Latest US Airways Negotiation/ Bankruptcy News - HERE
Sep 10, 2004, 1:15 am
#61
Join Date: May 2001
Location: The banks of the river, Styx
Posts: 1,692
This is going to have a ripple effect not just on US employees but other companies as well.
A small ripple one.
There are many small airports that US is the only carrier in PA, NY and other states as well. The chance that an airline coming into these really small towns might take some time (if they ever come for that matter.) And the stores that are located inside those airports will close.
Small airports with very small stores.
Even in some of the bigger cities like DCA. Pier C where US takes up all the gates. These stores will lose some money. Of course other airlines will swarm in those gates if US goes chapter 7 however, the 4 Pilots blocking the vote here will do more damage not to just US Airways and employees...but others as well. For the time that Pier C is closed those stores will lose money. Anyone who travels through DCA knows what I am talking about since all the piers you must go through security to get to the gates and stores.
Sorry but after 9/11 there are NOT many vendors inside of any secure area of any airports.
Why haven't people learned from the past (IE Eastern???).
Learned WHAT? Please be specific.
On a second note, Since coming out of Ch11 in 2003...is it me or has this transformation plan been taking way too long? I do agree with one of the pilots who blocked the vote (can't remember his name off hand at the moment). He said that US needs to grow to make money. Yes they are finally doing that now with their FLL focus city. What took them so long to do this?
This is true of all airlines, all they seem to do is want to cut cost, none seem to be trying to make more money. (Sans UAL with TED and Delta with Song).
Current management can't be blamed for the past mistakes: IE PSA west coast presents and BWI. However, they need to be more on the offensive like they have been with FLL.
When they came out of ch11 in 2003 they should have been on the offensive. Instead let's wait until we are almost out of money AGAIN to start planning for US's future.
I am no business major but, one thing I know for sure in business. It takes money to make money. It's stupid to wait until your almost broke to start doing things. I can't be the only one thinking on these same lines???
It's a shame....US has the jewels to the East coast. US is still my favorite airline. And I will fly them until the end. I still have hope that maybe the pilots will pull through at the last minute. It looks like this is going to go to the 11th hour and 59 seconds for sure. I just hope the clock does not strike 12.
Bronner Quotes;
You the flyer, MAKE THE CALL
A small ripple one.
There are many small airports that US is the only carrier in PA, NY and other states as well. The chance that an airline coming into these really small towns might take some time (if they ever come for that matter.) And the stores that are located inside those airports will close.
Small airports with very small stores.
Even in some of the bigger cities like DCA. Pier C where US takes up all the gates. These stores will lose some money. Of course other airlines will swarm in those gates if US goes chapter 7 however, the 4 Pilots blocking the vote here will do more damage not to just US Airways and employees...but others as well. For the time that Pier C is closed those stores will lose money. Anyone who travels through DCA knows what I am talking about since all the piers you must go through security to get to the gates and stores.
Sorry but after 9/11 there are NOT many vendors inside of any secure area of any airports.
Why haven't people learned from the past (IE Eastern???).
Learned WHAT? Please be specific.
On a second note, Since coming out of Ch11 in 2003...is it me or has this transformation plan been taking way too long? I do agree with one of the pilots who blocked the vote (can't remember his name off hand at the moment). He said that US needs to grow to make money. Yes they are finally doing that now with their FLL focus city. What took them so long to do this?
This is true of all airlines, all they seem to do is want to cut cost, none seem to be trying to make more money. (Sans UAL with TED and Delta with Song).
Current management can't be blamed for the past mistakes: IE PSA west coast presents and BWI. However, they need to be more on the offensive like they have been with FLL.
When they came out of ch11 in 2003 they should have been on the offensive. Instead let's wait until we are almost out of money AGAIN to start planning for US's future.
I am no business major but, one thing I know for sure in business. It takes money to make money. It's stupid to wait until your almost broke to start doing things. I can't be the only one thinking on these same lines???
It's a shame....US has the jewels to the East coast. US is still my favorite airline. And I will fly them until the end. I still have hope that maybe the pilots will pull through at the last minute. It looks like this is going to go to the 11th hour and 59 seconds for sure. I just hope the clock does not strike 12.
Bronner Quotes;
"If the unions don't agree to wage concessions by mid-September, the company would have to consider bankruptcy and possibly liquidation."
"If it goes into bankruptcy, my guess is it never comes out."
"The airline would likely face liquidation if it was forced into bankruptcy."
"If it goes into bankruptcy, my guess is it never comes out."
"The airline would likely face liquidation if it was forced into bankruptcy."
Sep 10, 2004, 2:36 am
#62
Join Date: Jul 2004
Location: Honolulu, Hawaii
Programs: US1
Posts: 1,928
Small airports with very small stores.
I would not call DCA, PHL, PIT small airports. Yes the business might be small but there are not just a few there are many after the security check point. There are many in many airports. A business is a business. I would not exactly say it's a small ripple.
Why haven't people learned from the past (IE Eastern???).
Learned WHAT? Please be specific.
LEARNED WHAT???? YOUR KIDDING RIGHT???
This is true of all airlines, all they seem to do is want to cut cost, none seem to be trying to make more money. (Sans UAL with TED and Delta with Song).
I would not call DCA, PHL, PIT small airports. Yes the business might be small but there are not just a few there are many after the security check point. There are many in many airports. A business is a business. I would not exactly say it's a small ripple.
Why haven't people learned from the past (IE Eastern???).
Learned WHAT? Please be specific.
LEARNED WHAT???? YOUR KIDDING RIGHT???
This is true of all airlines, all they seem to do is want to cut cost, none seem to be trying to make more money. (Sans UAL with TED and Delta with Song).
Sep 10, 2004, 10:36 am
#63
Join Date: Jan 2003
Programs: American Airlines Platinum, National Executive
Posts: 3,790
US Airways pilots hold emergency meeting
LATEST NEWS
10:12 AM EDT Friday
US Airways pilots hold emergency meeting
Pilots at US Airways Group Inc. are slated hold an emergency meeting Friday, a few days after their union leadership rejected an airline proposal for significant wage and work-rule concessions.
The special meeting of the Air Line Pilots Association's executive committee will be held at Pittsburgh International Airport.
Unless US Airways gains relief from its unions, the airline appears certain to seek bankruptcy protection Sunday, The New York Times reports.
The Virginia-based airline, which emerged from Chapter 11 in March 2003, is considering a new bankruptcy filing without debtor-in-possession financing, a standard feature of most reorganizations, the newspaper reports.
Instead, the airline would rely on cash on hand to operate and would explore additional financing, the Times reports.
Christopher Chiames, US Airways senior vice president for corporate affairs, declined comment on whether another bankruptcy filing was imminent. "All along in this process, we've acknowledged that a bankruptcy filing might be necessary, but no decisions have been made," he told the newspaper.
The final say is up to the airline's board, which has not met to discuss the issue, he added. But the board can meet by telephone on short notice.
The carrier says employee concessions are essential to avoid bankruptcy. The airline wants $1.5 billion in overall savings, including $800 million from workers.
The carrier, which operates its largest hub at Charlotte/Douglas International Airport, faces mid-September deadlines for making nearly $1 billion in payments to cover pension obligations and to meet financial criteria needed to maintain a federal guarantee on loans.
© 2004 American City Business Journals Inc
10:12 AM EDT Friday
US Airways pilots hold emergency meeting
Pilots at US Airways Group Inc. are slated hold an emergency meeting Friday, a few days after their union leadership rejected an airline proposal for significant wage and work-rule concessions.
The special meeting of the Air Line Pilots Association's executive committee will be held at Pittsburgh International Airport.
Unless US Airways gains relief from its unions, the airline appears certain to seek bankruptcy protection Sunday, The New York Times reports.
The Virginia-based airline, which emerged from Chapter 11 in March 2003, is considering a new bankruptcy filing without debtor-in-possession financing, a standard feature of most reorganizations, the newspaper reports.
Instead, the airline would rely on cash on hand to operate and would explore additional financing, the Times reports.
Christopher Chiames, US Airways senior vice president for corporate affairs, declined comment on whether another bankruptcy filing was imminent. "All along in this process, we've acknowledged that a bankruptcy filing might be necessary, but no decisions have been made," he told the newspaper.
The final say is up to the airline's board, which has not met to discuss the issue, he added. But the board can meet by telephone on short notice.
The carrier says employee concessions are essential to avoid bankruptcy. The airline wants $1.5 billion in overall savings, including $800 million from workers.
The carrier, which operates its largest hub at Charlotte/Douglas International Airport, faces mid-September deadlines for making nearly $1 billion in payments to cover pension obligations and to meet financial criteria needed to maintain a federal guarantee on loans.
© 2004 American City Business Journals Inc
Sep 10, 2004, 11:45 am
#64
Join Date: Jul 2004
Location: Honolulu, Hawaii
Programs: US1
Posts: 1,928
http://www.wjla.com/news/stories/0904/172124.html
US Airways Makes Last-Ditch Offer to Pilots
Friday September 10, 2004 12:54pm
Talks Resume Between Airline, Pilots
Arlington, Va. (AP) - US Airways made a last-ditch offer to its divided pilots' union Friday for a new labor contract, as the beleaguered airline tries to avoid a second bankruptcy filing that may be just be days away.
The offer came as the pilots met Friday afternoon in Pittsburgh.
The meeting was scheduled at the request of the hard-line union representatives from Pennsylvania who refused to send an earlier company proposal to union members for a vote.
US Airways Chief Executive Bruce Lakefield says the company has made new offers to both the pilots and flight attendants.
Lakefield says the most recent offer was designed to cut pay as little as possible by requiring pilots and flight attendants to fly more hours and make other work-rule changes.
A necessary consequence of that would be additional furloughs. According to the union, almost 1,900 pilots are already furloughed.
US Airways Makes Last-Ditch Offer to Pilots
Friday September 10, 2004 12:54pm
Talks Resume Between Airline, Pilots
Arlington, Va. (AP) - US Airways made a last-ditch offer to its divided pilots' union Friday for a new labor contract, as the beleaguered airline tries to avoid a second bankruptcy filing that may be just be days away.
The offer came as the pilots met Friday afternoon in Pittsburgh.
The meeting was scheduled at the request of the hard-line union representatives from Pennsylvania who refused to send an earlier company proposal to union members for a vote.
US Airways Chief Executive Bruce Lakefield says the company has made new offers to both the pilots and flight attendants.
Lakefield says the most recent offer was designed to cut pay as little as possible by requiring pilots and flight attendants to fly more hours and make other work-rule changes.
A necessary consequence of that would be additional furloughs. According to the union, almost 1,900 pilots are already furloughed.
Sep 10, 2004, 11:50 am
#65
Join Date: Dec 2003
Location: DC|NYC
Programs: UA GS, DL Plat, Marriott Bonvoy LIfetime Titanium/SPG refugee, Hertz Prez, Amtrak Select
Posts: 3,201
Originally Posted by US AIRWAYS FAN
http://www.wjla.com/news/stories/0904/172124.html
US Airways Makes Last-Ditch Offer to Pilots
Friday September 10, 2004 12:54pm
Talks Resume Between Airline, Pilots
Arlington, Va. (AP) - US Airways made a last-ditch offer to its divided pilots' union Friday for a new labor contract, as the beleaguered airline tries to avoid a second bankruptcy filing that may be just be days away.
The offer came as the pilots met Friday afternoon in Pittsburgh.
The meeting was scheduled at the request of the hard-line union representatives from Pennsylvania who refused to send an earlier company proposal to union members for a vote.
US Airways Chief Executive Bruce Lakefield says the company has made new offers to both the pilots and flight attendants.
Lakefield says the most recent offer was designed to cut pay as little as possible by requiring pilots and flight attendants to fly more hours and make other work-rule changes.
A necessary consequence of that would be additional furloughs. According to the union, almost 1,900 pilots are already furloughed.
US Airways Makes Last-Ditch Offer to Pilots
Friday September 10, 2004 12:54pm
Talks Resume Between Airline, Pilots
Arlington, Va. (AP) - US Airways made a last-ditch offer to its divided pilots' union Friday for a new labor contract, as the beleaguered airline tries to avoid a second bankruptcy filing that may be just be days away.
The offer came as the pilots met Friday afternoon in Pittsburgh.
The meeting was scheduled at the request of the hard-line union representatives from Pennsylvania who refused to send an earlier company proposal to union members for a vote.
US Airways Chief Executive Bruce Lakefield says the company has made new offers to both the pilots and flight attendants.
Lakefield says the most recent offer was designed to cut pay as little as possible by requiring pilots and flight attendants to fly more hours and make other work-rule changes.
A necessary consequence of that would be additional furloughs. According to the union, almost 1,900 pilots are already furloughed.
A glimmer, A glimmer!
Go, US, Go!
Sep 11, 2004, 5:18 am
#66
Join Date: Feb 2001
Location: DC; US Gold
Posts: 3,139
This morning's Wash Post
US Airways Makes New Proposal to Key Unions
Longer Hours Asked For Lesser Pay Cuts
By Keith L. Alexander
Washington Post Staff Writer
Saturday, September 11, 2004; Page E01
Pressured by the prospect of bankruptcy, US Airways Group Inc. proposed last-ditch cost-saving offers to its pilots and flight attendants unions yesterday.
The proposals would require the employees to work longer hours, more in line with those of low-cost carriers, in exchange for less-severe pay cuts.
http://www.washingtonpost.com/wp-dyn...2004Sep10.html
Longer Hours Asked For Lesser Pay Cuts
By Keith L. Alexander
Washington Post Staff Writer
Saturday, September 11, 2004; Page E01
Pressured by the prospect of bankruptcy, US Airways Group Inc. proposed last-ditch cost-saving offers to its pilots and flight attendants unions yesterday.
The proposals would require the employees to work longer hours, more in line with those of low-cost carriers, in exchange for less-severe pay cuts.
http://www.washingtonpost.com/wp-dyn...2004Sep10.html
Sep 11, 2004, 7:26 am
#67
Join Date: Jan 2004
Location: Upstate NY
Programs: US CP
Posts: 61
More hope
http://www.reuters.com/financeNewsAr...toryID=6209834
US Air pilots agree to resume talks on givebacks
Sat Sep 11, 2004 08:48 AM ET
By John Crawley
WASHINGTON, Sept 11 (Reuters) - Negotiations on $295 million in concessions between US Airways Group Inc. (UAIR.O: Quote, Profile, Research) and its pilots union appeared back on track on Saturday although time was running dangerously short for the carrier to strike a deal with labor groups to avoid its second bankruptcy filing in two years.
The US Airways unit of the Air Line Pilots Association said it had agreed to jump start talks with management over givebacks on wages, benefits and work rules after the company made a new offer on Friday, but made no guarantee that an agreement was close at hand.
Jack Stephan, a spokesman for the group representing more than 3,000 US Airways pilots, said in a statement the company's last ditch proposal had been reviewed by the union's executive committee, which approved a resumption in talks.
It was likely the two sides would discuss the plan on Saturday. Friday's offer is similar to one the pilots rejected in June, but much different than the offer the group spurned earlier this week.
The No. 7 U.S. airline is facing enormous pressure to reach a deal quickly. Many industry experts agree the carrier's financial pressures are so acute and its options for turning around its fortunes so narrow that a Chapter 11 filing could come within days.
Negotiations between the pilots and the airline have been lengthy and turbulent, and divisions within the pilots' union have been sharp over the scope of a giveback package. The offer rejected by the union's executive committee earlier this week triggered concern on financial markets the airline would fail in its bid to wring $800 million in concessions from labor groups it says it must now have to remain solvent.
In a recorded message to employees on Friday, US Airways chief executive Bruce Lakefield said the most current offer was more balanced than the last plan. It seeks to hold down wage cuts by increasing work hours. Previous proposals have sought pay reductions of at least 16 percent for pilots.
A new concession plan, also proposing similar work rules and productivity gains, was presented on Friday to the flight attendants union, which the group said was under review. The company is seeking roughly $116 million in givebacks from attendants.
"We have also proposed other changes to work rules and benefits that are necessary to be competitive with low-cost carriers," Lakefield told employees about the company's turnaround strategy.
Labor concessions represent more than half of a $1.5 billion cost-savings plan being sought by management.
US Airways has said concessions must be hammered out before the end of the month to avoid Chapter 11. But the airline also faces crucial financial hurdles -- beginning with a decision on whether to make a $110 million pension payment next Wednesday -- that could accelerate the move to seek protection from creditors if labor concessions are not achieved, Wall Street analysts and other industry experts said.
So far, no labor group has agreed to new concessions, but the company has said it hoped an agreement with the pilots, its most powerful union, would spur mechanics, flight attendants and other workers to go along.
The mechanics' union, represented by the International Association of Machinists (IAM), has said it will not consider reopening its contract for new concessions unless the company acts first on its proposal for non-labor cost savings. US Airways is seeking more than $200 million in givebacks from mechanics.
The airline emerged from bankruptcy protection in March 2003 as a leaner airline with a new focus on regional jets. But uneven travel demand, record fuel prices and stiff competition from low-cost rivals, especially Southwest Airlines (LUV.N: Quote, Profile, Research) in Philadelphia, have hindered the company's recovery.
© Reuters 2004. All Rights Reserved.
US Air pilots agree to resume talks on givebacks
Sat Sep 11, 2004 08:48 AM ET
By John Crawley
WASHINGTON, Sept 11 (Reuters) - Negotiations on $295 million in concessions between US Airways Group Inc. (UAIR.O: Quote, Profile, Research) and its pilots union appeared back on track on Saturday although time was running dangerously short for the carrier to strike a deal with labor groups to avoid its second bankruptcy filing in two years.
The US Airways unit of the Air Line Pilots Association said it had agreed to jump start talks with management over givebacks on wages, benefits and work rules after the company made a new offer on Friday, but made no guarantee that an agreement was close at hand.
Jack Stephan, a spokesman for the group representing more than 3,000 US Airways pilots, said in a statement the company's last ditch proposal had been reviewed by the union's executive committee, which approved a resumption in talks.
It was likely the two sides would discuss the plan on Saturday. Friday's offer is similar to one the pilots rejected in June, but much different than the offer the group spurned earlier this week.
The No. 7 U.S. airline is facing enormous pressure to reach a deal quickly. Many industry experts agree the carrier's financial pressures are so acute and its options for turning around its fortunes so narrow that a Chapter 11 filing could come within days.
Negotiations between the pilots and the airline have been lengthy and turbulent, and divisions within the pilots' union have been sharp over the scope of a giveback package. The offer rejected by the union's executive committee earlier this week triggered concern on financial markets the airline would fail in its bid to wring $800 million in concessions from labor groups it says it must now have to remain solvent.
In a recorded message to employees on Friday, US Airways chief executive Bruce Lakefield said the most current offer was more balanced than the last plan. It seeks to hold down wage cuts by increasing work hours. Previous proposals have sought pay reductions of at least 16 percent for pilots.
A new concession plan, also proposing similar work rules and productivity gains, was presented on Friday to the flight attendants union, which the group said was under review. The company is seeking roughly $116 million in givebacks from attendants.
"We have also proposed other changes to work rules and benefits that are necessary to be competitive with low-cost carriers," Lakefield told employees about the company's turnaround strategy.
Labor concessions represent more than half of a $1.5 billion cost-savings plan being sought by management.
US Airways has said concessions must be hammered out before the end of the month to avoid Chapter 11. But the airline also faces crucial financial hurdles -- beginning with a decision on whether to make a $110 million pension payment next Wednesday -- that could accelerate the move to seek protection from creditors if labor concessions are not achieved, Wall Street analysts and other industry experts said.
So far, no labor group has agreed to new concessions, but the company has said it hoped an agreement with the pilots, its most powerful union, would spur mechanics, flight attendants and other workers to go along.
The mechanics' union, represented by the International Association of Machinists (IAM), has said it will not consider reopening its contract for new concessions unless the company acts first on its proposal for non-labor cost savings. US Airways is seeking more than $200 million in givebacks from mechanics.
The airline emerged from bankruptcy protection in March 2003 as a leaner airline with a new focus on regional jets. But uneven travel demand, record fuel prices and stiff competition from low-cost rivals, especially Southwest Airlines (LUV.N: Quote, Profile, Research) in Philadelphia, have hindered the company's recovery.
© Reuters 2004. All Rights Reserved.
Sep 12, 2004, 6:50 am
#68
Join Date: Mar 2004
Location: New York
Programs: former UA1K, Marriott/Hilton Silver
Posts: 157
US Air Pilots Agree to New Talks (not too much new info.)
US Air Pilots Agree to New Talks
Saturday September 11, 7:38 PM EDT
By John Crawley
WASHINGTON (Reuters) - US Airways and its pilots union said on Saturday that they were willing to resume talks over a $295 million package of concessions, as time ran short for the company to strike giveback deals with its labor groups and avert another trip into bankruptcy.
"The ball is in their court," said Jack Stephan, a spokesman for the US Airways unit of the Air Line Pilots Association, about the next move in long, difficult negotiations.
A spokesman for the seventh-largest U.S. airline also said on Saturday it was ready to negotiate, but by late in the evening no meetings had been scheduled.
The union, representing more than 3,000 pilots, agreed to fresh negotiations with management on proposed cuts in wages and benefits and changes in work rules after the company made a revised offer on Friday.
US Airways is also conducting similar talks with its flight attendants and gate workers and, to a lesser degree, its mechanics in a bid to obtain $800 million in concessions from its labor groups. The total represents more than half of a $1.5 billion cost-cutting plan at the heart of US Airways' bid to overhaul its business and operate more like discount rivals.
The proposal on the table now is similar to one the pilots rejected in June, but much different than an offer the group spurned earlier this week.
ENORMOUS PRESSURES
US Airways is facing enormous pressure to reach a deal quickly. Many industry experts agree the carrier's financial pressures are so acute and its options for turning around its fortunes so narrow that its second Chapter 11 filing in two years could come within days. The company has said liquidation is possible.
There have been no negotiations since last weekend when the executive committee of the pilots union rejected the previous proposal by not permitting the union's general membership to vote on it. The move exposed a sharp division within the union over the scope of givebacks, and a public struggle among its leaders for support of the wider membership.
At the same time, the rejection triggered concern on financial markets the airline would likely fall short of its cost-cutting targets, with time running out to reach and ratify agreements.
But in a recorded message to employees on Friday, US Airways chief executive Bruce Lakefield said the most recent offer was more balanced than the last plan. It seeks to hold down wage cuts by increasing work hours. Previous proposals have sought pay reductions of at least 16 percent for pilots.
A new concession plan, also proposing similar work rules and productivity gains, was also presented on Friday to the flight attendants union and is being reviewed. The company is seeking roughly $116 million in givebacks from attendants.
"We have also proposed other changes to work rules and benefits that are necessary to be competitive with low-cost carriers," Lakefield told employees about the company's turnaround strategy.
US Airways has said concessions must be hammered out before the end of the month to avoid Chapter 11. But the airline faces crucial financial hurdles -- beginning with a decision on whether to make a $110 million pension payment next Wednesday -- that could accelerate a decision to seek protection from creditors if labor concessions are not achieved, Wall Street analysts and other industry experts said.
So far, no labor group has agreed to new concessions, but the company has said it hoped an agreement with the pilots, its most powerful union, would spur mechanics, flight attendants and other workers to go along.
The airline emerged from bankruptcy protection in March 2003 as a leaner company with a new focus on regional jets. But uneven travel demand, record fuel prices and stiff competition from low-cost rivals, especially Southwest Airlines (LUV) in Philadelphia, have hindered the company's recovery.
US Airways is based in Arlington, Va., and employs 28,000 people
Saturday September 11, 7:38 PM EDT
By John Crawley
WASHINGTON (Reuters) - US Airways and its pilots union said on Saturday that they were willing to resume talks over a $295 million package of concessions, as time ran short for the company to strike giveback deals with its labor groups and avert another trip into bankruptcy.
"The ball is in their court," said Jack Stephan, a spokesman for the US Airways unit of the Air Line Pilots Association, about the next move in long, difficult negotiations.
A spokesman for the seventh-largest U.S. airline also said on Saturday it was ready to negotiate, but by late in the evening no meetings had been scheduled.
The union, representing more than 3,000 pilots, agreed to fresh negotiations with management on proposed cuts in wages and benefits and changes in work rules after the company made a revised offer on Friday.
US Airways is also conducting similar talks with its flight attendants and gate workers and, to a lesser degree, its mechanics in a bid to obtain $800 million in concessions from its labor groups. The total represents more than half of a $1.5 billion cost-cutting plan at the heart of US Airways' bid to overhaul its business and operate more like discount rivals.
The proposal on the table now is similar to one the pilots rejected in June, but much different than an offer the group spurned earlier this week.
ENORMOUS PRESSURES
US Airways is facing enormous pressure to reach a deal quickly. Many industry experts agree the carrier's financial pressures are so acute and its options for turning around its fortunes so narrow that its second Chapter 11 filing in two years could come within days. The company has said liquidation is possible.
There have been no negotiations since last weekend when the executive committee of the pilots union rejected the previous proposal by not permitting the union's general membership to vote on it. The move exposed a sharp division within the union over the scope of givebacks, and a public struggle among its leaders for support of the wider membership.
At the same time, the rejection triggered concern on financial markets the airline would likely fall short of its cost-cutting targets, with time running out to reach and ratify agreements.
But in a recorded message to employees on Friday, US Airways chief executive Bruce Lakefield said the most recent offer was more balanced than the last plan. It seeks to hold down wage cuts by increasing work hours. Previous proposals have sought pay reductions of at least 16 percent for pilots.
A new concession plan, also proposing similar work rules and productivity gains, was also presented on Friday to the flight attendants union and is being reviewed. The company is seeking roughly $116 million in givebacks from attendants.
"We have also proposed other changes to work rules and benefits that are necessary to be competitive with low-cost carriers," Lakefield told employees about the company's turnaround strategy.
US Airways has said concessions must be hammered out before the end of the month to avoid Chapter 11. But the airline faces crucial financial hurdles -- beginning with a decision on whether to make a $110 million pension payment next Wednesday -- that could accelerate a decision to seek protection from creditors if labor concessions are not achieved, Wall Street analysts and other industry experts said.
So far, no labor group has agreed to new concessions, but the company has said it hoped an agreement with the pilots, its most powerful union, would spur mechanics, flight attendants and other workers to go along.
The airline emerged from bankruptcy protection in March 2003 as a leaner company with a new focus on regional jets. But uneven travel demand, record fuel prices and stiff competition from low-cost rivals, especially Southwest Airlines (LUV) in Philadelphia, have hindered the company's recovery.
US Airways is based in Arlington, Va., and employs 28,000 people
Last edited by capetime5; Sep 12, 2004 at 6:55 am
Sep 12, 2004, 7:47 am
#69
Join Date: Nov 2003
Location: Ontario, Canada
Posts: 470
US has something like $925 million in cash.
The terms of its federal loan is that it's supposed to have $700 million on hand (or that it's cash reserves are not supposed to fall below $700 million - which begs the question why take out a loan if your supposed to keep the money in a bank account instead of spend it).
So US is operating at $225 million above it's "crisis-level". They have this widely-feared $110 million pension payout coming up. So the crux of the entire matter is that they soon will have about $100 million to either maintain, or add to, or burn up. I'm thinking they're losing money during the soft travel months of Sept and Oct (and much of Nov?). If they're losing $1 million, or 2, or 3 a day, then you can figure out how long they'll be flying before they ground themselves.
Anyone know US's burn rate currently?
The terms of its federal loan is that it's supposed to have $700 million on hand (or that it's cash reserves are not supposed to fall below $700 million - which begs the question why take out a loan if your supposed to keep the money in a bank account instead of spend it).
So US is operating at $225 million above it's "crisis-level". They have this widely-feared $110 million pension payout coming up. So the crux of the entire matter is that they soon will have about $100 million to either maintain, or add to, or burn up. I'm thinking they're losing money during the soft travel months of Sept and Oct (and much of Nov?). If they're losing $1 million, or 2, or 3 a day, then you can figure out how long they'll be flying before they ground themselves.
Anyone know US's burn rate currently?
Sep 12, 2004, 8:24 am
#70
Join Date: May 2004
Location: Seattle
Programs: Marriott Ambassador LT Titanium, Hyatt Globalist, United LT Silver
Posts: 1,085
From Pittsburgh Post-Gazette
http://www.post-gazette.com/pg/04256/377830.stm
Holding pattern for US Airways
Impasse continues for airline, pilots
Sunday, September 12, 2004
By Dan Fitzpatrick, Pittsburgh Post-Gazette
With a US Airways bankruptcy expected as early as today, a last-ditch effort to reach a $295 million cost-cutting deal with the pilots stalled again yesterday, with neither side meeting or trading new offers.
Both the airline and the union argued the lack of progress was not their fault -- a signal that any chance for a consensual agreement outside bankruptcy may be near an end.
The company had made an offer Friday that contained a 16.5 percent pay cut, new work rules designed to make pilots more productive and replacement of the pilots' current retirement plan with a 401(k) plan. Unlike prior proposals, though, US Airways offered no protections to the pilots in the event of a bankruptcy.
Union leaders, meeting at a hotel near Pittsburgh International Airport, rejected the company's offer and instead ordered their negotiators to go back to the table with a proposal the pilots made in late August. Some union leaders still believe that offer, which featured a 16.25 percent wage cut and a 10 percent reduction in the company's contributions to the pilots retirement plan, will save the company $305 million a year.
US Airways spokesman David Castelveter, reached last night, suggested that the pilots were no longer willing to be "serious" about the 3-month-old concessionary talks, saying "we have been ready to meet whenever and wherever [the union] wants to meet. But when we do, we expect serious negotiations because time is running short."
Pilots spokesman Jack Stephan, on the other hand, said union negotiators were still waiting to hear back from the company.
They informed US Airways on Friday night of their readiness to resume negotiations less than a week after the union's four Pennsylvania representatives decided not to let rank-and-file pilots vote on a prior company proposal. The company is seeking $295 million from pilots and a total of $800 million from all labor groups.
Without the $800 million, the company has warned it may file for bankruptcy.
But in asking for a resumption of talks Friday, union leaders issued a resolution that blamed US Airways for negotiating delays and accused it of "horrific tactics," referring in particular to a request that would eliminate post-retiree medical benefits. Such a request, they wrote, is an attack on "the old and the infirmed."
Since that strongly-worded resolution went out Friday night, negotiators from both sides have not met and appeared in no hurry to do so last night, even with a US Airways bankruptcy expected as early as today, ahead of several financial hurdles that could cripple the airline this month.
The news is no better with US Airways' other unions.
The machinists still refuse to reopen their contract, and the flight attendants union dismissed the company's latest $116 million concessionary offer in a message to its members yesterday. Union officers encouraged rank-and-file flight attendants to "express your disgust" to airline Chief Executive Officer Bruce Lakefield and "make sure you ask Mr. Lakefield what management's salary and benefit reductions will encompass."
http://www.post-gazette.com/pg/04256/377830.stm
Holding pattern for US Airways
Impasse continues for airline, pilots
Sunday, September 12, 2004
By Dan Fitzpatrick, Pittsburgh Post-Gazette
With a US Airways bankruptcy expected as early as today, a last-ditch effort to reach a $295 million cost-cutting deal with the pilots stalled again yesterday, with neither side meeting or trading new offers.
Both the airline and the union argued the lack of progress was not their fault -- a signal that any chance for a consensual agreement outside bankruptcy may be near an end.
The company had made an offer Friday that contained a 16.5 percent pay cut, new work rules designed to make pilots more productive and replacement of the pilots' current retirement plan with a 401(k) plan. Unlike prior proposals, though, US Airways offered no protections to the pilots in the event of a bankruptcy.
Union leaders, meeting at a hotel near Pittsburgh International Airport, rejected the company's offer and instead ordered their negotiators to go back to the table with a proposal the pilots made in late August. Some union leaders still believe that offer, which featured a 16.25 percent wage cut and a 10 percent reduction in the company's contributions to the pilots retirement plan, will save the company $305 million a year.
US Airways spokesman David Castelveter, reached last night, suggested that the pilots were no longer willing to be "serious" about the 3-month-old concessionary talks, saying "we have been ready to meet whenever and wherever [the union] wants to meet. But when we do, we expect serious negotiations because time is running short."
Pilots spokesman Jack Stephan, on the other hand, said union negotiators were still waiting to hear back from the company.
They informed US Airways on Friday night of their readiness to resume negotiations less than a week after the union's four Pennsylvania representatives decided not to let rank-and-file pilots vote on a prior company proposal. The company is seeking $295 million from pilots and a total of $800 million from all labor groups.
Without the $800 million, the company has warned it may file for bankruptcy.
But in asking for a resumption of talks Friday, union leaders issued a resolution that blamed US Airways for negotiating delays and accused it of "horrific tactics," referring in particular to a request that would eliminate post-retiree medical benefits. Such a request, they wrote, is an attack on "the old and the infirmed."
Since that strongly-worded resolution went out Friday night, negotiators from both sides have not met and appeared in no hurry to do so last night, even with a US Airways bankruptcy expected as early as today, ahead of several financial hurdles that could cripple the airline this month.
The news is no better with US Airways' other unions.
The machinists still refuse to reopen their contract, and the flight attendants union dismissed the company's latest $116 million concessionary offer in a message to its members yesterday. Union officers encouraged rank-and-file flight attendants to "express your disgust" to airline Chief Executive Officer Bruce Lakefield and "make sure you ask Mr. Lakefield what management's salary and benefit reductions will encompass."
Sep 12, 2004, 8:33 am
#71
Join Date: Feb 2004
Location: BOS
Programs: US 3
Posts: 320
today's Boston Globe
http://www.boston.com/business/artic...roubled_skies/
http://www.boston.com/business/perso...tite_for_risk/
The thought of AirTran becoming the primary carrier at Logan is scary.
http://www.boston.com/business/artic...roubled_skies/
http://www.boston.com/business/perso...tite_for_risk/
The thought of AirTran becoming the primary carrier at Logan is scary.
Sep 12, 2004, 9:11 am
#72
Original Member
Join Date: May 1998
Location: BHM
Posts: 315
Airline expected to file today
http://www.charlotte.com/mld/charlotte/business/
Bankruptcy decision in hands of board; talks with unions collapse
US Airways is expected to file for bankruptcy protection today after a last-ditch effort to reach new cost-saving labor agreements collapsed on Saturday, according to sources familiar with the airline's plans.
STAN CHOE AND TED REED / Staff Writers
Bankruptcy decision in hands of board; talks with unions collapse
US Airways is expected to file for bankruptcy protection today after a last-ditch effort to reach new cost-saving labor agreements collapsed on Saturday, according to sources familiar with the airline's plans.
STAN CHOE AND TED REED / Staff Writers
Sep 12, 2004, 10:17 am
#73
Join Date: Sep 2001
Location: Hyderabad
Posts: 4,843
Originally Posted by CALeeIII
http://www.charlotte.com/mld/charlotte/business/
Bankruptcy decision in hands of board; talks with unions collapse
US Airways is expected to file for bankruptcy protection today after a last-ditch effort to reach new cost-saving labor agreements collapsed on Saturday, according to sources familiar with the airline's plans.
STAN CHOE AND TED REED / Staff Writers
Bankruptcy decision in hands of board; talks with unions collapse
US Airways is expected to file for bankruptcy protection today after a last-ditch effort to reach new cost-saving labor agreements collapsed on Saturday, according to sources familiar with the airline's plans.
STAN CHOE AND TED REED / Staff Writers
Sep 12, 2004, 10:38 am
#74
Join Date: Mar 2002
Location: Boston, MA, USA
Posts: 92
Originally Posted by macska
today's Boston Globe
http://www.boston.com/business/artic...roubled_skies/
http://www.boston.com/business/perso...tite_for_risk/
The thought of AirTran becoming the primary carrier at Logan is scary.
http://www.boston.com/business/artic...roubled_skies/
http://www.boston.com/business/perso...tite_for_risk/
The thought of AirTran becoming the primary carrier at Logan is scary.
Delta is also building a new terminal A which will (maybe) house Skyteam flights as well (AF and maybe an Italian airline - maybe the one called Alitalia, who knows they will be around in two years).
As for US Airways who knows what the future holds. If they are around in two years they will have some service to New England. The business travel environment is changing rapidly. I just read an article somewhere that Independence is starting to increase fares since they were running out of seat for walk up business travel.
Sep 12, 2004, 1:06 pm
#75
Join Date: Jul 2004
Location: Honolulu, Hawaii
Programs: US1
Posts: 1,928
Originally Posted by ryanBOS
I think if US Airways reduces its number of flights at Logan there are other possibilities (rather than Airtran). American has built up recently and Delta has an historic attachment to Boston having served New England as Northeast Airlines and Delta over the decades.
Delta is also building a new terminal A which will (maybe) house Skyteam flights as well (AF and maybe an Italian airline - maybe the one called Alitalia, who knows they will be around in two years).
As for US Airways who knows what the future holds. If they are around in two years they will have some service to New England. The business travel environment is changing rapidly. I just read an article somewhere that Independence is starting to increase fares since they were running out of seat for walk up business travel.
Delta is also building a new terminal A which will (maybe) house Skyteam flights as well (AF and maybe an Italian airline - maybe the one called Alitalia, who knows they will be around in two years).
As for US Airways who knows what the future holds. If they are around in two years they will have some service to New England. The business travel environment is changing rapidly. I just read an article somewhere that Independence is starting to increase fares since they were running out of seat for walk up business travel.
US Airways is suppose to be increasing the number of flights from BOS, LGA and DCA. If they were to reduce the number of flights out of Logan....that would go against their plan of point to point networking. BOS is suppose to be a major player in this. US will be holding on to its gates at Logan.