United is shopping out AWAC's feed

[Hosed COEX]

Looks like United is shopping

Press Release Source: United Airlines



United Takes Additional Steps to Move Business Plan Forward
Wednesday November 10, 5:42 pm ET Company Works to Implement Non-Labor Cost Reductions by Seeking Competitive Bids for a Portion of its Current United Express Capacity

CHICAGO, Nov. 10 /PRNewswire-FirstCall/ -- United Airlines today announced that it has extended a request for proposal (RFP) to a number of regional airlines to provide up to 70 regional jets to the United Express network. These jets will be used to cover capacity currently operated by Air Wisconsin, one of United's six United Express partners. The RFP is not expected to increase the overall size of the fleet at United Express. Rather, United expects that under the terms of the bids it receives, the cost of the capacity currently operated by Air Wisconsin will likely be reduced. Additionally, the RFP will provide United with an opportunity to fine-tune the mix of smaller and larger regional jet aircraft in the United Express fleet.

"As we continue with our cost-control efforts, we must look at every area of the company and within every contract we have," said Sean Donohue, vice president-United Express and Ted. "Air Wisconsin is a long standing, valuable partner for United Airlines that performs well for us today, and we look forward to productive discussions with Air Wisconsin and other potential bidders. We must ensure we are paying market rates for our United Express service. By requesting competitive bids from a number of regional airlines, we are confident we will secure proper market rates for our United Express contracts while providing our customers with safe, reliable service throughout our United Express network."

United submitted the RFP to 10 regional airline companies including all of its existing partners. Initial proposals are due back to United by Dec. 10. Companies that received an RFP include: Air Wisconsin, Trans States, Chautauqua, Mesa, SkyWest, Independence Air, Horizon, Pinnacle, Mesaba and Express Jet.

"Every aspect of our business has got to be competitive. We will meet the goal of lowering our costs by an additional $2 billion, about one-third of which we expect to come from non-labor costs," said Peter D. McDonald, executive vice president and chief operating officer.

United Airlines (OTC Bulletin Board: UALAQ - News) is the world's second largest airline, operating more than 3,500 flights a day on United, United Express and Ted to more than 200 U.S. domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C. With key global air rights in the Asia-Pacific region and Europe, United is the largest international carrier based in the United States (measured by revenue passenger miles***). United is also a founding member of Star Alliance, which provides connections for our customers to more than 700 destinations in more than 130 countries worldwide. United's nearly 62,000 employees reside in every state in the United States and in many countries around the world. News releases and other information about United can be found at the company's Web site at united.com. Revenue passenger miles for 12-months ending June 2004 as reported to the U.S. Department of Transportation. Worldwide Communications: Media Relations Office: 847.700.5538 Evenings/Weekends: 847.700.4088

 

[Mel Sharples]

Companies that received an RFP include: Air Wisconsin, Trans States, Chautauqua, Mesa, SkyWest, Independence Air, Horizon, Pinnacle, Mesaba and Express Jet.

Sounds to me like they are trying to force Air Willie into concessions.

I sure don't see how Mesaba or Pinnacle can pull this one off without changing the Northwest ASA. But then again, in the big shell game of airlines there is always an end-run around everything.

This is going to get hella interesting. . .



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[InclusiveScope]

Sounds to me like they are trying to force Air Willie into concessions.

I sure don't see how Mesaba or Pinnacle can pull this one off without changing the Northwest ASA. But then again, in the big shell game of airlines there is always an end-run around everything.

This is going to get hella interesting. . .



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Don't worry Mel, haven't you heard? ALPA has a secret weapon to stop this bidding - it's called "brand scope". Haven't you heard DW lecture us about not competing for flying. I'm sure "brand scope" will prevent any bidding from taking place. TIC

 

[flap operator]

I think they mean BIG SKY when they mention Mesaba. Could this be what Foley was talking about when he said ther will be a decision made in 3-6 months with what they're doing with Big Sky?

Sucks to be AWAC right now... UAL is squeezing their balls. Whatelse would they do without UAL? They're not going to pull an ACA... they'll have to concede or shut down.

I wish the AWAC boyz and girls the best of luck.

FO

 

[MedFlyer]

Companies that received an RFP include:Air Wisconsin, Trans States, Chautauqua, Mesa, SkyWest, Independence Air, Horizon, Pinnacle, Mesaba and Express Jet.

Why would UA send an RFP to Indy? Kind of like asking your ex-wife to get married again.

 

[BE99chick]

desperation drives people to do things they wouldn't normally do....

 

[rightrudder]

Sounds to me like they are trying to force Air Willie into concessions.


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They bent us over for concessions a year and ahalf ago. Guess it wasn't enough. I guess there was a loophole in the agreement from a year ago that is allowing them to do this. Either way, it sucks big time. UAL is certainly paying us back well for being so loyal.

 

[SkyWestCRJPilot]

I wonder if United is offering this to Independance Air seeing Independance Air's financial predicament and wants them to come back as a United Express carrier with lower rates and also eliminating them as a potential competetor.

 

[Mel Sharples]

Don't worry Mel, haven't you heard? ALPA has a secret weapon to stop this bidding - it's called "brand scope". Haven't you heard DW lecture us about not competing for flying. I'm sure "brand scope" will prevent any bidding from taking place. TIC

Yeah, well... that's how ALPA is.

"Gee, that's too bad you're getting a divorce. To be honest, your wife was a stupid b!tch anyway. You are SO much better off without her.

Soooo... do you mind if I sleep with her???"

Just swap the names, but the song and dance is still the same.



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[WhiteCloud]

I wonder if United is offering this to Independance Air seeing Independance Air's financial predicament and wants them to come back as a United Express carrier with lower rates and also eliminating them as a potential competetor.

I was thinking the same thing. AWAC recently acquired RJ number 70. Interesting how that was the number tossed out. First move us out of Denver and now put the screws to us at IAD. UAL can [verb] my [body part].

 

[avrodriver]

Absolutely comedy! When I got the call about the lastest news I actually laughed out loud. Nothing surprises me anymore......Come and get it CHQ, MESA,SkyWest ( not talking to the pilots so don't take it personal guys). Our brillant leaders were smart enought to get 8 year of concessions out of us, but not smart enough to secure the business that keeps the money coming! Doesn't every one brag about how smart these guys are??? Well guess what.......they are going to have to fund this round (taking less profit) of "Save the company".............if i lose my 30 something thousand dollar a year job that I've spent 10 years in aviation earning I'll be a little disappointed, but I guarantee the owners of our privately held company have alot more to lose. I obviously want us to keep the contract and I'm not wishing harm on AWAC, but what comes around goes around.............it's thier time to take cuts......and all the fools that voted to take cuts last time better be on board. Yes I know we're not being asked yet, but you have to admit the writings on the wall. I'm off to the bar! ( yeah right.....like I wasn't going anyway.....but yeah I can always use new reasons to drink....thanks AWAC!!) A.D.

 

[Beantown]

the RFP will provide United with an opportunity to fine-tune the mix of smaller and larger regional jet aircraft in the United Express fleet.

Does Air Wisconsin fly the CRJ700? This might be about lowering there cost for this RJ feed but my guess is that they are using this loophole to try and get rid of some of AW's 200's and replace them with mostly 700's. United has made it clear that they want mostly 700's in the future. If this is true, my guess is that Air Wisconsin probably has a limited chance of getting this flying no matter the bid b/c if they win it they will just be keeping the same 200's (if they don't already fly 700's for United, if they do forget this whole post). If someone else gets it they will probably be asked to buy new 700's. Just my 1.5 cents. -Bean

ps Good luck to all the AW pilots out there. This su$ks a$$.

 

[avrodriver]

AWAC does not operate 700's

If United wants more 70 seaters they are going to have to go back to the pilots unions....the number of 70 seaters are capped ( and mostly spoken for)......for now. Good observation, but after spending sh.it tons of money totally restructuring our operation, don't know how jazzed our company would be about bringing in a new fleet type ($$$$$). I agree bigger airplanes.....for less pay is the future of the regionals......it's already happening. THE MAN must be loving this industry right now...... D.AMN THE MAN! AD

 

[vc10]

Not true. There's no cap at UAL on the number of 70s.

AWAC does not operate 700's

If United wants more 70 seaters they are going to have to go back to the pilots unions....the number of 70 seaters are capped ( and mostly spoken for)......for now. AD

 

[avrodriver]

Stand corrected.....looking at a summary of the United TA

No RJ limits at Express
70 seat RJs allowed at Express