Why being a UAX carrier will suck...

[g159av8tor]

Why? Because, if UAL is still around, they can negotiate your respective companies rate whenever.

Example: "TSA, your costs are just a little too high for us right now. The bag-o-meals from TGI's are not as Atkins friendly as we'd hoped and not selling like we anticipated. We talked to SKW and they'll fly 70/90 and seat CRJs for their current 50 seat rates. What do you propose to do to keep your contract?"

MY crystal ball says UAL is going to use ALL UAX carriers as a big-a$$ whip-saw against one another. DCI anybody?

Tailwinds...

 

[Jeepman]

While that may be true, it is probably a little safer than starting a new LCC. I wish you guys/gals the best luck, but how many other LCC are out there? And what is the Independence CASM?

 

[Speedtree]

g159av8tor,

Not entirely true. United can do that now because they are in bankruptcy. We signed a 10 or 11 year contract with them. They will have to honor this contract as will we. The only way out is for both sides to mutually agree to restructure or for one side to take it to court. I guess they could declare bankruptcy again in a few years. Some other external situation could arise in which they would feel compelled to try to get out of the contract but a court would have to approve it.

Here's another thought. You are still operating under a UAL contract. I think it's possible that United could decide you are their best option in IAD and honor the existing contract. I'm not sure how your company would respond and it would make the rest of us feel like shmucks, but in my opinion it's not impossible.

 

[Mookie]

G159...are you really going to rip on SkyWest? Let's let sleeping dogs lie.

Good luck with Independance.

Mookie

 

[Carl_Everett]

g159av8tor,



Here's another thought. You are still operating under a UAL contract. I think it's possible that United could decide you are their best option in IAD and honor the existing contract. I'm not sure how your company would respond and it would make the rest of us feel like shmucks, but in my opinion it's not impossible.

The interesting part if this happens is that Independence Air may still fly. It has been said that the current UAL contract does not prevent ACA from operating under its own code to anywhere it wishes.

 

[g159av8tor]

g159av8tor,

Not entirely true. United can do that now because they are in bankruptcy. We signed a 10 or 11 year contract with them. They will have to honor this contract as will we.

Are you certain? Our dead MOU provided UAL with the ability to change the number of planes and routes (utililzation), contract duration and fees like the Godfather. All this authority is granted out of bankruptcy. Raw deal.

[/B][/QUOTE] You are still operating under a UAL contract. I think it's possible that United could decide you are their best option in IAD and honor the existing contract. [/B][/QUOTE]

Yonited cannot afford us and the 10 year contract that we are currently operating. ACA created "fee for departure" contracting for the sole purpose of accumulating a war chest and start-up fund. Our fees were nearly $300 more per departure than AWAC and nearly $600 more than SKW. If I remember correctly, about $3500, $3300 and $2800 respectively. Here is the "dirt" about flyi from aca-lounge:


According to Tom Moore, May first is the target launch date for Independence Air. This is not a hard date, but rather a soft date that is dependent on several variables, the largest of which is the release from our contract by UAL. He did state that it is okay if the date passes and we continue to operate into the summer, since it puts us closer to our Airbus delivery dates in the fall, and guarantees us revenue under our current agreement.

Considering a May first launch, the company currently expects a 3-5 month period of "draw down", during which aircraft will be pulled off of UAX flying and sent to paint/refurbishment, then added to the I-Air fleet. During this time, we will operate as both United Express and Independence. Station operations and flight attendants will probably only work for one side or the other, although there is the possibility that pilot flight crews could fly for both operations at the same time (ala SkyWest).

Once all of the aircraft are entered into service in I-Air colors, the company plans to ultimately rename the holding company (and all of it's applicable subsidiaries) to Independence Air. This includes changing our Nasdaq ticker symbol.

Management is currently in the final development of agreements with MWAA for gate and ticket counter space at IAD. Tom discussed the layout of ticket counters. Sounds like 14 ticket stations originally, located between Virgin Atlantic and Continental + 6 more on the back side (away from the road). These positions will be supplemented by 12-16 automated ticketing kiosks that will be located immediately infront of our counters. ACA recently signed an agreement with IBM to develop the equipment and programming to facilitate easy "self check-in".

The Jetstream 41 will stay in service (status quo) until the end of our contract with UAL. The company plans to do everything that they can to continue to operate these aircraft (19 lines of flying) with UAL for as long as possible. This is due to the fact that they are very cost effective. Transition for the pilots in the J41 will commence at the termination/transition from UAL. The company is aware that a surplus of pilots will exist, and is preparing financially and with regards to staffing, to "cover the gap" while these crew members are integrated into the rest of the fleets.

Tom also stated that at this time, the company doesn't forsee the need to conduct any further furloughs through the end of the year. In order for furloughs to be cost effective, it is the company's opinion that we need to furlough pilots for 6-8 months for it to be worthwhile as far as any beneficial impact that it might have on the company's bottom line. Likewise, Tom did not have a lot of optimisim that we would be recalling any of our furloughed pilots before the end of this year either. He did make a note the "flexibility is the key for the upcoming months".

Airbus deliveries are looking like tentatively being around labor day. The current plan (as of 6:31pm on the 15th... but it might change at 6:38) is for the company to receive delivery of 4-5 aircraft in 2004, then 1-1.5 aircraft a month through the remainder of the delivery schedule (currently 33 aircraft).

The company is currently planning on outfitting the aircraft with the same DirectTV package that is equipped on JetBlue aircraft, however advances in technology will permit our screens to be 1" larger than those on JetBlue planes. (Size does matter?). In addition, ACA is looking into the possiblity of XM satellite radio and pay per view movies onboard our flights.

Training will be conducted by Airbus. The initial instructor cadre, for initial training will be Airbus employees. I don't currently have any information about IOE. The program will most likely be a slightly adapted version of the Airbus factory FAR 142 program, edited to suit the needs and training timelines of ACA.

Because the first deliveries are not scheduled until later this year, the company does plan on launching Independence with an all CRJ fleet. Although this is not the most economically acceptable scenario, it will allow us to take advantage of the summer travel season, and work out some of the "kinks" of the new operation, prior to the arrival of a new fleet type.

Marketing for the new airline is slated to begin 60 days prior to the launch, possibly sooner in the Washington Dulles area. The company is working with several "marketing partners", such as Marriott and car rental companies to improve our marketing package. We are also looking into possible frequent traveler programs/options.

The new independent operation does NOT plan on code-sharing with other carriers due to the increased costs and labor requirements as well as the additional administrative issues involved with such a venture.

The company is working hard to identify the issues of our day to day operation. Tom Moore specifically noted that management has realized a need for each parking spot to have its own tug, headset, towbar, and baggage cart. It's a step in the right direction. He encouraged employees to bring forward their suggestions on streamlining and improving our operations.

The is still no new news about the future of the Dornier 328 program. The company expects that when the Airbuses come to property, the Delta pilots union (ALPA) will file for a temporary injunction to prohibit us from flying the 328's in service for DAL. There are several possiblities on which direction this could go in for our pilots and employees on the Delta side... I promise to post more information as I find it.

All in all, I think that Tom had a good message- the upper level management has set sights on the goal, now it is up to the rest of us to help make the culture change that we all talk about. 2004 will be a challenging year for us as a company and as employees.

 

[Sniper@YourFeet]

The interesting part if this happens is that Independence Air may still fly.

Interesting. Kill 'Independence Air' by making them honor the UAX contract. ACA provides all the gates, ground support, etc. for the UAX flying. If they have to keep flying as UAX, all they have come Airbus delivery time is 3-4 airbuses and maybe a couple of CRJ's - quite a predicament, considering the business plan of Independent as I understand it.

Does UA own the seats on ACA's UAX flying? If so, then UA would kill Independence airbuses in a direct fare war (I think I see Ted!), and Independence couldn't offer more than a couple destinations, since all of there CRJ's would be feeding UA (there's no way UA would allow Independence passengers on their UAX flights). Of course, then ACA starts providing the worst customer service in the industry to get rid of the UAX flying, though you can bet UA will publicize the poor service offered by ACA 'trying to hide who they really are, Independence Air'. This could get really ugly really quickly if my doomsday scenario holds any water.

Does it? Inquiring minds want to know . . . I want to know.

 

[SaladShooter]

UAL cannot kill I Air by honoring our contract. We can still operate I Air and operate UX at the same time. We would just take the new CRJ scheduled for 2005, 25 I believe, and run them on I Air. In addition we would have 25 A 320's operating by the end of 2005. I nice start I believe. We could also welcome the pax aboard UX and then make an annocement that if they paid more than x amont of dollars for this flight the next time they can get it cheaper to the same destination on I Air.

"Welcome aboard UX flight 7858 operated by I Air. If you have paid more than 100 dollars for your ticket please look out to the left of the aircraft, thoses people are going to the same destination for 100 dollars on the exact same type of aircraft operated by the same airline. Thank you and remeber fly I Air next time."

UAL will not allow this to happen and they know it will if they affirm our contract. UX is dead for ACA, though we may accept a phase out deal for a certain number of aircraft over a time period for a set fee. Either way it is great, we get paid by UAL to fund I Air.

All and I mean All the UX contracts have a sunset clause located within them. After 3 years UAL can reallocate your aircraft by accepting the leases and transfer them to another carrier. The race to the bottom has just begun and it is not going to end until UAL is dead in the water. Next time your managment speaks please ask about the sunset clause. The only way we found about it is Tom Moore refused to sign the confiduality agreement offered by UAL and the Bain Group. He wanted to make sure the shareholders knew the reason for a failure in coming to an agreement.

 

[General Lee]

Let's hope Indy doesn't turn into a RDU version of Midway. They had Airbuses, 73Ns, F100s and CRJs. They were also in a "high tech" boom area called the "Research Triangle" with plenty of businessmen in the area. They offered a lot of N to S operations from RDU, but also offered some West Coast. They also had small competition from RDU itself, but plenty of other competition surrounding it. The CRJ, with the 50 seats, cannot compete with lower fares compared to a Southwest 737. That will be the contest. Will the IAD area support Indy? Can the frequent flyers of other carriers who get free trips around the world change over to INDY with no INTL partners or a large frequent flyer program? Is that important anymore? It is with a booming economy. We shall see. Good luck.

Bye Bye--General Lee

 

[side stick-n]

The company is currently planning on outfitting the aircraft with the same DirectTV package that is equipped on JetBlue aircraft

It's gonna be kinda hard to do this being the "package" is LiveTV with programming provided by DirectTV. LiveTV is a wholly owned subsidiary of JetBlue and holds the patent on the top side antenna.

The only other company that I'm aware of is the same that Song used so it may reflect that system more so than jetBlue's. I'll save you the effort General Lee and say that you think your's is better than jetBlue's. Others disagree......