AFA - US Airways E-Line
May 18, 2002
http://www.afausairways.org/eline.htm
Contents:CEO Siegel's
Letter
CEO
Siegel's Letter
A Message from President
and CEO Dave Siegel
US Airways CEO David Siegel
has sent a letter to all employees outlining the foundation of the restructuring
plan management showed to union representatives on Thursday, May 16.
The letter is a similar message
to what your elected AFA leaders heard last Thursday. The key difference
is that Thursday's presentation by management provided more detail on the
hows and whys the airline is going to defend our core business, preserve
key assets, and grow the airline. (We are putting together an outline of
those details and will distribute them in the next
couple of days.)
The letter does put into
writing the airlines commitment to maintain the current size of the mainline,
and to grow it in the future, which is important to maintaining jobs for
flight attendants.
Just as importantly, the
letter clearly states that the lowest paid employees will be the least
impacted by the sacrifices management is asking everyone to make.
Neither the meeting nor the
letter lays out specifically what management wants in terms of sacrifices
from the flight attendants; this is what we will hear from management in
a meeting on May 21. At that time we also will provide management
with our input to the plan.
Our focus is on pushing management
to do everything possible to increase revenue, because lack of revenue
is where this airline's problems are centered.
We're committed to helping
this airline survive and thrive in the future, but we still need to see
exactly what is asked of us before we even discuss sacrifices.
Management must understand
clearly that anything we discuss must contain safeguards that will protect
the future of our flight attendants and their families.
A Message
from President and CEO Dave Siegel
Dear Fellow Employee:
Last week I sent you a letter
outlining the challenges and choices facing US Airways. At that time I
told you that, due to the fallout of September 11, this Company can either
pursue a restructuring plan with the assistance of federal loan guarantees
or we will be forced to seek a different path of restructuring under the
protection of federal bankruptcy laws.
Today, we held meetings with
leaders of the US Airways employee groups concerning the fundamental elements
of a restructuring plan. These meetings mark just another step in the process.
Over the coming days and weeks, the details will be determined by all of
our stakeholders, working together.
It is clear that the key
to our long-term survival and success is a competitive cost structure and
revenue enhancements. And starting next week, I will be traveling to many
of our facilities to discuss this plan with you and to answer your questions.
Our employee groups will also be discussing the plan with their members
in the coming days. In the meantime, however, I wanted to provide you with
an overview of the core elements of our vision for the direction of this
company and the process we face moving forward.
The Vision:
In general, there are three components to our vision we have to defend
our franchise, preserve our assets and grow our business.
--Defend:
We will return to our core strengths. We are going to be a strong, aggressive
competitor focused in the eastern U.S., defending our franchise in our
hub cities of Pittsburgh, Charlotte, and Philadelphia and the other key
markets of Washington, D.C., New York City, and Boston. Refocused, we will
offer the most convenient, accessible and experienced service east of the
Mississippi, one of the most populous, heavily traveled regions of the
world.
--Preserve:
Our key assets are our employees and customers. Our employees have done
an extraordinary job providing exceptional service over the years and through
difficult times. US Airways was the best of the major network carriers
for 2001 in the annual Airline Quality Rating of key performance measures,
compiled by researchers for Wichita State University and the University
of Nebraska. Throughout the restructuring process, I intend to maintain
the highest workforce levels possible. To preserve our commitment to our
customers we will maintain service to all of our communities and strong
bases of operations in our hubs in PIT, PHL, and CLT. At the same time,
we want to maximize our strong market positions at LGA, DCA, and BOS.
--Grow:
We are committed to finding ways to maintain and even grow our fleet
size. Our fleet has to fit our route structure, meaning we will need more
RJs, different mainline jets, and over time, fewer turboprop aircraft.
As the leading carrier in the East, we will offer our customers greater
national and global access through a worldwide alliance with a larger airline.
The Process: Our
plan is a universal, shared solution. Every one of our stakeholders is
being asked to make sacrifices. Having said that, we told the leaders of
our labor groups that throughout the restructuring process, we will follow
these guidelines:
1) the lowest
paid employees will be the least impacted;
2) management employees
will participate at a commensurate level;
3) every opportunity
to protect aggregate workforce levels will be pursued; and
4) employees will
participate in the upside through profit sharing.
We have to recognize that the
changes we are facing are permanent. The ATSB will not approve our plan
if our cost structure isn't permanently altered.
Clearly, there are some high
hurdles in front of us, but I have no doubt we'll overcome every one of
them. When I took this job, I knew this airline was fighting to contend
with the aftermath of September 11. In the new world created by the terrorist
attacks, the Company was losing money at an unprecedented rate, and I had
no illusions about the challenges ahead.
I took this job enthusiastically
because I did not believe US Airways should become collateral damage of
September 11. With its 40,000 employees, scores of small markets served,
and its vital role in the nation's transportation system, it is an airline
that can and should be kept flying. Every day I'm here, I know I made the
right choice.
Many of you have worked here
for many years. You know this airline has been no stranger to adversity.
And yet, despite seemingly constant challenges, we have grown to be the
biggest and best in the East the biggest, best, toughest region in the
industry. We aim to protect that legacy.
A collaborative plan that
is agreed to by labor, management, and vendors is going to work. It represents
the best possible solution to an unprecedented situation. In the meantime,
I hope you will continue to share your questions and concerns. Soon, we
will be having our first online chat, giving you an opportunity to ask
me questions on our Intranet site, theHub. Over the next three weeks, I'll
also be visiting our facilities, giving many of you a chance to ask your
questions face-to-face. I look forward to seeing many of you then.
Sincerely,
Dave
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