USAirways Selling 10 E190's Final Stages

[meyers9163]

Via company email...One would only assume RAH... Wonder how many more mainline pilots will be pissed at the RAH guys since this will mean more furloughs at USAirways...


An Important Message from President Scott Kirby
Oct. 2, 2009


Dear Fellow Employees:



At our last State of the Airline employee meeting (July 2009), Doug shared with all of you that we would be exploring the possibility of selling our 25 Embraer190 aircraft. I am writing today to let you know that we are close to finalizing an agreement to sell ten of these aircraft to another carrier.



While this is the right move for our company, it will impact some of our co-workers and that is a decision none of us makes easily. Even though the airline industry is beginning to see improvement in the business environment, our industry is a long way from returning to sustainable profitability. The revenue environment remains challenging and the E-190 capacity presents the only flexibility we have to further reduce capacity to right size supply with demand.



Because we wanted to keep all employees informed about the status of the E-190 fleet, we wanted to let you know where this stands today. Removing ten E-190s from our fleet will reduce flying and have an impact on staffing levels in a number of employee groups and locations. We are still working on the revised schedule and will announce changes as soon as we know them. We realize that people need to know what is happening and how it may impact their lives, and we are committed to getting you that information as soon as we have firm answers to all of the questions you might have.



These are challenging times, but these are the necessary and right steps to take for our airline. We feel very good about the airline we are running (first in on-time among the network carriers year to date) and I thank all of you for delivering every day on our goals. As we continue to run a great airline, and in spite of the uncertainty of the economic challenges, the best thing for all of us to do is remain focused on doing our best to take care of our customers and continue running one of the industry’s on-time performing airlines.







Scott

 

[Baronman]

USAir isn't planning on having another airline operate those aircraft for them are they?

Will their scope allow it? I know Mesa flies giagantic CRJs for them...

 

[surreal1221]

OOOuch.

The hits keep coming huh?

 

[BobDDuck]

The glass half full guys are reading this as they are going to sell Republic 190s in exchange for some F9 Arbii. The glass half empty guys are reading it as, the 190s (all 25 of them sooner or later) are gone and it's going to put 250 more pilots on the street.

Scope won't allow the 190s to be flown by Republic at Airways... unless USAPA caves again.

The irony here is that this has happened before. Airways sold the 170s at MidAltantic (really part of Airways) to Republic, right out from underneath the pilots. And once again, the jungle jets are getting sold to Republic and the pilots will end up on the street... again.

There is another rumor floating around that Jetblue has been talking about picking up between 8 and 10 more 190s for their operations. Whether this first ten (or the remaining 15) might be in their sights is unknown. Personally, I'd feel better with B6 flying around former Airways metal than seeing Republic guys in it. It's bad enough to see the 170s with the NXXXMD tailnumbers.

 

[deadstick]

It's bad enough to see the 170s with the NXXXMD tailnumbers.

...and in Midex colors.

RIP YX.

I am still waiting to see how the whole LGA slot/gate swap will play out.

 

[BobDDuck]

...and in Midex colors.

Honestly, it's better than seeing them in US colors.

 

[EDUC8-or]

Honestly, it's better than seeing them in US colors.

Welcome to US Airways operated by Republic Airlines, mainline airplanes operated at regional rates.

 

[Polar742]

Welcome to US Airways operated by Republic Airlines, mainline airplanes operated at regional rates.

If it makes you feel better, when US was looking for money, BB said, "If I had SkyWest's bankroll, I'da just bought them".

Instead, he bought MDA.

 

[SpiraMirabilis]

Semi-unrelated but does anyone know if BB is keeping the F9 management? His team doesn't really have much experience in running an airline that like sells tickets.

 

[Polar742]

Semi-unrelated but does anyone know if BB is keeping the F9 management? His team doesn't really have much experience in running an airline that like sells tickets.

According to the PR, the CEO at F9 stays. So, I'd imagine that will give him some control as to who stays and goes.

 

[Airdale]

The "word" is, US Airways in bad shape. Must trim from the bottom. 190's to be sold to RAH, but operated under the Frontier/Midwest brand (this operation is expected to grow tremendously). No Airbus will be parked (at least thats the word from the horses mouth). The Airbus are very profitable - and paid for. No sense in selling them. The 190 operation will be to fit on routes where the Airbus doesn't pull maximum revenue. Frontier is going to be an Airbus/E190 fleet.

These 190's would not be flown for Airways.

Whether RAH buys the 190's or Jetblue does, Airways pilots will be furloughed. Accept that fact.

 

[BobDDuck]

The 190s aren't part of the minimum fleet numbers. Airways has already cut as much capacity as they can so the 190s are the only thing left at Mainline they can cut.

 

[Airdale]

The 190s aren't part of the minimum fleet numbers. Airways has already cut as much capacity as they can so the 190s are the only thing left at Mainline they can cut.

Exactly. I don't think people should look more into this than what it really is. This isn't a Mid Atlantic type deal. Airways wants the 190's gone, Republc is offering to buy them. Nothing more then that from what we gather. There is no agreement to fly them for Airways, just an outright purchase. No different than sending them back to Embraer. Either way its evidence that Airways is struggling.

What I don't get it, is Airways flights are PACKED. If Parker can't run a profitable airline by filling up airplanes, he's an idiot - and has no place as CEO of that company. Accept the fact that you suck, and step down. Airways is having NO trouble selling seats. So if they aren't making money selling seats, then their management is failing their employees tremendously.

 

[JaceTheAce]

Maybe they'll get rid of those crappy rates along with them!

 

[scramjet]

Exactly. I don't think people should look more into this than what it really is. This isn't a Mid Atlantic type deal. Airways wants the 190's gone, Republc is offering to buy them. Nothing more then that from what we gather. There is no agreement to fly them for Airways, just an outright purchase. No different than sending them back to Embraer. Either way its evidence that Airways is struggling.

What I don't get it, is Airways flights are PACKED. If Parker can't run a profitable airline by filling up airplanes, he's an idiot - and has no place as CEO of that company. Accept the fact that you suck, and step down. Airways is having NO trouble selling seats. So if they aren't making money selling seats, then their management is failing their employees tremendously.

I'm no business expert, but it seems to me that it's a matter of a legacy airline trying to be a low cost airline; the production cost and complexity of their product doesn't match what they're trying to sell it for.

 

[EDUC8-or]

If it makes you feel better, when US was looking for money, BB said, "If I had SkyWest's bankroll, I'da just bought them".

Instead, he bought MDA.

Doesn't really make me feel any better. Here's my view on things, when someone applied to Chaushuttlepublic years back they might not have known about these airplanes coming in the future. My biggest problem lies with the whole attitude that they are becoming a "Mainline" type carrier, the PA announcements are just one example. You start to feel like you're not an Express carrier because you've got the metal to prove it. It's the "Mainlineization" of a regional. Does that begin at the top down or bottom up?

These pilots are now tasked with huge responsibility with negotiations in the future or they will continue to lower the bar for the rest of the industry. I'd like to think they will do the right thing, we'll see what happens.

 

[higney85]

All name calling and blaming aside I feel bad for those on the US air list. These guys/gals have been on a rough ride for years. I think we will now see even more pilots having to make regionals their "career", which isn't a bad thing, but for the rates and overall compensation vs. the "next level" it's not a pretty thing to have to witness. Until every pilot steps up for true wages and contracts this cycle will continue in the downhill direction.

 

[meyers9163]

I dont know if I agree with a few points.... So I guess I'll hit some up real fast... The fact that USAirways is in any worse shape then anyone else... Right now they have raised their cash and thus are in a position to make it through another year of losses. As many others have as well.

Secondly, USAirways does not want to get RID of the E190's. However they enjoy the plane and think it works well in many markets. However they are trying to trim off as much as they can and still be within contractual provisions set forth with the minimum fleet count and thus the E190's the only place to cut. If they could keep them they would. As their desire is to save money and this is the only place they can.

Thirdly, nothing is a done deal. USAirways is still taking delievies of Airbus A321s, and A330s through the years. THey are also getting new routes such as the Rio, CLT to Hawaii and others... They are being run as thin as any other airline. SO I dont think its appropriate to say, its a done deal they are going to furlough and they need to accept that. Its a POSSIBILITY, but nothing is a done deal.

Fourth point would be, wasnt there a reason RAH was cut by F9 in the first place? Was it not due to high cost? I could be wrong so I am asking.... How is the E190 any different? The cost to operate that plane I would only assume is along the lines of the E175 but a few extra sets.... Just asking since it going to weigh more and thus use a little more gas etc... Dont know how the routes are set up for F9 and thus I am asking....

Fifth, as mentioned by many others a larger fact in most of this is the lack of the single pilot list... If they could accept a list and move on USAirways as whole would be in a better position... Right now though, they have gotten lucky due to a below average international structure they have not lost as much money as some others... Their stock is on a rise, its been taken off many watch list and put as a good buy by many investor reports... It seems like Doug is making the right moves, and perhaps by selling these E190's he has something else up his sleeve... The LGA slot changes etc all seem to be positives for the company. Guess time will truely tell.....

 

[Airdale]

Fourth point would be, wasnt there a reason RAH was cut by F9 in the first place? Was it not due to high cost? I could be wrong so I am asking.... How is the E190 any different? The cost to operate that plane I would only assume is along the lines of the E175 but a few extra sets.... Just asking since it going to weigh more and thus use a little more gas etc... Dont know how the routes are set up for F9 and thus I am asking....

No, its called bankruptcy. F9 couldn't pay the bills, so they had to control costs. When F9 didn't have the cash to pay RW, they came to a mutual agreement to terminate the contract. RW was one of F9's largest creditors, hence the reason RW had such a vested interest in F9.

The 190 is suited for specific routes. It is the intention of RW to put E190's on routes that will generate a higher revenue than the Airbus. The Airbus flying is shifting to market that is better suited for profitability. If you haven't noticed, F9/Midwest will GROW beyond what they were prior to the purchase and they will grow rapidly.

Make no mistake, Bedford is a very very smart Airline business man. The man has succeeded in everything he has done in the airlines. I have a lot of faith that he is making excellent business decisions and I have little doubt that his "empire" will succeed as he plans. What do I lack faith in, is his ability to recognize that his employees deserve to be well compensated and deserving of a mainline contract.

As an employee, I have faith that the future of the company is strong and that career expectations are on the rise. I am apprehensive about what kind of contract we are going to get and certainly prepared to vote no until I'm blue in the face. But I fear that too many people will settle for something second best. Its up to our generation to change the direction of the industry.....and I have little faith in our generation.

 

[BobDDuck]

Thirdly, nothing is a done deal. USAirways is still taking delievies of Airbus A321s, and A330s through the years. THey are also getting new routes such as the Rio, CLT to Hawaii and others... They are being run as thin as any other airline. SO I dont think its appropriate to say, its a done deal they are going to furlough and they need to accept that. Its a POSSIBILITY, but nothing is a done deal.

I think it's 4 more 321s and 2 or 3 more 320s plus the 5 330s.

To offset that they are parking 8 757s and I think 9 or 10 737s.

With the 190s leaving there will be fewer seats than before, even with the new Airbii coming.