Re: US Airways Presses Its Plea for Pay Cuts

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There are no 737 pilot bases at LGA or BOS, only A320's


>From: Tyler Munoz <tmunoz@xxxxxxxxxxxx>
>Reply-To: The Airline List <AIRLINE@xxxxxxxxxxxxxxxxx>,              Tyler
>Munoz <tmunoz@xxxxxxxxxxxx>
>To: AIRLINE@xxxxxxxxxxxxxxxxx
>Subject: Re: NYTimes.com Article: US Airways Presses Its Plea for Pay Cuts
>Date: Thu, 25 Mar 2004 14:56:04 -0500
>
>Understood, however, why only swap the DCA flights and not the LGA
>flights?
>
>-----Original Message-----
>From: Michael T. Davis [mailto:Michael_T._Davis@xxxxxxxxxxxxx]
>Sent: Thursday, March 25, 2004 2:53 PM
>To: The Airline List; Tyler Munoz
>Subject: Re: NYTimes.com Article: US Airways Presses Its Plea for Pay
>Cuts
>
>
>
>Airbus A320's are much more useful on Caribbean and Transcon.  Also,
>competition
>(Delta) has switched from 73 NG's to classics.
>
>Michael
>
>
>
>
>
>
>Tyler Munoz <tmunoz@xxxxxxxxxxxx> on 03/25/2004 12:21:03 PM
>
>Please respond to The Airline List <AIRLINE@xxxxxxxxxxxxxxxxx>; Please
>respond
>       to Tyler Munoz <tmunoz@xxxxxxxxxxxx>
>
>To:   AIRLINE@xxxxxxxxxxxxxxxxx
>cc:    (bcc: Michael T. Davis/ALS/USAIR)
>Subject:  Re: NYTimes.com Article: US Airways Presses Its Plea for Pay
>Cuts
>
>
>
>Speaking of US, I found out Tuesday that all of the BOS-DCA-BOS shuttle
>flights are now operated by a B733. The LGA flights will remain an A319.
>Does anyone know why the switch happened? I spoke with the FAs onboard
>and they didn't know.
>
>-----Original Message-----
>From: The Airline List [mailto:AIRLINE@xxxxxxxxxxxxxxxxx] On Behalf Of
>Bill Hough
>Sent: Thursday, March 25, 2004 12:08 PM
>To: AIRLINE@xxxxxxxxxxxxxxxxx
>Subject: NYTimes.com Article: US Airways Presses Its Plea for Pay Cuts
>
>The article below from NYTimes.com
>has been sent to you by psa188@xxxxxxxxx
>
>
>
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>
>US Airways Presses Its Plea for Pay Cuts
>
>March 25, 2004
>  By MICHELINE MAYNARD
>
>
>
>
>
>US Airways faces a threat to its survival from Southwest
>Airlines, soon to invade its Philadelphia hub, and needs to
>clinch a third round of labor contract concessions quickly,
>the airline's chief executive said yesterday.
>
>Speaking to employees on a Web telecast that resembled an
>infomercial at times and a sermon at others, the chief
>executive, David N. Siegel, said formal contract talks
>would begin next month.
>
>Only the pilots' union has agreed to open negotiations.
>Yesterday, the machinists' union reiterated its stand
>against more cuts in wages and benefits. The flight
>attendants' union, which opposes further concessions,
>declined to comment.
>
>The airline held the unusual broadcast, accessible online,
>in an effort to convince employees of its dire situation
>and the need to fix it. "I don't want to start burning the
>furniture, but we may have to burn the furniture to keep
>warm," Mr. Siegel said. "We don't have a lot of time and we
>don't have a lot of choices."
>
>Mr. Siegel, dressed in a dark suit and yellow tie, stood
>alone before an audience of 75 airline employees, many in
>their uniforms, while graphics and talking points flashed
>on flat-screen monitors behind him.
>
>A federal loan board agreed this month to revise conditions
>of $900 million in guaranteed loans, which the airline
>obtained when it emerged from bankruptcy protection a year
>ago. Without the revisions, the airline would have been in
>default.
>
>Mr. Siegel said the move gave the airline a reprieve but
>stressed US Airways still had to address its costs. Mr.
>Siegel reiterated the company's goal, made in recent
>presentations to union leaders, to cut its overall costs to
>6 cents a seat mile, the average for the industry's
>low-fare carriers including Southwest and JetBlue Airways,
>from a little over 10 cents.
>
>He did not offer specifics on how the company planned to
>achieve that, but reiterated that half the savings, or 2
>cents a seat mile, needed to come from labor unions. Mr.
>Siegel said he was willing to give up some of his own
>compensation, and he appealed directly to employees to
>consider the airline's future, regardless of union
>officials' resistance to contract cuts.
>
>"I don't think they should make that decision for us," Mr.
>Siegel said. He said he respected union officials' views,
>but added, "Our individual employees need to decide whether
>or not to participate."
>
>Even as he stressed the need to cut costs, Mr. Siegel
>depicted Southwest as US Airways' biggest menace.
>
>On May 9, Southwest, the biggest low-fare carrier, plans to
>begin flights to six cities from Philadelphia, where US
>Airways is the dominant airline, with 68 percent of daily
>flights. Southwest is offering fares as low as $29 each
>way, with none higher than $299 each way.
>
>By contrast, US Airways in the past has charged last-minute
>fares of $1,000 or more to cities where it offers the only
>direct flights. It plans to match Southwest's fares to
>cities where the two directly compete and has added more
>flights on the routes that Southwest will fly.
>
>The two airlines have faced off twice before, in California
>and at Baltimore-Washington International Airport, where
>Southwest has displaced US Airways as the lead carrier in
>the last decade. Mr. Siegel warned of dire consequences if
>that happens in Philadelphia.
>
>"They beat us on the West Coast, they beat us in Baltimore,
>and if they beat us in Philadelphia, they're going to kill
>us," he said. "It's going to be a battle for our lives."
>
>Stressing his point, a screen showed Southwest Airlines'
>founder, Herbert D. Kelleher Jr., dressed as Uncle Sam,
>pointing his finger, next to the words, "I want your job!"
>
>"Let's not let Southwest take away our customers," Mr.
>Siegel said, as he ended the broadcast. "Let's not let
>Southwest take away our jobs. Let's not let Southwest take
>away our future. Let's not let Southwest take away our
>airline. Think about that."
>
>A Southwest spokesman, Ed Stewart, said he was surprised to
>hear Mr. Siegel dwell on Southwest. "To be sure, it's a
>very competitive industry, but we're just coming there to
>do what we do in all the cities where we fly, which is to
>bring fares down."
>
>He noted that AirTran, another low-fare airline already
>serves Philadelphia, and Frontier Airlines will begin
>service this spring.
>
>http://www.nytimes.com/2004/03/25/business/25air.html?ex=3D1081234464&ei
>=3D=
>1
>&en=3D2ba26866c7334e67
>
>
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