Bronner Bites Off More Than He Can Chew?
- Thread starter usair_begins_with_u
- Start date
Looks like Bronner isn't going to stick around for another BK... he will pull out his 250 mill and let Bruce find some other sucker to be the DIP for the next BK... the trouble is, UAIR will have to sell some assets to pay him off or risk liquidation. They can't touch the 700 mill of the ATSB loan, they only have another 200 mill in real "cash"....
Bronner learned his lesson just like Buffet did with the Airlines...
Bronner learned his lesson just like Buffet did with the Airlines...
NeedForSpeedNFS
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- Mar 12, 2004
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As of friday, August 13th, it is worth aproximately $99 milion, you are correct though, 700, in BK, it's GONE!!700UW said:
BoeingBoy
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Here's the PIT Trib-Review take on the subject of the thread...
Bronner says he's willing to lose stake
By Steve Halvonik
TRIBUNE-REVIEW
Tuesday, August 17, 2004
US Airways Chairman David G. Bronner said Monday he is prepared to lose his $240 million investment in the financially troubled airline -- a likely occurrence, he conceded, unless the company's 28,000 employees approve $800 million in wage and benefits cuts soon.
Article
Jim
ps - I loved the last paragraph...
"Bronner called Pittsburgh International a "beautiful'' airport and said US Airways may take another look at operations here if it can survive September. Bronner said he had heard that Philadelphia's airport was crowded and that there might be some operations that could be transplanted to Pittsburgh, but he offered no details."
The man says in the article that started this thread that he spends 30-40 hours a week on U, and he's "heard" that PHL is crowded...
Bronner says he's willing to lose stake
By Steve Halvonik
TRIBUNE-REVIEW
Tuesday, August 17, 2004
US Airways Chairman David G. Bronner said Monday he is prepared to lose his $240 million investment in the financially troubled airline -- a likely occurrence, he conceded, unless the company's 28,000 employees approve $800 million in wage and benefits cuts soon.
Article
Jim
ps - I loved the last paragraph...
"Bronner called Pittsburgh International a "beautiful'' airport and said US Airways may take another look at operations here if it can survive September. Bronner said he had heard that Philadelphia's airport was crowded and that there might be some operations that could be transplanted to Pittsburgh, but he offered no details."
The man says in the article that started this thread that he spends 30-40 hours a week on U, and he's "heard" that PHL is crowded...
jimntx
Veteran
PineyBob said:
Bronner is not an individual investment magnate. The money he invested in US Airways was invested on behalf of the Retirement System of Alabama. It is illegal for public retirement systems to invest in privately held companies--lack of accountability and public scrutiny through the SEC, etc.
And, he has results to back up his ego. The RSA has assets of $25 billion (that's billion with a B). Bronner has built it to that point through canny investing over the past 31 years. Think about it. There are only about 4 million people total in Alabama, and the small percentage of those who are either retired state employees or retired Alabama teachers have a pension plan worth that much money. It is an admirable accomplishment.
PineyBob said:
Hard to add anything of value to Jim's excellent points, but here goes.
Piney, first you say that the investor group buys the remaining stock and takes the company private.
But then you contradict yourself when you say "since his group would only be buying assets" - if you buy all the stock of a corporation, you haven't bought the assets.
The only way that RSA could buy the assets would be thru an asset purchase (like AA's purchase of TWA).
Which is it? Is he buying stock or assets (they are usually mutually exclusive)? B)
And his accomplishments in Alabama are legendary; he took a $500 million pension fund and enlarged it to over $25 billion. That's more than a 50 fold increase in value in those 31 years.
His handling of USAir may be despised by those at USAir and connected to U, but to many in Alabama, he's still a god.
PITbull
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- Dec 29, 2002
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FWAAA,
To us he's a piece of work....
He turned the RSA fund into $25 billion, but comes to USAirways and desiminates our pensions.
Yea, real great guy...and a real winner.
I suggest he stay in Alabama where he can be worshiped.
BTW, FWAAA, go read the thread I started... <_<
To us he's a piece of work....
He turned the RSA fund into $25 billion, but comes to USAirways and desiminates our pensions.
Yea, real great guy...and a real winner.
I suggest he stay in Alabama where he can be worshiped.
BTW, FWAAA, go read the thread I started... <_<
OP
usair_begins_with_u
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Bronner can get some of RSA's money back simply by selling the stock to a willing purchaser.. The stock RSA bought was an open market purchase... as an equty holder only, RSA is not responsible for any UAir's debt.. I expect something much like TWA/American if UAir is forced into BK again.. There is just way too much bad blood between mgmt and labor to ever save this company.. I blame siegal, gangwal and wolf for most of the damage there... I feel like bronner/lakefield never even had a chance. I dont know who is going to step up and buy RSA out, but at some price, Im sure it will be worth it to some OA.
IT is days like yesterday, when this article was passed around Res, that Agents each need to have those little white vomit bags. This guy is a real "puke"!
Note...he's smoking Cohiba cigars while US employees are fighting to keep a living wage to put food on the table for their kids.
Note...he's smoking Cohiba cigars while US employees are fighting to keep a living wage to put food on the table for their kids.
jimntx
Veteran
usair_begins_with_u said:
That's assuming that there is anyone out there willing to buy the stock.
If US Airways goes into bankruptcy again, I doubt very seriously that there will be anything like the the AA/TWA transaction happening. I'm not trying to be mean-spirited or tacky, but when anyone with half a brain looks at what happened in the AA/TWA transaction--particularly the bad blood created between the company management and its employees, between the unions and their members, between the company and station cities--why ever would they want to take on a similar mess?
Whatever purchase of US Airways assets occurs, it will not include the employees. I think that airlines who are looking for gates, landing slots, a/c, maintenance facilities will wait until the Ch. 7 yard sale. Some of the employees might get hired by the purchaser, but it would be after that airline had recalled all its furloughed employees and had publicly advertised job openings. The purchaser would do everything possible to avoid seniority and pay issues.
Not a slam at US Airways employees. I think the same thing will happen if UAL, AA, DL, NWA, or CO goes Ch. 7. From now on out into the foreseeable future, airline employees who lose their jobs and go to another airline will do it by starting over at the bottom.
Think about it. Say for instance that ATA decides to ramp up and replace US Airways in the major cities that U served. When US Airways has flight attendants on furlough that would be senior to most of ATA's working flight attendants if they took them on under AFA rules (DOH seniority), you are looking at a (probably) insurmountable employee relations problem.
jimntx
Veteran
Heinrich said:Moonshine and bestiality...in that order???
:blink:
[post="169510"][/post]
Heinrich. That's German, isn't it? Maybe drunken beer bashes and genocide via cooking live people in ovens is more to your taste. (Bigotry is not so attractive when it's directed at you, is it?)
WorldTraveler
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jimntx,
Don't count on ATA to bail out anyone. I take it you have seen ATA's statement that it could be out of cash by early 2005. Less than $200M is pretty slim to have right now.
The bottom line is that there is a contraction about ready to occur in the industry and it will be concentrated in the legacy sector. There will be substantial assets set aside, cities will lose service or have it greatly reduced, and many airline employees will never work in the industry again. US is only at the front of the pack of what will happen to the legacy carriers. The only salvation for the other legacies will be if they choose NOT to follow US and UA's pattern of confrontational employee relations as part of cutting costs while moving very slowly, if at all, to transform the business model.
Don't count on ATA to bail out anyone. I take it you have seen ATA's statement that it could be out of cash by early 2005. Less than $200M is pretty slim to have right now.
The bottom line is that there is a contraction about ready to occur in the industry and it will be concentrated in the legacy sector. There will be substantial assets set aside, cities will lose service or have it greatly reduced, and many airline employees will never work in the industry again. US is only at the front of the pack of what will happen to the legacy carriers. The only salvation for the other legacies will be if they choose NOT to follow US and UA's pattern of confrontational employee relations as part of cutting costs while moving very slowly, if at all, to transform the business model.
USA320Pilot
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PineyBob:
PineyBob said: "Just curious, because this guy has a ego the size of small planets and IMO he ain't going quietly."
USA320Pilot: As you know, the company has hired bankruptcy financial and legal consultants. According to Bruce Lakefield at last week's MEC meeting, the more union's that participate in the new business plan the better the odds of the airline surviving, whether in or out of bankruptcy.
Dependent on how negotiations go during the next few weeks, as well as the IRS pension waiver (where the company said the odds are not good for government approval), will determine ownership, but I can tell you this, you're right about David Bronner and I have been told there is a plan(s) to not cancel the security and for RSA to maintain control of the airline.
Respectfully,
USA320Pilot
PineyBob said: "Just curious, because this guy has a ego the size of small planets and IMO he ain't going quietly."
USA320Pilot: As you know, the company has hired bankruptcy financial and legal consultants. According to Bruce Lakefield at last week's MEC meeting, the more union's that participate in the new business plan the better the odds of the airline surviving, whether in or out of bankruptcy.
Dependent on how negotiations go during the next few weeks, as well as the IRS pension waiver (where the company said the odds are not good for government approval), will determine ownership, but I can tell you this, you're right about David Bronner and I have been told there is a plan(s) to not cancel the security and for RSA to maintain control of the airline.
Respectfully,
USA320Pilot
