In the just released 10-Q filing, US says there are 3 key elements to the airline's success:

1. a lower cost structure...blah, blah
2. a plan for more regional jets....blah, blah
3. "A means to access the significant amount of revenue US Airways believes it would bring to a larger domestic and international network."

At least they get it. Now if they can just execute.

Thanks Harold - although this is nothing new! USAirways said the same thing as far back as last summer when the UA merger failed to get regulatory approval.

Snowcap

Thanks for the post. However, it just further irritates me at US. How long do they think they can continue to get points for recognizing the same problem once a month for the last 2 years. How about actually doing something about it?

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Snowcap:
USAirways said the same thing as far back as last summer....</font>

Stay tuned! http://www.flyertalk.com/forum/mad.gif .... again!

It's really a shame that they can't seem to find a partner for the big dance. I flew US for the first time in years last month, and really thought the coach product was quite good. Too bad they don't currently fly where I do...

I just got an e mail from US, that does indeed mention the possibility of filing for bankruptcy :
" As the filing with the SEC indicates, however, if US Airways is unable to do so, alternative restructuring scenarios in the context of a judicial reorganization also must be considered. Simply stated, this means reorganization under the protection of the U.S. bankruptcy laws."
and ends with:
As this process moves forward, I will continue to keep you abreast of our plans. As a frequent traveler, you are familiar with the challenges facing the airline industry. We at US Airways are taking immediate action to ensure that we can build on our legacy of providing outstanding service and getting you where you want and need to go.

Sincerely,

B. Ben Baldanza
Sr. Vice President, Marketing and Planning"

Any lifeboats out there????

[This message has been edited by mauld (edited 05-10-2002).]

GEO1004:

I'm curious since your location indicates Alexandria, VA - are you a US Airways employee? Or do you have some insights we are not privy to?

Snowcap

Friday May 10, 3:48 pm Eastern Time
Reuters Company News
S&P comments on US Airways Group

(Press release provided by Standard & Poor's)

NEW YORK, May 10 - US Airways Group Inc. (NYSE:U - News; CCC+/Watch Neg/--), parent of US Airways Inc. (CCC+/Watch Neg/--), today confirmed that it will file an application for a federal loan guaranty, and warned that it would have to consider a bankruptcy filing if it cannot implement a financial restructuring. Standard & Poor's ratings for both entities remain on CreditWatch with negative implications, where they were placed Sept. 13, 2001, along with those of other U.S. airlines. The corporate credit rating was downgraded to its current level Sept. 20, 2001.
The company's statements, made in its first-quarter 2002 10Q filed today with the SEC, while not surprising, were the most explicit yet as to a loan guaranty application and the first mention of bankruptcy as an option. Management is in discussions with organized labor, suppliers, and other key stakeholders regarding a plan to lower costs and ease its financial burden. Such a plan would be implemented in conjunction with an application to the Air Transportation Stabilization Board (ATSB) for a federal loan guaranty. Applications to the ATSB must be made by June 28, 2002, lending urgency to the process. Although persuading organized labor to provide concessions will not be easy, the task should be aided by the airline's heavy losses, the adverse industry environment since Sept. 11, 2001, and the June 28 application deadline. It seems likely that the ATSB would approve a loan guaranty for US Airways if the company is able to show a business plan that includes material cost reductions and an easing of financial obligations to suppliers and private providers of capital.
http://biz.yahoo.com/rc/020510/airlines_usairways_s_p_1.html
I am not sure they are going to be able to get the concessions they need from labor who is still pretty pissed off and rightfuly so.
-howie

And the frequent fliers arent all that thrilled either! We need to go back and find the first mention (several years ago now) of the need for an alliance and have a counter for 'number of days without alliance in place'. it certainly goes back to at least the day when the US/AA redemption cancellation was announced, and likely much further.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Snowcap:
GEO1004:

I'm curious since your location indicates Alexandria, VA - are you a US Airways employee? Or do you have some insights we are not privy to?</font>I think geo was just stating the frequent flyer's perspective that we US flyers have been waiting for a partner for a long while. It keeps being promised, but nothing yet. http://www.flyertalk.com/forum/frown.gif

I'm concerned that the mention of a bankruptcy filing may scare off any potential alliance members.

Earlier today before all the above became public, I sent a long email to Mike Isom expressing my frustration about lack of an alliance. I cc.ed Dave Siegal and got the following reply from him this afternoon:
"The answer is that these deals are large and complex. We will get one done this year."

Obviously he had other things on his plate today, but I find the terse reply somewhat disconcerting from a customer (CP) point of view. It doesn't do a lot for my continued confidence in the leadership at US and my continuance as a loyal customer. As I pointed out in my e-mail to Mike Isom, I have other options in terms of direct flights and less costly flights to the places I routinely travel to. I stick with US because of what has up to now been good service. Between bankruptcy and no alliance things look dark in US land today.


[This message has been edited by Brattflyer (edited 05-10-2002).]

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by TTT103:
I'm concerned that the mention of a bankruptcy filing may scare off any potential alliance members.</font>

There's no reason for it to. They would not stop flying. Some of their routes are highly coveted and profitable. An 11, if it were to happen, won't ground the airline.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by shinbal:
There's no reason for it to. They would not stop flying. Some of their routes are highly coveted and profitable. An 11, if it were to happen, won't ground the airline.</font>

DL has a shuttle. LUV will be in PIT and/or CLT in the event of a bankruptcy filing, and PHL has enough O/D traffic that the other majors will pick up the slack. What's left? BOS? LGA?

In the event of a Chapter 11 filing, there are too many employee groups that will continue to chant "max pay to the last day" and might be able to pull it off (in the post-Lorenzo world of labor relations).

Don't get me wrong--I like US a bunch (despite the fact that I will probably miss my second transcon upgrade ever tomorrow morning http://www.flyertalk.com/forum/smile.gif ). But, the myth that there is no competition among the uber-high-yield east coast business market is just that--a myth. And, and US themselves have proven (see ERI) the other majors are not beating each other to death to serve some of the smaller east coast/midwest markets.


------------------
Saving the world, one clue at a time.

Y'know. I read the email on this and thought, "I was wondering when I'd get something like this?" But while I'm concerned, I really don't think it's going to make a big difference in the near term. Even with this announcement I have no less confidence now than I did 6-10-12 months ago.

Now that might make me the only idiot who doesn't see the brick wall, but as that ROTC guy said in the final scenes of "Animal House"
"Remain Calm!"

Much of this talk is posturing, largely for the benefit of employees, who will undoubtedly be asked for concessions. Airline managements always figure they are smarter than their customers, and rarely feel the need to commune with them, let alone send sensitive statements to them via open email. It's a very small industry, and most of these guys have worked with each other at different companies. There are no secrets. No alliance partner will be surprised, or put off by events, present or future. The issue is simple. Costs are too high. The route system is incomplete, in that they have to hand customers over to somebody else, once they go west of Pittsburgh, and the strategic plan seems to be to retreat from any market where they get lowfare competition. As a result, Southwest and JetBlue (among others) follow them around like a dog in heat. They should study this thing at Harvard. You really have to work at screwing up a business this good. Note to Snowcone (or whatever)...guys like GEO and me don't have a lot of insight. We just buy lots of cheap tickets and upgrade. Spending all that time in those semi big chairs, sipping Chardonnay out of those plastic picnic cups, gives us lots of time to reflect on how arguably the worst regional airline in history (Allegheny) could buy two of the finest (Piedmont and PSA) and crap up the whole enterprise.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by ClueByFour:
DL has a shuttle. LUV will be in PIT and/or CLT in the event of a bankruptcy filing, and PHL has enough O/D traffic that the other majors will pick up the slack. What's left? BOS? LGA?</font>

I don't remember the exact source, but last semester in an airline industry class I took, the professor mentioned a study (probably created during the US/UA talks) which showed that if US was sold, virtually all of US's value was in their landing slots at LGA. Not the planes they own, not the routes they fly, but the landing slots....