It's Official: PSA is getting Jets

[MD80DRVR]

US Airways Places Record Regional Jet Order With Bombardier and Embraer
Monday May 12, 9:00 am ET
Agreement Comprises Both 50-Seat and 70-seat Aircraft


ARLINGTON, Va., May 12 /PRNewswire-FirstCall/ -- US Airways has set into motion another key element of its business recovery plan today with an agreement to purchase a total of at least 170 Canadair and Embraer regional jets from Bombardier Aerospace of Canada and Embraer of Brazil, respectively. The first aircraft delivery is scheduled for October 2003.
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The order equally splits between the world's two leading regional jet manufacturers a combination of 170 firm orders and 380 options to purchase aircraft. The estimated value of the firm order, based upon list price, is approximately $4.3 billion. Financing terms were not disclosed.

"These new regional jets will enable US Airways to generate additional revenue by growing our route network and competing more vigorously in short- to-medium-length haul markets," said US Airways President and Chief Executive Officer David N. Siegel. "The RJs also will enable us to increase hub feed by adding new markets that were too distant for turboprop aircraft, and replace current turboprop flying, which will please many customers who prefer jet aircraft. Regional jets will allow us to replace and complement larger jet aircraft on routes with poor to marginal performance, which then can be re- deployed to operate in more profitable destinations, such as the Caribbean and on other routes where we currently do not fly."

"Both manufacturers were extremely aggressive in vying for our business. I believe that this agreement is going to benefit US Airways and its employees, and brings the greatest value to our company," said Siegel. "As a result of this great deal, we were able to split the order equally between Bombardier and Embraer."

Under the Bombardier agreement, US Airways has firm orders for 60 CRJ Series 200, 50-seat single-class aircraft; and 25 CRJ Series 700, 75-seat dual-class aircraft. The 50-seat order for the CRJ Series 200 aircraft is scheduled to be delivered beginning in October 2003 to US Airways Express wholly owned subsidiary PSA Airlines. All firm order CRJ aircraft will be delivered by April 2005.

US Airways also has placed firm orders for 85 Embraer 170, 70-seat, dual class aircraft, with the first delivery scheduled for November 2003 to MidAtlantic Airways, a regional jet division of US Airways, Inc. US Airways has the option to convert the Embraer 170s to Embraer 175s with 76 seats. All Embraer 170 deliveries are to be received by September 2006.

Siegel said that these smaller jet aircraft are extremely well suited to serve the US Airways network and will fill in nicely with schedules at key times at the airline's hubs in Charlotte, N.C., Philadelphia and Pittsburgh, as well as its major East Coast operations at Boston, New York LaGuardia and Reagan Washington National.

"We are extremely pleased that US Airways has selected the Bombardier CRJ family of regional jets as part of its profit strategy," said Pierre Beaudoin, president and chief operating officer, Bombardier Aerospace. "US Airways will realize the operating benefits of high performance, low operating costs and family commonality. In addition, US Airways customers will also enjoy more convenient, comfortable service."

"To be a part of US Airways' remarkable growth plan and to have them as the launch customer in North America for the Embraer 170 is exciting for all of us at Embraer," said Mauicio Botelho, president and chief executive officer of Embraer. "US Airways is redefining the American commercial airline market, and we are very proud to be supplying the Embraer 170, an aircraft that is redefining what people expect from a commercial airliner."

The CRJ Series 700 aircraft and the Embraer 170s will offer both First and Coach-Class service. Every seat is either an aisle or window seat. These regional jets also provide comfortable leg space with plenty of overhead and under-the-seat baggage storage room and stand-up headroom. They have a cruising speed of around 500 miles per hour and can cruise at altitudes above 30,000 feet. GE engines will power each of these regional jets.

US Airways is the nation's seventh-largest airline, serving nearly 200 communities in the U.S., Canada, Mexico, the Caribbean and Europe. US Airways, US Airways Shuttle, and the US Airways Express partner carriers operate over 3,300 flights per day, with US Airways Express wholly owned subsidiaries and affiliate carriers operating more than 60 percent of those flights. For additional information on fares and schedules, visit US Airways online at usairways.com.

Bombardier Aerospace, a unit of Bombardier Inc., is a world leader in the design and manufacture of innovative aviation products and provides services for the regional, business and amphibious aircraft markets. It also offers Bombardier Flexjet* and Bombardier Skyjet* business aircraft programs, technical services, and aircraft maintenance and pilot training for business, regional airline and military customers.

Bombardier Inc., a diversified manufacturing and services company, is a world-leading manufacturer of business jets, regional aircraft, rail transportation equipment and motorized recreational products. It also provides financial services and asset management in business areas aligned with its core expertise. Headquartered in Montreal, Canada, the corporation has a workforce of some 75,000 people and manufacturing facilities in 25 countries throughout the Americas, Europe and Asia-Pacific.

Embraer (Empresa Brasileira de Aeronautica S.A. - (NYSE: ERJ - News); (Bovespa: EMBR3 and EMBR4)) is one of the world's leading aerospace companies. With headquarters in Sao Jose dos Campos, state of Sao Paulo, and offices and customer service bases in Australia, China, France, Singapore and the United States, the Company as of March 31, 2003, has a total workforce of 12,407 people. Embraer was Brazil's largest exporter from 1999 to 2001, and second largest in 2002. As of March 31, 2003, Embraer's firm order backlog totaled US$7.9 billion and the total backlog, including options, equaled US$19.2 billion.

Trademarks of Bombardier Inc. or its subsidiaries.

 

[Kingairrick]

Boooootttyhoooooo!

 

[Smoking Man]

Beavis

Beavis wrote this in the other thread.

"You guys crack me up! Arent you the same guy who said PSA was doing proving runs last October, blah, blah......

Do you really think 90 freakin jets are going to magically appear under the tree in DAY just like that???? It took Comair/Eagle/COEX/ASA 5 - 10 years of jet deliveries to accumulate that many aircraft. At an AGGRESSIVE delivery schedule of 2 per month, that means it will take about 5 years, not to mention the problems with 70 seat deliveries which have screeched to a halt.

Try this scenario.......PSA gets about 10 RJ's over the next year or so, but 30 of the slots to fly them go to furloughees leaving PSA to furlough themselves to make room. You guys have NEVER seemed to grasp this! Look for many more RJ's to be placed at Chat, Mesa and maybe even ACA.

Take another sip of kool-aid."

Beavis I have Some Crow for you, how would you like it cooked?

Thanks for all of the support and best wishes that you passed on to us.

 

[d328pilot]

MMMMMMMMMM.......crow is tasty from what i hear

 

[avratdwc]

Great News Everyone!!!!!

Well now I am getting excited to get that application inthe mail now. I spoke with Ken last week and he said things in HR are really busy. What is the view here of the current PSA crews. RU guys optomistic or enthused? CYA

Avrat

 

[dondk]

Congrat's guys...

About time the WO's got some jet's..

Does anyone know if the 85 all go to PSA ?
Any going to ALO or PDT?

Why hire and train in the Dork when on that schedule (4 per month or so) you should transition your entire pilot group over in about a year?

Who "may" get the -700's?

 

[Beavis]

I stand by what I said....

You guys Do crack me up, you were only a year off, or so. But what is really funny is how yopu think 90 RJ's are going to suddenly show up en masse, and whats funnier is how you dont see that this is a bad deal for the pilots at the bottom of your seniority list that will be furloughed to make room for the mainline pilots that will be flying these jets, as well as the captains that get passed over for jet captain slots by furloughees! Great deal guys!!! But what do you expect from a pilot group that stabbed its other wholly-owned "brothers" in the back and cut a midnight deal for the jets for jobs when PDT and Allegheny were standing tall against it!!

 

[psacowboy]

From the PSA announcement:

"Under the Bombardier agreement, US Airways has firm orders for 60 CRJ Series 200, 50-seat single-class aircraft; and 25 CRJ Series 700, 75-seat dual-class aircraft. The 50-seat order for the CRJ Series 200 aircraft is scheduled to be delivered beginning in October 2003 to US Airways Express wholly owned subsidiary PSA Airlines. All firm order CRJ aircraft will be delivered by April 2005."


Thats approximately 3.15 RJ's per month. I heard that the planned delivery schedule is one per week, just as it was when we transitoned from Jetstreams to Dorniers.

Pretty exciting stuff over here and we have waited a long time for this.

 

[Beavis]

And I hope your all real excited and giddy that the other W.o's are left out in the cold! Maybe you can hire some of their furloughed pilots as well!

 

[Smoking Man]

If you will remember our MEC voted it in for us, the pilots did not get a choice. With 60 RJ's none of our pilots gets furloughed. Actuall there will be people who are FO's currently, moving up to Captain on the RJ, with all of the Mainline people junior to him/her.

As for the wholly owned brother thing I remember ZERO support when PSA was going to be sold off to start DC Air.

As far a being giddy I cannot remember a single post that is glad that other wholly ownes are out in the cold.

 

[328dude]

The next order is going to either PDT or ALG in a teleconference I was in today. They are not being left out by any means. PSA has alot less aircraft then either PDT or ALG and was easier to impliment them quicker because of this. The other two wholly owned are getting CRJ's, but when is not known at this moring's teleconference.

Here is the delivery schedule for PSA

Dorniers to start going away at 2 a month in Ocotber until they are gone.
2 CRJ's a month from October to November 2003
3 CRJ's a month from December 2003 to April 2004.
4 CRJ's a month from May 2004 to October 2004
3 CRJ's a month from November 2004 until all 60 are on PSA property slated to end in April 2005.

In regardfs to the 25 CRJ 700 series. we are still in negotiations about this, but from what our MEC and the VP of Op's said this morning, it looks like these will show up here as well.

 

[Beavis]

Smoking man....It's funny you claim you werent supported in the wake of the DC air thing by the other WO's, when ultimately it was PIEDMONT that was srewed in that deal!!!! DCAir/Potomac, when it started, stole 10 PDT Dash 8-200's on former PDT routes!! Did you forget that?? PSA was unaffected by this. How can you be crying about that. The fact remains, PSA was the only original yea vote in the jet 4 jobs, and that fact was held over the other two WO's my management with the threat of liquidation with all assets going to PSA! How can you guys be proud of that?

If the other WO's are to get the "next" order, how long will that be?? If PSA and MAA are getting the first 170"?

 

[328dude]

Beavis:

From what I got, the next order should be placed sometime around the 4th quarter of 2003. Exact numbers are not know but it sounds to be a joint announcement with ALG and PDT getting them at the same time.

Bruce Ashby, stated in a meetng a few weeks ago, that all 3 wholly owned companies WILL recieve jets. PSA is recieving them first only because they are better suited to ending the leases on the Dornier quicker then some of the Dash's. That was the only reason. And besides that, the Dash is alot more relieable airplane then the Dornier. The ALG and PDT girls and guys have nothing to worry about. It's coming, I just wish I knew when.

 

[Smoking Man]

Did you have an 8-K filing on you operational certificate? NO we did. All three of us were in on the alter ego fight against potomic, all three of us. once again all three of us.

Did I cry about it? No I just stated the fact that there was no support.

The fact remains that the PILOTS of PSA did not get to vote on our contract, our JFJ, our give backs, etc.

Once again where was any of us out here being proud of that?

NO SPIN ZONE. Or are you going to tie this in with how the exhaust at a higer flight level will damage the ozone more and PSA is now the ECO pigs.

It sounds like you will be getting RJ's also, sorry that it is not the way want it to happen.

 

[PDTGIMP]

I'm glad to see that PSA is getting jets.

Having said that, J4J will affect the other two carriers more than PSA. You guys have around 30 airplanes, and with firm orders for 60 their will be no furloughs. According to a press release by Bombardier, U has delivery dates for another 90 CRJ's. Both ALG and PDT have around fifty airplanes. Therefore, in the short term, on a one for one basis both carriers will be forced to furlough.

Also, with no new eqiupment here again this year, PDT will furlough again at the end of the year as seven more aircraft are returned. We still have furloughed pilots today and I find it funny that mainline pilots have rights to fly here at Express but we can't get our guys hired at our fellow carriers. (Although PSA did offer to take PDT guys last year....when PSA stopped hiring.) My question is after reading all these posts from Part 91 guys hired at PSA, did any ALG or PDT guys get hired?

Either way PDT and ALG pilots lose in this deal.

 

[big dog1]

Will Mid Atlantic get any?

 

[BTDII]

I can't belive I'm reading WO pilots fighting with eachother. I've said it before and I'll say it again. Now more than ever we need to be on the same page and work toward solutions to the problems that will continue to face our carriers.

Theres nothing to celebrate untill all WO pilots are back on their respective property.

 

[Dashcaptain]

The hard part here is that Allegheny and Piedmont are still supposed to lose airplanes this year. We may end up furloughing pilots while, as of right now, PSA will grow. I am glad to see one of us finally get some rjs, but morale at the other two will not improve with this latest announcement. Let's hope there is more to come sooner rather than later.

 

[328dude]

PDTGIMP: Preferential hiring was set up for your furloughs and is still the case, however, nobody ever contacted PSA regarding employment. PDT and ALG furlughs always have preferential hiring status here and the same goes for us at your carriers. This is something all three MEC's set up along time ago. Maybe your MEC could inform the furloughs that they will give them preferential hiring status in case they missed the first message.

 

[Beavis]

BDTII said all I was trying to say...

You PSA guys are rejoicing and making your announcements and predictions while the ALG and PDT guys get nothing and are faced with more furloughs and downgrades. Compassion?