DMEarc

Wrong. The shuttle makes money- per Scott Kirby in his town hall meeting in CLT for July.

The Express operation bleeds cash he said.

piper338

Yeah, I heard shuttle makes money and they want to get rid of a lot of Express flying out of LGA.... and someday if they can get the laws work out fly out west from LGA.

It sounded like by switching terminals they would get cash in the bank, and we all know how Doug Parker brags about the pennies in the piggy bank.

meyers9163

Exactly. Mainline operations are still making money. Its the damn RJ's that are killing the system. Anything that says express on it but is flown under usairways colors out of LGA/DCA are losing money hand over fist.

As mentioned already, the shuttle is still making money with the current fuel prices. So at the end of the day if reducing the number of flights out of LGA/DCA will save money by moving those flights out of PHL/CLT/BOS it will be well worth it to look at.

Fly4hire

Yes it does. From one of the press releases:

Don't let the positive spin from LCC perfume this pig - they have to raise cash to stay in compliance with BK covenants, and are dangerously close to losing their CC hold backs.

This is burning the furniture to stay warm, and despite claims of the express operation, giving up the LGA main terminal is selling one of the crown jewels of the LCC system.

You express guys should consider this a blessing in disguise as you'll be getting a shot at another flying job ahead of the LCC mainline pilots.

stamps

Got this email today: Dear Friends-

I'm writing to draw your attention to a business transaction announced this morning. The transaction is between US Airways and Delta Airlines. It will allow US Airways to expand service at Ronald Reagan Washington National Airport. We will also gain the opportunity to enter key international business centers in Brazil and Japan.

The details of the announcement are included in the attached US Airways press release. Here are the highlights of the transaction:


· US Airways will obtain 42 pairs of slots at National Airport and will also acquire the rights to initiate international service to Sao Paulo and Tokyo.



· US Airways will transfer to Delta 125 pairs of slots currently used to provide US Airways Express service at LaGuardia.



· At National Airport, US Airways will provide nonstop service to 15 new daily destinations, including eight cities that currently have no daily nonstop service from DCA on any airline. We plan to maintain service to all DCA destinations where Delta decides to discontinue service as a result of this transaction.



· At LaGuardia, US Airways will maintain a significant presence, including the popular US Airways Shuttle. No changes are planned for US Airways' mainline flight levels at LaGuardia.



· US Airways expects the transaction to improve its profitability by more than $75 million annually.



We are excited about today's announcement and the opportunity to build on our solid presence in Washington, D.C. When the transaction is completed, US Airways will bring more jet air service to smaller communities from our nation's Capital. The transaction will improve our near and long-term profitability to the benefit of our employees, our customers, and the communities we serve.

--Tom Chapman
Vice President for Congressional & Federal Affairs
US Airways

tzskipper

Fwiw, the debt covents require a minimum of $850 million. At the end of Q2, LCC had approximately $2.3 billion in cash, of which $600 million was restricted (simple math says LCC exceeds it minimum cash requirement by $850 million, prior to the latest transaction).

EDGAR Pro

Just the facts.

Skipper

piper338

It's on the PDT website now closing LGA as a base sometime in 2010

stoki

From the articles I have read today posted on these forums, it seems PDT is getting screwed more then we anticipated?

piper338

Yeah, read the docs on the PDT site, I only had time to skim them myself gotta head to the airport soon... I read in there the good news is no furloughs until 2010 haha, but is that directed toward the LGA ground personnel or the pilots and fa's as well?

stoki

Where did you see no furloughs till 2010?