Air Travel

Question:

> > If US Air has a future, it will be in Charlotte. > And change the name back to Piedmont. A guy could make some coin being > hubbed in Charlotte…

If US Air cannot take on Jetblue and Southwest in Philadelphia, then they won’t be able to take them on anywhere else. Shrinking itself to a small regional carrier won’t instantly eliminate the union that is causing it grief, nor will it eliminate all the contracts tying US Air to all the planes it has ordered. On the other hand, it is very possible that all those rumours were spread intentionally to scare the unions. Other airlines have done this, notably AA. Shirley, that big pension plan that rescued US Air during its bankrupcy would not want to see all this money evaporate overnight.

Response:

US no longer operates the M80s (I think they left shortly after the F100’s were sent off to the desert).  I agree w/ you regarding the 757.  They’re old! This is the beginning of the end for US. Mr. Kizzer – Hide quoted text — Show quoted text – > 3. Very little value in the mainline planes–the 757s are from Eastern-the > first ones off the Boeing line. The MD80 and 737 fleets are also very old. > The airbus fleet is leased at very disadvantageous rates.

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> > US Airways just announced that it is contemplating selling off its East Coast > > shuttle service and one of its hubs.  We’ve seen this before (Eastern, Pan Am, > > TWA).  I guess this is the beginning of the end for another "major". > There was a story in the news a few days ago about US Air renewing its gate > contracts at Pittsburg, but only taking a small fraction of the number of > gates it had in the past. > JF, I’m impressed. You’ve just composed an entire message that is > actually related to air travel. Well done!

*LOL* — Best Greg

Response:

whose Shirley?

– Hide quoted text — Show quoted text -> > If US Air has a future, it will be in Charlotte. > And change the name back to Piedmont. A guy could make some coin being > hubbed in Charlotte… > If US Air cannot take on Jetblue and Southwest in Philadelphia, then they > won’t be able to take them on anywhere else. > Shrinking itself to a small regional carrier won’t instantly eliminate the > union that is causing it grief, nor will it eliminate all the contracts tying > US Air to all the planes it has ordered. > On the other hand, it is very possible that all those rumours were spread > intentionally to scare the unions. Other airlines have done this, notably AA. > Shirley, that big pension plan that rescued US Air during its bankrupcy would > not want to see all this money evaporate overnight.

Response:

—–BEGIN PGP SIGNED MESSAGE—– Hash: SHA1         I’m coming into this thread rather late, but there was talk about USA competing with SWA and JBU in KPHL.         Now, has any word been mentioned about JBU starting service to PHL? If so, from which city? Surely it would be either LGB, or OAK, because their JFK hub would be useless, unless they are using the ERJ-190s they have ordered. But is there any news on this PHL service?                                                         BL. – — Web + NewsMaster, BOFH.. Smeghead!  | http://www.sbcglobal.net/~tyketto   PGP: 1024D/E319F0BF 6980 AAD6 7329 E9E6 D569  F620 C819 199A E319 F0BF —–BEGIN PGP SIGNATURE—– Version: GnuPG v1.2.4 (GNU/Linux) iD8DBQFAB5bGyBkZmuMZ8L8RAs7UAJ0cGWauDoK+0g1X98LEI/rDsLx+ogCfR3SW MT5JpbxBhAdpnFFftI3kpdM= =9MJE —–END PGP SIGNATURE—–

Response:

Four US Airways VPs have resigned.  Its starting to look like they’re bailing from a sinking ship. Jennifer McGarey, VP – Deputy General Counsel & Corporate Secretary (going to MCI) Jeffery McDougle, VP – Fleet (going to Laidlaw International) Daniel McDonald, VP – Planning & Scheduling (going to DHL) P. Douglas McKeen, VP – Labor Relations & Benefits (going into lablr consulting)     Weird how all the last names start with "Mc".

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- Hide quoted text — Show quoted text ->    Yup.  They’re only signing on for long-term leases for 10 gates at PIT (down > from 50).  By the way, some news sources say that Virgin USA is in talks with > another carrier to buy major assets from that carrier.  This just came out > today (a day after US Airways’ yard sale announcement).  Curious… > US Air sent a news release today advising all its staff that it has no leaway > and cannot afford to lose any cash and that if its bankrupcy rescue plan > requires that its cash reserves stay above 900 million. They are now at 1.3 > billion, but US air is entering the though winter season, as well as preparing > for onslaught of Southwest. > Certaintly looks like the stage has been set for US Air to liquidate itself, > Virgin buying the leftovers. > Because of ownership rules, my bet would be on a joint venture between Virgin > and Jetblue with US Air employees rehired as new staff with no inherited rights/benefits.

US Airways as pieces: US Air Shuttle.  This is a profitable business and sellable to any major carrier. DCA hub.  A major asset.  By far the dominant carrier in an ultra-profitable business traveler location. Philadelphia.  Ok, its a big city, but so?  Southwest is taking it over. Pittsburgh.  Stuck with a too big airport.  Not a hub city.   Charlotte.  Not either.

Response:

> US Airways just announced that it is contemplating selling off its East Coast > shuttle service and one of its hubs.  We’ve seen this before (Eastern, Pan Am, > TWA).  I guess this is the beginning of the end for another "major". > There was a story in the news a few days ago about US Air renewing its gate > contracts at Pittsburg, but only taking a small fraction of the number of > gates it had in the past.

Yeah right.  That’s what is meant by getting rid of the hub operation at Pittsburgh. Ryan

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– Hide quoted text — Show quoted text ->    Yup.  They’re only signing on for long-term leases for 10 gates at PIT (down > from 50).  By the way, some news sources say that Virgin USA is in talks with > another carrier to buy major assets from that carrier.  This just came out > today (a day after US Airways’ yard sale announcement).  Curious… > And even with all this, US Airways unions are still refusing concessions. > Southwest just announced all sorts of sports sponsorships in Philadelphia. > US Air sent a news release today advising all its staff that it has no leaway > and cannot afford to lose any cash and that if its bankrupcy rescue plan > requires that its cash reserves stay above 900 million. They are now at 1.3 > billion, but US air is entering the though winter season, as well as preparing > for onslaught of Southwest. > Certaintly looks like the stage has been set for US Air to liquidate itself, > Virgin buying the leftovers. > Because of ownership rules, my bet would be on a joint venture between Virgin > and Jetblue with US Air employees rehired as new staff with no inherited

rights/benefits. It’s sad but the airline unions must accept the fact that this is a high cost low margin industry and can no longer afford the high wages of a bygone era.  If the unions don’t accept the cuts US Air will liquidate and their next job in the industry will be with a discount carrier paying peanuts for wages and many of those jobs will be part time without benefits. Ryan

Response:

– Hide quoted text — Show quoted text -> >    Yup.  They’re only signing on for long-term leases for 10 gates at PIT (down > > from 50).  By the way, some news sources say that Virgin USA is in talks with > > another carrier to buy major assets from that carrier.  This just came out > > today (a day after US Airways’ yard sale announcement).  Curious… > US Air sent a news release today advising all its staff that it has no leaway > and cannot afford to lose any cash and that if its bankrupcy rescue plan > requires that its cash reserves stay above 900 million. They are now at 1.3 > billion, but US air is entering the though winter season, as well as preparing > for onslaught of Southwest. > Certaintly looks like the stage has been set for US Air to liquidate itself, > Virgin buying the leftovers. > Because of ownership rules, my bet would be on a joint venture between Virgin > and Jetblue with US Air employees rehired as new staff with no inherited rights/benefits. > US Airways as pieces: > US Air Shuttle.  This is a profitable business and sellable to any > major carrier. > DCA hub.  A major asset.  By far the dominant carrier in an > ultra-profitable business traveler location. > Philadelphia.  Ok, its a big city, but so?  Southwest is taking it > over. > Pittsburgh.  Stuck with a too big airport.  Not a hub city. > Charlotte.  Not either.

If US Air has a future, it will be in Charlotte. Ryan

Response:

The Dallas Morning News yesterday (Friday) says that American will probably bid for their shuttle (slots only) if US decides to sell.  But US isn’t saying if the Shuttle operation is profitable yet.

– Hide quoted text — Show quoted text -> US Airways just announced that it is contemplating selling off its East Coast > shuttle service and one of its hubs.  We’ve seen this before (Eastern, Pan Am, > TWA).  I guess this is the beginning of the end for another "major".

Response:

> If US Air has a future, it will be in Charlotte.

And change the name back to Piedmont. A guy could make some coin being hubbed in Charlotte…

Response:

USAirways probably has less than year to live in its present incarnation, the issues: 1. Even after bankruptcy, their costs per seat mile are the highest in the industry. 2. Their employees are just awful–a combination of the dregs of Piedmont, Allegheny, Lake Central, Mohawk, PSA, etc. The labor rules combine the best (most expensive) features of all of the predecessor companies. When US bought PSA, the PSA reservation clerks were instructed to work more slowly because it would look bad for the existing US reservationists. 3. Very little value in the mainline planes–the 757s are from Eastern-the first ones off the Boeing line. The MD80 and 737 fleets are also very old. The airbus fleet is leased at very disadvantageous rates. 4. PIT and PHL hubs are dead or dying (the remarkably agressive entry of Southwest at PHL will spell doom for US) 5. The hubs at DCA and CLT and the shuttle are the only operating assets with any value. DCA and CLT could be handled with a small number of A320s (perhaps 20) and an expanded fleet of regional jets. The shuttle is apparently not very profitably at this point. They will be lucky to sell the slots to American. 6. There are no larger carriers left to partner with that have liquidity and need for a regional affiliate at DCA and CLT. United is in worse shape than anyone realizes and they are not a potential "suitor." American might be able to gain some value from the shuttle feed, but they are in a cash conservation/"fix our own problems" mode at this time. Too much overlap for Delta to be interested. The combination of CO and NW has no need for duplicated service in the Northeast and the value of CLT to them would be minimal. 6. Virgin would be absolutely insane to pick up any part of this mess 7. The only idea I have that could be feasible is for US to shut down all mainline operations immediately, purchase/lease a large number of regional jets and operate as their predecessor companies did–as small town America’s link to the big cities. They would have to paint the fleet to match whomever they would feed (Delta, United, etc.) and the USAirways name would mercifully be extinguished.

Response:

> USAirways probably has less than year to live in its present incarnation, > the issues: > 6. There are no larger carriers left to partner with that have liquidity and > need for a regional affiliate at DCA and CLT. United is in worse shape than > anyone realizes and they are not a potential "suitor."

US Airways is scheduled to join the Star Alliance this year. > 6. Virgin would be absolutely insane to pick up any part of this mess

Might an another foreign carrier with interest in feed routes be interested in buying them ala Pan Am and National?  And yes, I know how bad an idea that was but it doesn’t mean it might not work for someone else. — Goliath & Wildwing’s Storage Room http://anatidae.homestead.com/

Response:

> > US Airways just announced that it is contemplating selling off its East Coast > shuttle service and one of its hubs.  We’ve seen this before (Eastern, Pan Am, > TWA).  I guess this is the beginning of the end for another "major". > There was a story in the news a few days ago about US Air renewing its gate > contracts at Pittsburg, but only taking a small fraction of the number of > gates it had in the past.

JF, I’m impressed. You’ve just composed an entire message that is actually related to air travel. Well done!

Response:

>    Yup.  They’re only signing on for long-term leases for 10 gates at PIT (down > from 50).  By the way, some news sources say that Virgin USA is in talks with > another carrier to buy major assets from that carrier.  This just came out > today (a day after US Airways’ yard sale announcement).  Curious…

And even with all this, US Airways unions are still refusing concessions. Southwest just announced all sorts of sports sponsorships in Philadelphia. US Air sent a news release today advising all its staff that it has no leaway and cannot afford to lose any cash and that if its bankrupcy rescue plan requires that its cash reserves stay above 900 million. They are now at 1.3 billion, but US air is entering the though winter season, as well as preparing for onslaught of Southwest. Certaintly looks like the stage has been set for US Air to liquidate itself, Virgin buying the leftovers. Because of ownership rules, my bet would be on a joint venture between Virgin and Jetblue with US Air employees rehired as new staff with no inherited rights/benefits.

Response:

US Airways just announced that it is contemplating selling off its East Coast shuttle service and one of its hubs.  We’ve seen this before (Eastern, Pan Am, TWA).  I guess this is the beginning of the end for another "major".  

Response:

> US Airways just announced that it is contemplating selling off its East Coast > shuttle service and one of its hubs.  We’ve seen this before (Eastern, Pan Am, > TWA).  I guess this is the beginning of the end for another "major".

This would appear to mean that the death spiral has official begun.

Response:

> US Airways just announced that it is contemplating selling off its East Coast > shuttle service and one of its hubs.  We’ve seen this before (Eastern, Pan Am, > TWA).  I guess this is the beginning of the end for another "major".  

Only time will tell. Speculation like this is pointless.

Response:

> US Airways just announced that it is contemplating selling off its East Coast > shuttle service and one of its hubs.  We’ve seen this before (Eastern, Pan Am, > TWA).  I guess this is the beginning of the end for another "major".

There was a story in the news a few days ago about US Air renewing its gate contracts at Pittsburg, but only taking a small fraction of the number of gates it had in the past.

Response:

>There was a story in the news a few days ago about US Air renewing its gate >contracts at Pittsburg, but only taking a small fraction of the number of >gates it had in the past.

   Yup.  They’re only signing on for long-term leases for 10 gates at PIT (down from 50).  By the way, some news sources say that Virgin USA is in talks with another carrier to buy major assets from that carrier.  This just came out today (a day after US Airways’ yard sale announcement).  Curious…

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