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Management Spin at the new US Airways

MK82Man

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1) It has been an overall success for the shareholders (who were smart enough to get out when the stock price was up and of course management the entire time), not the employees. Why -- East pilots refuse to recognize the merger partner, AWA pilots, thereby making Managements' job easier. USAPA has given Management the pilot disharmony to exploit.

2) When you hear MNGMT say we saved jobs, it means more cuts on the way.

3) Charlotte will see "big-time" softening of demand with the economic crisis.

4) USAPA blames MNGMT for not getting the merger completed. Pure Spin, they are at fault.

5) The last sentence is the best, USAPA will destroy the airline. So selfish, so sad.


US Airways' CEO: Merger Saved Jobs
The street.com

10/14/08 - 04:27 PM EDT

CHARLOTTE, N.C. -- Three years after the merger between US Airways and America West, it seems clear the deal was an overall success. Still, the inability to reach an agreement on pilot seniority stands out as a glaring shortcoming.

Without a merger, "neither the standalone US Airways nor the standalone America West could have managed through," said CEO Doug Parker, in a recent interview. "Both these airlines would be nonexistent had they not merged. But merged, we saved 35,000 jobs." At the same time, "pilot seniority is not something we contemplated we'd still be dealing with three years later", Parker admitted.

The bitter seniority conflict follows an arbitrator's ruling that was deemed unacceptable by most pilots from the former US Airways. It has been accompanied by an April election that ousted the Air Line Pilots Association after 57 years, and a series of lawsuits.

On the positive side, "our pilots are keeping this between themselves," Parker said. "We've had no customers see this affect them in the last three years. People read about it, but it hasn't affected our operations one bit." Meanwhile, Charlotte and Philadelphia, the two hubs operated by the former US Airways, have been the strongest links in the new carrier. They have suffered minimal capacity reduction despite cuts of about 25% in Las Vegas and 10% in Phoenix, which has come as the industry moves to reduce total capacity by an unprecedented 10% in response to higher fuel prices.

Charlotte has proven to be more resilient than other parts of the country," Parker said, even taking into account the merger of Wachovia, Charlotte's second-largest employer, into Wells Fargo "US Airways' position in Charlotte is not dependent on Wachovia being as big as it is here," Parker said. "Charlotte is much bigger and stronger than that." Philadelphia, long a trouble spot for the airline, has improved. In terms of departures within 14 minutes of the scheduled time, US Airways' Philadelphia operation showed a 25-point improvement, to 76.5%, from the first half of 2007 to the first half of 2008. "The turnaround in US Airways has been stunning within itself," Parker said. "The turnaround in Philadelphia is even more dramatic."

US Airways emerged from bankruptcy in September 2005 after a merger with America West. The new company quickly began to make money due to capacity declines throughout the industry and strong demand. The merger's success led Parker to pursue both Delta and UAL. Those efforts failed, although some speculate that UAL, the parent of United, might become interested were US Airways to resolve its pilot seniority issues. Meanwhile, Delta plans to combine with Northwest.

For its part, the US Airline Pilots Association, which replaced ALPA at US Airways, recently marked the third anniversary of the tie-up, saying in prepared statement that "the airline is entangled in labor disputes, lawsuits and customer service issues, and management so far seems incapable of getting the merger completed."

As for merging pilot groups, said USAPA president Stephen Bradford, "What the Delta and Northwest managements did in just a couple of months, US Airways management hasn't been able to do in over three years."

Aviation consultant George Hamlin says the carrier could gain efficiencies if pilot lists and contracts are merged. But, if unresolved, the pilot conflict could encumber US Airways to the extent that it comes to resemble Eastern Airlines in its final days, Hamlin says.

"If you put parochial interests first, last and only, you could destroy your employer," he says. "But so far, you have to count this as a success, because the airline is still here."
 

MK82Man

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This is what USAPA has given to management:

What the East MEC and USAPA have cost all US Airways Pilots. Current - 10/16/08

Assumptions and Approximations
1. All Captains (except E190) are at 12 year pay or greater
2. All East FOs (except E190) are at 12 year pay or greater
3. AWA FOs average at 7 year pay
4. E190 Captains average at 5 year pay
5. E190 FOs average at 3 year pay

Average Pay lost since East stopped negotiations. Based on 85 hrs per month. 449 Days since JNC (Joint Negotiating Committee) Terminated. East walked out on 7/25/2007.

Kirby (COO at US Airways) Proposal.

Cumulative Pay Lost by East Captains
A330 $21,779
B757/767 $21,258
B737/A319/32X $26,843
E190 $0

Cumulative Pay Lost by West Captains
A330 NA
B757/767 $23,993
B737/A319/32X $7,200
E190 NA

Cumulative Pay Lost by East First Officers
A330 $13,714
B757/767 $11,589
B737/A319/32X $10,890
E190 $0

Cumulative Pay Lost by West First Officers
A330 NA
B757/767 $13,485
B737/A319/32X $3,219
E190 NA

Estimated Total Loss of Pay for East Pilot Group: $53,296,390
Estimated Total Loss of Pay for West Pilot Group: $12,339,711


ALPA (CBA at time of joint contract talks) Proposal.

Cumulative Pay Lost by East Captains
A330 $63,570
B757/767 $59,258
B737/A319/32X $61,382
E190 $35,544

Cumulative Pay Lost by West Captains
A330 NA
B757/767 $61,993
B737/A319/32X $43,508
E190 NA

Cumulative Pay Lost by East First Officers
A330 $43,483
B757/767 $42,185
B737/A319/32X $44,946
E190 $18,052

Cumulative Pay Lost by West First Officers
A330 NA
B757/767 $36,333
B737/A319/32X $27,822
E190 NA

Estimated Total Loss of Pay for East Pilot Group: $160,952,178
Estimated Total Loss of Pay for West Pilot Group: $67,340,590
 

Full of LUV

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Wow

This is what USAPA has given to management:

What the East MEC and USAPA have cost all US Airways Pilots. Current - 10/16/08

Assumptions and Approximations
1. All Captains (except E190) are at 12 year pay or greater
2. All East FOs (except E190) are at 12 year pay or greater
3. AWA FOs average at 7 year pay
4. E190 Captains average at 5 year pay
5. E190 FOs average at 3 year pay

Average Pay lost since East stopped negotiations. Based on 85 hrs per month. 449 Days since JNC (Joint Negotiating Committee) Terminated. East walked out on 7/25/2007.

Kirby (COO at US Airways) Proposal.

Cumulative Pay Lost by East Captains
A330 $21,779
B757/767 $21,258
B737/A319/32X $26,843
E190 $0

Cumulative Pay Lost by West Captains
A330 NA
B757/767 $23,993
B737/A319/32X $7,200
E190 NA

Cumulative Pay Lost by East First Officers
A330 $13,714
B757/767 $11,589
B737/A319/32X $10,890
E190 $0

Cumulative Pay Lost by West First Officers
A330 NA
B757/767 $13,485
B737/A319/32X $3,219
E190 NA

Estimated Total Loss of Pay for East Pilot Group: $53,296,390
Estimated Total Loss of Pay for West Pilot Group: $12,339,711


ALPA (CBA at time of joint contract talks) Proposal.

Cumulative Pay Lost by East Captains
A330 $63,570
B757/767 $59,258
B737/A319/32X $61,382
E190 $35,544

Cumulative Pay Lost by West Captains
A330 NA
B757/767 $61,993
B737/A319/32X $43,508
E190 NA

Cumulative Pay Lost by East First Officers
A330 $43,483
B757/767 $42,185
B737/A319/32X $44,946
E190 $18,052

Cumulative Pay Lost by West First Officers
A330 NA
B757/767 $36,333
B737/A319/32X $27,822
E190 NA

Estimated Total Loss of Pay for East Pilot Group: $160,952,178
Estimated Total Loss of Pay for West Pilot Group: $67,340,590

Wow! Seniority may not be for sale, but this is a case where people are making emotional decisions in business and that always leads to bad decisions.
Never love something that can't love you back......
I know that seniority means quality of life, but so does cold hard cash! I mean that is quite a bit of pay to leave on the table in the name of spite!
 

Bringupthebird

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Fun fact.

Of course Parker could have said," The merger wasn't really necessary, we just like throwing rocks at hornet's nests. And I really didn't earn my obscene salary and bonus."

What do you expect him to say? He took out a risky mortgage on AWA to make a bad investment in US. But since it wasn't his money, what does he care?

AWA had the lowest labor costs in the industry and could never parlet that into industry leading growth and profits. Now with the lowest labor costs, yet total costs toward the high end of the spectrum, where does anyone really expect US to go?
 

m80drvr

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Of course Parker could have said," The merger wasn't really necessary, we just like throwing rocks at hornet's nests. And I really didn't earn my obscene salary and bonus."

What do you expect him to say? He took out a risky mortgage on AWA to make a bad investment in US. But since it wasn't his money, what does he care?

AWA had the lowest labor costs in the industry and could never parlet that into industry leading growth and profits. Now with the lowest labor costs, yet total costs toward the high end of the spectrum, where does anyone really expect US to go?


Away..........
 

Deadalus

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Wow! Seniority may not be for sale, but this is a case where people are making emotional decisions in business and that always leads to bad decisions.
Never love something that can't love you back......
I know that seniority means quality of life, but so does cold hard cash! I mean that is quite a bit of pay to leave on the table in the name of spite!

It boogles the mind doesn't it. They didn't get to staple 1800 pilots so gosh darn't they showed everyone by screwing everyone including themselves. Sometimes stupid just plain hurts.
 

Flybywire44

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Any word on a next volley of West furloughs? How many pilots are you guys down to now?
 

m80drvr

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Any word on a next volley of West furloughs? How many pilots are you guys down to now?


Around 60.

4 year + employees hitting the streets while probationay pilots stiil collect a paycheck I guess UCRAPA's DOH stance only applies when it benefits their pilots....CRIMINAL
 

Deadalus

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Around 60.

4 year + employees hitting the streets while probationay pilots stiil collect a paycheck I guess UCRAPA's DOH stance only applies when it benefits their pilots....CRIMINAL

Yep, just when I thought there wasn't any lower life form in aviation than a CEO the Easties go and crawl out from under a rock.
 

Bringupthebird

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Any word on a next volley of West furloughs? How many pilots are you guys down to now?

I wish the furloughees good luck in securing much better employment and that they eventually rise to a position that allows them to laugh in a bitter old eastie's face when they come strutting in for an interview for some job to replace the career they've screwed themselves and everyone else out of.
 

Flybywire44

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So if NIC or DOH came would they rectify the problem? Is USAPA not helping the west pilots because they're not paying dues? Crazy times...
 

Thebadcat1313

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So if NIC or DOH came would they rectify the problem? Is USAPA not helping the west pilots because they're not paying dues? Crazy times...

If USAPA has any sense, they will figure out that they had better represent the west, regardless of the dues they are collecting. You cannot make your representation contingent on or proportional to the dues collected. That is big time illegal, my friend. They won the election, now they need to step up to the plate. That is going to involve doing things that are hard to stomach for many easties. The alternative is chaos and likely successful DFR against USAPA.
 

BeCareful!

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If USAPA has any sense, they will figure out that they had better represent the west, regardless of the dues they are collecting. You cannot make your representation contingent on or proportional to the dues collected. That is big time illegal, my friend. They won the election, now they need to step up to the plate. That is going to involve doing things that are hard to stomach for many easties. The alternative is chaos and likely successful DFR against USAPA.


One thing I never see the predominantly West populous here on FI.com mention is that there are OPEN POSITIONS for PHX and LAS reps within USAPA.

Your blind hatred for us and the behavior your group has indulged in is childish. There are potentially huge benefits to being free of ALPA National and John-now-that-I'm-here-how-about-letting-me-do-it-till-I'm-65-Prater.

I agree that the dual list furloughs are a travesty, and I have expressed this to my reps. But you all had plenty of responsibility in this mess dating back to before USAPA's election. For one, you shouldn't have walked out on the lock down negotiations in Colorado. Maybe USAPA wouldn't exist.

No matter, none of your keyboard commandos here in cyberspace will ever admit to the important crowd here that you're anything but victims.

What you should do is fill those Rep positions that have been open to you for MONTHS. Then your angst won't look quite so stupid.
 

TWA Dude

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One thing I never see the predominantly West populous here on FI.com mention is that there are OPEN POSITIONS for PHX and LAS reps within USAPA.
Fun fact your USAPA Propaganda Minister never revealed: at least Four Westies have in fact asked to be appointed to be base reps -- and they were rejected by first officer Bradford.

In any case, it doesn't matter whether we have reps or not. As long as AL-SAPA is determined to rearrange the seniority list to the East's advantage we'll have no representation.
For one, you shouldn't have walked out on the lock down negotiations in Colorado. Maybe USAPA wouldn't exist.
For two, you shouldn't have walked out on the Joint Negotiations during the summer of '07. Maybe you'd have a higher pay rate, more vacation, duty and trip rigs, full deadhead pay, trip protection, and reserve rules.
 
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