KKMolokai
Topic Author
Posts: 741
Joined: Tue Feb 22, 2000 2:06 am

Usair Urgent Changes Or Airline Will Die

Fri Mar 26, 2004 2:57 am

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.
 
SHUPirate1
Posts: 3428
Joined: Sat Sep 20, 2003 2:53 pm

RE: Usair Urgent Changes Or Airline Will Die

Fri Mar 26, 2004 3:04 am

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!
 
ual747den
Posts: 1472
Joined: Sat Dec 27, 2003 1:29 pm

RE: Usair Urgent Changes Or Airline Will Die

Fri Mar 26, 2004 3:38 am

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.......

EDIT
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]
/// UNITED AIRLINES
 
SHUPirate1
Posts: 3428
Joined: Sat Sep 20, 2003 2:53 pm

RE: Usair Urgent Changes Or Airline Will Die

Fri Mar 26, 2004 3:43 am

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!
 
UAL Bagsmasher
Posts: 1839
Joined: Wed Sep 08, 1999 12:52 pm

RE: UAL747den

Fri Mar 26, 2004 3:45 am

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?
 
ual747den
Posts: 1472
Joined: Sat Dec 27, 2003 1:29 pm

RE: Usair Urgent Changes Or Airline Will Die

Fri Mar 26, 2004 3:55 am

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.....
/// UNITED AIRLINES
 
PHLapproach
Posts: 1057
Joined: Tue Mar 23, 2004 6:37 am

RE: Usair Urgent Changes Or Airline Will Die

Fri Mar 26, 2004 3:57 am

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.
 
Bicoastal
Posts: 2446
Joined: Wed Oct 06, 1999 5:56 am

RE: US Airways Urgent Changes Or Airline Will Die

Fri Mar 26, 2004 4:28 am

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

http://www.airliners.net/discussions/general_aviation/read.main/1474497/
Airliners.net has many forums. It has spell check and search functions. Use them before posting!
 
NIKV69
Posts: 10910
Joined: Wed Jan 28, 2004 4:27 am

RE: Usair Urgent Changes Or Airline Will Die

Fri Mar 26, 2004 8:37 am

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!!!
Hey that guy with the private jet can bail us out! Why? HE CAN AFFORD IT!

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos