It looks like cash is getting scarce at LCC- they are considering dumping the 190s... Burning the furniture for sure. How many pilots will get inevitable pink slip if this happens. LCC sure looks like a weak player.

 

Still all this talk of doom for US Air, yet they were the only legacy to post a profit this quarter. Maybe yall should start focusing on other airlines that are taking losses.

 

Is a loss for the quarter really a loss when you increase your cash position by $500 million and pay down your debt $20 million at the same time? The only reason some carriers posted a loss was that they had things to write off.

 

The 190s are worth more now on the street than what LCC paid for them. Consider them gone as the transaction will net LCC $$$ and at the same time capacity will be reduced.

 

Not arguing the "weak player" part of your statement, because they aren't the strongest out there. But, maybe Doug is finally doing something about the logjam in negotiations and is finally taking action to bring the Nic into play. (Anyone want to bet that a cram-down contract, ie Kirby deal, is offered in exchange for keeping the 190's and not furloughing additional East pilots...).

Since the 190's are NOT part of the min fleet count, this is the biggest gun management has to point at USAPA's (the East pilots) heads. It doesn't make a lot of business sense to park cheap, efficient, passenger-loved planes, unless it is for another reason... So, who will blink first????

 

They won't park them. They will sell them to Republic so they can use them on their Midwest Airlines operation. If I recall, Republic already loaned Airways a good bit of money. Republic could forgive the debt and call it a "down payment".

 

WHile all of us have our speculations with the 190 comments yesterday, it boils down to what is the most likely reason for even bringing them up. LCC needs to cut capacity, any fleet reduction can only come from the 190s, save a few airframes out east. LCC is doing cash advances on their credit (what is left of it), has massive balloon payments due in a few years and an industry- leading cost saving pilot contract. I just can't see the management team suddenly get excited about merging the pilot group especially when they know they can get away with keeping the east pilots on a very low wage scale. Parker gains nothing by merging the pilots except for increased costs. That is why I see management solving two problems at once: reduces another fleet type/ reduces capacity and also based on what Kirby said yesterday they can actually make some money off the deal. Unfortunately, regardless of the reason, it looks like there will be 300 fewer pilots at USAir real soon. Does anyone know how the furlough would work, given the pilots groups are separated?

 

If the East costs are so much lower than the West, why aren't they parking West planes and shifting that flying to the East? Do the West guys have contract protection to keep that from happening?

 

We're talking about the airline that just yesterday reported earnings of $58 million (42 cents/share) from fuel-hedging contracts; ie, unrealized gains. Take away the fuel hedging, and the airline operation lost $95 million, or 77 cents/share.

So, the airline lost $95 million flying airplanes, is discussing reducing their fleet by selling their EMB-190's (furloughs), corporate travel is down, RASM is down, and has few assets left to leverage.

I think we're focusing on the right airline. This is a thread about US Airways, after all.

And, oh yeah, they have two pilot groups that are like oil and water right now. Back to that discussion.