aguilo
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USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 1:09 am

Siegel: Philadelphia Could Be US Airways' Last Stand

MARCH 25, 2004 -- US Airways CEO David Siegel yesterday told employees
the carrier must fight for its life to defend Philadelphia from a
Southwest Airlines attack that looms just over the horizon. To do so, he
said all employees must face "painful" decisions as the company works to
reinvent itself as a cost-competitive carrier.

"Southwest is coming for one reason: They are coming to kill us,"
Siegel said during the presentation. "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."

He specifically predicted a Southwest victory should the low-cost
carrier expand Philadelphia services from the four-gate operation set to
begin in May to eight gates. He also indicated Southwest's intentions to
add more routes and frequencies from Philadelphia this summer. Southwest
confirmed it would make an announcement about Philadelphia later today.
Siegel added that US Airways will learn from America West Airlines'
successful reinvention, rather than emulating TWA's strategy that failed
to repel Southwest's advance into St. Louis (BTN, Jan. 15, 2001).

Evoking the image of underdog Rocky Balboa fighting for Philadelphia,
Siegel said US Airways will offer a simplified, low-fare structure for
Philadelphia travelers, transition the airport operation to a rolling
hub and make management changes.

In a broader sense, Siegel said US Airways substantially must close the
gap between the carrier's 10-cent cost per available seat mile and the
six-cent CASM achieved by Southwest and other low-cost carriers. "This
is a big problem," he said. "We tried small fixes, and we know those
don't work. MetroJet was about an eight-cent carrier and we know what
happened to MetroJet (BTN, Oct. 28, 2001)."

His package of solutions includes a reconfigured fleet relying heavily
on regional jets but possibly excluding a first class product, a
"best-in-class" Internet site to be launched later this year and a new
inflight experience with elements that "are better" than JetBlue's. He also
said the carrier will begin adding seats to the fleet of Boeing 757
aircraft but that a long-term decision on the Pittsburgh hub has not yet
been finalized.

In a bold appeal to employees, Siegel said US Airways must have in
place by the summer new, competitive labor agreements accounting for
roughly half the necessary cost savings. Despite guidance given by union
leadership to its members, Siegel implored each employee to individually
decide "whether or not to participate," an approach that likely will
intensify animosity between management and certain labor groups. The pilots
union previously stated it would work with management toward more
concessions. The flight attendants union appears on the fence, waiting for a
detailed business plan, while the union representing mechanics has said
it is unwilling to discuss a third round of concessions.

Siegel said formal labor negotiations will begin next month. "We are
still at risk of not meeting terms of that [government-backed] loan as
early as June," he said. "We bought some time, but not a lot of time."

Meanwhile, Siegel acknowledged that asset sales are "a trademark of
failing carriers," but said the $1 billion US Airways borrowed is backed
by taxpayer money, and "we may have to burn the furniture to stay warm."
Though he mentioned Virgin USA in the context of asset sales, he gave
no specifics on any potential transactions under consideration by the
company's board.


[Edited 2004-04-14 18:09:32]

[Edited 2004-04-14 18:10:18]
 
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 1:16 am

Siegel said US Airways substantially must close the
gap between the carrier's 10-cent cost per available seat mile and the
six-cent CASM achieved by Southwest and other low-cost carriers. "This
is a big problem," he said. "We tried small fixes, and we know those
don't work. MetroJet was about an eight-cent carrier and we know what
happened to MetroJet."


Nice job, Dave. You've just told your employees they're all toast.

Why? Your CASM is still north of 10 cents, down from the 12 cents or so you once were at...and it took a Herculean effort to hack even those 2 plus cents off your cost structure.

Now you're saying you can't compete even at a CASM at 8 cents - since obviously MetroJet couldn't - and that's 2 full cents down from where you're at now!

If you need a CASM drop of three or four cents per ASM to be competitive, have everyone start updating their resumes.

"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
 
deltaffindfw
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 1:16 am


Could we see Virgin take over the US Airways half-terminal in BOS?? It's a nice, somewhat new terminal.
 
Tom in NO
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 1:36 am

Somehow, a vision of the Alamo came to my mind when I first read this post.

Tom at MSY
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aguilo
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 1:39 am

The only way US is going to be able to survive is to become a "Super Regional" Airline and drop unprofitable uncompetive mainline routes. Don't know how profitable their international service is, but I think as far as domestic goes, we'll soon see an ALL RJ USAir as the only viable one...
 
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 1:45 am

The only way US is going to be able to survive is to become a "Super Regional" Airline and drop unprofitable uncompetive mainline routes.

But that's one of their weaknesses - the short stage lengths operating as a regional in the Northeast contributes to high CASM.

They've been kept afloat - barely - by charging high fares that gave them a high enough yield to offset that high CASM. But now that WN has come along and torpedoed the fares in that region, US has no chance.
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

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ifly2eat
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 1:48 am

Thanks Dave. At least he knows what the rest of the industry has known for two years now.
Fly the friendly skys and stay out of mine.
 
erj
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 1:50 am

I think RJ's and maybe a fleet of A320's to feed the A330's in Philly. International service, from what I understand, is profitable and not threatened by WN.
 
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 1:53 am

It's great to see a CEO that's clearly and genuinely passionate about his company.

But Seigel seems a little loony. If US took truly was about to die, I really could imagine him showing up to the office with a Racoon hat and a musket firing towards the elevater as he backs into his office yelling anti-Spaniard epithats.

But that's just my view. I could be wrong.

-Phil
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 1:57 am

Evoking the image of underdog Rocky Balboa fighting for Philadelphia,
Siegel said US Airways will offer a simplified

1. Rocky Lost you [email protected]## Siegal
2. Rocky signified the American dream of the little man working his way to the top not corporate incompetency.
3. Rocky fought for the USA ont just Philly!
 
aguilo
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 2:01 am

EA CO AS

"But that's one of their weaknesses - the short stage lengths operating as a regional in the Northeast contributes to high CASM.

They've been kept afloat - barely - by charging high fares that gave them a high enough yield to offset that high CASM. But now that WN has come along and torpedoed the fares in that region, US has no chance."

US can't change their route structure. In addition the routes the East Coast is the most densely populated part of the country. Because US is pretty much stuck on the East Coast is exactly the reason why they MUST go to an all RJ fleet to survive! (which is sucks for me because I hate flying on RJs but fly US all the time)
 
PHLBOS
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 2:48 am

Could we see Virgin take over the US Airways half-terminal in BOS?? It's a nice, somewhat new terminal.

BOS' Terminal B building is about 27-28 years old.

I have a better offer for Virgin; 13 BRAND-NEW gates at PHL's A-West complete with a Custom's office WITHIN the terminal. BOS' Customs are only at Terminal E. For domestic feeds at PHL, we'll throw in some gates at Terminals B & C.  Laugh out loud
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DfwRevolution
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 2:56 am


So u.s. airways just told the world that it's balls are to the wall? Great move (sarcasim)... this is an attempt to spurr your work force gone tragically wrong.

I doubt wn wants to actually kill u.s, but AA, or B6, or Ua, or F9 might. Now they smell the blood..
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flyXJT
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 3:02 am

Why wouldn't WN want to kill US. Its just less competition, and I highly doubt they would go into PHL as aggressively as they are if they wanted to coexist with US. They found their Achilles heel and are going after it because they can. Less competition, more routes, more money - its a good deal.



pw
 
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 3:06 am

Phil:

I think you're right on... He is a loon. What he may not understand is that by his public rantings he may be assuring a self fulfilled prophecy. If the traveling public gets wind that USAirways is its death throws, they in turn will not purchase tickets for future travel, thereby cutting off needed cash flow and assuring the demise of USAirways. Real smart Siegel!
Fly the friendly skys and stay out of mine.
 
PHLBOS
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 3:19 am


View Large View Medium

Photo © Mark Kopczak



I think Siegel needs to modify US' slogan from "No Booking Fees, No Brainer"

to

"No Booking Fees, No Airline, No Brains"  Nuts


[Edited 2004-04-14 20:22:04]
"TransEastern! You'll feel like you've never left the ground because we treat you like dirt!" SNL Parady ad circa 1981
 
aguilo
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 3:42 am

DFWRevolution:

The last and possibly only airline that desperately does not want to see US go out of business is UA. They very much need to be able to rely on the code-share with US on routes where it is unprofitable for UA to operate. This is the reason that on some UA routes for the last year or so it has been virtually impossible to buy a UA ticket that is actually serviced by a UA aircraft as the business is being thrown over to US.

Similarly, US is trying to let UA operate their routes where UA can do it more profitably than US.

Its all rather ironic, depending on who is doing worse at the time - UA or US, one carrier often looks like it is a virtual express carrier for the other. Some months you can't find an actual UA flight operated by an actual UA aircraft to save your life unless you are flying to a hub, and some months the reverse is true, with US operating all the UA flights except to UA hubs.

Its almost like 2 soldiers that have both been severely wounded in battle (here the marketplace) and are struggling to keep each other alive!
 
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 4:16 am

Similarly, US is trying to let UA operate their routes where UA can do it more profitably than US.

Sure, two heads are better than one...but not when both are stupid.
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aguilo
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 4:21 am

they are very stupid...UAL and US will go down in history as the most incompetently managed airlines in aviation history!
 
AA54Heavy
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 4:36 am

"It's great to see a CEO that's clearly and genuinely passionate about his company."

....hmmmm


US Airways chairman defends Siegel's pay package
Dateline: Wednesday April 14, 2004

US Airways Group Chairman David Bronner defended CEO David Siegel's pay and benefits agreement to union leaders who had questioned the size of the compensation package, which is detailed in the airline's annual proxy statement.

Bronner told employees that Siegel received "considerably less" than CEOs at other Major airlines and "much less" than what he was offered to join the carrier in 2002. In addition, Bronner said the figures quoted in the statement are misleading.
According to the proxy statement, Siegel's 2003 salary amounted to $637,460. But he also was given 1.13 million shares of US Airways stock valued at $8.3 million. However, the airline said this figure is misleading as most of the grants for 2003 were based on a market value of $7.34 per share, which is much higher than today's market value of US Airways Group stock. In addition, the grants have not yet vested and will not vest until 2005 at the earliest, so it is unknown whether Siegel ever will realize any value or compensation from the grant.

The disclosure of Siegel's salary comes at a sensitive time for the carrier. US Airways is preparing to go back to its unions for a second time to seek concessions. The company shed roughly $1 billion in annual labor costs during its restructuring in 2002 and 2003, but Siegel told employees last month that it must lower its costs even further to transform itself into an airline that can compete with low-cost carriers (ATWOnline, March 25).

"It's hypocritical to take home millions of dollars and ask employees who make $25,000 to $30,000 to bear the brunt" of the restructuring plan, International Assn. of Machinists spokesman Joe Tiberi told the Associated Press.--Loren Farrar


http://www.atwonline.com/indexfull.cfm?newsid=4070
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PanAm747
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 4:38 am

Does David Siegel have a Golden Parachute? I mean, if USAirways fails, will he suffer along with the rest of his employees?

If all else fails, USAirways should considering a scale down in PHL and concentrate on its already-developed hub at PIT with RJ's. Not everyone's first choice, but I'll point to the success of the hub at CVG. The boom is on for f/a's there, and it is one of the most successful hubs right now.
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 4:39 am

As the date indicates, Siegel gave this "Alamo" speech a couple of weeks ago. Southwest's response was to announce a doubling of their PHL flight schedule from 14 to 28 dailies by the end of summer. With four gates, they can get up to 40-44 dailies no problem. More power to WN, I say.

This speech is collective-bargaining bluster as several have noted. Loony it may sound, but what other option does Siegel have? Unless US gets down from 10 cents to even 9, they really are up the brown creek. I don't have figures, but the carrier's route map suggests that most of their LCC-free routes are now to smaller markets already farmed out to US Express. Will be interesting to watch.

Watch for a fairly speedy WN entry into PIT and CLT if US does fail.

Jim
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starrion
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 5:45 am

Others were thinking Alamo huh?

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OPNLguy
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 5:46 am

Saw this earlier today...

US Airways pilot split worsens

Two remaining bargaining team members effectively quit, say they won't take blame for looming 'professional train wreck'

Wednesday, April 14, 2004
By Dan Fitzpatrick, Pittsburgh Post-Gazette

A fight for control within the US Airways pilots union is getting nastier.

Days after a small but powerful faction of the union ousted half of the pilots' four-man negotiating unit, the two remaining negotiators protested the surprise firings by effectively tendering their resignations, saying the change in personnel was a "recipe for disaster" at a time US Airways is struggling for survival.

Gerry McGuckin and Jeff Tokash, in a sharply worded letter to US Airways pilots chairman Bill Pollock, said they refused to take the blame for " a professional train wreck" that could wipe out the airline and "cause the loss of all remaining US Airways pilot jobs forever." In their letter, McGuckin and Tokash lashed out again and again at the five union leaders who voted as a bloc on Friday to remove negotiating committee chairman Phil Carey and committee vice chairman Donn Butkovic from power.

The "arrogance" of the five men who voted for the change, they wrote, "removed all doubt they are willing to lead the pilots in professional suicide in order to maintain their entrenched positions."

"We cannot allow ourselves to be used in such a folly," they continued.

McGuckin and Tokash claim the change was made despite contrary advice from Air Line Pilot Association's international leaders in Washington, D.C. International ALPA union president Duane Woerth warned the US Airways pilots last week about a similar action taken in the 1980s by the union leaders at Eastern Airlines and the negative message such turmoil could send to the financial markets.

What's worse, McGuckin and Tokash wrote, is that the new members installed in place of the deposed negotiators lack "any significant negotiating experience." That could hurt the pilots, they argue, when "the most important negotiations in the history of this airline are about to commence."

US Airways, which wants to cut $1.5 billion in expenses this year, is preparing to approach all unions about concessions late this month and hopes to have new contracts in place by summer.

So far, its pilots represent the only union that has agreed to the talks. But that agreement was struck before six new board members joined the US Airways pilots' 12-person governing body in March.

Prior to winning local elections that placed them on the board, some of those new members were angry enough to sue the leadership of the US Airways pilots union, claiming it did not live up to its duties in past negotiations.

Several of those new members also are backing the ouster of the negotiating team, claiming that the rank-and file pilots want "change" and that the negotiators have been in power too long and have given away too many concessions to the company.

"It is my belief that the majority of the pilots I talk to have wanted a change in the negotiating committee for a long time," said retired US Airways pilot Mike Oakey. "I think the pilots will be better off" with a replacement team led by Doug Mowery, he added.

Mowery "will fight the fair fight," Oakey said.

"He won't commit suicide, but [will] fight the fair fight, and demand [that] the company finally do something with the stuff they have been given," Oakey added.
ALL views, opinions expressed are mine ONLY and are NOT representative of those shared by Southwest Airlines Co.
 
PHLBOS
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 5:52 am

Sounds like 'Mutiny on the Titanic'.
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goingboeing
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 6:02 am

I think Siegel needs to modify US' slogan from "No Booking Fees, No Brainer"

to

"No Booking Fees, No Airline, No Brains"


Actually, I haven't booked a USAirways flight from their website. But I discovered today that one CANNOT book a flight on that website until they are a "registered user". WHY????? Every other airline lets you fill out that information AFTER you get to the purchase page. You can't even get that far on the US website. It be interesting to see how many people went to that site, only to decide that they didn't want to fill out a bunch of information and come up with a "username" and "password"...they just wanted to BUY A TICKET...and went over to the competitors site where they had no booking fees and buying a ticket was easy as pie.
 
OPNLguy
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 6:12 am

>>>Sounds like 'Mutiny on the Titanic'.

Instead of re-arranging the deck chairs, it sounds as if they're throwing them at each other....
ALL views, opinions expressed are mine ONLY and are NOT representative of those shared by Southwest Airlines Co.
 
PHLBOS
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 6:15 am

But I discovered today that one CANNOT book a flight on that website until they are a "registered user".

That 'feature' must have been added within the last 2 years. When I last booked a flight from US' website (early 2002) I was able to get in no problem.

Clearly, this is NOT one of US' changes for the better.
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SHUPirate1
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 6:27 am

PHL-interesting...(not that I would know, because I have my US Airways password automatically entered)...I can check in for a US Airways flight without anything, but need a username and a password to actually book travel through the website...on the other hand, I can book travel on United without a username or anything else whatsoever, but I need a Mileage Plus account (which I do not have, as I opt to accrue on US Airways) to check in online with United, even when booked on a UA ticket...something is truly wrong here...
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liquid
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RE: USAir CEO Announces: "phl Could Be Our Last St

Thu Apr 15, 2004 6:52 am

"But I discovered today that one CANNOT book a flight on that website until they are a "registered user". "

I made a reservation on there about a week ago didn't have to be a registered user until you buy which is normal on all airlines websites. I personally like their reservation system the best out of any carriers.

Liquid
-Liquid
 
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 6:55 am

Actually, I haven't booked a USAirways flight from their website. But I discovered today that one CANNOT book a flight on that website until they are a "registered user"

Good idea - provide yet another stumbling block to keep your clients from booking with you when people are already worried about your financial health.  Insane
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Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
NIKV69
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 6:56 am

I really can't see how USAirways can even compete with WN. WN has lower fares, better turnover, makes money and has no debt. If they settle this thing with the FAs they will crush USAirways easily. It's sad that this CEO is begging his employees to give up everything to try to stay with WN. This will probably be the last breath for USAirways. They have no shot at competing with WN. By August I expect them to fold.
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Aloha717200
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 6:56 am

I sure hope USAirways gets through this, I'd hate to see yet another carrier fail.


I find it interesting though that, US doesn't serve the SLC area, but I have yet to hear anythng positive about them here. They've got a bad rep in areas they dont even serve. That can't bode well.
 
freshlove1
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 7:24 am

The pilot thing is all about the jobs being given to the RJ guys and the guys at Mid Atlantic. The more jobs that go to those guys the less mainline guys we need, that's the problem with the pilots , they want some kind of security and less of the flying going to Mid Atlantic and the Express guys. Siegal does not have a "Golden parachute" so to say, he said he will not take what is offered to him if US fails, he said he is in this situation with all his employees and will not take a easy and lucrative way out if it gets worse. I realize that this is a public post board but some of you really need to get the facts before posting on here. US is not the only airline having trouble right now, but most of you seem to think it is. Last time I looked DL and UA and AA were also having major problems, but yet most of you seem to keep bashing US, well that's fine and it's your opinion, but like I said in a earlier post somewhere else on here, unless you work for an airline and see how it is actually run and see what happens on a daily basis your statements really mean nothing to those of us that do. All you arm chair wanna be airline people make me laugh. $100 bucks says you really have no clue how WN, B6, DL, or NW, ect. run on a daily basis, but yet you seem to think that because WN is going into PHL or B6 goes into MCO or where ever that someone is going to go out of business. Obviously you didn't pass Business Management 100 in college, because if you did I wouldn't be reading some of the grabage on here that I am, because you would have a clue. I guess you get your facts from the local newspaper reporter, with her Highschool diploma, who always tells the truth.
 
aguilo
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RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 8:01 am

No one has to work for an airline to see the mistakes and the folly and that have characterized Siegel's adminstration of US Airways, the mistakes are that obvious. I for one have got 450,000+ Dividend Miles to loose if US Airways continues to be drive into the ground by its current management. A quick look at the company's many past blunders and its inability to expand out of the East Coast are telling of the incompetence found in the corporate offices at USAirways.

USAir isn't going out of business because of WN enterring PHL and no one has said so, this is just one more nail in the coffin that USAir's management has built for itself.

As for the education level of people on this post, your own unprofessional demeanor raises some significant doubts about how "highly educated" you yourself are.
 
rjpieces
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RE: USAir CEO Announces: "phl Could Be Our Last St

Thu Apr 15, 2004 8:12 am

I think US should just get out of PHI and PIT now, and reinvent themselves out of a solidified CLT....We all know what will happen if WN does expand at PHI, and PIT is still a pain in the ass for them...CLT has always appeared to be the most viable hub.

As more RJs come in, US will be able to better utilize their fleet and this should help somewhat....But they need a longterm strategy, they can't keep changing as different airlines enter different markets. I would love to see them reinvent as a super Loco, but it is MUCH harder to change a hub and spoke to a LoCo than it is to build a LoCo from scratch. Whatever Siegel is planning, he should implement it soon.
"Millions long for immortality who do not know what to do with themselves on a rainy Sunday afternoon"
 
aguilo
Topic Author
Posts: 237
Joined: Fri Apr 02, 2004 4:52 am

RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 8:31 am

More expenses for USAir!

Plane strikes bridge at SWFL International
NBC2 News
Last updated: April 13, 2004 05:22 PM
FORT MYERS, April 13, 2004 — Heavy winds at Southwest Florida International Airport blew a plane into a jet bridge, the ramp used to get passengers on and off the plane, around 3:30 a.m. Tuesday as the plane was being readied at gate A1A for a 5:30 flight to Charlotte.

Airport officials say no passengers were on the plane at the time and there were no injuries. The jet suffered damage to the tip of its wing and the bridge sustained damage.
Another aircraft got passengers to Charlotte on time, but the damaged plane has been grounded - which is having a ripple effect on some flights.

Officials say US Airways flight 972 to Pittsburgh earlier this morning was cancelled. They hope to get passengers out on later flights.


 
ATLhomeCMH
Posts: 751
Joined: Fri Dec 19, 2003 3:25 am

RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 9:03 am

Here's my post from another forum on the same issue:

https://www.airliners.net/discussions/general_aviation/read.main/1513382/

USAirways is simply the victim of a general American attitude that saving money is number 1, not the overall experience of the flight. The majority of Americans figure that since the amenities offered by the major domestic carriers have been scaled back in recent years, they might as well get the same service for less money. Good philosophy, in theory, but seldom in practice to my experience.

Basically, you get what you pay for. The famous saying, "There's no such thing as a free lunch," applies here. You may be saving money, but you'll pay for it elsewhere for sure.

Every SW aircraft I've ever been on (several of them) has been shoddy, unkempt, and SW's terminals and gates less than eye-catching. On some routes, you make stops in two seperate cities before your final destination, like you're riding on a charter bus.

Basically, SW is the Greyhound of the skies.

I also don't like the fact that on many SW flights, you have to put up with f/a's who joke around, goof off, sing songs, and just to try to be cute. It's unprofessional.

But Americans will put up with a lack of professionalism for the almighty dollar. I have flown US extensively, and though they may cost more, their planes are almost always fresh and clean looking, their staff professional, and their service impeccable. I would rather pay the extra $150 (and I am NOT a wealthy person) to fly with a proven industry leader, than fly on a dirty, cheap cabaret with wings.

**********************************************************

As much as I can't stand SW, they are well run from a business standpoint. SW offers a product that Americans are willing to purchase. To quote a famous Elaine Benes quote from a Seinfeld episode...

"To the victor go the spoils."
"The most terrifying words in the Engligh language are, 'I'm from the government and I'm here to help.'"-Ronald Reagan
 
Bubbinski
Posts: 157
Joined: Fri Jan 23, 2004 3:48 am

RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 9:11 am

Call me crazy, call me looney, but if someone told me "Bubbinski, you are now the chairman/CEO of US Airways. Save the company", I wouldn't even try to compete with Southwest. Instead I'd use them....use Southwest as my feeder airline for a new, international network kinda like Pan Am. That's right, I'd focus on transatlantic and Carribbean, and trans-border (to Canada and Mexico) services. Axe the classic 737's and 757/767's (simplify the fleet), use the A319/320/321 for transborder/Mexico/Caribbean routes from PHL, LGA, BOS, etc.

Put in PTV's and video games and meals as well as snacks for sale in economy, and put in a top-flight business class that's as good as most first classes. Fly a bunch of transatlantic routes from PHL, JFK, BOS, etc. with A330's, with the same top-flight business class, with sleeper seats. Start looking at routes like PHL-JNB or PHL-NRT, PHL-HKG, PHL-SYD, PHL-GIG/EZE with A340-500's. Milk the new Star Alliance connection for all it's worth and make the frequent flier program appealing with Rapid Rewards - type rules (say, eight flights gets you a free one to the Caribbean or Canada and 32 flights gets you to Europe).

Also start a domestic division, subsidiary or partner flying EMB-170's and 190's (and only those planes) to places where Southwest doesn't fly with fares within, oh, about 20-25 bucks of SWA's for added domestic feed to the international flights. I also wouldn't cut pay or benefits but I would change work rules for more efficiency (get the employees to do a little more, not a whole lot more). I'd make sure that there are as few management layers as possible, and raises above inflation would be contingent on company performance.

Bubbinski

[Edited 2004-04-15 02:20:23]

[Edited 2004-04-15 02:22:33]
"Simplify" - Thoreau
 
cloudy
Posts: 1613
Joined: Sat Apr 06, 2002 3:23 pm

RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 9:18 am

Similarly, US is trying to let UA operate their routes where UA can do it more profitably than US.

Sure, two heads are better than one...but not when both are stupid
------

ROFL! Another way of saying it is - if you want a good high jump team, you want one person who can jump 7 feet, not 7 people who can jump 1 foot.
 
Hodges
Posts: 136
Joined: Sun Mar 14, 2004 7:47 am

RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 9:45 am

Wow... Sounds like a great idea if WN were to agree with. Major layoffs would flood the airline market with many unemployed pilots both unneeded USAIR mainline pilots and express pilots whose jobs aren't needed.
I know that MidAtlantic flies the EMB-170s, but their callsign is USAIR. Is it a mainline jet or are they borrowing the callsign? If USAIR is operating the 170s they could give them and future orders to WN, who would most likely love to compete with express airlines for the other majors.
If USAIR goes belly-up, I'd love to see who replaces their mainline and express routes, considering USAIR is the only airline servicing my hometown ITH.

Regards,

Erik
Beer, helping ugly people have sex since 1862.
 
rjpieces
Posts: 6849
Joined: Mon Nov 24, 2003 8:58 am

RE: USAir CEO Announces: "phl Could Be Our Last St

Thu Apr 15, 2004 9:57 am

Love how these convos have such ineresting ideas.......! (Rolls eyes)

WN will NEVER feed US and I will probably be dead before they buy a 2nd aircraft type....
"Millions long for immortality who do not know what to do with themselves on a rainy Sunday afternoon"
 
NIKV69
Posts: 12944
Joined: Wed Jan 28, 2004 4:27 am

RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 10:25 am

Freshlove1,

Most of us are not as naive as you may think, and it doesn't take a rocket scientist to figure that WN with no debt and cheaper fares and great service will in time eliminate USAirways which has huge debt and higher fares, My dad worked for EAL for a long time and I saw what Lorenzo and the union did to a much better, more stable airline than yours. So I know what I am talking about. Nobody here wants this to happen but much like a runaway train it's pretty hard to stop at this point.
Nikon from day one, Nikon till I die.
 
gigneil
Posts: 14133
Joined: Fri Nov 08, 2002 10:25 am

RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 10:28 am

I know that MidAtlantic flies the EMB-170s, but their callsign is USAIR. Is it a mainline jet or are they borrowing the callsign?

Its all one AOC.

N
 
DCA-ROCguy
Posts: 4192
Joined: Fri Apr 21, 2000 5:03 am

RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 10:35 am

But Americans will put up with a lack of professionalism for the almighty dollar.

It's always amusing to listen to an ignorant partisan rant about what he doesn't know. The Federal measures of customer service generally give WN high ratings. And as for the WN planes I've been on, they have been clean and well-kept. In my experience across 20 airlines I have yet to find one more professional in every regard than Southwest. AirTran is trying pretty hard, though, with their shiny new planes and very professional staff.

Jim
Need a new airline paint scheme? Better call Saul! (Bass that is)
 
N863DA
Posts: 1140
Joined: Sat Sep 04, 2004 6:36 am

RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 10:54 am

As it drives me crazy to see it, for once and for all, Southwest's code is, "WN." SW is Air Namibia, and I know you didn't mean them.

One thing is for sure if US Airways fails; Delta Air Lines will be significantly better for the event, if and when it does eventually happen.

This is by no means to wish the demise of US Airways upon anyone, but if anyone stands to benefit network-wide from the failure of US Airways (apart from Southwest), then it will be Delta.

FLY DELTA JETS



N 8 6 3 D A
 
aa757first
Posts: 3140
Joined: Sun Aug 03, 2003 11:40 am

RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 11:10 am

Rjpieces -

They have too many loyal customers and investments in Philly and Pittsburgh. Look here from this months issue of Attache:

---

I run a small limousine company in Philadelphia, and we frequently pick people up at the airport. This is normally a quick process, except if we are picking people up from US Airways flights. Most of the time,
it takes 45 to 60 minutes for our customers to get their bags and come to the curb for pickup. We are considering charging a “US Airways Luggage Wait Time Fee” to recover our lost revenue from waiting to pick up your customers.


In February, we announced a $2.7-million-dollar improvement plan to our baggage-handling facilities at Philadelphia, because our service, to be perfectly candid, was substandard. When we look back at 2001 and 2002, US Airways was ranked best amongst its competitors in baggage handling. In 2003, we slipped, due in part to some of the problems we encountered in Philadelphia, where we had equipment breakdowns, staff changes, and facilities constraints, making it difficult to adapt to new security requirements. We cannot and will not allow this to happen again.


AAndrew
 
DeltaGuy
Posts: 3965
Joined: Wed Sep 12, 2001 5:25 am

RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 11:11 am

N836DA,

Agreed....it'll free up some elbow room in the airline world, and give DL some new pax to win over....probably not that many new routes, but more people will see "the light"  Big grin

I sort of think it's unfair that WN is KNOWINGLY going in there to kill them...everyone sees it....sad part is, it's not illegal, it's just business sense. WN could stand not to go in there...but they know what they can do with their puke orange tails...

DeltaGuy
"The cockpit, what is it?" "It's the little room in the front of the plane where the pilot sits, but that's not importan
 
usairways85
Posts: 4061
Joined: Fri Nov 16, 2001 11:59 am

RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 11:19 am

Aa757first: I'd like to note that it was just announced that this improvement is behind schedule and may not be done for the summer rush of paxs. There was an article about it in the Philly Inquirer.
 
User avatar
Aloha717200
Posts: 3842
Joined: Mon Aug 18, 2003 4:50 am

RE: USAir CEO Announces: "phl Could Be Our Last Stand"

Thu Apr 15, 2004 11:20 am

You can be elitist if you want, but I'm no trailer trash, and when I flew WN, I found the experience much more pleasurable than flying Delta, and I like Delta alot!


The employees were friendly and engaging, professional, helped me out of a major jam, flights were on time, aircraft comfortable, service great. I encountered only one rude person, at LAS. Out of all the positives, one negative does not a bad trip make.


So say what you will about WN. They're fun to fly on and great, Delta seems overly professional and stuffy by comparison. Oh, but, as long as they have First and Business class in their fleet, that makes them superior to WN.


Meanwhile, presidential candidates and influential businessmen are flying WN. Get real.  Insane

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