View Full Version : merger's price at US Airways? massive layoffs


martin33
May 19, 05, 9:48 pm
and not just certain executives who'll deservedly be left behind in Crystal City...

The merger plan's success depends by its own admission on realizing a major "rightsizing" at US while it's still court protected. As always, that's code for chopping people.

The key is in the fleet plan. By end 2006, they intend to shed 71 US mainline planes, over 25% of the US mainline fleet. The only way to square that fleet with a "rightsized" labor force is something on the order of a 25% US layoff.

is that better than struggling out of ch11 and perhaps failing again? who knows..

jeffhacker
May 19, 05, 9:52 pm
and not just certain executives who'll deservedly be left behind in Crystal City...

The merger plan's success depends by its own admission on realizing a major "rightsizing" at US while it's still court protected. As always, that's code for chopping people.

The key is in the fleet plan. By end 2006, they intend to shed 71 US mainline planes, over 25% of the US mainline fleet. The only way to square that fleet with a "rightsized" labor force is something on the order of a 25% US layoff.

is that better than struggling out of ch11 and perhaps failing again? who knows..

US' 767 fleet is now over 20 years old (and it shows). If they're going to replace the 767's with new A350's, I'm all for it. And given the alternative, more layoffs is better than ALL laid off. . . .

Right now, America West is a better run company than US by most measurements, but their people are less senior. The HP folks aren't going to be penalized for their success, and you can't blame them. US is pretty desperate at this point.

abeflyer
May 19, 05, 9:58 pm
Parker's statement is that aside from management the merger that will take over three years to fully complete will downsize staffing through attrition and not massive layoffs.

martin33
May 19, 05, 10:10 pm
Parker's statement is that aside from management the merger that will take over three years to fully complete will downsize staffing through attrition and not massive layoffs.

They'll stick to that story for a few months, or as long as they can get away with, but it's diversionary tactics at their best. The fleet size is changing in the here and now, 12-18 months not 3 years off. They also have to accomplish the "rightsizing" while US is still in court and can get away with nearly anything. One could believe an attrition story of perhaps as much as 10% over 18 months, but no, 25% doesn't pass the smell test.

RICflyer
May 19, 05, 10:41 pm
They'll stick to that story for a few months, or as long as they can get away with, but it's diversionary tactics at their best. The fleet size is changing in the here and now, 12-18 months not 3 years off. They also have to accomplish the "rightsizing" while US is still in court and can get away with nearly anything. One could believe an attrition story of perhaps as much as 10% over 18 months, but no, 25% doesn't pass the smell test.

From what I already know about US and what Doug said on the conference call today, I think you are way off base with the 25% cut. First US is already short of pilots and flight attendents, so the fleet decrease will help this. Also on the conference call today they referenced that a large number of the pilots at US have manditory retirement coming up over the next 6 months. I know there will be some cuts but I do not believe anywhere near 25%.

I think the merger is good news but from your post martin33 it sounds like you think it is bad??? US lives on!!!!!

ClueByFour
May 19, 05, 11:32 pm
And given the alternative, more layoffs is better than ALL laid off. . . .

That POV only works if you are high enough on the seniority list to hold onto a job, AFAIK.

martin33
May 20, 05, 1:30 am
I think the merger is good news but from your post martin33 it sounds like you think it is bad??? US lives on!!!!!

from the US flyer perspective, it's quite good news I do agree. at the upper end of all feasible remaining outcomes.

what's dangerous is the impression that HP and US are just going to sort of meld together "as is"... if this goes through, US is going to be severely further downsized in a way no one's yet envisioned.

sfeinberg
May 20, 05, 2:34 am
layoffs will really depend on your location.
-Expect all boeing non 757 flying to be eliminated, so it could be a problem if you're a pilot or f/a...however, us is already short in that department.
-customer service: if you're in lax,las,sfo,phx,sea, or den, than i'd keep a close watch on this. otherwise, hp is very, very small in most other cities that it serves on the midwest/east coast. in fact, many cities that it serves are actually contracted out to other carriers to be handled. Two cities that come to mind: PIT and PHL (all HP ground work is handled by Continental)

ByrdluvsAWACO
May 20, 05, 2:57 am
Two cities that come to mind: PIT and PHL (all HP ground work is handled by Continental)

Luckily that will end in PHL. CO's service in PHL is horrible.

gardener
May 20, 05, 5:19 am
Luckily that will end in PHL. CO's service in PHL is horrible.

Don't look for any changes then. :(

pitflyer
May 20, 05, 7:31 am
I'm pretty sure that PIT ground service for HP is handled by American...

murphy
May 20, 05, 9:24 am
Do you anticipate any FT layoffs when our forums are merged? Should safetymom, ClueByFour, chrislacey and TravelScholar be watching their backs? Will AZ Travels the World be running the show? Will the US DM forum be right sized? Will ByrdluvsAWACO change his name to longing4americawest?