deadstick
Pucker Factor: HIGH
- Joined
- Jul 27, 2002
- Posts
- 706
Issue #1:
It's the pilots' and f/a's fault...
AP
Contracts keeps US Airways from trimming capacity
Wednesday June 18, 4:59 pm ET
By Chris Kahn, AP Business Writer
Exec: US Airways could cut more flights, better deal with fuel if not for labor contracts
PHOENIX (AP) -- US Airways President Scott Kirby said Wednesday the airline could handle fuel costs a bit better if it weren't for labor agreements that affect the size of its fleet. Kirby said Tempe, Ariz.-based US Airways Group Inc. could trim another 2 percent to 4 percent from its seating capacity if it didn't have pilot and flight attendant contracts in place.
Issue #2:
The furlough is because USAir didn't take the CA's it had hired.
Issue #3
From the April Conference Call:
Question posed by Jamie Baker - JPMorgan
"Good morning, everybody. First question I guess for Scott; I know there is a minimum main line fleet requirement in your ALPA contract. I see that you are moving a little bit closer to that with today’s 737 announcements but it isn’t clear to me what sort of flexibility you still have on the regional side. Are you already at contractual minimums with those contracts, or is there more downsizing you can do in that regard?"
Response by J. Scott Kirby
"The only downsizing we can do of any material amount is reducing utilization. We have a couple percent more that we can go on the main line in terms of fleet and we can go several more percent in terms of reducing aircraft utilization, some of which you will see starting in September that we’ll be reducing utilization.
On the regional side, we have significant flexibility with our turbo prop operations, of which we have about 70 aircraft. Our RJ -- we could reduce that as much as we want and on the RJ operation, we are contractually limited. I mean, we are at our core minimums, though we could reduce utilization more. "
In other words, the only place to reduce below the contract minimum is at the W/O carriers.
It's the pilots' and f/a's fault...
AP
Contracts keeps US Airways from trimming capacity
Wednesday June 18, 4:59 pm ET
By Chris Kahn, AP Business Writer
Exec: US Airways could cut more flights, better deal with fuel if not for labor contracts
PHOENIX (AP) -- US Airways President Scott Kirby said Wednesday the airline could handle fuel costs a bit better if it weren't for labor agreements that affect the size of its fleet. Kirby said Tempe, Ariz.-based US Airways Group Inc. could trim another 2 percent to 4 percent from its seating capacity if it didn't have pilot and flight attendant contracts in place.
Issue #2:
The furlough is because USAir didn't take the CA's it had hired.
Issue #3
From the April Conference Call:
Question posed by Jamie Baker - JPMorgan
"Good morning, everybody. First question I guess for Scott; I know there is a minimum main line fleet requirement in your ALPA contract. I see that you are moving a little bit closer to that with today’s 737 announcements but it isn’t clear to me what sort of flexibility you still have on the regional side. Are you already at contractual minimums with those contracts, or is there more downsizing you can do in that regard?"
Response by J. Scott Kirby
"The only downsizing we can do of any material amount is reducing utilization. We have a couple percent more that we can go on the main line in terms of fleet and we can go several more percent in terms of reducing aircraft utilization, some of which you will see starting in September that we’ll be reducing utilization.
On the regional side, we have significant flexibility with our turbo prop operations, of which we have about 70 aircraft. Our RJ -- we could reduce that as much as we want and on the RJ operation, we are contractually limited. I mean, we are at our core minimums, though we could reduce utilization more. "
In other words, the only place to reduce below the contract minimum is at the W/O carriers.
