessions be too little, too late?
 
762er
Posts: 522
Joined: Thu Feb 08, 2001 8:18 am

RE: Some Good News For US Airways

Thu Jun 06, 2002 7:41 am

I believe US Airways will make it and eventually flourish. The employees have faith in Siegel and have shown that they want to see their airline succeed. I start work with them, as a matter of fact, starting next week in flight safety and I'm really looking forward to it.
 
BA
Posts: 10133
Joined: Fri May 19, 2000 11:06 am

RE: Some Good News For US Airways

Thu Jun 06, 2002 8:01 am

I have always respected US Airways and always thought of them as a great US airline.

I am hoping that they will pull out of the crisis they are in. I'd really hate to see them diminish like Pan Am and Eastern did.

This is a good sign though. Maybe things will start to turn around for them slowly.

Regards
"Generosity is giving more than you can, and pride is taking less than you need." - Khalil Gibran
 
roguetrader
Posts: 1404
Joined: Tue Aug 03, 2004 5:14 am

RE: Some Good News For US Airways

Thu Jun 06, 2002 8:04 am

All these threads we've seen on here like 'who will take over U's hubs?' or 'who will buy the east coast shuttle?' are all way too premature. U's route system IS solid, it just needs to get its costs down to a level that make it profitable and improve on some operational efficiencies. If it could get a major step up, like perhaps a major codeshare or FF mileage partner, this could really help. Likewise, something bad, like more terrorism, could be deadly. But, if things stay 'normal', US Airways can pull it out if it concentrates on the true value it owns: which is a commanding presence on the east coast.

I flew on US Airways for the first time in my whole life a few weeks ago (in Texas, US is not huge) and I was pleasantly surprised at how nice the employees are. Sure, the seats were the same as everywhere, but the nice people can really make a difference, just like they do on WN.

If the economic recovery continues, if there is no more terrorism, and if US can get a handle on its costs, I think its survival is assured and it can once again look forward to growth. With all that said: I do see USAirways as a probably merger or acquisition target at some point.

kind regards,

RogueTrader