US Airways Files for Bankruptcy Protection

[halfmoon]

Already trying to drop lease payments on 23 a/c.As soon as the ATSB asks for their loan payments UAIR will liquidate. Expected after the elections.
This is getting really bad!!

 

[skeezer]

Already trying to drop lease payments on 23 a/c.

None of those aircraft are currently flying. They include 1 737, 12 Do-328's and 10 Dash-8's. Simply shedding some excess debt. Not a big deal.

Skeezer

 

[Lear70]

The ATSB CAN'T demand their loan payment while U is in Ch. 11, that's the whole point... Staves off the wolves for several more months while they try to put something that will work together after completely decimating the working contracts and I think T.C. is right - the IAM will probably pull the trigger on self-help and that may be the final curtain if they do... can't blame them if they're going to lose half their employees to outsourcing anyway. This whole thing sucks a*s.

There was a limit on guarantees in the legislation you speak of (I think 10 billion), but that is money from private creditors only guaranteed by the govt. Do you really think our Congress has any money set aside for covering potential defaults?

My point EXACTLY The Federal Government has GUARANTEED those ATSB loans. So when they are defaulted on by carriers that don't survive, THE GOVERNMENT HAS TO PAY UP. You said it yourself, Congress certainly doesn't have money set aside for that, they'll have to cough it up from somewhere, and I don't think you'll find a taxpayer anywhere who doesn't believe we'll bear the brunt of it eventually, similar to all the crack whores we have on welfare. I swear to God you should have to have a permit to have more than one child. Sorry, different rant...

 

[chperplt]

Staves off the wolves for several more months while they try to put something that will work together

Not completely accurate. The Ch 11 filing gives US Air (or any airline) 60 days to settle with the aircraft lease companies. If, after 60 days, the airline and lease companies do not come to an agreement, the leasing companies can repossess the airplanes.

 

[becket]

I think Alaska pays 197.00 an hour for capts. Alaska is the 2nd highest paid narrowbodies, at least as far as straight hourly pay in concerned.

 

[sf3boy]

Mach 80,
I never said "sign me up." That was someone else.

But you were correct in my failing to account for the concessions given at those other carriers to bring SWA pay up to the other majors as far as 100-150 seat aircraft. I am still stuck in the mode that all DL, AA, UA, US, NW pilots are disgusted with WN pilots for watering down their profession.

On another note:

Judge Gives US Airways Temporary Permission to Use a Government Loan to Fund Daily Operations


ALEXANDRIA, Va. (AP) -- A bankruptcy judge gave US Airways Group Inc. permission Monday to tap a government loan to fund daily operations -- a move expected to allow the airline to continue its normal flight schedule while it searches for additional financing.


Lakefield said he still believes employees will voluntarily negotiate new labor agreements. If not, the airline can ask the court to cancel the existing labor contracts. Lakefield would not speculate on how long the company would continue to seek consensual agreements.

Meanwhile, the airline asked the court for permission to avoid payment on several of its retirement plans. That includes a $110 million pension payment to the plans for its machinists and flight attendants that would have been due Wednesday, and about $19 million in contributions to the pilots' 401(k)-style retirement plan.

The company's plan to skip those payments raised concerns from the Air Line Pilots Association and the federal Pension Benefit Guaranty Corp., which wants to ensure the pension plans' solvency.

"We strongly recommend that they reconsider their plan" to avoid retirement contributions, said Richard Seltzer, lawyer for the pilots' union. "It's unfortunate and it's counterproductive" as the airline continues contentious negotiations with the pilots' union.

PBGC lawyer Susan Birenbaum said the pension contributions "are mandated by federal law" and stressed "the importance of continuing to fund the plan while in bankruptcy." Mitchell scheduled a hearing on the issue for Oct. 7.

 

[thruthemurk]

sf3boy,
Some of the SWA pilots are concerned that the UAL, and AA rates are eventually going to drag their's down. As someone said after you made your ignorant comment .."Sign me up".
http://www.airlinepilotpay.com/

Writers always talk about SWA's lower labor rates. Well, it's not actually labor rates -- it's various efficiencies in their business model that allow their OVERALL labor costs to be lower than others, not necessarily their rates.

Have you been watching the industry for more than a few weeks? For 27 of the 30 odd years that southwest has been in business their pilot rates were below the competitions. Now that most carriers rates have fallen below theirs, it is a little disengenous to latch on to SW pay as some kind of new benchmark.

I am not blaming any individual SW or LCC pilot, It was an unavoidable side effect of deregulation that the rates would come down, but there is not a lot of doubt where the race to the bottom began.

 

[Full of LUV]

Total Labor Costs?

sf3boy,

>>>>And soon, you will see US Air 737's and 319/320's being operated with pilots being paid a little less than that of Southwest. Just my guess. Doesn't take a rocket scientist to see where Northwest, Delta, American, etc... are going to go with this. <<<

You and many others make a very wrong assumption about SWA pay. SWA is now the 2nd highest narrow body pay in the industry and who knows, it may be # 1 after Delta takes a possible concession. A 12 year SWA CAptain will be making $181/hr....more than an American 757 Captain. You might start using AA or UAL as the low end bench mark from now on, not SWA. Some of the SWA pilots are concerned that the UAL, and AA rates are eventually going to drag their's down. As someone said after you made your ignorant comment .."Sign me up".
http://www.airlinepilotpay.com/

Writers always talk about SWA's lower labor rates. Well, it's not actually labor rates -- it's various efficiencies in their business model that allow their OVERALL labor costs to be lower than others, not necessarily their rates.

When you say, "efficiencies" you mean things like pensions and health insurance for retirees? Oh yeah, that's right, let's fix the no retiree medical insurance by raising the mandatory retirement age thereby allowing pilots to work until they qualify for medicare.
Thanks SWAPA, way to hold the bar.
My how this profession has changed in 5 years time.

 

[michael707767]

Have you been watching the industry for more than a few weeks? For 27 of the 30 odd years that southwest has been in business their pilot rates were below the competitions. Now that most carriers rates have fallen below theirs, it is a little disengenous to latch on to SW pay as some kind of new benchmark.

I realize that even now with their pilot pay rates suddenly among the top Southwest is making money. But I have to ask myself how long it will be before even Southwest management takes a look around the industry and wonders how much more they would be making if they could align their pilot pay with the industry average.

 

[canyonblue]

Thanks SWAPA, way to hold the bar.

I didn't realize I was holding the bar for you. I have been at SWA for almost 3 years and have felt that I have been adequately compensated, I could always take more but my pay is fair, after all the SWA business model affords no First Class and no International flying to make up for revenue shortfalls in the domestic market. If my SWA pilots before me worked for what you may call a paltry sum then you should take it up with them. Ask them why they made near bottom wages for many years and you might be surprised at the blame being placed at AA, DAL, UAL. These carriers have tried to put SWA, and those pilots before me out of a job since day one. So when you ask "What has a SWA pilot done for me lately?" Don't be surprised if they just don't give a d@mn about you or your bar.