PiedmontGurl
Oct 29, 04, 8:10 pm
He has a GREAT newsletter concerning US. Here's his latest edition:
************************************************** *****
In a message dated 10/28/2004 10:07:55 PM Eastern Standard Time, JohnMcCorkle@Bellsouth.net writes:
Thursday, October 28, 2004
Hello Everyone:
Well, we have several items to look at today. This morning, US Airways reported their third quarter financial results. Independence Air isn't the start-up darling that JetBlue was/is. There's a grass-roots effort to take over US Airways. Another US Airways officer jumps ship, but there's another warm body to take his place. Company press releases are so generic and bland, it's funny. And finally, it's the end of the line, literally, for an old friend. So, let's get started with the news and we'll begin with the winners and losers of the third quarter financial reports.
WINNERS:
JetBlue Airways reported a third-quarter net income of $8.4 million
Alaska Airlines reported a third-quarter net income of $79.2 million
Southwest Airlines reported a third-quarter net income of $119 million
LOSERS:
AirTran Airways reported a third-quarter net loss of $9.8 million
Continental Airlines reported a third-quarter net loss of $16 million
Northwest Airlines reported a third-quarter net loss of $46 million
America West Airlines reported a third-quarter net loss of $47.1 million
BIGGER LOSERS:
American Airlines reported a third-quarter net loss of $214 million
US Airways reported a third-quarter net loss of $232 million
United Airlines reported a third-quarter net loss of $274 million
Delta Air Lines reported a third-quarter net loss of $646 million
ATA ... filed for Ch. 11
Let's not forget what could have been for US Airways. All the negative press; the talk of possible liquidation by the chairman and predictions that if US Airways goes back into bankruptcy the company may not emerge; the so-called experts who are consistently quoted in the papers predicting the demise of US Airways -- and they're still wrong. All these things have a direct impact on the third quarter loss. It's interesting to look at a similarly-sized airline, like Continental, and see a $16 million loss versus the $232 million that US Airways reported.
SAME OLD SONG AND DANCE:
When the pilot group ratified their third, or was it the fourth?, restructuring agreement recently, I went back into the archives of US Airways' press releases and thought I would share this with you.
On July 13, 2002, US Airways and ALPA reached a tentative agreement on their seemingly endless restructuring plan. On that date, US Airways senior vice president of employee relations Jerry A. Glass said, "From the onset, we believed that our pilot leadership would work with us on a restructuring agreement that took into account the best interests of the company, all of our employees and the communities we serve. This landmark agreement will contribute significantly to the revival of US Airways and will protect the core priorities of the company and ALPA's rank-and-file membership. We thank them for their enormous sacrifices which will help US Airways chart a new course as a vibrant successful carrier." (Okay, stop laughing - there's more to come)
So, when that agreement was ratified just a few weeks later, on August 8, 2002, then-CEO Dave Siegel said this: "Our negotiations with ALPA have been professional and constructive and the ratification of this agreement clearly symbolizes the new spirit of partnership and cooperation that we have worked to develop with our employees. I want to thank ALPA's leadership and its members for ratifying this agreement."
Then, just a few months later, on Nov. 26, 2002, US Airways announced the furlough of approximately 2,500 employees, work rule and benefit changes, close the Tampa hangar, etc. Labor-friendly Dave said, "Cost-cutting and furloughs are an unfortunate and painful part of that process, and as difficult as these furlough decisions are, we must take these actions to ensure our successful restructuring and stay on plan to emerge from Chapter 11 protection in March 2003." Yeah, gotta rush that bankruptcy trip, huh Dave?
Then, amazingly, just days after that announcement, US Airways and ALPA reached yet another agreement on additional $100 million in cost savings plus additional pension relief. Once again, Dave said that negotiators for the airline's pilot MEC "showed tremendous leadership and a keen understanding of what was required in order to successfully complete our Chapter 11 reorganization."
Last week, when the pilots ratified their agreement-of-the-month, US Airways issued the following statement: "Our pilots have demonstrated their leadership in working with us as we transform US Airways into a successful and competitive airline. We appreciate their thoughtful and careful consideration of the very difficult issues that will soon confront virtually every one of our legacy competitors as well."
So, based on that, let me tell you what the next press release will look like when the next quarterly tentative agreement is ratified. "Once again, our pilots have stepped up to the plate to ensure the successful reorganization of our carrier. We're proud to have worked out this agreement with the fine professionals of the MEC. This new agreement, which calls for pilots to pay US Airways to fly our aircraft, in addition to not having any benefits or a pension, will help to ensure that the carrier survives until the next round of concessions, which will be in about four months."
So, it just keeps getting more and more interesting at US Airways. The company wants to cut retiree health benefits as well as throw out labor agreements next month, for the unions that haven't already given in to their extreme demands. And have you noticed that the chairman, David Bronner, hasn't been heard from in weeks?
US Airways is losing their CFO, Dave Davis, but they've found a replacement. Funny, the company would lead you to believe that they can't cut the pay of officers because they are losing them too fast but the fact of the matter is that there are capable people who are willing to step in and take the open positions. An article by Keith Alexander in The Washington Post reports that Mr. Davis was making $319,550 a year at the time of his promotion to CFO in May. So, safely assuming that the CFO position paid even more, let's take 21% of that pay and do you honestly believe that US Airways couldn't find someone to take that position? Exactly. By not taking a 21% pay cut, or something close to that, management has sent a clear message that they are not willing to participate, fully, in the restructuring of the airline.
Remember, you can always email these guys, but sometimes they're afraid to respond:
Jerry_Glass@usairways.com
Bruce_Lakefield@usairways.com
Dr.DavidB@rsa.state.al.us (chairman David Bronner)
TRYING TO SAVE AN AIRLINE:
There's a grass-roots effort underway to take over US Airways and install responsible and competent management. Read all about it: http://www.ragroup.org/
WHAT A 21% DIFFERENCE IN PAY MAY DRIVE YOU TO:
http://www.legal.com/bankruptcy/index.htm
LOOKING FOR A NEW EXCITING CAREER IN AVIATION? BECOME A CORPORATE FLIGHT ATTENDANT.
Corporate Flight Solutions is pleased to offer nationwide Corporate Flight Attendant training in conjunction with FACTS Training International. These two industry-leading aviation companies have teamed up to provide THE premier Corporate Flight Attendant training program in the country. A one-stop resource for complete business aviation service and emergency certification training.
This premier 5 or 6 day training program is held in Ft. Lauderdale, FL; Newark, NJ; Dallas, TX; Van Nuys, CA; Chicago, IL; Olympia, WA; San Jose, CA and Detroit, MI.
To find out more information regarding the complete training syllabus, go to:
http://www.CorporateFlightSolutions.com
For upcoming training dates or for more information, contact CFS via our comprehensive website or directly by calling, toll-free, 1-800-780-0419 or (954) 781-2729 Monday - Saturday 9:00am - 6:00pm ET. You can also email inquires to info@corporateflightsolutions.com
Corporate Flight Solutions -- The Industry Leader in Corporate Aviation Service Training & Consulting.
Furloughed Pittsburgh or Philadelphia US Airways flight attendants may be eligible for government financial assistance.
MUST READ:
There is an article in today's edition of The Charlotte Observer and I would encourage you to read it. You'll notice that one member of management states that an actual strike would kill the company and would serve no purpose in getting a "consensual deal and completing our restructuring." Remember the 'Endless Summer?' -- this is like the Endless Restructuring.
Go to: http://www.charlotte.com/mld/charlotte/living/travel/10033464.htm?1c
(free registration)
THE LITTLE AIRLINE THAT COULD ---- BUT PROBABLY WON'T:
Pity Independence Air. The four-month old carrier reported recently that their September load factor was a paltry 44.4%. Yesterday, they reported a third-quarter net loss of $82.7 million. So, the little airline that flies little airplanes with very little people on board is losing big money. Need I say more?
KEEP UP WITH THE CURRENT PROPOSALS:
http://www.iamdl142.org/PDF/FleetCotoun1113c10-25.pdf (fleet service)
http://www.iamdl142.org/PDF/IAM%20MR1113c%2010-26-04.pdf (IAM)
http://www.afausairways.org/Restructure/CO_Proposal041020.htm (AFA)
http://www.cwa.net/PDFs/Management10-22-04proposal.pdf (CWA)
THE END OF THE LINE:
Today marked the completion of the Boeing 757 program. A reception was held at Boeing's Renton, Washington factory today and was attended by thousands of employees and special guests. The final 757, the 1,050th produced, was a 757-200 series and will be delivered to Shanghai Airlines. The 757 is one of only seven large commercial jetliner models that sold more than 1,000 units, according to Boeing.
The 757 entered production in 1981 and was known for its fuel efficiency and clean and quiet operation. The first one was delivered to Eastern Airlines, the launch customer for the aircraft, on Dec. 22, 1982.
Boeing produced three models - the 757-200, 757-300 and the 757-200 freighter. Also, Boeing produced one 757-200 combi. Of the 1,050 that were produced, more than 1,030 are still in service. Boeing uses the very first one as a test bed.
Here's a look at the last one:
http://boeingmedia.com/images/one.cfm?image_id=11012&release=t
BROTHER, CAN YOU SPARE A DIME?
Well, another airline has filed for bankruptcy protection. On Tuesday, ATA Holdings Corp., the nation's 10th largest airline, filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Indiana.
ATA claims it will be business as usual by maintaining their flight schedule, operations, customer service and travel rewards programs. The carrier has also entered into an agreement with AirTran Airways to operate and acquire routes at Chicago's Midway Airport, Ronald Reagan Washington National Airport and New York City's LaGuardia Airport.
ATA says they will immediately develop a plan of reorganization to address its debt level and will lower its cost structure even further.
SPEAKING OF MONEY:
Delta Air Lines announced this morning that it has reached a tentative agreement with its pilot union on contractual changes which should help save the carrier $1 billion in long-term, annual savings through pay cuts and changes to pension, benefits and work rules. Pilots have until Nov. 11 to vote on the tentative agreement.
HAVE YOU NOTICED:
You may recall that a few months back, I wrote that the price of fuel would likely begin to fall as we got closer to election day. Well, it hasn't unfolded the way I thought it would, but have you seen what has happened in four days this week? Oil prices have dropped almost $6 a barrel. On Monday, oil hit a high, coming close to $56 a barrel. Today, Nymex Crude closed at 50.81.
You may also recall that I wrote that US Airways employees are going to essentially end up subsidizing the high costs of fuel, which they are with the court-imposed 21% pay cuts. However, let's keep an eye on the price of oil because if it continues to drop, there's a certain Judge in Virginia that needs to be aware of it and the ramifications lower fuel prices will have on US Airways.
If this newsletter has been forwarded to you would like to sign up to receive my free newsletters directly, just follow these two easy steps:
1- Send a blank email (nothing in the subject line or text body) by clicking on this link:
join-john_mccorkle_newsletter@space.sparklist.com
(You will immediately receive a reply from Sparklist. This is to verify that you requested to be placed on my distribution list and to confirm that your email address is valid).
2- When you reply to that email, you will immediately be added to the distribution list. You must reply to the email from Sparklist to be added to the list.
Your privacy is important to me therefore, your name and email address will never be sold or shared.
Regards,
John McCorkle
Wilmington, NC
************************************************** *****
In a message dated 10/28/2004 10:07:55 PM Eastern Standard Time, JohnMcCorkle@Bellsouth.net writes:
Thursday, October 28, 2004
Hello Everyone:
Well, we have several items to look at today. This morning, US Airways reported their third quarter financial results. Independence Air isn't the start-up darling that JetBlue was/is. There's a grass-roots effort to take over US Airways. Another US Airways officer jumps ship, but there's another warm body to take his place. Company press releases are so generic and bland, it's funny. And finally, it's the end of the line, literally, for an old friend. So, let's get started with the news and we'll begin with the winners and losers of the third quarter financial reports.
WINNERS:
JetBlue Airways reported a third-quarter net income of $8.4 million
Alaska Airlines reported a third-quarter net income of $79.2 million
Southwest Airlines reported a third-quarter net income of $119 million
LOSERS:
AirTran Airways reported a third-quarter net loss of $9.8 million
Continental Airlines reported a third-quarter net loss of $16 million
Northwest Airlines reported a third-quarter net loss of $46 million
America West Airlines reported a third-quarter net loss of $47.1 million
BIGGER LOSERS:
American Airlines reported a third-quarter net loss of $214 million
US Airways reported a third-quarter net loss of $232 million
United Airlines reported a third-quarter net loss of $274 million
Delta Air Lines reported a third-quarter net loss of $646 million
ATA ... filed for Ch. 11
Let's not forget what could have been for US Airways. All the negative press; the talk of possible liquidation by the chairman and predictions that if US Airways goes back into bankruptcy the company may not emerge; the so-called experts who are consistently quoted in the papers predicting the demise of US Airways -- and they're still wrong. All these things have a direct impact on the third quarter loss. It's interesting to look at a similarly-sized airline, like Continental, and see a $16 million loss versus the $232 million that US Airways reported.
SAME OLD SONG AND DANCE:
When the pilot group ratified their third, or was it the fourth?, restructuring agreement recently, I went back into the archives of US Airways' press releases and thought I would share this with you.
On July 13, 2002, US Airways and ALPA reached a tentative agreement on their seemingly endless restructuring plan. On that date, US Airways senior vice president of employee relations Jerry A. Glass said, "From the onset, we believed that our pilot leadership would work with us on a restructuring agreement that took into account the best interests of the company, all of our employees and the communities we serve. This landmark agreement will contribute significantly to the revival of US Airways and will protect the core priorities of the company and ALPA's rank-and-file membership. We thank them for their enormous sacrifices which will help US Airways chart a new course as a vibrant successful carrier." (Okay, stop laughing - there's more to come)
So, when that agreement was ratified just a few weeks later, on August 8, 2002, then-CEO Dave Siegel said this: "Our negotiations with ALPA have been professional and constructive and the ratification of this agreement clearly symbolizes the new spirit of partnership and cooperation that we have worked to develop with our employees. I want to thank ALPA's leadership and its members for ratifying this agreement."
Then, just a few months later, on Nov. 26, 2002, US Airways announced the furlough of approximately 2,500 employees, work rule and benefit changes, close the Tampa hangar, etc. Labor-friendly Dave said, "Cost-cutting and furloughs are an unfortunate and painful part of that process, and as difficult as these furlough decisions are, we must take these actions to ensure our successful restructuring and stay on plan to emerge from Chapter 11 protection in March 2003." Yeah, gotta rush that bankruptcy trip, huh Dave?
Then, amazingly, just days after that announcement, US Airways and ALPA reached yet another agreement on additional $100 million in cost savings plus additional pension relief. Once again, Dave said that negotiators for the airline's pilot MEC "showed tremendous leadership and a keen understanding of what was required in order to successfully complete our Chapter 11 reorganization."
Last week, when the pilots ratified their agreement-of-the-month, US Airways issued the following statement: "Our pilots have demonstrated their leadership in working with us as we transform US Airways into a successful and competitive airline. We appreciate their thoughtful and careful consideration of the very difficult issues that will soon confront virtually every one of our legacy competitors as well."
So, based on that, let me tell you what the next press release will look like when the next quarterly tentative agreement is ratified. "Once again, our pilots have stepped up to the plate to ensure the successful reorganization of our carrier. We're proud to have worked out this agreement with the fine professionals of the MEC. This new agreement, which calls for pilots to pay US Airways to fly our aircraft, in addition to not having any benefits or a pension, will help to ensure that the carrier survives until the next round of concessions, which will be in about four months."
So, it just keeps getting more and more interesting at US Airways. The company wants to cut retiree health benefits as well as throw out labor agreements next month, for the unions that haven't already given in to their extreme demands. And have you noticed that the chairman, David Bronner, hasn't been heard from in weeks?
US Airways is losing their CFO, Dave Davis, but they've found a replacement. Funny, the company would lead you to believe that they can't cut the pay of officers because they are losing them too fast but the fact of the matter is that there are capable people who are willing to step in and take the open positions. An article by Keith Alexander in The Washington Post reports that Mr. Davis was making $319,550 a year at the time of his promotion to CFO in May. So, safely assuming that the CFO position paid even more, let's take 21% of that pay and do you honestly believe that US Airways couldn't find someone to take that position? Exactly. By not taking a 21% pay cut, or something close to that, management has sent a clear message that they are not willing to participate, fully, in the restructuring of the airline.
Remember, you can always email these guys, but sometimes they're afraid to respond:
Jerry_Glass@usairways.com
Bruce_Lakefield@usairways.com
Dr.DavidB@rsa.state.al.us (chairman David Bronner)
TRYING TO SAVE AN AIRLINE:
There's a grass-roots effort underway to take over US Airways and install responsible and competent management. Read all about it: http://www.ragroup.org/
WHAT A 21% DIFFERENCE IN PAY MAY DRIVE YOU TO:
http://www.legal.com/bankruptcy/index.htm
LOOKING FOR A NEW EXCITING CAREER IN AVIATION? BECOME A CORPORATE FLIGHT ATTENDANT.
Corporate Flight Solutions is pleased to offer nationwide Corporate Flight Attendant training in conjunction with FACTS Training International. These two industry-leading aviation companies have teamed up to provide THE premier Corporate Flight Attendant training program in the country. A one-stop resource for complete business aviation service and emergency certification training.
This premier 5 or 6 day training program is held in Ft. Lauderdale, FL; Newark, NJ; Dallas, TX; Van Nuys, CA; Chicago, IL; Olympia, WA; San Jose, CA and Detroit, MI.
To find out more information regarding the complete training syllabus, go to:
http://www.CorporateFlightSolutions.com
For upcoming training dates or for more information, contact CFS via our comprehensive website or directly by calling, toll-free, 1-800-780-0419 or (954) 781-2729 Monday - Saturday 9:00am - 6:00pm ET. You can also email inquires to info@corporateflightsolutions.com
Corporate Flight Solutions -- The Industry Leader in Corporate Aviation Service Training & Consulting.
Furloughed Pittsburgh or Philadelphia US Airways flight attendants may be eligible for government financial assistance.
MUST READ:
There is an article in today's edition of The Charlotte Observer and I would encourage you to read it. You'll notice that one member of management states that an actual strike would kill the company and would serve no purpose in getting a "consensual deal and completing our restructuring." Remember the 'Endless Summer?' -- this is like the Endless Restructuring.
Go to: http://www.charlotte.com/mld/charlotte/living/travel/10033464.htm?1c
(free registration)
THE LITTLE AIRLINE THAT COULD ---- BUT PROBABLY WON'T:
Pity Independence Air. The four-month old carrier reported recently that their September load factor was a paltry 44.4%. Yesterday, they reported a third-quarter net loss of $82.7 million. So, the little airline that flies little airplanes with very little people on board is losing big money. Need I say more?
KEEP UP WITH THE CURRENT PROPOSALS:
http://www.iamdl142.org/PDF/FleetCotoun1113c10-25.pdf (fleet service)
http://www.iamdl142.org/PDF/IAM%20MR1113c%2010-26-04.pdf (IAM)
http://www.afausairways.org/Restructure/CO_Proposal041020.htm (AFA)
http://www.cwa.net/PDFs/Management10-22-04proposal.pdf (CWA)
THE END OF THE LINE:
Today marked the completion of the Boeing 757 program. A reception was held at Boeing's Renton, Washington factory today and was attended by thousands of employees and special guests. The final 757, the 1,050th produced, was a 757-200 series and will be delivered to Shanghai Airlines. The 757 is one of only seven large commercial jetliner models that sold more than 1,000 units, according to Boeing.
The 757 entered production in 1981 and was known for its fuel efficiency and clean and quiet operation. The first one was delivered to Eastern Airlines, the launch customer for the aircraft, on Dec. 22, 1982.
Boeing produced three models - the 757-200, 757-300 and the 757-200 freighter. Also, Boeing produced one 757-200 combi. Of the 1,050 that were produced, more than 1,030 are still in service. Boeing uses the very first one as a test bed.
Here's a look at the last one:
http://boeingmedia.com/images/one.cfm?image_id=11012&release=t
BROTHER, CAN YOU SPARE A DIME?
Well, another airline has filed for bankruptcy protection. On Tuesday, ATA Holdings Corp., the nation's 10th largest airline, filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Indiana.
ATA claims it will be business as usual by maintaining their flight schedule, operations, customer service and travel rewards programs. The carrier has also entered into an agreement with AirTran Airways to operate and acquire routes at Chicago's Midway Airport, Ronald Reagan Washington National Airport and New York City's LaGuardia Airport.
ATA says they will immediately develop a plan of reorganization to address its debt level and will lower its cost structure even further.
SPEAKING OF MONEY:
Delta Air Lines announced this morning that it has reached a tentative agreement with its pilot union on contractual changes which should help save the carrier $1 billion in long-term, annual savings through pay cuts and changes to pension, benefits and work rules. Pilots have until Nov. 11 to vote on the tentative agreement.
HAVE YOU NOTICED:
You may recall that a few months back, I wrote that the price of fuel would likely begin to fall as we got closer to election day. Well, it hasn't unfolded the way I thought it would, but have you seen what has happened in four days this week? Oil prices have dropped almost $6 a barrel. On Monday, oil hit a high, coming close to $56 a barrel. Today, Nymex Crude closed at 50.81.
You may also recall that I wrote that US Airways employees are going to essentially end up subsidizing the high costs of fuel, which they are with the court-imposed 21% pay cuts. However, let's keep an eye on the price of oil because if it continues to drop, there's a certain Judge in Virginia that needs to be aware of it and the ramifications lower fuel prices will have on US Airways.
If this newsletter has been forwarded to you would like to sign up to receive my free newsletters directly, just follow these two easy steps:
1- Send a blank email (nothing in the subject line or text body) by clicking on this link:
join-john_mccorkle_newsletter@space.sparklist.com
(You will immediately receive a reply from Sparklist. This is to verify that you requested to be placed on my distribution list and to confirm that your email address is valid).
2- When you reply to that email, you will immediately be added to the distribution list. You must reply to the email from Sparklist to be added to the list.
Your privacy is important to me therefore, your name and email address will never be sold or shared.
Regards,
John McCorkle
Wilmington, NC