7LBAC111
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Are US Airways About To Disappear?

Tue Nov 09, 2004 9:23 pm

Okay - firstly I am sorry as I have no printed source to refer to, so please take this with the intent in which it's mean't!

As I work for one of the worlds largest Corporate Travel companies, you can imagine my surprise this morning to have received an unprecedented internal memo - basically stating that all outstanding credits owed to the company by US are to be cleared by month end.

Now my company have never issued such a memo - not with UA or AC when they were in dire straits last year. So my question is - Are we about to see US Airways fold?

7LBAC111
Debate is what you put on de hook when you want to catch de fish.
 
chazzerguy
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RE: Are US Airways About To Disappear?

Tue Nov 09, 2004 11:13 pm


Not sure I understand what "credits being cleared" means exactly... Can you explain more?... Is this money owed to your company? Could it be that the judge is going to allow US to default on what it owes, so your company is just trying to grab what it can before that happens?

I don't know much about the travel industry, so sorry if that's a simplistic question. But I do find what you say to be intriguing.
 
ATWZW170
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RE: Are US Airways About To Disappear?

Tue Nov 09, 2004 11:29 pm

I'm sure they are talking about different comissions or money owed to the travel agency from US Airways.

And your question as to whether or not we are going to have a US Airways flying much longer is a good one. We all have our opinion on this subject. Mine, well.....I don't see US Airways lasting. They are trying to increase flying out of certain areas, closing hubs, and they have slashed salaries...all of that might be good for the bottom line but not good on employee's moral. They laid off the folks with the least senority and kept the senior folks...but the senior folks have been there for a long time and they just don't care any more or have been beaten down....I might get jumped on for saying that but it's true....walk out to any airport and look at who is working the gates. I think a lot of people will agree that it's the very senior agents who have the worst attitudes. I'm not saying there aren't any nice ones with high senority, there are....but in my experience the more senior agents are not as friendly. US Airways has a lot of competition and they have an up hill struggle. It will be hard to regain the trust of the flying public...but only time will tell.
Success is getting what you want...happiness is liking what you get
 
7LBAC111
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RE: Are US Airways About To Disappear?

Tue Nov 09, 2004 11:33 pm

No - sorry I never thought to explain that. Basically when agents issue tickets, and there are subsequent disputes on the value of the ticket (be it a GDS problem or a special nett nett fare) an airline can issue an ADM - (Agent Debit Memo) which is the carrier telling you that your computation of the fare is wrong (in their opinion!); what it is; and that they are going to take the difference.

On the other hand we receive Agency Credit Memos (ACM's) which is the same in reverse. You get a lot less of these than the ADM's!

As a lot of corporations have 'Route Deals' and these fares tend to be a percentage discount from the published IATA fare. However airlines constantly change the IATA fares and rarely inform the agent. Therfore occasionally we take too much discount or not enough. That's where the ADM/ACM's come from.

What my company have advised is for us to pursue US for the credits instead of letting the airline dictate when they are going to recredit us. As a company we will gain very little as our customers pay (we don't offer credit) but it is, in my opinion, a proactive approach to obtaining money from a failing supplier, and thus limiting the company's liability in the event of a collapse. Commissions are paid automatically through the IATA BSP, and these are debited/credited bi-monthly (i think!)

Hope thats clear.


[Edited 2004-11-09 15:35:46]
Debate is what you put on de hook when you want to catch de fish.
 
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alberchico
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RE: Are US Airways About To Disappear?

Wed Nov 10, 2004 1:12 am

Remember it takes years for a large airline to fold.Pan Am took almost 20 years to collapse.
short summary of every jewish holiday: they tried to kill us ,we won , lets eat !
 
avek00
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RE: Are US Airways About To Disappear?

Wed Nov 10, 2004 1:39 am

1. US has been coming apart for the better part of a decade; and

2. US doesn't have nearly as many valuable assets/route authorities to sell/leverage as PA did.
Live life to the fullest.
 
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American 767
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RE: Are US Airways About To Disappear?

Wed Nov 10, 2004 1:48 am

Pan Am didn't take that long to collape. They collaped in the early 90's, they didn't start to collapse in the early 70's, they were a great airline at that time. They started to vanish when United took over the Pacific Routes in the mid 80's.

US Airways is likely to collapse next year. They were in good shape in the 90's.

Ben Soriano
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ATWZW170
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RE: Are US Airways About To Disappear?

Wed Nov 10, 2004 4:06 am

They probably need to pull out of some of their express agreements...they have so many express carriers and going into some of the worst places....I can't imagine they are making US Airways that much money and breaking even doesn't cut it. A smaller US Airways can probably survive in the form of a regional carrier. The 170 is a good start. Add a F class and you have a nice plane that can make money. In and out of DC you can have high frequency and pretty good loads. I wonder if they would ever become a feeder for UA?
Success is getting what you want...happiness is liking what you get
 
USairways16BWI
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RE: Are US Airways About To Disappear?

Wed Nov 10, 2004 5:25 am

'' A smaller US Airways can probably survive in the form of a regional carrier. The 170 is a good start".

this may be true, but it would be a large regional carrier. I have never heard of a regional airline with A330's and 767's. maybe they can be a regional carrier that has trans atlantic routes.
 
ATWZW170
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RE: Are US Airways About To Disappear?

Wed Nov 10, 2004 6:07 am

You know, that would work. Who says you have to have more than 70 - 100 seats on an aircraft? Keep the A321 for FL and transcon....convert most of the other flying over to the more comfortable EMB 170....I don't see why it would be a bad idea. Star Alliance helps feed traffic on the A330 routes...UA would help because UA doesn't fly to MAD and could help boost US flights.....hmmm, something to think about.
Success is getting what you want...happiness is liking what you get
 
masseybrown
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RE: Are US Airways About To Disappear?

Wed Nov 10, 2004 6:27 am

A usually-reliable Yahoo poster said that US is preparing to return a dozen planes to leasing companies soon. That's not going out of business; but it is another notch smaller.