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US Airways Group, Inc. Message Board

  • flybyops flybyops Nov 9, 2005 7:56 PM Flag

    State of the Airline

    DP had this to say.

    He is more confident in the 600 million synergies aspect than before the merger.
    Operational profit in 2006 (excluding about 250 mil in merger expenses).
    There is a chance that the synergies may even take care of that in 2006.
    For the Qtr the ops was essentially rev neutral.
    Industry wide he expects the big 6 to be the big 3 or 4 in the next 3 years. He also expects legacy flying to retract 15-20%.
    US Casm at 10.06 want to get it to the AWA CASM of 8.54
    Phase out AWA name starting 1st qtr.
    No growth plan until after the integration but they will announce an EMB 190 order soon that will be flown in house.
    All AWA planes painted in 06 and all US in 07.
    Customer Service has to be the US focus.
    Airline advantages Routes, Labor, Synergies, Financial Position.
    Disadvantages Image, Integration and non labor cost. Those areas will be the focus for 2006.
    Loves the market position. #1 carrier in CLT, PHL, PHX, PIT, DCA
    #2 in LGA, LAS, #3 in BOS. Thinks those are very positive city to be the dominant carrier in.
    That's the higlights

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    • I get a feeling that the combining of the two work forces contains some hidden benefits. Those coming from the east were paid at the top of the scale for decades. From the west, we were on the opposite end, at the bottom.
      Neither worked. Both failed.

      With costs one of the main drivers now, labor dollars have to be spent wisely. Enabling the workers to be as productive as they can is high on the priority list. Going through each and every labor contract, policy manual or operations handbook will hopefully bring the best of those to the forefront, and the rest eliminated.

      Here is an example: Old rules like having an A&P mechanic pushing back planes have given way to training rampers to do that. We need the A&P's working on the planes. Not paying a huge hourly wage for pushbacks frees up money for the mechanics and can be spent on additional tools, training and compensation.

      Work rules that encourage productivity can and should lead to higher pay for those employees. go to Mexico, where pay is low, and you get about a dozen cleaners on the plane. They are tripping over themselves. Having the optimum amount of workers, and paying them fairly is the best deal.

      We will not be able to really say the table has turned, in PHX at least, until we start getting Southwest employees applying to US Airways. That would really be a turn around. They do more, with less employees per plane, and their value is higher. That is a result of productive practices on the job, and a culture promoting productivity among employees.

    • That is one thing we are trying to turn around now.

      Cheaper is not better.


      Well it wont happen until the Parker/Franke element is gone or realizes that paying the
      lowest wages in the industry does not equate
      to profits. Lets not forget that Parker
      is still Franke's "boy", excuse me protoge'.

      I think all of this stock pumping by hedge funds and others ia about setting up a scenario to use stock for another "merger"/acquisition within a year.

    • That is one thing we are trying to turn around now.

      Cheaper is not better.

    • <<<WRONG again dumbass.
      I hope you are the first to get stapled because you are too stupid to work for a major. >>>

      From an accounting standpoint, America West is considered the acquirer. Thus the year-earlier figures are America West's results alone, while the latest loss includes 88 days of America West's results and four days of those of the combined airlines.

      you cant even keep up with current news, the name is pointless we could have called the airline dumbass air(after you) and it would still be America West Aquiring USair.

      Thus being the surviving airline...

      This is obvious in the fact that your stock pre merger, is worthless and AWA's had value, because USAIRWAYS N O LONGER EXISTS AND THUS CAN NOT BE THE SURVIVOR no matter how much your union bosses want to lie to you...

    • Doug said that made almost all "offical" numbers meaningless until they can close out all the books>

      Is this the first merger in business history?
      Of course not, and Parker wants to blow as much smoke as possible to cover failures and LCC continuing losses.
      Next quarter listen for the double talk
      which will try to claim that losses are really profits. Parker will really be in the spotlight of the investor interests who control the majority of the company.

    • US Casm at 10.06 want to get it to the AWA CASM of 8.54
      Is that accurate? I'll have to take a close look

      • 1 Reply to holeurin2
      • US Casm at 10.06 want to get it to the AWA CASM of 8.54
        Is that accurate? I'll have to take a close look
        Hole to clarify the 10.06 number is the combined carriers CASM. The 8.54 was where AWA was at and Doug said specificly we needed to get back to that. He also was very clear this is non labor cost that needs to be cut "Overhead" his word!

    • thanks for the summary flyby.

    • When do yall layoffs start?

      Are yall hedged like LUV yet?