http://www.charlotte.com/mld/charlotte/business/
Lists Continental, Delta, Northwest and Richard Branson.......
Lists Continental, Delta, Northwest and Richard Branson.......
Charlotte Observer Article
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Yes I agree. I think the time of the "unique corporate transaction" that Chip has talked about may be announced soon.usfliboi said:
USA320Pilot
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Airlines voice interest in US Airways' assets
Competitors, operators have contacted Morgan Stanley
CHARLOTTE (Observer) - At least five airlines or airline operators have expressed interest in buying US Airways' assets if the company chooses to sell them, sources say.
Continental Airlines, Delta Air Lines, Northwest Airlines and British aviation entrepreneur Richard Branson have all contacted US Airways or investment banker Morgan Stanley to say they are interested in looking at the assets, say aviation sources. Phoenix-based Mesa Air Group is also interested, said Mesa Chief Executive Jon Ornstein.
It is unclear what assets would appeal to the competing carriers. US Airways retained Morgan Stanley to identify and evaluate assets and to seek potential buyers if it chooses to sell them, airline spokesman David Castelveter said Tuesday.
Castelveter declined to comment on potential bidders. Continental, Delta and Northwest also declined to comment, and a Branson spokesman did not return phone calls.
US Airways, which has its largest hub and 5,681 employees in Charlotte, is entering a critical year just nine months after emerging from bankruptcy protection. It faces mounting low-fare competition and a need to meet covenants associated with a $900 million government loan. It has lost $4.5 billion since 2001.
The airline must either reduce costs or sell assets, Chairman David Bronner has said. Bronner intends to lay out the options to other directors at a February board meeting.
Ornstein said Tuesday he would buy assets only as part of an effort to assist US Airways. Mesa Air Group is the largest operator of US Airways Express flights.
Ornstein said he would consider acquiring US Airways' regional carriers -- Piedmont Airlines Inc., Allegheny Airlines and PSA Airlines Inc. -- which currently operate as US Airways Express, but declined to say what other assets he might be interested in.
PSA operates seven regional jets and turboprops, while Piedmont and Allegheny operate turboprops exclusively. The regionals could be used to serve other Mesa partners, such as United Airlines and America West Airlines, Ornstein said.
"It is our hope that US Airways doesn't have to sell any assets and that they can profitably operate all of the assets they are considering selling," he said. "But if that's not the case, we stand ready to do what is necessary that is in the mutual interest of Mesa and US Airways.
"All of these assets are incredibly valuable to the right party," he said, noting that US Airways' cost structure makes it difficult to operate them profitably. He added that many of the airline's cost structure problems could be addressed through "a high degree of cooperation between labor and management."
Analysts have said most of US Airways' assets have little value, but the shuttle -- which operates between New York, Washington and Boston -- and other assets associated with congested Northeast airports are exceptions. US Airways has 17 gates at Boston Logan Airport, 20 at New York La Guardia and 14 at Washington National. At the latter two airports, US Airways also has slots, or assigned takeoff and landing times.
Competitors, operators have contacted Morgan Stanley
CHARLOTTE (Observer) - At least five airlines or airline operators have expressed interest in buying US Airways' assets if the company chooses to sell them, sources say.
Continental Airlines, Delta Air Lines, Northwest Airlines and British aviation entrepreneur Richard Branson have all contacted US Airways or investment banker Morgan Stanley to say they are interested in looking at the assets, say aviation sources. Phoenix-based Mesa Air Group is also interested, said Mesa Chief Executive Jon Ornstein.
It is unclear what assets would appeal to the competing carriers. US Airways retained Morgan Stanley to identify and evaluate assets and to seek potential buyers if it chooses to sell them, airline spokesman David Castelveter said Tuesday.
Castelveter declined to comment on potential bidders. Continental, Delta and Northwest also declined to comment, and a Branson spokesman did not return phone calls.
US Airways, which has its largest hub and 5,681 employees in Charlotte, is entering a critical year just nine months after emerging from bankruptcy protection. It faces mounting low-fare competition and a need to meet covenants associated with a $900 million government loan. It has lost $4.5 billion since 2001.
The airline must either reduce costs or sell assets, Chairman David Bronner has said. Bronner intends to lay out the options to other directors at a February board meeting.
Ornstein said Tuesday he would buy assets only as part of an effort to assist US Airways. Mesa Air Group is the largest operator of US Airways Express flights.
Ornstein said he would consider acquiring US Airways' regional carriers -- Piedmont Airlines Inc., Allegheny Airlines and PSA Airlines Inc. -- which currently operate as US Airways Express, but declined to say what other assets he might be interested in.
PSA operates seven regional jets and turboprops, while Piedmont and Allegheny operate turboprops exclusively. The regionals could be used to serve other Mesa partners, such as United Airlines and America West Airlines, Ornstein said.
"It is our hope that US Airways doesn't have to sell any assets and that they can profitably operate all of the assets they are considering selling," he said. "But if that's not the case, we stand ready to do what is necessary that is in the mutual interest of Mesa and US Airways.
"All of these assets are incredibly valuable to the right party," he said, noting that US Airways' cost structure makes it difficult to operate them profitably. He added that many of the airline's cost structure problems could be addressed through "a high degree of cooperation between labor and management."
Analysts have said most of US Airways' assets have little value, but the shuttle -- which operates between New York, Washington and Boston -- and other assets associated with congested Northeast airports are exceptions. US Airways has 17 gates at Boston Logan Airport, 20 at New York La Guardia and 14 at Washington National. At the latter two airports, US Airways also has slots, or assigned takeoff and landing times.
Light Years
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Wow, I'd rather stab myself in the face than have Ornstein for a boss. Talk about never having anything to look forward to as an employee. He may be able to to get slave wages for his commuters but he's really got it coming if he thinks he's getting into it with U's unions. They may as well kiss the whole thing goodbye before going this route. :down:
Cosmo
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It seems to me that one relatively painless way for US Airways to attract some cash through asset sales would be to swap some of its excess mainline slots at DCA and LGA for commuter slots held by other carriers. The carrier could trade mainline slots that it is already underutilizing anyway (hence the term "excess"), such as for flights from DCA and LGA to Upstate New York that now use RJs or turboprops, to one or more other carriers (American and/or Delta, perhaps?) that would pay a premium to upgrade some of those carriers' current RJ flights to mainline service. Thus, US Airways would continue to be able to operate its current RJ and turboprop flights at DCA and LGA, and even use the new EMB-170s, but it would have also benefitted by getting paid for the difference in value between a mainline slot and a commuter slot -- possibly as much as $500,000 per slot trade depending on the airport and the time of day.
Of course, the downside to this scenario is that US Airways might then face added mainline competition at DCA and LGA from carriers using its former slots. But if it is absolutely necessary for US Airways to raise some cash, such a trade-off might be the best choice from amongst a bunch of progressively worse alternatives since it still allows the carrier to maintain its current number of flights at the two slot-controlled airports while strengthening its financial position.
Of course, the downside to this scenario is that US Airways might then face added mainline competition at DCA and LGA from carriers using its former slots. But if it is absolutely necessary for US Airways to raise some cash, such a trade-off might be the best choice from amongst a bunch of progressively worse alternatives since it still allows the carrier to maintain its current number of flights at the two slot-controlled airports while strengthening its financial position.
i really am not savvy on bussiness transactions but would it be a bad thing if ornstein bought the assets. it would still be branded usairways wouldn't it? i really would not like to see continental,american,northwest,and especially virgin usa taking over our shuttle. anyway,i still am optomistic that we will come out ok . i have to be. we have to much of a good product to let it all go to hell. i think that consolidating allegheny into peidmont is a step into the right direction.
767jetz
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USA320Pilot said:
USA320Pilot,
I guess if you've been around here for a while, you probably are familiar with something called a UCT and it's many renditions. It was talked about quite vigorously by a member who seems to have disappeared from this sight a few days ago. This member claimed to have secret informed sources and bragged about using his real name on this forum... Any-who, just wondering what your thoughts are about this UCT thing since US announced it's intension to sell it's assets?
respectfully,
regards,
etc.etc.etc.,
767jetz
USA320Pilot
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- May 18, 2003
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A UCT derivative is alive and well and has a higher probability than ever, although due to the murky situation, it could become a full-blown merger. In addition, there are reports that the ATSB has told United executives the airline's new loan guarantee application is insufficient.
Apparently, the board is skeptical of the United can achieve the projected revenue and in light of the industry wide problem of yield deterioration.
Thus, the Chicago-based airline may have to seek more cost cuts as witnessed by the company seeking to reduce retiree medical benefits.
In addition, Bloomberg News reported three days ago US Airways may shift its Pittsburgh operations westward, the Pittsburgh hub operation is being held hostage to United's bankruptcy, and informed sources have said United may have to reject its Dulles leases and close the hub. One plan being discussed is for the Dulles assets to be moved to Philadelphia where they could be integrated into US Airways operations.
In regard to US Airways, yesterday the ALPA MEC Officers and Financial Advisors met in Washington where the company provided details of its plan to add 60 new A320 aircraft to the company's mainline fleet, which could provide more jobs for US Airways pilots before the United corporate transaction.
ALPA MEC Chairman Bill Pollock has called a special meeting that will convene on Monday to discuss the company's contract proposal.
See Story
In addition, US Airways chairman David Bronner, who this observer has confirmed his retirement fund owns significant United assets, has said the Arlington-based airline may not have to sell assets. In a recent CBS article (click here for story), CBS news reported US Airways won't have to sell any assets if it can get its costs down, its nonexecutive chairman says. Union leaders say they are willing to talk about making concessions.
Finally, court records indicate that Bronner's RSA is one of United's largest creditors ranking 32nd on the list.
Regards,
USA320Pilot
Apparently, the board is skeptical of the United can achieve the projected revenue and in light of the industry wide problem of yield deterioration.
Thus, the Chicago-based airline may have to seek more cost cuts as witnessed by the company seeking to reduce retiree medical benefits.
In addition, Bloomberg News reported three days ago US Airways may shift its Pittsburgh operations westward, the Pittsburgh hub operation is being held hostage to United's bankruptcy, and informed sources have said United may have to reject its Dulles leases and close the hub. One plan being discussed is for the Dulles assets to be moved to Philadelphia where they could be integrated into US Airways operations.
In regard to US Airways, yesterday the ALPA MEC Officers and Financial Advisors met in Washington where the company provided details of its plan to add 60 new A320 aircraft to the company's mainline fleet, which could provide more jobs for US Airways pilots before the United corporate transaction.
ALPA MEC Chairman Bill Pollock has called a special meeting that will convene on Monday to discuss the company's contract proposal.
See Story
In addition, US Airways chairman David Bronner, who this observer has confirmed his retirement fund owns significant United assets, has said the Arlington-based airline may not have to sell assets. In a recent CBS article (click here for story), CBS news reported US Airways won't have to sell any assets if it can get its costs down, its nonexecutive chairman says. Union leaders say they are willing to talk about making concessions.
Finally, court records indicate that Bronner's RSA is one of United's largest creditors ranking 32nd on the list.
Regards,
USA320Pilot
