See article (requires free registration):

http://www.nytimes.com/2004/12/03/business/03air.html?oref=login

A wise move, IMHO, to placate some of the disgruntled rank and file. The golden parachutists don't really need that perk anyway.

For the login-challenged, a snip:

US Airways, in its latest effort to cut costs under bankruptcy protection, is stripping former executives and board members of their ability to travel free in first class, the airline said yesterday.

The move affects about 200 people, including the former chief executive, David N. Siegel, who resigned in April, and his predecessor, Stephen M. Wolf, who left in 2002.

The group was notified of the change in a letter from the airline's chief executive, Bruce R. Lakefield, which was mailed on Wednesday. Current board members and senior executives are not affected by the change.

The former executives and directors will still be able to fly free in coach, when space is available. But, they will have to give up those seats if a flight is oversold, meaning that the men and women who once handled the airline's most critical decisions can now be bumped for paying passengers.

Airlines traditionally have given free lifetime flying privileges to senior executives and directors as a perk. At US Airways, the 200 officers were able to book confirmed seats in first class free, although the benefit was taxable.

Lesser-ranking employees and their families can fly in coach class when space is available, and they can stand by for first class but are required to pay a fee if they get first-class seats. They can also be bumped if a flight is oversold. The benefit often continues after an employee retires, although airlines have started to limit how many free flights retired employees can book each year.

Don't know if it was an urban legend or not but I often heard of the tale of the Captain who refused to fly his Christmas Eve to CDG because Wolf was sitting in First Class. There is so much hatred for these guys, that this can only be a good move by US in terms of placating the employees.

Do they get liftime CP status?

Don't know if it was an urban legend or not but I often heard of the tale of the Captain who refused to fly his Christmas Eve to CDG because Wolf was sitting in First Class. There is so much hatred for these guys, that this can only be a good move by US in terms of placating the employees.


Don't know about that flight but this might be what you are thinking about.

In August, 2000 Wolf was trying to fly IAD-CDG on UA. He would not fly on US due to employee hostility. Between the pilots and the mechanics, they found out that Wolf was supposed to be on one of the 2 flights on a Friday night. They delayed BOTH 777s and the 777 scheduled IAD-LHR until all the crews timed out. Turned out that Wolf was in F on the plane where I was sitting in C.

The next day, the first plane was scheduled to leave at 2 PM. When we checked back in for the flight, all of the United ground staff was talking about stranding Wolf the prior night. I was in the Red Carpet Club about noon and Wolf walked in. We spoke for a few minutes and some official looking United types walked in. One identified himself as representing the IAM from Chicago. He said (and I paraphrase), "Mr. Wolf, you are not going to be flying anywhere on United today, tomorrow or any day. If you want all of these other people to get to Paris today, you'll take this ticket on Air France." Wolf took the ticket, grabbed his bag and walked out of the RCC without saying a word.

We started boarding 45 minutes later.

For the login-challenged, a snip:

Nothing wrong with putting a hole or two in their golden parachute.

Don't know about that flight but this might be what you are thinking about.

In August, 2000 Wolf was trying to fly IAD-CDG on UA. He would not fly on US due to employee hostility. Between the pilots and the mechanics, they found out that Wolf was supposed to be on one of the 2 flights on a Friday night. They delayed BOTH 777s and the 777 scheduled IAD-LHR until all the crews timed out. Turned out that Wolf was in F on the plane where I was sitting in C.

The next day, the first plane was scheduled to leave at 2 PM. When we checked back in for the flight, all of the United ground staff was talking about stranding Wolf the prior night. I was in the Red Carpet Club about noon and Wolf walked in. We spoke for a few minutes and some official looking United types walked in. One identified himself as representing the IAM from Chicago. He said (and I paraphrase), "Mr. Wolf, you are not going to be flying anywhere on United today, tomorrow or any day. If you want all of these other people to get to Paris today, you'll take this ticket on Air France." Wolf took the ticket, grabbed his bag and walked out of the RCC without saying a word.

We started boarding 45 minutes later.

That has got to be the BEST story I have heard on this site!! Loved it!!

Somewhere between petty and smart employee relations. There is a lot of employee discontent about the relatively big money that has gone to some of these departed characters. That having been said, they didn't get anything they weren't entitled to contractually. While Lakefield will get on with his life, some of the folks whose job it was to deliver this bullet will have the opportunity to meet up again with some of the people affected. It's a tribal business, with a long memory. Screwing with pass priveledges is a no no. You might even see a lawsuit. As I said, good internal morale move, but there were classier ways to do it (like telling them you won't do it officiallly, but suggesting that under the circumstances, they probably would be well advised to fly elsewhere). I'm no Siegel fan, but whatever he got on the way out, Bronner gave him. As for Mr. B, I wonder if he has followed the goings on lately at CALPERS?

Somewhere between petty and smart employee relations. There is a lot of employee discontent about the relatively big money that has gone to some of these departed characters. That having been said, they didn't get anything they weren't entitled to contractually. While Lakefield will get on with his life, some of the folks whose job it was to deliver this bullet will have the opportunity to meet up again with some of the people affected. It's a tribal business, with a long memory. Screwing with pass priveledges is a no no. You might even see a lawsuit. As I said, good internal morale move, but there were classier ways to do it (like telling them you won't do it officiallly, but suggesting that under the circumstances, they probably would be well advised to fly elsewhere). I'm no Siegel fan, but whatever he got on the way out, Bronner gave him. As for Mr. B, I wonder if he has followed the goings on lately at CALPERS?
Nothing "Petty" about this move! This is long over due!!!!! These execs have spit in the face of hard working and loyal employees for too long! :mad:

Do they get liftime CP status?

They'd be flying as non-revs, so no. Preferred status only applies to paying passengers.

Yes, petty. Siegel now runs a catering business which deals with a number of carriers, so he likely has no shortage of free ride options. In the case of the erudite Mr. Wolf, it's unlikely his travels take him to Erie or Buffalo. Unlike those of us among the great unwashed, it's further unlikely he needs to go through a hub to get a better seat. Reciprocal passes for airline execs, present and past, are a way of life. Taking them away is tantamount to whacking a mafia don. Not a good thing to do if you are working there. Hell, I could care less. Opens more upgrade seats. Just an observation.

Don't know if it was an urban legend or not but I often heard of the tale of the Captain who refused to fly his Christmas Eve to CDG because Wolf was sitting in First Class. There is so much hatred for these guys, that this can only be a good move by US in terms of placating the employees.

I know a UAL FA who said that when Wolf used to fly UA, he would only drink from unopened bottles for fear that an employee might spit into his drink before giving it to him. Heck, on US, they might slip some cyanide in if they had it. Wolf is universally despised among airline employees and for good reason. However, I doubt it bothers him one bit. Laughing all the way to the bank as the old saying goes.

While some of you may partake in such class envy and elitism I find it sickening and ridiculous. It may be the way of life on the Continent it should have no place in our Republic.

While some of you may partake in such class envy and elitism I find it sickening and ridiculous. It may be the way of life on the Continent it should have no place in our Republic.
Huh? Care to expand and explain what you mean by the above, cause I don't have a clue how this relates to the original post.

Huh? Care to expand and explain what you mean by the above, cause I don't have a clue how this relates to the original post.

"A wise move, IMHO, to placate some of the disgruntled rank and file. The golden parachutists don't really need that perk anyway"

"There is so much hatred for these guys, that this can only be a good move by US in terms of placating the employees"

"Nothing wrong with putting a hole or two in their golden parachute"

"That has got to be the BEST story I have heard on this site!! Loved it!!"

"Nothing "Petty" about this move! This is long over due!!!!! These execs have spit in the face of hard working and loyal employees for too long!"

Notice a certain tone?

I don't know Mr. Wolf from a hole in the wall but when he was hired he negotiated a contract including some perks such as flying for free after he left. Now US changes their policy - I have no issue with either of these facts. But why are we so happy that 2 fully loaded 777 (600 pax total) did not get to their destination on time because of some thug employees decided to sabotage the flights? This is a good thing that we are applauding?

In our system if you do not like the manager you fire them. In our system if we don't like the management or policies of a certain company we don't do business with them. This is what we call the Free Market. We do not (actually, we should not) take it upon ourselves to celebrate the tyranny of a few that feel they know best and by their actions two planes were delayed, rules be damned. If this type of conduct is in any way encouraged what next? Sugar in the fuel lines or slashing the tires because a worker loses their job because of company mismanagement? This was the same argument used to justify the riots because some did not like the OJ verdict. This kind of action is not only not to be justified but also should be condemned by all freedom loving people who believe that we are a society where the rule of law is our guiding light.

Only the truly small minded elitism among us are happy when the so called rich are treated worse then we would expect to be treated.

Screwing with pass priveledges is a no no. You might even see a lawsuit. As I said, good internal morale move, but there were classier ways to do it (like telling them you won't do it officiallly, but suggesting that under the circumstances, they probably would be well advised to fly elsewhere). I'm no Siegel fan, but whatever he got on the way out, Bronner gave him.

I'm sure that they can have the BK court take care of any niggling details. If they had any sense and were basing things on performance, they'd immediately move to abrogate anything they owe to little Dave. But that's just me.

[QUOTE=phillyd2
I don't know Mr. Wolf from a hole in the wall but when he was hired he negotiated a contract including some perks such as flying for free after he left. Now US changes their policy - I have no issue with either of these facts. But why are we so happy that 2 fully loaded 777 (600 pax total) did not get to their destination on time because of some thug employees decided to sabotage the flights? This is a good thing that we are applauding?

In our system if you do not like the manager you fire them. In our system if we don't like the management or policies of a certain company we don't do business with them. This is what we call the Free Market. We do not (actually, we should not) take it upon ourselves to celebrate the tyranny of a few that feel they know best and by their actions two planes were delayed, rules be damned. If this type of conduct is in any way encouraged what next? Sugar in the fuel lines or slashing the tires because a worker loses their job because of company mismanagement? This was the same argument used to justify the riots because some did not like the OJ verdict. This kind of action is not only not to be justified but also should be condemned by all freedom loving people who believe that we are a society where the rule of law is our guiding light.

Only the truly small minded elitism among us are happy when the so called rich are treated worse then we would expect to be treated.[/QUOTE]



Very interesting conclusion.

As a lurker and participant on this board for the past 3 years, class envy has seldom been an issue insofar as customers' opinions have been concerned during past discussions. I do not see it as an issue in this discussion.

Since you wouldn't recognize Steve Wolf, let me help you there. He is a rather imposing figure at 6' 6" with his gray mustache. He has repeatedly held the same job in aviation beginning with Flying Tigers and continuing with United and US Airways. He would find out how to put lipstick on a pig in order to sell the company. He did that very well. He never understood how to run an airline, so when the sales unraveled as in the ESOP at United and the botched UA/US merger there were a lot of employees left high and dry. And the companies had been bled dry of their cash reserves, leaving them much worse off than when he started. At US, he suggested and oversaw a stock buy-back at the highest price ever. Bad business and it took more than $1B out of cash reserves that were desperately needed. The first shares bought back were his own, creating ethical and legal dilemmas.

At US, Wolf eliminated the Revenue Management Division, back-end loaded leases and made other choices that resulted in him saying, "We have no Plan B". The lipstick on this pig was a new paint job and airline name. He refused to take a stand with labor which resulted in the +1% contracts that were signed by the pilots and FAs and capitulated to Southwest at BWI; a hub that had been profitable for Piedmont from the day it opened. Unfortunately, labor did not have the ability or position at the time to successfully undertake Wolf's ouster.

The points are also raised about negotiated agreements. In bankruptcy, the Judge's primary responsibility is to the creditors. If altering past agreements increases the return to these creditors, then s/he is obligated to approve the change.

Labor's past distrust of some of these people is amplified by their current conduct as passengers. They seem to be a rather high maintenance group and often more demanding than the general traveling public, as evidenced by comments on another BB.

I completely agree with your comments against intentional distress of passengers or sabotage by employees. If you could have seen the woman was was trying to get to Paris to adopt a daughter and her sobbing while she was pleading with Wolf to do whatever it took to get her to Paris. Losing the chance to have a family, in my opinion, far outweighs anything else that happened to any of us that weekend.

Elitism, small minded elitism, or reverse elitism does not properly describe our friends on this board. Most, myself included, are very fortunate with our lives. That is what allows us to travel so frequently. The responses here are based on historical perspective, an understanding of the current employee mentality and even the notion that more F seats may be available for our widening bottoms. :D

But, our differing opinions is what makes this place so interesting.

I don't object to the elimination of free travel for former execs. Everyone from the creditors to the employees have given to lighten the load of US's liabilities.

BUT the unionistas have to get over the "We got screwed, management is evil, shut this place down, wolf/siegel/gangwal grudges and class warfare pettiness. This sort of heated rhetoric only further marginalizes their influence.

I agree with Phillyd2. The hundreds of other passengers trying to get to Paris that Christmas Eve did not deserve to be involved in the retribution UA and US employees had lined up for Wolf. When one travels on Christmas Eve, a lot of planning has usually gone into that trip, right? and it's usually a personal trip, paid with one's own funds and on one's own valuable vacation time. So where do these buffoons get off thinking inconveniencing hundreds of folks is worth their hatred for a single person?

Why couldn't they have just upgraded a bunch of economy pax to fill up every First and Business seat on his flights and get their kicks out of watching him sit in cattle class for seven hours?

Why couldn't they have just upgraded a bunch of economy pax to fill up every First and Business seat on his flights and get their kicks out of watching him sit in cattle class for seven hours?

At the time, he probably had some contract/parachute from United entitling him to space positive F class travel (meaning, he's not bumped if there is a seat available for sale).

I am glad they got rid of them from First. Wolf pratically raped the company of money.

I did not follow up much on Gangwal.

At the time, he probably had some contract/parachute from United entitling him to space positive F class travel (meaning, he's not bumped if there is a seat available for sale).


The reason they held multiple aircraft, including the one destined for LHR was exactly what Cx4 surmises. He could walk off of one United plane and onto another, thereby displacing a paid F passenger.

What nobody ever remembers was the board of directors hired Wolf, giving him a deal that only really paid off if he sold the place. That was, in their minds, the right way to go. So.that's what he did. And by the way, he cut the rank and file one sweet deal. Nobody lost jobs. Pilot seniority was preserved (to the point UA crews were moaning all over USAviation.com about being displaced on heavy aircraft by the generally more senior US people). When the government expressed anti trust concerns, they cut another side deal with AA to take the 757's, along with any pilots who preferred going there. He was OK with everybody then. Where it came unstuck was Wolf's overreaching on the share price, the same thing he did in the UA employee buyout, that triggered the collapse of the merger mania of 1990. While you can say Mr. Wolf didn't learn from his mistakes, and you can put some blame on the dopes running UA, who all got canned in the aftermath of the failed US merger, the real culprits were the investment bankers advising USAirways, who let the thing run off the rails by not restraining an exuberant management. As for his holding up revenue flights, the guy was well known for flying private air to his homes in New Mexico and France. The guy is no poster boy for corporate conscience, but the place is in the tank today thanks to a random collection of speculators, and unremarkable managers, some kids, and some retreads. They will study this one for years.

Gosh there is so much drama in that it sounds like you could make a movie out of it.

I would like to hear it all. But I am sure that would take pages and pages to explain.

Just to clarify, they didn't remove their right to free travel -- they just removed their right to have a seat in F. They can still fly for free in Y.

Exactly, so why bother? They probably weren't using it anyway. Drama aside, the earlier post was to remind folks that (a) departed management tried to look out for people, and (b) some of that current anger may be misplaced. I understand the symbolic nature of the act, but I continue to marvel at the use of corporate brainpower for this stuff, while Philly remains a dark hole.

...Steve Wolf...has repeatedly held the same job in aviation beginning with Flying Tigers and continuing with United and US Airways
Let's not forget Continental. I worked there when Frank Lorenzo was running the president-of-the-month club. Not sure how long he lasted, nor what major changes took place under his term, but I do recall he didn't last all that long.

Lorenzo fired Wolf when he objected to the use of Chapter 11 to void union contracts. Presumably the experience made an impression on him.

Exactly, so why bother? They probably weren't using it anyway.



Come out to DCA on the Friday before a major holiday weekend and you will see plenty of them (and their family members) flying out of town in F class. Sometimes on ovesold flight when the agnets are begging for volunteers.

And to the poster asking if these people get US1 status, the answer (in most cases is yes).

I remember being in a US Airways club a few years ago and seeing a past VP who "resigned" in the mid nineties taking the club rep's time (while others were waiting) to book onward flight for him and his wife.

I remember being in a US Airways club a few years ago and seeing a past VP who "resigned" in the mid nineties taking the club rep's time (while others were waiting) to book onward flight for him and his wife.

OMG!!!! really??? you've got to be kidding me!!! ROTFLMAO!!! sorry for the sarcasm! but i've worked for the airline for the past 25 years and YEP!.... sounds just like 'em! USAirways.... NOT the former prestigous Piedmont Airlines! thankfully, Tom Davis is not alive to see the FIASCO that has come of his airline!!!!

i'm sure i've worn out my welcome in this forum and with that.... i'll bid my 'adeau'.

Well, in that case, good riddance. We won't have have them clogging up those front cabins. By the way, Wolf has had a couple of bad hair days. United cancelled his pension over there.

I get the "message to the troops" undertones but, this is a Chainsaw-Al move that works for about a week.

IMO it is too late for US they don't have the strength to make it past '05

Come out to DCA on the Friday before a major holiday weekend and you will see plenty of them (and their family members) flying out of town in F class. Sometimes on ovesold flight when the agnets are begging for volunteers.
And to the poster asking if these people get US1 status, the answer (in most cases is yes).
I remember being in a US Airways club a few years ago and seeing a past VP who "resigned" in the mid nineties taking the club rep's time (while others were waiting) to book onward flight for him and his wife.

If you want some entertaining reading, this is from:

http://www.cwa.net/jumppages/GIVINGAWAYPRODUCTjump.asp

Giving away our product…
By Chris Fox, President CWA Local 13302
We have a surprisingly large number of people entitled to free, space positive (generally first class), personal and vacation travel on our airline. The current number of people in this exclusive club is 721, including a whole gaggle of current and retired executives, executives of other airlines, members and former members of the Board of Directors, and "director level" US Airways management…and their children and family members!
Many of these 721 people work for other corporations or airlines, yet they remain members of the US Airways Old Boys Club, entitled to free premium seats for their personal travel - seats that could otherwise be sold and generating revenue.
How much does it cost us?
Try $86,600 in one 6-day period. It is not uncommon for paying customers to be denied boarding while these 721 occupy premium seats for personal travel. A recent example occurred when the free-riding president of another airline bumped two first class passengers from an oversold flight to Florida, or a similar situation involving three seats to Rome (Italy - not NY).
In one recent 6-day period this group of 721 people grabbed $85,600 worth of free, space positive, personal travel for themselves - an amount equal to the annual salaries of 2 agents. How much longer can we afford to give away our product when others are willing to pay for it?
And are these people grateful for their free travel privileges? Here are some comments I've heard from employees who actually deal with these folks:

•" Mr. ______ - is constantly rude and demanding with our agents over seat assignments. Mr. ________ calls from the ___ tkt counter and asks our agent if they can tell the tkt counter agent how do their job. Mr. _______ was disputing the fact that he should be paying taxes on a free international ticket.
•" Retired executive - currently employed by ________ corporation. Most likely uses space positive benefit to fly on business. Spouse is also still working. We must be the laughing stock of this successful family.
•" Mr. __________ - executive of ___________ airline. This person is, "Not to be removed in an oversale situation." We would much rather give out DBC's than inconvenience this important man.
•" Mr. _________ - executive of ____________ airline. Recent flight was overbooked - we were forced to seat his party of 2 in first class and deny boarding to revenue passengers because he wouldn't budge.

Here's our proposal…
We should never give away seats, particularly premium seats, when customers are willing to pay. These 721 select individuals should not be flying free positive space for personal leisure travel, period. If they are entitled to personal travel privileges on US Airways (which is dubious for many of these people), then it should be on space available basis, just like the US Airways employees.

Goldman Sachs got it right…
Employees from all US Airways labor groups have suggested numerous revenue-generating and cost-cutting ideas to management. But, somehow, the only cost-cutting management seems to focus on is employee pay and benefit cost-cutting.
We agree with the Goldman Sachs analysts who say, "US Airways Management insists that every aspect of the company's operations is under review, but the non-labor cost problem is more complex and amorphous, and we have heard no clear strategy for limiting the non-labor gap."


While I'm no big fan of unions, I'm also no big fan of elitist CEOs like Wolf who rob the company blind while screwing over employees. My wife used to work for USAirways. I recall the year(s) when their Christmas bonus to Customer Service employees was a Mrs Field's chocolate chip cookie (apparently her or her husband was on the BOD so the cookie was probably free) while the execs were getting huge performance bonuses for horrible performance and huge retention bonuses when no well-run company would ever think of hiring them. I remember when the big perk from management for employees with perfect attendance for a year was a space available first class pass (only good for domestic routes as I recall). This while the third cousin of a BOD member (even BOD members from other airlines) got unlimted positive space First Class tickets to Europe or anywhere on the route system. So FTers like Atlantic Beach can pontificate and moralize about employees taking supposedly illegal actions in cancelling flights (in reality, flights can always get cancelled for legal reasons if employees want to go rigidly "by the book" just as air traffic controllers did years ago in delaying flights nationwide). But those employees are human beings and you can only screw them over so long before they fight back. Even if you have no compassion for the way the US employees were mistreated, I'd think that as a frequent flyer, you'd resent having FC seats being taken away (and paying passengers getting denied boarding) to make room for folks travelling for free who have contributed nothing to the company.


Btw, not only did Wolf get the huge salary/bonuses/stock options, he also got all his previous airline service counted as USAirways service for pension computation purposes. He even got commuting costs added in to cover his limo trips to/from his estate in Middleburg, VA. For someone whose only talent is repainting planes and changing company names to create an "impression of excellence", that's really stretching it.

Atlantic Beach can pontificate and moralize about employees taking supposedly illegal actions in cancelling flights (in reality, flights can always get cancelled for legal reasons if employees want to go rigidly "by the book" just as air traffic controllers did years ago in delaying flights nationwide). But those employees are human beings and you can only screw them over so long before they fight back.

My wife will love the description as "pontification".

You misread my bias. Wolf deserved 10 times worse than anything the UA employees did to him. I was just reporting the facts in my posts. I understood their anger at Wolf, but in doing their "Summer of Hell", other customers sustained collateral damage. My family and I took the delay in stride as we were expecting it.

The presence of union leadership at Dulles the next afternoon was a positive step. Like you, I think that many of today's unions are anachronistic in the current economy. But, the union leaders were standing behind their rank and file on that day and were creating a solution at the same time.

As far as the treatment by the "721" to the front lines employees, it is often abysmal. I have seen it first hand and it is embarrassing. Expectations are often unreasonable, especially in people who feel entitled to whatever they are being given. In my term on a professional disciplinary board, more complaints per capita came from people who had limited or no out of pocket costs.

US Airways is trimming true dead wood here.

Well, it was about time :).

[QUOTE=AtlanticBeach][QUOTE=phillyd2

As a lurker and participant on this board for the past 3 years, class envy has seldom been an issue insofar as customers' opinions have been concerned during past discussions. I do not see it as an issue in this discussion.
QUOTE]

I feel that class envy has always been a part of this board. If all the talk on this board regarding silver, gold & platinum status and entitlement is not class envy, I do not know what is class envy! It is not classic class envy, but modern updated 21st century class envy!

I have seen fellow passengers make the poor FA's life miserable because of their status and their sense of entitlement. In the whole process, we sometimes forget that we are dealing with fellow human beings.

I will get off my soap box now.

I feel that class envy has always been a part of this board. If all the talk on this board regarding silver, gold & platinum status and entitlement is not class envy, I do not know what is class envy! It is not classic class envy, but modern updated 21st century class envy!



There's a huge difference between the entitlements of passengers based on their elite status, which is largely based on the amount of business they contribute to the airline, and the perks granted to folks who either have no connection to the airline, and thus have contributed nothing to it, or, worse yet, perks granted to airline executives, like Wolf, who are mainly responsible for the mess the company is in and don't even "work" for it anymore (as if Wolf's repainting and renaming antics could be called "work"). To make the situation even more ludicrous, prima donnas like Wolf not only take from the airline's employees and retirees, they also take from the airline's best customers because they're the ones getting kicked out of FC cabins to make room for the likes of Wolf and distant relatives of BOD members from other companies.

This was probably the best decision US has made yet! :) I hope this has taken effect immediately.