| |
We are dealing with a management team that is dishonest, conniving and ruthless. They never rest in their attack on our contract and they never tire in harassing and threatening our fellow employees. If this Company survives they will be hailed by their peers as the guys who found a way to wipe out pesky employee Unions and contracts. If they fail they will simply take their Golden Parachutes and move on without so much as a glance back at the destruction and devastation they have caused. However, you and I will be left to deal with either a job that has become unbearable or with no job at all. We are in this lifeboat together and it is only in working together that we might survive.
It is my belief that Mr. Siegel and his hired guns lack the vision or credibility to bring our great airline back to profitability. For US Airways to survive and succeed we need labor and management working together. I am sure you probably already know that ALPA (Pilots) has publicly asked for their resignation. You may hear folks say that this is no time for a change in management, I say it is.
We need a leadership team that we can trust and work together with and our present management does not fit the bill. Unfortunately, Dr. Bronner continues to stand behind Siegel. But then again, he is only hearing from a management team that is short on the truth and long on self-adulation. I believe Dr. Bronner and the Board of Directors need to hear from the heart and soul of this great Company, they need to hear the truth from the front line employees. He may not truly know how bad things really are or how low employee moral has plummeted under the heavy-handed tactics of Siegel's management team. It is time for the FA's to speak up. I am including Dr. Bronner's address below, please take a moment to write him a short and to the point professional note. Maybe if enough of us write we can get someone to start paying attention to what is happening over here and we might just get a management team we can work with.
Dr. David G. Bronner
Chief Executive Officer
Retirement Services of Alabama
135 South Union Street
Montgomery, Alabama 36104
In The News:
Unlike Siegel's management style, Southwest has not furloughed or cut employee pay. While Southwest's management is expanding their market share, Siegel's management team is admittedly dumbfounded that Southwest and JetBlue jumped in to fill the void left by management's huge cuts in service.
Let's compare: Southwest's management is busy marketing their airline to success by becoming the carrier for the professional sports teams in Philadelphia and will be staring in a new nationally televised reality program. On the other hand US Airways management is more focused on ethics booklets, breaking contracts and dragging out costly arbitrations.
In addition Siegel spends untold amounts in severances for furlough's while at the same time hiring even more VP's, managers and supervisor.
Below I have put together a brief compilation of what has been going on in the press just in case you missed any of it. Included is the date, by-line and in some cases the first two or three paragraphs of each article.
These recent articles should have your head spinning and our passengers running to our competitors…what a travesty, what treachery, what an embarrassment, what they are dong is both irresponsible and divisive plus management sounds absolutely schizophrenic. One-day Dave's message states 60 new Mainline aircraft, two days later he's looking to sell off assets! The only thing this management is consistent with is their constant whining and blaming others for their lack of vision.
Now to the NEWS!
December 31, 2003
US Airways Ends Voluntary Furlough Program
US Airways has ended its voluntary furlough program for Flight Attendants and cut 200 employees to help clear space for more senior attendants returning to work, the company and Union officials said on Wednesday.
Sunday, January 04, 2004
CEO Siegel Words from December 16, Managers Meeting
Nearing the end of a Dec. 16 presentation to 700 of his managers, US Airways Chief Executive Officer David Siegel invoked the words of naturalist Charles Darwin, who in "The Origin of Species" argued, "It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change."
Siegel, with Darwin's famous phrase on the screen behind him, tried to inspire his managers, saying, "We can compete. We can grow. We can win. But we've got to be willing to adapt -- just like Darwin says."
January 5, 2004
PIT Lease Agreements
US Airways today signed a long-term lease agreement for 10 gates and related terminal and support facilities at Pittsburgh International Airport, to replace the lease that was rejected as part of the company's Chapter 11 reorganization. Under the agreement, US Airways will lease 10 gates and associated operations and ticketing space on a signatory basis through 2018. The balance of 40 gates and other facilities currently used by US Airways and US Airways Express carriers at Pittsburgh will be leased on a month-to-month, non-signatory basis.
January 5, 2004
US Airways Again Heading To Bankruptcy Court?
In the coming year, US Airways may be forced to return to the safe harbor of bankruptcy court to trim additional costs so that it can compete with the low-cost carriers.
January 6, 2004
US Airways' December Mainline Traffic Rose 4.1%
December mainline traffic rose 4.1% on roughly flat capacity.
The airline reported 3.12 billion revenue passenger miles in December, up from 3 billion a year ago.
Load factor, or percentage of seats filled, was 72.9% for the month, compared with 72.4% a year earlier, the carrier said in a press release Tuesday.
The company also said it expects system mainline passenger unit revenue for December to increase 0.9% to 1.9% from last year.
During the fourth quarter, US Airways Group said it flew 9.38 billion revenue passenger miles, up 7% from 8.76 billion a year earlier.
January 6, 2004
This was not in the press but instead taken from…
Dave's Weekly Message:
- Speaks of adding 60 mainline aircraft to the fleet.
- Blames Low Cost Carriers for U's woes.
- Whines that no one in the industry could have predicted the recent moves by JetBlue and Southwest.
- Cancels road shows on revised business plan, blaming Union Leaders
January 8, 2004
US Airways Said to Be Pursuing Big Asset Sales
Less than a year after it emerged from bankruptcy protection, and facing stiff competition from low-fare competitors, US Airways is seeking buyers for a number of its assets, including its East Coast shuttle and possibly one of its three hubs.
January 8, 2004
--This article was not directly about US Airways but I thought you should see what was in the paper the same day--
Southwest Scores Big With Three Philadelphia Sports Sponsorships
The Original Low-Fare Airline Nets Winning Deals With 76ers, Flyers, And Phillies
Southwest Airlines gained the home field advantage in Philadelphia this week with the signing of three winning sports sponsorship agreements. Southwest now reigns as the Official Airline of the National Basketball Association's (NBA) Philadelphia 76ers and holds the trophy for the Official Airline of the National Hockey League's (NHL) Philadelphia Flyers.
Southwest also hit a home run as the Official Airline for Major League Baseball's (MLB) Philadelphia Phillies.
"Southwest Airlines is as passionate about our upcoming arrival in Philly as Philly sports fans are about their home teams," said Joyce Rogge, Southwest's senior vice president of marketing. "Southwest Airlines aims to be Philly's most valuable player when it comes to travel, and these sponsorships give us the extra points we need to reach these new Customers."
--NOW BACK TO US--
January 9, 2004
US Airways Asks U.S. DOT for Slot Exemptions to Serve Four Cities Nonstop from Washington's Reagan National
Carrier Would Serve San Francisco, San Juan, Asheville, N.C., Chattanooga, Tenn.
January 9, 2004
Ultimately, labor Unions may be the only group that can save US
Airways.
As the pressure mounts on US Airways to right the ship, its relationship with Unions has reached an all-time low.
And while US Airways may be forced to cut more jobs and ask for more wage concessions, Jack Stephan, spokesperson for the Pilots Union, said the company had yet to reveal its plans to the Union.
Furthermore, Stephan said the asset-sale news could be an attempt to jump-start negotiations with the Union, since management hasn't broached the idea with the board of directors, where Unions have representation.
"If this was something they looked at in real seriousness, then why wasn't Bill Pollack [chairman of US Airways' chapter of the ALPA] notified; he's a member of the board of directors," said Stephan.
"If this was a strategic option, why was there no debate at the board level? That lends itself to suspicion. Here's a company that less then a week prior was talking about buying 60 Airbus aircraft."
"It's very hard to put any credibility into this management group," said Stephan. "To be absolutely clear, the first thing they have to do is pick up the phone and call us."
January 9, 2004
US Airways' Labor Woes Mount
On Thursday night, US Airways' Flight Attendants, represented by the Association of Flight Attendants, filed a lawsuit against the company for furloughing 552 attendants, which the Union said violates a collective bargaining agreement. Under the labor agreement, the Union said US Airways must offer voluntary furloughs before eliminating positions. This isn't the first time this has become an issue. According to the Union, US Airways attempted to violate the contract back in June when it forced attendants to take involuntary furloughs, only to be stopped by an arbitrator.
January 10, 2004
US Airways' Credit Rating Cut to 'B-'
Move Could Hurt New Business Plan
US Airways Group Inc.'s ability to order additional regional jets, a key component of its strategy, could be jeopardized after its credit rating fell yesterday to the lowest level allowed under its airplane financing agreement, sources close to the airline said yesterday.
Standard & Poor's lowered the Arlington-based airline's rating to "B-" from "B" because of the airline's decision to consider selling certain key assets such as its East Coast shuttle, its commuter airline subsidiaries or three hub operations to raise cash.
US Airways Chairman David G. Bronner acknowledged Thursday that the airline has tapped investment banker Morgan Stanley to search for potential buyers of assets, in an effort to avoid violating terms of the federal government's $900 million in loan guarantees.
January 10, 2004
American probably not interested in rival's shuttle
January 10, 2004
US Airways may not opt to sell assets
CHARLOTTE, N.C. - Despite hiring an investment bank to gauge interest in US Airways Group Inc.'s assets, the airline's chairman said yesterday that the company might not have to sell any assets
if it could get costs in line.
"If changes can help get our costs down, then obviously that's where you want to be," David Bronner, chief executive officer of Retirement Systems of Alabama said in an interview. RSA is the principal owner of US Airways, the dominant carrier in Philadelphia.
January 10, 2004
Siegel suggests merger may be another option for US Airways
Chief Executive Officer David Siegel yesterday hinted to employees that a merger also may be an option as US Airways contemplates a sale of some assets to raise much-needed cash.
In an employee message defending the company's decision to "explore strategic alternatives" with help from New York investment bank Morgan Stanley, Siegel said, "If there are some strategic partnerships that would enhance our financial standing, we must consider those as well'' as asset sales.
Siegel "has to be talking only about a merger or acquisition," said Bill Lauer, a local airline analyst and stockholder. "That is just another way of saying they want to sell the company."
January 10, 2004
US Airways' big sell-off could include Philly hub
Strapped for cash and teetering again on bankruptcy, US Airways reportedly is considering selling off a number of major assets, including its hub at the Philadelphia International Airport.
Unloading gates in Philadelphia - where US Airways is by far the largest carrier - could dramatically alter service at the airport, reduce jobs and send shock waves through the local economy.
No deals have been struck, but the airline has put some of its most valuable assets on the table.
January 10, 2004
Panel reduces airport debt
US Airways applauded a decision Friday by the Allegheny County Airport Authority to reduce the debt at Pittsburgh International Airport.
The authority board voted unanimously to seek the Federal Aviation Administration's approval to use up to $95 million in revenue from a $3 fee on tickets to reduce the airport's $640 million in bond debt. Fee revenue has been used to pay for airport projects such as runway and building maintenance.
January 11, 2004
U.S. AIR IS SHOPPING ITS SHUTTLE
-- The daily commute for hundreds of New York businesspeople - the U.S. Airways shuttle service to Boston and Washington, D.C. - may be going on the block.
Sources say U.S. Airways is shopping the service as part of an asset sale meant to help the airline stay afloat after emerging from bankruptcy protection. But analysts say that business travelers shouldn't worry about losing their seats.
"Whoever takes over, if it is sold, will be able to afford it and will keep it flying," said David Stempler, president of the Air Travelers Association.
"There's plenty of capacity."
January 11, 2004
Hub capped: Airline's local commitment cut
Siegel casts doubt on financial viability
Jan. 12 - Despite a firm commitment to lease just 10 gates over the next 14 years, US Airways likely will remain Pittsburgh International Airport's dominant carrier for the foreseeable future -- that is, if it can weather inevitable financial turbulence ahead.
January 11, 2004
Critics call airline's bluff about leaving
US Airways has been long on ominous words but short on decisive action when it comes to making good on its threat to dump its hub at Pittsburgh International Airport.
The ailing airline has been threatening to bolt since March 31, when it canceled its airport leases as it emerged from Chapter 11 bankruptcy protection. Airline Chief Executive David Siegel and other officials have said repeatedly that the cost to do business at Pittsburgh International is too high. They set Jan. 5 as the deadline for a new deal.
"I think they were bluffing about moving by Jan. 5," said former County Chief Executive Jim Roddey.
US Airways, Union Agree to Arbitration
US Airways and the Union representing its Flight Attendants agreed Friday to expedited arbitration to resolve a dispute over layoffs and involuntary furloughs affecting 552 workers.
The agreement came a day after the Union filed a lawsuit in Pittsburgh federal court claiming the proposed firings of 200 Flight Attendants and the shift of more than 300 others from voluntary to involuntary furloughs violates a contract reached with the airline while it was in bankruptcy.
If you would like to read the complete articles you can find most on the PHL web page at
www.afausairways.org
I'll leave you with this quote:
- Fear defeats more people than any other one thing in the world. ~ Ralph Waldo Emerson
I'll leave these three for our management readers, although I do not expect any of them to
'get it' I felt I needed to at least give it a try.
- You can get something done in a short time with fear, but in the long run it just doesn't pay off. ~ Wendell Parsons ~
- Where the fear is, happiness is not. ~ Seneca ~
- Fear is what kills us. ~ Source Unknown ~
Take Care and Fly Safe,
Mollie McCarthy
LEC President
Council 70 - PHL/PHW
|
