Another Tom Davis?

deltawatch

Veteran
Aug 20, 2002
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I think we need to give Dr. Bronner and his “right hand man†a fair shake. From what IV been able to read about them, they could be a God send. Time will tell. IM starting to believe Bronner has had a life long love for aviation, that’s why he’s here. He’s not greedy; he has never paid himself more than $325,000.00 a year, a far cry from Dave’s $11,000,000. Some are wondering if industry outsiders can turn this company around. Well, we have seen what industry top guns have done. This guy could be a another Tom Davis.

I know most of this info has been posted here and there in various threads, but I wanted to get it all together in one place and get some thoughts.

Charlotte Observer
TED REED
Staff Writer


Pilots believe that with Lakefield replacing Siegel, "trust is no longer an issue," said Jack Stephan, spokesman for the US Airways chapter of the Air Line Pilots Association.

"It will at least be easier for other unions to listen to what this man has to say," he said. Siegel lost the pilots' trust because he made conflicting statements on various issues such as the pilots' pension plan and other contract matters, he said.

Vast differences between Bronner and Siegel likely contributed to the change, Stephan said. He called Bronner "a corporate Robin Hood (who) doesn't like anybody in corporate America making sweetheart deals at the expense of labor. He takes great pride in representing the pensions of bus driver and policemen and people like that."

By contrast, Stephan said, Siegel is "a Harvard mathematician (who) loved running an airline but missed the human element. Not that Dr. Bronner doesn't see the numbers, but somehow when Bronner and Lakefield see the color of the ink, they also see the texture of the people involved."


ADVISOR NEWS LETTER
Quote by David G. Bronner


"Multimillionaires can range from those who care deeply about their fellow man like the late Winton ‘Red’ Blount, to the cockroaches of the corporate scandals all over the world. All too often today, individuals who are paid millions of dollars a year want to take anything and everything away from the working person. It is difficult for me to see how these millionaires think they will remain in good shape if most of the good paying jobs are in India or China, and the rest of us are all Wal-Mart employees."

Just who is this guy WINSTON ‘RED’ BLOUNT that Bronner hold in high esteem?

Winton M. "Red" Blount

Pilot, CEO, public servant, Winton M. "Red" Blount was born in Union Springs, Alabama in 1921. At the age of 13, he worked for the family business for ten cents an hour, a wage he thought was "pretty good." He graduated from Union Springs High School in 1938 and after spending a year at the Staunton Military Academy in Virginia and a year and a half at the University of Alabama, Red moved to Selma, Alabama to manage an asphalt company. His success in construction and affection for aviation was a combination that would prove to be truly remarkable. He earned his wings at Turner Field, Albany, Georgia just nine months after enlisting in the Army Air Corps. Red took to aviation quickly, embarking on a lifelong love affair with flying. At one point on a low-level sortie, he flew his aircraft under a bridge on the Chattahoochee River and spent the Christmas of 1942 confined to base. After completing flight school at Turner Field and staying on as an instructor pilot, Red was sent to Maxwell Field, Alabama, to train in the Boeing B-29 Superfortress in preparation for combat duty. The war ended however, before he and his crew could arrive in the Pacific Theater. After the war, Winton and his brother Houston started Blount Brothers Construction Company (now Blount International) by digging fish ponds, paving streets, and installing storm drains; a far cry from the complex structures Blount International is known for today. They soon completed their first $1 million contract in Birmingham, Alabama, and in the 1950s the company erected Launch Pad 39A at Cape Canaveral in direct response to Sputnik, an atomic energy plant in Tennessee, a radar and electronics building and flight operations hangar for Lockheed Aircraft, and a portion of the wind tunnel at the Air Force’s Arnold Engineering Development Center in Tennessee. It was from Blount’s launch pad that Apollo 11 lifted off in 1969 on its historic trip to the moon. Blount International also built the huge space environment simulator at Sandusky, Ohio, the New Orleans Superdome, and the nation’s first Atlas intercontinental missile base near Cheyenne, Wyoming. The 1980s saw Blount International flourish with the completion of the world’s largest fixed-price contract, $2 billion, for the King Saud University in Riyadh, Saudi Arabia. Following Operation DESERT STORM, Blount International "turned the lights back on" in Kuwait by rebuilding its infrastructure. Blount served in prominent political posts including President of the U.S. Chamber of Commerce for President Johnson and Postmaster General under President Nixon. Perhaps Red’s most revered project is the Alabama Shakespeare Festival in Montgomery, a sight he and his wife Carolyn have enjoyed in their "back yard" ever since.
 
Bronner was gonna eat a ton of leases, he is in it for the money, nothing else, nothing more, just about money
 
Certain pilots have clearly forgotten that it was Bronner (yes, the same one who manages the pension fund for teachers and policeman, and state workers) who threatened liquidation to force (yes that is l-a-b-o-r) into acquiesing to Winter concessions with a drop dead date of December 20, 2002. Along with that piece, (yes, Bronner the same one) didn't think twice about terminating the pilots pension AFTER two rounds of major, unprecedented concessions.

How quickly folks are willing to see a trusting perceived "savior" and deny the above just didn't quite happen. I guess for some, there's a difference in asking for you to empty your pockets than browbeating you into it....however, you will still have to empty your pockets.

Bronner and Lakefield will have a long road to tow to lessen the memory of what all of labor went through and continues to go through. The same management is still in place, and I can't imagine them waking up the next day and changing their new policies against employees and changing their management style.

And, they are back again, and the threats will be just as severe, only with a new face.

The ALPA MEC talks about a management culture change that they believe will occur. Someone tap me on the shoulder when it does occur...I just might miss the transformation. :rolleyes:
 
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"The US Airways chairman (Bronner), worried about the deteriorating relationship between his CEO and the airline's 28,000 employees, made up his mind Monday morning, calling for a one-on-one meeting with the 42-year-old Siegel at a hotel near Mobile, Ala."

Maybe Bronner dismissing Siegel signals that he’s getting a better grip on things. Maybe being new to the industry he elected to take a back seat to Siegel, but over time didn’t like what he was seeing. There have been hints he plans to grow the mainline not downsize it. There have been hints that he plans to add lots of point-to-point mainline flying back into cities like LGA, BOS, and DCA. There have been hints that the aircraft will be used more efficiently, flying 12 hours a day instead of 10 (more work). With union cooperation the additional flying can be done by current employees (job security). There have been hints that he plans to lower fares. If you lower fares the number of people flying goes up (not to mention it confronts other LCC’s). What’s best to run one plane with 50 people on it at $300.00 a head or run three flights with 400 people on them at $100.00 a head? Let’s wait and see what the $325,000.00 a year man (that manages 26 billon) has in mine now that the $11,000,000.00 a year man is gone.
 
We still lack a leader who has true Airline knowledge. Another bean counting numbers cruncher is not what this company needs. A leader who will take the bull by the horns and grow the Airline to gain marketshare is what is needed here.
Get those elusive 60 A/C and start some point to point flying out of some small and medium size stations. Stop all of the new LCC's that are popping up in our backyard dead in their tracks, that is what we need here. Another Tom Davis is a long shot to say the least. He was a good man who cared about His company and his employees well being. Getting a CEO who is close to that is impossible in todays corporate world. The Shareholders are #1 priority anymore. They all look past the fact that a happy and productive workforce will increase their share value in the long run. It is all about a Quick Buck and the heck with the workers who make it all come together.
 
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Well, from what IM reading about Bronner you may have your man? His track record indicate he is not a quick buck guy, if fact he has publicly said he despises them, thinks they’re what’s wrong with America today.

Quote “Another Tom Davis is a long shot to say the least. He was a good man who cared about His company and his employees well being. Getting a CEO who is close to that is impossible in today’s corporate world.â€￾

Independent sources are writing the same thing about Bronner. I admit what IM reading sounds to good to be true, time will tell.
 
700UW said:
Bronner was gonna eat a ton of leases, he is in it for the money, nothing else, nothing more, just about money
Which is it, Conspiracy Theory 101 or you got Bronner's office bugged?
 
A320 Driver said:
Which is it, Conspiracy Theory 101 or you got Bronner's office bugged?
Did you not follow anything during the chapter 11 process?

RSA held numerous leases with US that were going to be abrogated, RSA held numerous EETCs that were going to be abrogated.

So instead of him losing it all he became the DIP financier and made a profit at that, invested another $240 million and became majority ownership of the airline and loaned US $75 million of the $100 million non-gauranteed portion of the loan.

I suggest instead of trying to attack people you learn the facts of the case.

From US Airways:

ARLINGTON, Va., March 31, 2003 -- US Airways Group, Inc. and seven subsidiaries today completed all required transactions and satisfied all remaining conditions to its reorganization plan, allowing the company to meet its March 31 target for fast-track emergence from Chapter 11 bankruptcy protection.

US Airways also closed on exit facilities that provide the company with $1.24 billion in liquidity, including a $240 million equity investment from the Retirement Systems of Alabama Holdings LLC (RSA), and a $1 billion loan - $900 million of which is guaranteed by the Air Transportation Stabilization Board (ATSB). The remaining $100 million of at risk funds are provided by RSA ($75 million) and Bank of America N.A. ($25 million). All funds were received today. The company repaid RSA $372 million owed on the debtor-in-possession facility, and also paid RSA $9.4 million of administrative rent, and paid structuring, loan syndication, collateral agent, loan administration and professional fees and expenses totaling approximately $48 million.
 
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700UW said:
So instead of him losing it all he became the DIP financier and made a profit at that, invested another $240 million and became majority ownership of the airline and loaned US $75 million of the $100 million non-gauranteed portion of the loan.
Question not a statement? Isn't this why the Texas group didn't end up with us, and sell us in pieces last year?
 
TPG, never said they would sell US, where are you coming up with that?

They turned around America West and Continental.

Also on September 26, the Court will consider the proposal under which Texas Pacific Group will make a $200 million investment in the equity of the airline upon its emergence from Chapter 11. This investment, which remains subject to continuing diligence and final documentation, competing and/or higher offers, and court approval, would result in Texas Pacific Group owning about 38 per cent of the airline, post-emergence.

Siegel said he was extremely pleased by the first-day orders entered by the Court, as well as the support received at the first-day hearing by the Company`s employee labour unions. "While we restructure, our operations continue, and we will continue to purchase and pay for goods and services from our suppliers," he said, noting that US Airways has already contacted a number of its major vendors, who have indicated their support of the Company`s restructuring initiatives.

6. Will the Company be sold or seek a merger partner as part of the restructuring?

It is our intent to remain a stand-alone business. We will, of course, continue to pursue international and domestic code share alliances as a key component of our business plan. Our plans for our marketing alliance with United Airlines are not impacted by the filing. As announced, Texas Pacific Group has entered into a $200 million investment in the new equity of the airline upon its emergence from Chapter 11.

8. Does the Company have enough cash to stay in business?

US Airways has secured $500 million in new financing from a group of institutions led by Credit Suisse First Boston and Bank of America Corp. US Airways is also pleased to announce that Texas Pacific Group joins US Airways as an equity investor. Texas Pacific Group was also an investor in Continental Airlines' 1993 reorganization and they are also significant investors in Burger King, J. Crew, PetCo and Del Monte. Participation of these top-tier institutions is a strong endorsement of US Airways and the steps our company is taking to build a better airline. These funds will ensure that we will have adequate resources to buy goods and services and fulfill all obligations to employees, retirees, customers and suppliers while we restructure.
 
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700UW said:
They turned around America West and Continental.
Okay, didn't they hit them with low low wages and major concessions? I didn't keep up with CO and HP's dealing with TPG. I knew some employees at CO that hit the road when their pay was slashed. Are you saying we would have been better off with TPG than RSA?
 
They were both non-union so there were no concessions, and in another thread I clearly stated how HP did to their employees.

There wages were all ready low, even the ATSB did not require HP to enact wage concessions on their employees.

And I think we would have been better off as TPG has airline experience had grand plans of marketing US, instead of just marketing us in AL.

But none of us really know, but bottom line is RSA is trying to enrich their coffers and make a profit directly from our W-2s.
 
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That’s so contrary to everything IV read about Bronner??? I guess time will tell...
 
Have you been living under a rock?

In Fall/Winter of 2002 he threatened liqiudiation if the unions did not give more concessions he did this in the New York Times
 

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