ASA's Cloudy Future

[Firehoser]

Agreed. Every time I choke down a Wendy's in 6 minutes, busting my azz to get the flight out on-time, I should think about the catered lunches, the marble floors, and the maple furniture at the G.O. that is inhabited by our managers for about 35 hrs/week.

Yeah and they think about your 12-18 days off a month and the ability to come to work, fly your trips and go home and not have to think about work anymore while they are on twenty four hour call and putting in 50- 60 hours a week working and wondering on the drive in and on the drive home how best to run the company so that 6000 employees who depend on their management performance for their jobs can still pay their mortgages 5 years down the road.

Its not all about you / us. We make up only 1800 of the 6000 employees - we are a minority in this business but you wouldn't know it from our egos.

 

[ASA_Aviator]

Yeah and they think about your 12-18 days off a month and the ability to come to work, fly your trips and go home and not have to think about work anymore while they are on twenty four hour call and putting in 50- 60 hours a week working and wondering on the drive in and on the drive home how best to run the company so that 6000 employees who depend on their management performance for their jobs can still pay their mortgages 5 years down the road.

Its not all about you / us. We make up only 1800 of the 6000 employees - we are a minority in this business but you wouldn't know it from our egos.

Well said. I'm always amazed at the selfishness of some of the captains I fly with. Most are great, but a few (I think they are over represented here) just can't think beyond themselves.

 

[Firehoser]

General,

I think it is unfortunate that we are all in this position. ASA is being backed into a corner just like Delta...although I willfully admit that you are in a much worse position than we are, seeing as how if mgmt gets what they want from you, it will be 45% cuts since 2002...terrible no doubt.

FL990; you have posted some thoughtful comments. What is missing though is an appreciation for the market - we no longer indirectly determine the value of our services - the customer does through their purchasing decisions. If they are not willing to pay a ticket price that will produce the profits necessary to enable the company to remain competitive and allow them to pay us a lucrative salary, then the company faces two choices - control costs, remain competitive, or die a painful death as you slowly lose market share to the competition.

You can shout, scream, posture, and threaten all you want to, you can go on strike and extort pay increases out of the company but it will not change this basic dynamic. If you do strike and get what you want, enjoy it while you can because someone else, with new aircraft, operational and maintenence guarantees and a lower payscale is always waiting to take your business. Even if the new airline adopted your exact payscale, differences in pay seniority alone would enable them to undercut you. It is not a diabolical management scheme, nor is it some grand conspiracy - its just the way it is - business. The same thing happens in every other business environment that is not government regulated. The airlines (read airline employees including unionized employees) who figure out how to compete and thrive in a post-deregulated world will be the ones who are around in 20 years.

Isn't about time we ended this cycle of repeating history every ten years or so post-deregulation? Isn't it about time we tried a different approach? The airlines who will prosper in the future will be the airlines whose employees understand the market forces in play - who understand that the bull in the china shop is the customer and that it is the customer who is in the driver's seat - no longer can organized labor dictate the wage market. The airlines who prosper in the future will have unions who cooperate to improve profitability, control costs and negotiate creative contracts that ensure that the unions will enjoy any increases in profitability due to these efforts - not force wage increases in ignorance of the company's ability to afford those increases during the down business cycles.

The good news is that this last down cycle may be the worst, that the market is probably experiencing its final shakeout and if we are educated enough, enlightened enough, savvy enough, we just might survive to see 2016.

 

[Tim47SIP]

What Union?

The airlines who prosper in the future will have unions who cooperate to improve profitability, control costs and negotiate creative contracts that ensure that the unions will enjoy any increases in profitability due to these efforts - not force wage increases in ignorance of the company's ability to afford those increases during the down business cycles.


Well that pretty much throws ALPA out of the picture. They are too busy trying to manipulate the industry for the chosen few. Who would be the best union to take the lead on this one.

 

[utahav8r]

Have to agree...

I just have to agree about the whole "someone will be wating to take your business" comment...

Look at ExpressJet. Magangement says, "Okay, we'll sign your new contract. And by the way, now you are too expensive, so 25% of your flying is going up for bid - and if you don't get your costs down, we'll give out some more"

That's pretty easy to watch and learn from, don't you think?

 

[sleepy]

Once again, you are a disgrace to Auburn.

LOL, is that even possible?

 

[captain caveman]

ALSO, I would like to add that I AM NOT suggesting that we undercut skywest...I am simply suggesting that if the costs are even, then the aircraft will be spread out evenly among the 2 companies...I believe that this is better for everyone as it will aid in building good relations among the two companies as apposed to creating competition and animosity between us.

This is what management would have you beleive. The fact is that $5-10/hour in operating cost for a transport category jet is negligible. It certainly won't dictate were the jets go when the costs are fixed. It is the fact that we are in negotiations and that this is one of the easiest costs to attack that they are shifting jets around, especially when they are giving hundreds of thousands to a legal firm to tell them what too say.

 

[goodto50meters]

General,

Tell em (management) to go screw themselves! We are.

Take a look:

U.S. Airline Unit Revenues Jump, Domestic RASM 'Off The Charts' By Steven Lott/Aviation Daily 03/22/2006 09:11:28 AM

The U.S. airlines reported a sharp 14.9% jump in February mainline systemwide unit revenues thanks to strong domestic results, which analysts predict will continue for several months.
The Air Transport Association unit revenue data is based on information from seven major carriers. Including regional affiliates, RASM soared 17.3%. Domestically, the gain in passenger unit revenue was "off the charts," said Merrill Lynch analyst Michael Linenberg. Mainline domestic unit revenue increased 18.7% as yield improved 12.2% and load factor increased 4.3 points to 78%. The domestic RASM jump is the greatest in about 15 years, Linenberg said.
Internationally, "unit revenue performance continues to be solid," he said. Pacific unit revenues led all regions, rising 8.7% thanks to higher yields and loads; however, as we move through 2006, "we expect year-over-year comparisons for international unit revenue to become more difficult."
Because the Easter and Passover holidays shifted to April this year, March RASM gains are expected to "decelerate from February's torrid pace," said JP Morgan analyst Jamie Baker, with most carriers predicting March gains will rival those of January. Looking further ahead, Linenberg expects unit revenue gains to be very strong for at least the next few quarters.

They will never admit they dont really need more. But hey baby, watch the black ink after they get it. This is more about Union-Contract busting than anything else at this point.

End Rant...

 

[RJDC]

I'll take all the extra flying I can get.

 

[ArcticFlier]

I'll take all the extra flying I can get.

Within your own airline, right?

AF