US Airways considers cutting its E-190 fleet

FlyinPiker

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US Airways considers cutting its E-190 fleet
By Lori Ranson


Management at US Airways has launched an evaluation of elimination its fleet of 25 Embraer E-190s through direct sales or subleases.
Today during an earnings call with analysts and investors carrier President Scott Kirby said the fleet represents roughly 2.5% of total consolidated capacity at US Airways, and cutting the fleet would give the carrier additional flexibility to reduce its available seat miles.
Kirby also explains the E-Jet represent a small sub-fleet whose elimination could also create operational gains for the carrier. The aircraft are also in demand globally, so US Airways believes getting rid of the E-Jets is something the carrier "can effectively implement from a financial perspective", says Kirby.
US Airways owns the 25 aircraft, and company chief executive Doug Parker stresses the potential cutting of E-Jets from its fleet is not to raise liquidity, but to enhance long-term profitability.
In August 2005 US Airways issued a request for proposal to regional partners Air Wisconsin, Mesa Air Group and Republic Airways Holdings to operate up to 25 E-190s once it merged with America West.
But after mainline pilot protests a transition deal was ratified by America West and US Airways pilots to limit E-190 flying to mainline operations.
 

FlyinPiker

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Well I guess this answers where Republic could magically get 190's for their Midwest operation.

The whole 190's replacing 717's without actual orders for them looked suspect from the beginning.

This is going to get ugly.
 

flyboyike

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Well I guess this answers where Republic could magically get 190's for their Midwest operation.

The whole 190's replacing 717's without actual orders for them looked suspect from the beginning.

This is going to get ugly.
My thoughts exactly.
 

Minimaniac

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At least it appears to me that Airways will eliminate the 190 all together, not subcontract the planes out and have them flown for Airways by someone else.
 

Superpilot92

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Dunno?
I think DAL is interested in them for mainline
 

FlyinPiker

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I think DAL is interested in them for mainline
Don't see it happening.

I don't think we need these aircraft right now.

They are saying the smaller 9's are good for a few more years and long term they are happy with the -50's and MD-80/90.

If we got 25 of them then we'd be committing ourselves to get a lot more.


I think they want to wait on committing themselves to a new 100 seater, at least for now. The growth we need right now is for larger aircraft.

This smells too much like Republic.

Especially since they have publicly stated they are getting more 190's, but not said a word about where they are coming from.
 
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FlyinPiker

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I think DAL is interested in them for mainline
Unless this is a mega deal where we give Republic Compass's -175s and replace them with LCC's 190's.

This would actually make sense . Why have two different types of 70 seaters?

The -175 doesn't seem like a very economical aircraft.

If they are toying around with the idea of bringing Compass to Mainline to mitigate the mess of flow up/flow down in the event of a furlough they might as well be flying equipment that makes sense.

But then again Republic has stated they are getting more 190's...why would they settle with just 2.

So maybe Republic takes their current 175's and swaps them out for 190's. Delta then takes the 175's (there is a debate that Delta has already paid to get some of Republic's -175's certificated to a higher weight that was previously scope restricted) adds them to Compass's fleet and then staples Compass to mainline to both get out of the cap on 70 seaters and also make their lives easier if the furloughs start a year from now. That makes sense as well.

Again...this is going to get ugly.
 
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Captzaahlie

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18k ?
fffffffffffffff
 

abefly

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Ted Reed – TheStreet.com
First of all if you’re going to take out 190’s, you haven’t factored in those employment reductions yet so there would be reductions in employment if that occurred wouldn’t there.
Doug Parker
Yes, if that occurred.
Ted Reed – TheStreet.com
So you would be announcing those next week.
Doug Parker
No, seriously, I know you’re kidding but we’re not announcing on the 190’s other than the fact that we have let people know that that’s an aircraft that we could reduce and we’re looking at doing so. But the last thing I want to do is get employees anxious about further job reductions and that’s not what we’re announcing by any means. All we’re announcing is that these are, and given that the environment is still where it is, this is the kind of things that we need to look at. And we will look at it over time as we’re doing right now.
Ted Reed – TheStreet.com
These aircraft are very popular with passengers, aren’t they, the 190’s, so that’s a diminishment.

Scott Kirby
So are Airbus A320’s and 321’s and I think we fly efficient, well rounded fleet.
[Bram Resnick] – KPNX TV
And regarding employment looking ahead, how comfortable are you with your headcount right now do you see any layoffs down the road as the environment continues to worsen.
Scott Kirby
We just announced furloughs, we think we’re at the right level now. We tried to hold off on that as long as possible. We’ve been running over staffed for quite a period of time and eventually decided we had to do that. We were disappointed that we had to do that, we did as much of that as we could through voluntary programs. And at the moment don’t anticipate anything new coming in the near-term.
[Bram Resnick] – KPNX TV
Near-term, would that be through the end of the year.
Scott Kirby
We don’t have any plans for more furloughs so, yes that could change of course but we don’t have any plans for more furloughs.

Doug Parker
I think you know this, those furloughs that ended up happening last week were largely a result of capacity pull downs months ago so that we tried to hold on, thought we’d be able to through normal attrition have people choose just to leave but in today’s economy we’re not seeing attrition rates reach anything that we did, so we had to do that so at any rate, those were the result of a decision long ago. We don’t have any current decision pending that would further reduce capacity with the one possible exception on this E190 issue which is, I feel like I’m making a bigger issue that it should, but on the other hand, anyway that is a fleet type that we may be able to reduce if we need to reduce flying further.
So we’re going to look at that but I don’t want, once again I’m going to reiterate because its so sensitive to our employees, that by no means are we announcing that we’re doing that. We’re simply announcing that it’s the kind of thing that we need to look at in this environment. If we do that and when we do that, at that time there may indeed be the need for further employee reductions but that is nothing close to a decision that we’ve made thus far.
[Bram Resnick] – KPNX TV
Just to clarify you’re saying it’s the kind of thing we might need to look at, I thought I heard Scott saying earlier it is something you are looking at now.

Doug Parker

Okay fair enough, it’s the kind of thing we need to look at in this environment, it may not be a decision we choose to make in this environment.
 

abefly

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Well I guess if the 190 fleet goes that would mean 275 less Eastholes! That means 275 less no votes on a CBA. I never thought that a reduction would sound so good. MCDU in 5 4 3 2 1 ........
 

Bavarian Chef

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Wow. Doug Parker, CEO.

Was he drunk?
 

JudgeSmails218

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Well I guess if the 190 fleet goes that would mean 275 less Eastholes! That means 275 less no votes on a CBA. I never thought that a reduction would sound so good. MCDU in 5 4 3 2 1 ........

That's just great--you getting your jollies out of more people getting thrown to the street and making those that are already out be out of work even longer. You're a real prince.
 

Metrojet

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Well I guess if the 190 fleet goes that would mean 275 less Eastholes! That means 275 less no votes on a CBA. I never thought that a reduction would sound so good. MCDU in 5 4 3 2 1 ........




Abefly:

Maybe we should pull down LAS some more too
 

weasel_lips

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Well I guess if the 190 fleet goes that would mean 275 less Eastholes! That means 275 less no votes on a CBA. I never thought that a reduction would sound so good. MCDU in 5 4 3 2 1 ........
What a jackass you are.
 
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