Bruce, Branson & Bronner

[EyeInTheSky]

Read Bruce's bio - lived in London for many years, knows the way business works in Europe. Also, his former company did business with Virgin Group. Richard Branson has gone on the record stating they have been talking with US Airways - Siegel played the denial game. Could Bruce in the CEO chair open up a world of opportunities?

 

[deltawatch]

Maybe 1/3 of Usairways will become Virgin USA .....

 

[SalesGuyCCY]

I think Branson wants our assets/slots/gates, NOT our high cost employees! Who would!?!?

 

[EyeInTheSky]

If the choice comes down to working for Richard Branson under a low cost carrier contract or shutting down, I am inclined to think the employees might work with him. Still, it's not Branson's style to come in and take over an ailing airline. He's a build it yourself kind of guy. BUT, how often does the opportunity come along to purchase an airline with the route structure of US Airways? In one fell swoop, he could purchase the airline and enough marketing potential to make Virgin a household name in the U.S. within a year. It's risky, but how often does an opportunity like this arise? The guy is a risk taker, and yeah this will be tougher than an around the world balloon trip. Intriguing though...

 

[RowUnderDCA]

DCA, LGA and BOS for Virgin.

The rest fire sale. If NWA wants to put UAL out of its misery it might think that it can do that with picking up PHL and CLT. But it's kind of far fetched. And the ATSB financing hurdles will have to be met. Very complicated. Especially, then, would NWA split with SkyTeam and hook up with Star replacing UAL? Eh, I'm actually getting tired of thinking of it. What's up with 'Survivor,' lately?

 

[jimntx]

If U, or any part of it--can you say LGA and DCA slots?--goes on the block, it will not be a slam dunk for Mr. Branson, or anyone else for that matter. The bidding will be fierce. But I agree with SalesGuyCCY. If any assets come encumbered with employees, I think everyone will wait for a post-Ch.7 yard sale. The problems that AMR has had with the TWA purchase serve as a cautionary tale for anyone thinking of taking on an airline and its employees.

But, let me go on record as saying I hope that it doesn't come to that for U and its employees. Maybe the new guy can find a way out of this mess. Good luck, guys!

 

[7.5victim]

Still, it's not Branson's style to come in and take over an ailing airline.

Virgin Express was built from the former EuroBelgian Airways. Branson bought the high cost, low productivity carrier and tried to turn it into one of the first european LCC's. He's had much more success with Virgin Blue, which was started with a clean sheet of paper and a fresh wad of cash.

Those who do not remember history are doomed to repeat it. Branson's a smart man. He'll see what worked and what didn't. I doubt he'll want much of US besides gates and slots.

 

[EyeInTheSky]

7.5 victim, Branson's Virgin Blue success is due totally in part to Ansett going under and Qantas not reacting quick enough to the demand for an LCC carrier in Australia. FWIW, Virgin Express is doing horribly in Europe, like you said he does better when he starts from scratch.

 

[7.5victim]

EyeInTheSky,

I might give Ansett's failure some of the credit for Virgin Blue's success, but I'd stop short of saying "totally". Virgin Blue was doing just fine before Ansett collapsed. They accelerated the growth after AN's demise.

OTOH, it gives a good example of how a market recovers after the removal of a weak carrier...

 

[skyflyr69]

I think Branson wants our assets/slots/gates, NOT our high cost employees! Who would!?!?

its not some of the high cost employees. read the aviation week article back in march. U had the sharpest drop in labor costs compared to any other airline yet the NON-LABOR costs increased dramatically more than other carriers.
but much improvement can happen such as slashing the res department like JBLU and overhalling the IAM/cleaners.
U just has to many employees per aircraft compared to the other carriers.

 

[BoeingBoy]

It's just my two cents worth and nothing more but I could see Branson being interested in airplanes if they were available. It would allow him to "hit the ground running" with an instant fleet (at least a small one).

Of course, I don't keep up with what's out in the desert - any pretty new suitable planes there could shoot my theory down.

Jim

 

[nycbusdriver]

... and enough marketing potential to make Virgin a household name in the U.S. within a year. ...

It's way too late for that, I think.

 

[nycbusdriver]

EyeInTheSky,

I might give Ansett's failure some of the credit for Virgin Blue's success, but I'd stop short of saying "totally". Virgin Blue was doing just fine before Ansett collapsed. They accelerated the growth after AN's demise.

OTOH, it gives a good example of how a market recovers after the removal of a weak carrier...

Eye -

I agree with your sentiment.

If USAirways closed it's doors today, 90% of the traffic will have recovered within a week. Within a month, it would have become a non-event as far as the industry is concerned.

 

[DOA@Airport]

Eye -

I agree with your sentiment.

If USAirways closed it's doors today, 90% of the traffic will have recovered within a week. Within a month, it would have become a non-event as far as the industry is concerned.

nycbusdriver,

What about all of those small/medium sized communities who depend on US for connecting to a hub? While I don't doubt that other airlines could rather quickly fill the void left by US's demise in terms of mainline flying, I think a lot of smaller communities will be left "high and dry".

 

[mweiss]

Only if they are money-losing cities in the first place. And if they are, then US should have pulled out long ago. The company isn't a charity, and even if it were it cannot afford to continue to be one.