USAir (3 threads combined)

[bUU]

Technically, if they're under contract, they can be prevented from striking.

[hdawson]

Bicker. Is that Taft-Hartly Act?

[bUU]

No, rather it is the Railway Labor Act, which remarkably, actually does apply to airlines, as well as railroads.

[phlydude]

[quote name='bicker']No, rather it is the Railway Labor Act, which remarkably, actually does apply to airlines, as well as railroads.[/QUOTE]
Remarkable!

All kidding aside, is this what Reagan used to get the air traffic controllers to get back to work in the '80s (I was just a young pup then and don't remember it all too well)

[Christina1003]

I knew I should have paid more attention in high school about these things...

I guess the best thing to do is hold our breath. I'm just worried about our luggage getting there. Insurance or no insurance, buying new items sucks.

[stillfrantic]

We got to FL and back with no real problems. We were delayed on both ends of the trip, but we got to our destinations, and we got there with all our lugage, so I won't complain.

But, those planes were PACKED! How are they so unprofitable when they are selling every seat??

[bUU]

Hehe... because they're not charging enough! Supposedly, this latest US Airways airfare sale resulted in some their busiest booking days ever. I cannot help but fear that they're just trying to artificially enhance their liquidation profile for the secured creditors (ticket-holders are [b]un[/b]secured creditors).

[hdawson]

Did you see the loss for Q4 for Delta? 2.2 billion and for the year, 5.2 Billion.
Now folks, that's real money. On top of the 20+ billion of debt. And they're cutting fares? Yep if you can't make money with today's fares, just cut your prices. ROFL

[Globaliser]

Scary, scary numbers.

What I don't understand is how DL managed to let its financial position deteriorate so far, so fast. Eye, ball, off - big time?

[bUU]

I don't think so. Basically, the economy has sucked, the legacy cost structures are onerous, and the market is abusive.

[stillfrantic]

They must have had the sale while I was away. I never saw any special fares. Maybe they were just from the larger airports that aren't anywhere near me!

[bUU]

The sale is actually this week:[QUOTE]

11:27 AM EST Thursday
[b]US Airways' sale prompts record ticketing[/b]

[font=Times New Roman,Times,Serif][size=3][color=#000000]US Airways Group Inc. says its two-day sale fare this week prompted so many purchases that it is reintroducing the discounts for Thursday and Friday purchases only.

The Virginia-based carrier's Web site had its third- and second-highest amount of purchases ever Monday and Tuesday, after the discounted fares were announced.[/color][/size][/font][/QUOTE] Full story: [url="http://triad.bizjournals.com/triad/stories/2005/01/17/daily34.html"]http://triad.bizjournals.com/triad/stories/2005/01/17/daily34.html[/url]

[parody]

[b][size=5]US Airways machinists OK concessions[/size][/b] [b][color=#666666]Labor union approves the deal even though the airline could cut 2,000 jobs from the group.
[/color][/b][size=1][color=#666666]January 21, 2005: 6:29 PM EST
[/color][/size][size=1][color=#666666][/color][/size][b]WASHINGTON (Reuters) - Machinists at US Airways approved new contracts Friday, completing the bankrupt carrier's efforts at securing nearly $1 billion in voluntary concessions from all its labor groups. [/b]

The International Association of Machinists, which represents nearly 9,000 mechanics, baggage handlers and other ground workers at [url="http://money.cnn.com/quote/quote.html?shownav=true&symb=UAIRQ"][color=#0000ff]US Airways[/color][/url] ([url="http://cnnfn.multexinvestor.com/Reports.aspx?ticker=UAIRQ"][color=#0000ff]Research[/color][/url]), approved the package even though the company could cut 2,000 jobs from that group because of its plans to outsource more work.

Proposed strike authorization from the machinists became moot once the giveback deal was approved.

[url="http://money.cnn.com/2005/01/21/news/fortune500/us_air.reut/"]http://money.cnn.com/2005/01/21/news/fortune500/us_air.reut/[/url]

[bUU]

There you go... US Airways is practically set through June.

[Globaliser]

And so the agony continues ... sobering to think that all this just gives US a "fighting chance".

[bUU]

It may do that, but at what cost to the industry?

[hdawson]

It's time for one or two majors to shut down and end the price wars.

[bUU]

Well it seems clear that that's not going to happen. Could this perhaps prompt another merger? United + US Airways? Delta + Continental? Northwest + Continental (which makes the most sense, to me, but is the least likely since neither of the two are really badly hurting right now.)

[Host Mike]

Dear MIKE XXXXXX
Dividend Miles #:XXXXXXXXX

There have been some significant accomplishments and a great deal of positive news about US Airways recently. As a valued customer, I want to take a moment to update you on our progress towards transforming our airline. Additionally, I want to thank you for continuing to support us over the past few months.
US Airways has met every milestone in its efforts to restructure. With our last remaining labor agreements completed on Friday, we now have finalized the negotiation and ratification process with all of our workgroups. Additionally, our recent agreement with the Air Transportation Stabilization Board (ATSB) allows us to continue to use our cash.

What this means for customers like you is that US Airways has adequate resources and labor support to transform the airline in the many ways we have been talking about over the past year. We plan to emerge from Chapter 11 by the end of June.

One of the positive ways we are changing is the introduction of a number of new business and leisure routes. We are expanding operations at Charlotte, adding new routes from Reagan Washington National Airport, changing our scheduling practices at Philadelphia to improve reliability, adding new destinations in the Caribbean and Latin America and introducing service to Barcelona and Venice in May. Also, we continue to invest and add features on usairways.com to make finding low fares even easier.

The support and sacrifices of our employees reflects their desire to make US Airways a successful and competitive airline that offers you value, great service, and better travel options. Ultimately, all our efforts to transform are about better serving your travel needs.

The employees of US Airways have been through their share of challenges as the airline industry continues to change. But, we believe the most difficult days are behind us.

As a thank you for continuing to support us, we are pleased to offer you a special bonus for tickets purchased between now and Jan. 30, 2005. You will receive 40,000 bonus miles for flying Envoy Class, 10,000 bonus miles for flying to the Caribbean or Latin America and double miles on all other travel between now and Dec. 31, 2005. To register and for further details, click here.

We are focused on the clear skies ahead, and look forward to seeing you onboard a US Airways flight very soon.

Thank you for your support.

Sincerely,

Bruce Lakefield
President and CEO

[phlydude]

You must be a higher level member - I didn't get that e-mail!!

[pcumberl]

Just got that email and registered. Not sure if the flight I've already booked will apply although the date ranges would be inclusive of the deal.

~Paul

[TravelingDi]

I flew US Air last Friday and again this morning Pittsburgh to Orlando to catch the 7 Day Disney Magic. Both flights were about an hour behind due to weather but otherwise uneventful. Luggage arrived and the staff and crew were attentive and friendly.

I had non-refundable back up flights on Air Tran which I canceled one hour before - both ways. The customer service at Air Tran was excellent and both cancel fees were waived without even asking. I have a full credit toward future flights and I am sure that I will use them without a problem.

So after all the pre-trip stressing things went very well. I hope that others have as good an experience that I had!

I also got that email.

[phlydude]

actually just received the email - I'm not a higher level member

[turtlemichael]

[quote name='hdawson']It's time for one or two majors to shut down and end the price wars.[/QUOTE]

Am I missing something here? I'm sure if I am someone will put me straight!

The general assumption is that there are too many "legacy" carriers flying in the US (and worldwide from the US) with inflexible, uncompetitive and antiquated cost structures. There are just too many of them for them all to make a profit. So, one, two, three or maybe even more will go to the wall at some point. When that occurs, supply economics says that prices will go up and those who remain will eventually make a profit.

But why say its time for for one or two of them to shut down? While they struggle on they employ people and flights are cheaper than they would otherwise be. Many people who work for them will not get another job and will suffer considerable hardship when the evil day comes. And the flying public will eventually have to pay more. Aren't considerable numbers of employees and the public better off while they continue to fly?

[bUU]

[quote name='turtlemichael']Am I missing something here? ... So, one, two, three or maybe even more will go to the wall at some point. When that occurs, supply economics says that prices will go up and those who remain will eventually make a profit.[/QUOTE]Here's where I think you're going off-track. Prices have nothing to do with costs. Prices depend on supply to a great extent, and demand to an even greater extent. What we've seen with US Airways is the government's willingness to "save" legacy airlines that "go to the wall" rather than letting them fail, as would be the natural result in a free market.

[QUOTE]But why say its time for for one or two of them to shut down?[/QUOTE]Much of what you're reading is frustration with the lack of fiscal responsibility being exhibited. If you accept the premise, as you said, "inflexible, uncompetitive and antiquated cost structures ... too many of them for them all to make a profit," then what this past few months has accomplished is (1) the burdening of the American taxpayers with significant amount of risk of loss, and (2) government interference in the sector resulting in new and future losses at other weak legacy carriers, that could have otherwise been bypassed by the natural course of events that would have taken place without the government interference.

So, in a nutshell, the outrage, to the extent there is outrage, is a matter of concern about wasted tax revenues and [i]unnecessary[/i] government interference in business ("unnecessary" because of what you alluded to, i.e., that natural forces should be allowed to determine whether private enterprises succeed or fail.)

[QUOTE]Many people who work for them will not get another job and will suffer considerable hardship when the evil day comes.[/QUOTE]Cynical as it may be, many of the people who work for US Airways are about to get royally shafted. About 4000 of them just voted themselves out of a job anyway, but they may be the lucky ones, since they're getting severance and medical coverage. Those that remain, however, face substantially lower salaries, which could result, in many states, in receiving significantly less unemployment insurance compensation "when the evil day comes."

However, more important than that, again, is the reticence on the part of many old-school Republicans, to allow government to have such a hand in manipulating markets.