Chip Munn said:
Apparently the ATSB, GECAS, Bank of America, RSA, Goldman Sachs, Aviation Acquisition, L.L.C, and OCM Principal Opportunities Fund do not agree with Dilligas' comments, who all are putting their money where their mouth is by investing in US Airways, because the investors believe US Airways has a viable business plan.
Ya think?
🙂 Well, doggone! I must be onto something then.
I don't know if they do agree with me or not, I haven't been privy to those deals or conversations. I make no illusions about having connections to the rich and powerful or discussing corporate strategy with them. They may agree with my forecast but have seen an opportunity to exploit for financial gain. Have them give me a call or drop me an email and I'll enlighten 'em.
How is it that you ARE knowledgeable as to what they believe? I've made many investments in companys that I didn't believe had a viable business plan, but there was a market opportunity to turn some quick coin. And if my investment was secured by some aircraft, capital equipment, or engines, maybe I would get out the checkbook too.
Do you think Glass wants to be a day to day airline exec ? I don't. I think we are the guinea pigs and poster children for "How I broke one off in Labor, big time ,and had a great time doing it". Oh lawdy, the consultant fees in the future make my head spin!
Do you think Sweet Home Alabama Dave woke up last year and wanted to be an airline CEO? I don't. I think as a professional investor he saw an opportunity and had the means and the cajones to pull it off. He isn't going to play the game unless he knows ahead of time who the winner is.
I wouldn't put a lot of credence into those named entities having "faith in the US business plan" because I believe some have something to secure their investment. What happened to the last group of investors that had "faith in the US Business plan"? Hmm, if I remember they got nada for their stock. If it becomes available (big if) for purchase, I'm not putting the doggie treat money into this outfit. There ain't enough lipstick for this pig.
In my opinion, RSA will parlay this investment in U into a stake in a reorganized UAL. I think thats one of the reasons why Dutta is here. Thats just my take on it. I never said UAL was healthier now, but I believe when the dust shakes out, perhaps by next summer, UAL will be. They have a huge pension problem to resolve and I don't think the legislative relief will materialize. Here's a shocker you won't read on this board much... I may be 100% wrong!
I agree there has been a paradigm shift in this industry, but not with your placement of U. U is now at best a second tier carrier, we don't belong in the same thinking as the UAL's and AMR's, etc. That's what "super regional" means to me. We just don't "fit" anywhere, I remember some tall guy named Stephen said that a few years back, and I agree. We are a starving dinosaur, and the asteroid is approaching at high speed.
Lowering costs is only a part of the solution. IF so, lets quit buying fuel, its quite an expense... lets stop changing tires and brakes, heck, let's park them planes, they cost too much to operate. So then we'd be in high cotton because we cut our costs, right ?
It's also the REVENUE. Many big companies have whole departments, called Marketing, that seek ways to boost a company's revenue. They do strange things, like advertise, listen to their customers needs and address those needs. They treat their customers with respect and strive to earn their business and respect. What a concept! Whats the thinnest book in the library of business? "Marketing Practices at US Airways".
Labor gave Wolf the tools he said he needed. Labor has given, and given, and given. Dave has the tools, but he has blown it. IMHO, he has offered no leadership and lacks integrity. But then, I don't chat with him daily or email him. Wouldn't do it either, because I don't respect what he's done.
Wishful thinking and progaganda don't change the harsh realities. I want the good and decent people that have given the best part of their working lives to this company to wake up, say NO MORE, get us someone in management that wants to operate an airline and we will do our jobs, or shut this thing down now and lets move on with our lives. This east coast franchise should have been a license to print money but greed and mismanagement has put us on very thin ice.