Bronner Not Interested In Ual

[USA320Pilot]

If I was a venture capitalist, I would not invest in any airline as an equity plan sponsor, unless I was 100% sure I would obtain a reasonable ROR.

Respectfully,

USA320Pilot

 

[usairways_vote_NO]

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

I need to change this

I meant to say that:

And again the only thing the Forbes article addressed about Bonner being a equity plan sponsor in United is that it ain't gonna happen.

 

[mweiss]

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

Don't get your hopes up. Any "merger" of HP and US would look like the "merger" between AA and TW.

 

[mweiss]

If I was a venture capitalist, I would not invest in any airline as an equity plan sponsor, unless I was 100% sure I would obtain a reasonable ROR.

Good thing you're not a VC then. You'd never invest in anything, let along airlines.

 

[funguy2]

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.

Let's also not forget that Bronner has said he will not throw good money after bad... Right now, any investment in US Airways is precisely that... Note how the company is currently facing a potential BK rather than a potential liquidity crisis solved through additional RSA investment.

Chances are very high that if UAL needs to sell assets, US Airways will not be in a financial shape such that US Airways, or RSA on behalf of US Airways, would be able to acquire any UAL assets.