usair330
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US Airways Might Be The Airline Of The Future

Mon Dec 30, 2002 3:30 pm

Although US Airways is under Chapter 11 Bankruptcy, it is becoming a better airline everyday. US Airways has always been an expensive airline to fly. (I should know) But now that it's quickly coming out of chapter 11 bankruptcy the airline is improving. Within the next 10 years US Airways will have an all Airbus fleet, but will also be flying lots of its flights with Regional jets, which will save the airline money. But by seeing that the airline can come out of bankruptcy that proves to me that it is an airline that can and will improve. Although alot of other airlines are considered better, US Airways will always be the number one airline for me.


Don't turn your back on your favorite airline, cause when u least expect it they'll pull ahead!!!



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B747-437B
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RE: US Airways Might Be The Airline Of The Future

Mon Dec 30, 2002 3:52 pm

when u least expect it they'll pull ahead!!!

However, they are more likely to cease operations and liquidate.

REALITY CHECK.
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada
 
gigneil
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RE: US Airways Might Be The Airline Of The Future

Mon Dec 30, 2002 4:09 pm

Heh, how rude.

He was just trying to indicate faith. If you want to start battling faith, I have reality checks for a LOT of people.

N
 
usair330
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RE: US Airways Might Be The Airline Of The Future

Mon Dec 30, 2002 5:04 pm

See that's what everyone's expecting to happen. But if it ever does cease operations it'll be right behind American Airlines.
 
B747-437B
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RE: US Airways Might Be The Airline Of The Future

Mon Dec 30, 2002 5:48 pm

See that's what everyone's expecting to happen

Yes, that is somewhat of a realistic expectation from a BANKRUPT company isn't it?
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada
 
gigneil
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RE: US Airways Might Be The Airline Of The Future

Mon Dec 30, 2002 5:54 pm

There's no need to be a jackass about it. Many companies the world-wide survive bankruptcy every day.

It doesn't hurt to have a little faith. Everything we've heard from US is very positive. A little hope can't hurt.

If US does fail, it's a sad day for the US economy in general.

N
 
B747-437B
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RE: US Airways Might Be The Airline Of The Future

Mon Dec 30, 2002 5:57 pm

Everything we've heard from US is very positive.

Either you are being sarcastic here, or you are not listening to the same things as everyone else.
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada
 
buckfifty
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RE: US Airways Might Be The Airline Of The Future

Mon Dec 30, 2002 6:20 pm

Everyone knows things are crap right now, especially for those of us who have a vested interest in this business. So why be so poignant about all this? A little optimism never hurt anyone, even if you think it's misplaced.
 
Cody
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RE: US Airways Might Be The Airline Of The Future

Mon Dec 30, 2002 11:20 pm

USAir330 you are right. You never know when things may "pull ahead." Just a few months ago some very prominent and outspoken people on this board were saying, "USAir will be gone by 2003".....Well that means they have today and tomorrow left to be accurate. They were saying things like, "there is absolutely no way at all they will survive. Just look at their CASM's that tells it all." Then on the other hand there were people saying things like, "nothing will ever happen to United because they have Heathrow slots and they ordered the Triple 7 before anyone else".......The fact is, nobody knows what is going to happen. For all we know, Dave Seigel could win the lottery tomorrow and donate it all to USAirways. So why not have hope? The next few weeks are very important. ALL The Unions must agree to the recent TA's. If they don't they won't have an airline to come back to. Therefore I cannot see how it is a hard decision. The Pension Fund must also be settled. From what I have been told, things look 'cautiously optimistic' in regards to the Pension Fund. There are also a few wildcards in play....Iraq being one of them. At any rate, USAirways, especially the employees (who are among the most dedicated I have seen......Where do they find these people?) are doing everything possible to be ready for the turnaround if and when it occurs. What else can you do? Here me when I say this......If all the pieces fall into place USAirways is going to be a forerunner......Watch and see. Hang on for the next couple of weeks.......This is it!
 
DELTA777
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RE: US Airways Might Be The Airline Of The Future

Mon Dec 30, 2002 11:23 pm

I`m hoping my favorite will survive, i`m a bit sceptical about them surviving, But I hope htey will.


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B747-437B
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RE: US Airways Might Be The Airline Of The Future

Mon Dec 30, 2002 11:35 pm

For all we know, Dave Seigel could win the lottery tomorrow and donate it all to USAirways

Talk about clutching at straws!  Smile
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada
 
BR715-A1-30
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 12:03 am

Hey Sean,

It could happen  Smile

I hope USAirways DOES pull out of this cold streak and get themselves back into the game.
Puhdiddle
 
UN_B732
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 12:17 am

I agree! I have always loved USAir!
What now?
 
AA767400
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 12:25 am

USair330,

"But if it ever does cease operations it will be right behind American airlines"


AMR is in much better shape then USair. AA, is not in the best
shape, but, far from the drama at USair. I don't want US to go under,
but, Get you facts straight!


"The low fares airline."
 
N79969
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 12:32 am

How far away is US from the edge? What is the probability of liquidation? My sense of the news coming out of US is that is mildly positive-- liquidation is not inevitable.
 
donder10
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 12:35 am

Yes he is right.This time next year US will be an airline behemoth with new PHL-TLV/CAI/SNN/LTN routes being operated by their newly acquired fleet of 744s all ex-UA(a way of supporting their new alliance partner).US continue to expand their services at LHR(having bought them from UA)but constraints on operating to CLT+PIT force them to open alternative routes such as SEA-LHR.
 
flashmeister
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 12:37 am

Dashes of reality:

1. USAirways has successfully muddied relations with its Debtor-in-Posession (Alabama Pension Fund) by not even coming close to financial targets set at the beginning of the Chapter 11 filing, and the DIP has made it very clear that he's more than willing to shove the airline into Chapter 7 to free up his money for other investments. Chapter 7 spells game over, folks. From that, there is no escape unless we talk about US Airways II, which would be dramatically different, if at all possible.

2. Reliance on wage cuts by unions does not change the underlying business model which was not successful. If US ever does emerge from Chapter 11, they'll be staring at bankruptcy again when the union theives want their money back at the next contract negotiation.

3. The US government, specifically the ATSB, has shown (correctly) that it is not willing to prop up airlines with high cost structures and dreamy business plans that are incompatible with realistic market forces. Don't believe me? Take a stroll to Oak Grove Village and ask for Mr. Tilton and company.

4. Even with all of these Airbus orders, close to none of them will come to fruition. Who would pay for them? A bum wouldn't lend US a quarter nowadays -- their credit is shot, for a long time to come. They'll have to make due with what they have, which is a fleet that has taken big steps toward rationalization, but still has a way to go, especially with the elderly 752s, elderly 762s, and the 737 Classics.

5. Finally, a point: in just about every case, you cannot DONATE money to a for-profit corporation. You have to invest. Even Saint Siegel is not shortsighted enough to invest in US right now.

-Aaron
 
SQ325
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 12:40 am

US definitely operates the most modern fleets compared to UA,DL, NW and CO so they should be well prepared for the next years when other airlines need to pay mrd of $ for replacements US is in a little advantage.
I really hope they survive their current probs without being absorbed by another airline. They have the potential to become a very profitable Airline.
If they survive the next 12 or 18 month the chance to survive will be high.
Lets hope the best for US!!!
 
KROC
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 12:41 am

And since when is US "quickly coming out of" Chapter !!?
 
flashmeister
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 12:54 am

Tell me specifically why I should hope the best for an airline with an irrational business model and historically astronomical costs, especially when they're looking at getting governmental support?

Frankly, I really do hope that US and UA fail and liquidate. Out of the ashes of these failed airlines can rise new carriers with a more realistic business model, who can stand on their own two feet without asking Uncle Sam for help, creating new (more stable) jobs and investment opportunities.

Yes, I do feel bad for those who would be out of work, but again to be frank, that's the way the mop flops. When you work for a carrier who is financially unstable, that is a potential outcome. If the large computer company that I once worked for was to enter bankruptcy -- as it was near more than once -- I would not expect the government to help me beyond my normal unemployment insurance. I would not expect Uncle Sam to artifically prop up the company to save my hide. I would sharpen my pencil, write a resume, and get to work finding another job.

Propping a failed entity up just because it's been around forever is the WORST solution. Allowing the market to work its wonders and allow companies to fail, thereby helping nurture new, stronger businesses, is the most prudent way to proceed.

-Aaron
 
haveric
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 1:05 am

1. You don't think Seigel has invested in U? He was a young well-respected CEO who willingly entered a company headed towards bankruptcy. I think he made a huge personal investment by risking his career on his ability to save U.

2. I wish everyone who said that U would not survive 2002 would come out now and apologize. We all know about the a.net member who recites CASMs like it's his own little religion -- if I had the time, I'd go back and look at his failed prophecies.

3. For people complaining about the U business model -- they've made a lot of strides since 9/11. They've eliminated point-to-point routes that eliminated profit from their hubs, increased long-haul Carribean service, and are continuing to expand European service.

4. U must now hope that a war in Iraq doesnt decimate American's desire to travel.
 
flashmeister
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 1:20 am

1. You don't think Seigel has invested in U? He was a young well-respected CEO who willingly entered a company headed towards bankruptcy. I think he made a huge personal investment by risking his career on his ability to save U.

Yes, I do. Officers of a corporation almost always are required to invest. It would be interesting to see, however, if Siegel's investment is above that which is required. Even if it was, I'd think it would be a sure bet that he would not invest a newly-won-million into the carrier.

2. I wish everyone who said that U would not survive 2002 would come out now and apologize. We all know about the a.net member who recites CASMs like it's his own little religion -- if I had the time, I'd go back and look at his failed prophecies.

Failed prophecies? Not so sure. So, US survived 2002. I, also, am surprised. While the member in question and I locked horns on U more than once in 2001, on this point, he and I agree. US' CASMs are not competitive, period. CASM is a big reason that they're in Chapter 11 to begin with, and why they're teetering on the edge of liquidation.

3. For people complaining about the US business model -- they've made a lot of strides since 9/11. They've eliminated point-to-point routes that eliminated profit from their hubs, increased long-haul Carribean service, and are continuing to expand European service.

Routes are only one part of the business model -- US still has high labor costs, loads and loads of debt at less-than-competitive rates, and hostile relations with labor (albeit improving, thanks to Wolf). Add to that the increasing creep of the LCCs into US' territory, which makes the portions of the business model that don't involve specific routes or equipment all that more important.

4. U must now hope that a war in Iraq doesnt decimate American's desire to travel.

Amen, sing it brother.

Also, another point: U is no longer a good way to refer to the airline. Their ticker symbol is UAWGQ.OB
 
flashmeister
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 1:25 am

Correction:

My response in number three should read...

...and hostile relations with labor (albeit improving, NO thanks to Wolf)...
 
User avatar
EA CO AS
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 1:32 am

SQ325-

US has a younger fleet than CO? Please back up that statement with statistics.

Oh...you say you can't? Probably because you're WRONG, sir. The youngest fleets of the majors are operated by CO and AS, respectively. TZ is quickly gaining ground by replacing their B-727s and L-1011s with new B-737-800 and B-757-300 equipment, though.

http://www.usatoday.com/travel/news/2002/2002-06-04-fleets.htm

I sincerely hope that US pulls through, but odds are they'll be in Chapter 7 within six months. They've surprised us all by pulling back from the edge they teetered on two weeks ago, so perhaps there are a few more rabbits in Dave Siegel's hat.






"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
haveric
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 1:34 am

By invest -- I meant not with his cash, but with his career.

You've already corrected yourself on labor costs, but has anyone seen a current calculation of U's CASM? The numbers used by people on this forum are old, outdated and useless. You'll need to wait and see at what level U is at post-bankruptcy.

Much of their debt will be wiped out in bankruptcy, as well non-competitive work rules. It will be a long fight -- but U prepared well for bankruptcy (unlike UA, which was forced in by a sorry turn of events).

 
AA717driver
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 1:41 am

I'll say it again--companies do not spring out of Ch. 11 and dominate their industry. They limp along, struggling for altitude like an overloaded 747-100 on two engines.

Whoever made the point about debt and credit was right. USAir will pay dearly for borrowing money(which they will have to do when they emerge), they will pay dearly for aircraft(AA slashed TWA's lease rates by, I believe, 30%) and they will still have to battle the competition--both LCC's and the remaining "cartel" carriers.

I hope they make it for the sake of my pilot friends there who have invested their careers in a horribly mismanaged company in a horribly mismanaged industry. I've said for a long time that most airline managers aren't competent to run a 7-11.TC
FL450, M.85
 
flashmeister
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 2:14 am

has anyone seen a current calculation of U's CASM?

For the quarter ending 9/30/02, which did include a bit of its Chapter 11 stint, US' CASM was 10.95. That is a 10% reduction year over year, but in the same period, we saw...

Midwest Express: 11.60 (-7.9% from last year)
United: 10.90 (-3.3% from last year)
American: 10.38 (-6% from last year)
Delta: 10.33 (+6.8% from last year)
Alaska: 9.51 (-4.9% from last year)
Northwest: 9.24 (-2.2% from last year)
Continental: 8.90 (-4.7% from last year)
AirTran: 8.21 (-8.8% from last year)
Frontier: 7.95 (-16.3% from last year)
America West: 7.73 (-10.7% from last year)
Southwest: 7.38 (-2% from last year)
ATA: 7.23 (-3.5% from last year)
jetBlue: 6.41 (-7.5% from last year)

So US' costs are right up there with United and Midwest Express, not the best of company.

For legacy carriers, the average CASM was 10.12. US would need to cut costs by another 9% or so to reach just the average for legacy carriers -- then, when you take their financial position relative to Delta, Continental, Northwest, etc., into consideration, their CASM needs to be much lower than this to be truly long-term competitive. I don't think that we'd see year over year reductions in CASM of 20% or so, which is what would be required. Only two airlines posted 10+ percent reductions, and none of them were legacy carriers.

Let's look at the real competition, though:

For LCCs, the average CASM was 7.48. To achieve this average CASM with their true competition -- now and in the future -- US would need to cut costs by about 60%. I don't think that anyone ever expects this to happen.

So, if US does pull through Chapter 11, which would surprise me, they still will be prey for the LCCs, and easy prey at that. All it takes is a few route reductions, and Herb himself will appear at CLT or PIT nailing up Southwest signs.

Other carriers have some furniture to burn or are trying to make the decisions necessary to get CASM below 10 cents. US and UA, however, have not, and this is the consequence.
 
N79969
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 2:59 am

AA717_Driver,

"I've said for a long time that most airline managers aren't competent to run a 7-11."

This is a common refrain from labor unions. It's just as common as the "greed union" complaint thus I don't think it is any more credible. It does not stand to reason that airline managers are any more or less competent than their brethern in other industries. I think the simple fact is that the airline industry is a pretty close to a zero-sum game and even optimal outcomes in the airline industry are often money-losing.

 
Cody
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 3:15 am

OK everybody when I said Dave would donate his lottery winnings to USAir I was speaking figuratively. Give me a break I am not that stupid. I am just saying anything is possible. Also, to wish a liquidation on anything or anybody is a personal insult to every hardworking employee out there. And don't tell me "don't take it personal it would be best for the whole industry" because frankly it is personal no matter how you put it.
 
ouboy79
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 3:23 am

Routes are only one part of the business model -- US still has high labor costs, loads and loads of debt at less-than-competitive rates, and hostile relations with labor (albeit improving, thanks to Wolf). Add to that the increasing creep of the LCCs into US' territory, which makes the portions of the business model that don't involve specific routes or equipment all that more important.

Agreed...routes are only part of the business model. The recent announcement that all 757s will be refitted with just 8 first class seats and the rest coach to fly the NE>Florida corridor will help to shift all 321s to transcon flying. All debt is being renegotiated. In fact, their aircraft leases have pretty much been slashed by more than half and other lease agreements greatly reduced.

The new contracts will help to push U's target ASM lower in the 8-9 cent range. Their new RJ fleet will be funded by GECAS as they will pick up 5-6% of the company in return - so I guess some companies are willing to loan money to U.

One interesting development is the replacement of the Shuttle fleet with 737s. The 319s and 320s will then be redeployed on new Caribbean/Mexican/South American routes.

 
flashmeister
Posts: 2671
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 3:32 am

RJs do not low CASMs make -- in fact, a lot of the time, RJs can be very expensive to operate. I hadn't heard about the shuttle fleet going to 737s.

These are all good developments, but I don't think that they're going to save the airline -- these are moves that should have been made a year ago, but were not. With the Alabama bunch not in the mood to be all that patient, US may not have the time to do what it needs to do.

I seriously doubt, however, that US' costs will ever be in the 8-9 cent range, especially considering their markets, average stage lengths, and labor costs even after givebacks.
 
ConcordeBoy
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 3:44 am

Is it not true that no airline has survived more than 10 years outside of Chpt 11?
Faire du ciel le plus bel endroit de la terre c'est impossible sans Concorde!
 
deltairlines
Posts: 6875
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 3:51 am

Continental was in Ch. 11 a decade ago and now they are one of the strongest carriers. Yet, they are pretty much the lone exception, as pretty much every other carrier (with the exception of AmWest) is dead or has been acquired.

As for the 757s, I guess that means we won't see A321s in New England any more? I know that currently at MHT there are A321s routed MHT-PHL-LAX and MHT-PIT-SFO.

Jeff
 
Tom in NO
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 4:21 am

Being in airport management, I don't understand airline finances as well as others do here, but one number in Flashmeister's CASM comparison jumped out at me, and I wonder who all noticed it, as well:

Delta: 10.33 (+6.8% from last year)

If I'm interpolating these number correctly and these trends continue, within a year DL will have overtaken not only US, but also AA, MidEx, and UA with the highest CASM's going.

Scary thoughts indeed.

Tom in NO (at MSY)
"The criminal ineptitude makes you furious"-Bruce Springsteen, after seeing firsthand the damage from Hurricane Katrina
 
DCA-ROCguy
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 4:25 am

For legacy carriers, the average CASM was 10.12. US would need to cut costs by another 9% or so to reach just the average for legacy carriers -- then, when you take their financial position relative to Delta, Continental, Northwest, etc., into consideration, their CASM needs to be much lower than this to be truly long-term competitive. I don't think that we'd see year over year reductions in CASM of 20% or so, which is what would be required. Only two airlines posted 10+ percent reductions, and none of them were legacy carriers.

Aaron's right. Yes, US Airways survived 2002, but just barely. And after Siegel's cost-cutting wizardry, US still has a Cartel-high CASM? Even the second round of wage cuts, spurred by Bronner's early-December Chapter 7 threat, if ratified, won't put US Airways anywhere near a Cartel-low (8.9 to 9.5 cents) CASM that some forum members have confidently predicted.

As I noted often during the past 3 months (and which my critics here failed to notice), it is indeed no longer impossible for US Airways to survive. But it's still a long shot. In the next three months alone, US must survive: winter, Round II with Saddam (probably), and David Bronner's impatience.

Also, US should not expect to ever get close to its rapine 1990's yields in the Northeast, if they do survive. Business and leisure travelers remained much stingier in 2002 than was widely forecast at the beginning of the year. That's because, as I remain confident, a sea change has occurred in the market's tolerance for high fares. US will need to get down to 8.9-9.5 cents CASM if they want to endure in the Northeast. Although anything seems possible these days, I still don't see that happening in time to save them.

Jim
Need a new airline paint scheme? Better call Saul! (Bass that is)
 
FlyPNS1
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 4:39 am

DL's CASM is very skewed in comparison with the others and here's why.

DL's reported CASM includes Comair and ASA (which are owned by DL). As most on this board know, the RJ's that Comair and ASA operate have a much higher CASM than mainline planes. In fact, RJ's at all regionals have a higher CASM than the majors...usually ranging from 13-20 cents.

As DL continues to take delivery of 50 and 70 seat RJ's while reducing the mainline fleet (727 retirement), the CASM figure is likely to continue rising. If DL isolated the RJ's away, you'd likely see DL's mainline CASM declining and it would probably be around 9.5 cents.
 
ouboy79
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 6:24 am

RJs do not low CASMs make -- in fact, a lot of the time, RJs can be very expensive to operate. I hadn't heard about the shuttle fleet going to 737s.

No, RJs don't lower CASMs...but they help to retain market share and allow for mainline jets to be operated on longer flights. The new ALPA agreement (already ratified by the MEC, no membership vote needed) permits somewhere in the neighborhood of 220+ regional jets to be operated by affiliate (read: Mesa, Chq, Trans States, Midway) carriers before Mid Atlantic and any of the other wholly owned get to touch one. US Airways can purchase, with help from GECAS, these aircraft and turn around and lease them back out to the affiliates. Half of the pilots flying these planes will be US Airways ALPA pilots (even at alter ego Freedom Air) and US Airways isn't going to get stuck paying the higher wages. They will get away with paying a lower cost per seat or departure fee and then make money off of the leases.

These planes will then be allowed to go into markets and replace mainline flights. This in turn will eliminate all heavy senoir mainline outstations - allowing them to be replaced by much lower paid Mainline Express or flat out Express agents. Not to jump around, but the new CWA & IAM agreements will also allow mainline flights to operate in express stations as long as operations don't exist for more than 4 consecutive months during any calendar year.

Changes like the above will really lower costs, but also cause more pain as mainline employees are virtually eliminated at all stations except hubs and west coast cities.
 
usair330
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 7:47 am

US Airways will struggle if the US does go to war with Iraq, *BUT* US Air wont be alone. Other airlines will struggle as well. Carriers in highly populated areas will be hurt the most. Philadelphia (where i'm from  Smile ) is a highly populated city, but so is New York, Chicago, Los Angeles etc. and that's where most of the big airlines are at. So we'll just have to see what happens within the coming months.


And for those that don't believe US Airways is quickly coming out of bankruptcy click below  Smile

http://usair.com/about/press/nw_02_1221.htm
 
DeltaMD11
Posts: 1678
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RE: US Airways Might Be The Airline Of The Future

Tue Dec 31, 2002 8:56 am

All I have to say is that CO was in Chapter 11 two times. And two times they saved themselves, and were on the verge of a 3rd which would've been the end for real. Anything is possible. Everyday counts in the airline industry, EVERY SEAT you put someone's rear-end in is another couple of bucks in your pocket. USAirways is fighting to survive. And if you fight hard enough, you can do it. Look how far CO was in the hole....CO had a failing hub, the whole place was managed WORSE than UA which couldn't possibly be managed more poorly, CO had A300's that were only filling half-capacity, hell, all of CO's A300 maintenance parts were in their failing Greensborough hub, and because Operations/Scheduling was never in contact with maintanence, they didn't even know that there weren't any A300's scheduled through Greensborough. That means everytime they would need parts, CO would have to fly an aircraft into Greensborough, pick up the part(s), and fly it to the aircraft. Talk about mis-management. CO was kissing the lips of death, not only once, but twice, and they still made it.

Bryan
Chat Operator Delta767
Too often we ... enjoy the comfort of opinion without the discomfort of thought. - John Fitzgerald Kennedy
 
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RE: US Airways Might Be The Airline Of The Future

Thu Jan 02, 2003 6:55 am

Whether or not CH. 11 will be the salvation of U.S. Airways, will be determined on several factors. The DIP money is crucial to keeping operations going. If the DIP money is pulled away (as they have said they would do if they don't get acceptible wage concessions), U.S. Airways would be DOA in under 48 hrs after the DIP financing was pulled. The Iraqi situation is key as well. If fuel prices continue to rise, and the U.S. ends up invading Iraq, U.S. Airways could see their cash burn rate increase significantly, and this would either cause them to lose their DIP financing, or burn through it, and have no money for a rainy day in which to keep flying. Another terrorist attack would perhaps spell doom if it involves commerical aviation, either an attack at an airport or another hijacking/kamikazi attack, and the carriers most likely to fold as a result are U.S. Airways and United. What hurt U.S. Airways as a result of the 9/11/01 attacks was that one of their major bases of operation, DCA, was closed for an extended period, and they lost money as a result of not having flights in/out of DCA. Another terror attack involving commercial aviation may close DCA permanently, and that would kill U.S. Airways. U.S. Airways has the chance to either become the next Continental or the next Eastern, unfortunately, the cards may not fall into place when they need them to.

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