Bronner Not Interested In Ual

[JAMAKE1]

USA320PILOT:

Will YOU explain what UCT and ICT mean? I don't follow....

 

[TheLarkAscending]

Now what will I do with all those 'UCT' baseball caps I had printed???

You could deleted off the letters and sell them on ebay as a retro, never-was-to-be fashion faux pas ?

 

[Bear96]

Jamake,

Over the years, USA320Pilot has come up with many scenarios / concepts / visions of a merger between United and USAirways based on "secret inside information" only he knows about from "high sources" and what the CEO du jour whispered to him on the jumpseat last night, etc. The phrases he most often uses to refer to such plans are UCT (Unique Corporate Transaction) and ICT (Interesting Corporate Transaction). So when others use those terms now, it refers to a fanciful, unrealistic concept of a merger between U and UA.

 

[USA320Pilot]

During the past 6 months I have repeatedly said that I do not want to merge with United and that for a US Airways corporate transaction to occur, the company must first stabilize its finances, then a deal could occur.

Last week's news that the ATSB rejected United's business plan is evidence why I do not want to merge with the Chicago-based airline, among other things.

Why? If the finances are not stabilized then the company will simply liquidate.

There is much uncertainty surrounding the on-going restructuring at United and US Airways, but in the past David Bronner has publicly said four times in interviews he is interesting in "acquiring United assets for US Airways" (not being an equity investor like Forbes indicated) and US Airways management has said the company believes major network carrier consolidation will occur.

Regards,

USA320Pilot

 

[Bear96]

Jamake my friend,

That above post by USA320Pilot pretty much sums up what the ICT/UCT is in a nutshell.

It gets repeated over, and over, and over.

 

[hp_fa]

An FA conversation with a certain pilot.

(During the briefing)

FA: ...and I will make sure the door stays locked and closed at al times.

Pilot: To keep the bad guys out.

FA: No. To keep you in.

 

[usairways_vote_NO]

but in the past David Bronner has publicly said four times in interviews he is interesting in "acquiring United assets for US Airways" (not being an equity investor like Forbes indicated)

Here is that actual quote from article

"Such an amount narrows the number of possible lenders. Two of the most-often mentioned, David Bonderman's Texas Pacific Group and David Bronner's Retirement Systems of Alabama, are likely out.

A source close to Texas Pacific Group says there is little current interest in a United investment.

Bronner, who heads the pension fund that injected $240 million into US Airways (nasdaq: UAIR - news - people ) to get that carrier out of bankruptcy in March 2003, says he's staying out of this one as well.

"I'm not sure who would want to play now," he says. "They're a great airline, but they have to get costs under control. Especially the pensions; you're talking billions there."
END QUOTE

Vote No says: The article that USA320Pilot refers to never indicated that Bronner wants to become equity investor in UAL in fact it quotes Bronner rejecting any equity investment.

As you see USA320Pilot again misrepresents the facts and places his spin on a printed story.

Think about the spin he can put on all his stories from his so called insiders and informed sources that are not verifiable.

 

[funguy2]

A couple of points:

RE: TPG's non-interest
I think whatkindoffreshhell's point about BK is valid. I also think its an "excuse" for betting that UAL will be denied by the ATSB again and will be forced to execute additional cost cuts, at which point they are a more attractive option... Remember, TPG may be a turn around specialist, but its turnarounds have come from airlines with relatively low-costs (AWA and CAL).

RE: UAIR's cash balance
Boeing Boy: I'm not sure where your quote came from, but that is not too far off my prediction made in March. I still think something will occur this fall, with October as my best guess. I don't know what something is... maybe BK, maybe asset sales, maybe cash infusion from RSA,maybe something else... who knows.

But I think its imporatant to note that UAIR went CH11 with $500mil to $600mil in unrestricted cash... You don't go BK when you have $0 unrestricted left... So, I think a CH7 BK is more and more likely, the closer to $700mil unrestricted cash UAIR gets. If UAIR hits the $700mil unrestricted cash loan covenant, and ATSB calls in the loan, UAIR is left with virtually $0... This will cause a shutdown, unless someone steps up with some kind of immediate financing to keep the operation running into a CH11... Whatever happens, it won't be pretty.

Back to TPG/UAL... Wouldn't a TPG investment in a UAL which was denied the ATSB guarantee, thus forcing additional cost cuts, and an industry without UAIR, be a far superior investment for TPG than investing in UAL now? I think so... And I think this is the scenario TPG is betting on too (or something similar), in order to be "interested" in UAL.

I'm not trying to bash on US Airways here, but I don't think a slow transformation to a PIT focus city, a slow tranformation to a focus on LGA/BOS/DCA, a slow movement into PHL as a rolled-hub, using GoFares to (mostly) match LCC service incursions, will do anything to change the company fortunes by Winter 2004-05. The changes US Airways needs are dramatic and immediate... And that doesn't seem to be in the path targeting by management.

 

[JAMAKE1]

Bear...

That was very funny...thanks for coming through for me again.

Best,

JAMAKE

 

[Schatzee]

I'm not trying to bash on US Airways here, but I don't think a slow transformation to a PIT focus city, a slow tranformation to a focus on LGA/BOS/DCA, a slow movement into PHL as a rolled-hub, using GoFares to (mostly) match LCC service incursions, will do anything to change the company fortunes by Winter 2004-05. The changes US Airways needs are dramatic and immediate... And that doesn't seem to be in the path targeting by management.

You are right.

Until Management steps up and leads by example, only a certain pilot will follow.

:down:

 

[Phoenix]

1. ... but if US Airways has a competitive cost structure and United is denied the loan guarantee, who knows what could happen in the future.

2....there is little current interest in a United investment." What I would like to know is how come?

1. Get real. The unique corporate transaction is dead already. The best thing for this industry would be for a BIG airline to shut its doors and park the planes.

2. See #1 above.

 

[USA320Pilot]

CEO sees consolidation of airlines as industry changes

Douglas Parker, chairman, president and chief executive of America West Airlines said the industry is ripe for consolidation because United Airlines is struggling to get a loan guarantee from the Air Transportation Stabilization Board; US Airways, which emerged from Chapter 11 bankruptcy protection is on the verge of returning to bankruptcy court; Delta Air Lines is threatening to file for bankruptcy protection; and Continental Airlines, one of the industry's steadiest financial performers, is also struggling.

Parker said he doesn't expect there would be any liquidation of airlines, but that in order to survive, companies would merge and consolidate.

See Story

Regards,

USA320Pilot

 

[USA320Pilot]

Bear96:

Bear96 said: "Jamake my friend, that above post by USA320Pilot pretty much sums up what the ICT/UCT is in a nutshell. It gets repeated over, and over, and over."

USA320Pilot responds: Bear96, I did not start this topic or thread. By the way, once US Airways stabilizes its finances, whether its consensual or a pre-packaged bankruptcy, then a corporate combination could occur. However, this could change dependent on the ATSB and its decision regarding United. As you know, it's been widely reported in the press United may now be forced to sell assets.

Lets not forget David Bronner speculated in a previous Charlotte Observer column that United has a 50-50 chance of surviving. He said that if United were to sell assets, he would consider backing the purchase of some "if it would be beneficial to US Airways."

That's not an equity plan sponsor, which the Forbes article addressed, but an asset purchase. Will it occur? Probably not unless US Airways has a competitive cost structure because Bronner will likely not put more of RSA's money at risk, unless he can obtain a "bond-like" ROR.

Regards,

USA320Pilot

 

[usairways_vote_NO]

USA320Pilot responds: Bear96, I did not start this topic or thread. By the way, once US Airways stabilizes its finances, whether its consensual or a pre-packaged bankruptcy, then a corporate combination could occur.


That's not an equity plan sponsor, which the Forbes article addressed, but an asset purchase.

While you speak the truth, assuming no other alias, had you found the story first I would have bet you would have been first to post and spin it.

And again the only thing the Forbes article addressed about an equity plan sponsor by Usairways is that it ain't gonna happen.

 

[Bear96]

USA320Pilot responds: Bear96, I did not start this topic or thread.

Nor did I.

Jamake asked what ICT/UCT means; I responded.

What the rest of your post directed to me has to do with the price of Jet-A in China, I have no idea.

I guess you just like to try to find an excuse to post the same thing over, and over, and over, and over, and over, and over, and over, again.

As long as you are having fun.