US Air is joining the party cutting flights and adding baggage fees

[chipmaster]

http://www.businessweek.com/ap/financialnews/D918QVKG0.htm

[d&a Delaware]

The dominoes keep falling.

 

David

[Jeano222]

My husband flies a lot with his job, and he sees trouble ahead for the business travelers in coach. If they are going to charge 2.00 for non-alcoholic drinks and those have to be paid with cash, the company won't re-imburse without a receipt. While it's not a lot of money, my husband would probably spend 30.00 a month on just drinks. I can't see them giving receipts for each and every drink they hand out. Raise the freakin fares and stop all this nonsense. Either that or companies will just assume their employees will buy 2 drinks per flight and reimbuse without a receipt.

[greatam]

If they are going to charge 2.00 for non-alcoholic drinks and those have to be paid with cash, the company won't re-imburse without a receipt. .

 

MOST of the airlines now take credit cards.

[JJPNYC]

If they are going to charge 2.00 for non-alcoholic drinks and those have to be paid with cash, the company won't re-imburse without a receipt.

 

Dont' want to say it too loudly as an airline manager may be lurking here, but charging for receipts could be another profit center for the airlines.

 

Drink- $2.00

Ice - $0.50

Receipt - $0.25

Total: $2.75

[greatam]

Doug Parker just had a press conference that was live on Phoenix TV. Flights to Vegas are going to be cut A LOT. Which means all those East Coast/Midwest flights that connect through Las Vegas will shrink precipitously. The prices will go nowhere but up trying to get to the West Coast. Business reports in Phoenix state US is hanging by a finer thread than a lot of airlines.

[pms4104]

Doug Parker just had a press conference that was live on Phoenix TV. Flights to Vegas are going to be cut A LOT. Which means all those East Coast/Midwest flights that connect through Las Vegas will shrink precipitously. The prices will go nowhere but up trying to get to the West Coast. Business reports in Phoenix state US is hanging by a finer thread than a lot of airlines.

Interesting ... the article in today's Chicago Tribune stated that Doug Parker claims his airline is well-positioned to handle escalating fuel costs because it has a relatively large amount of cash on hand, compared to other airlines. Is he out of touch or merely lieing?

[greatam]

Interesting ... the article in today's Chicago Tribune stated that Doug Parker claims his airline is well-positioned to handle escalating fuel costs because it has a relatively large amount of cash on hand, compared to other airlines. Is he out of touch or merely lieing?

 

US does have a large amount of cash on hand. And what has been done this week may well save the airline. Las Vegas flights (and the LAS hub) are being cut up to 74%. They are laying off pilots, FA and 800 airport employees. And Dougie is investing an 'amount equal to his 2008 salary in stock'. Whoop-ti-do

 

But US has some HUGE payments due in future years. For the next couple of years, the payments are stable. But starting in 2010, the payments go upward from the millions (73) to the billions (1.3) to make up deferred payments during bankruptcy. So if they don't get even larger cash reserves on hand SOON, they may be going belly up.

 

From the Phoenix Business Journal-don't know who had the byline.

 

" Shares fell as much as 25% on Thursday over concerns the carrier's jet fuel bill might be its final undoing. US Airways' (LCC: 3.12, +0.43, +15.8%) stock bounced off a six-year low of $2.39 late in the day to close with a loss of 51 cents, or 16%, at $2.69."

 

"When shares are trading at these levels, people are factoring in that the company in nearing bankruptcy," said Michael Derchin, an analyst with FTN Midwest Securities, referring to the stock trading below $3

[chipmaster]

US does have a large amount of cash on hand. And what has been done this week may well save the airline. Las Vegas flights (and the LAS hub) are being cut up to 74%. They are laying off pilots, FA and 800 airport employees. And Dougie is investing an 'amount equal to his 2008 salary in stock'. Whoop-ti-do

 

But US has some HUGE payments due in future years. For the next couple of years, the payments are stable. But starting in 2010, the payments go upward from the millions (73) to the billions (1.3) to make up deferred payments during bankruptcy. So if they don't get even larger cash reserves on hand SOON, they may be going belly up.

 

From the Phoenix Business Journal-don't know who had the byline.

 

" Shares fell as much as 25% on Thursday over concerns the carrier's jet fuel bill might be its final undoing. US Airways' (LCC: 3.12, +0.43, +15.8%) stock bounced off a six-year low of $2.39 late in the day to close with a loss of 51 cents, or 16%, at $2.69."

 

"When shares are trading at these levels, people are factoring in that the company in nearing bankruptcy," said Michael Derchin, an analyst with FTN Midwest Securities, referring to the stock trading below $3

 

Stock is up today!

 

http://www.marketwatch.com/news/story/us-airways-leads-rally-after/story.aspx?guid=%7BB34451AB%2DE9C0%2D4728%2DA004%2DC97D8B1CBDF4%7D

[Krazy Kruizers]

US Airways -- here in Pittsburgh the airport was built for them!! At one time they had 547 flights a day out of here. Now they have only 49 daily flights. Concourse A and E are completely closed. Concourse B is partly closed. With more flights being dropped we might as well close Concourse B completely.

And the other airlines - few as they are here - aren't adding any flights to their schedules. It's getting tough to fly out of Pittsburgh.

For our cruise last Nov/Dec we used US Airways to get to San Diego via Phoenix and this past May we came home from Seattle via Las vegas.

Looks as though Delta will be getting more of our business.

[Cruisin' Ron VA]

http://news.yahoo.com/s/ap_travel/20080613/ap_tr_ge/travel_brief_us_airways_cutbacks

 

 

Interesting the article noted that Southwest is even flying slower to save on fuel.

 

When someone started a thread saying that airlines are flying slower, some people on this board went ballistic and denied they would ever do such a thing. :rolleyes:

[pms4104]

for your clarification and valuable iinsight!