Conversation With Lakefeild On Thurs In Clt

[drifterreno]

Since U's salaries are closer to HP's these days HP could purchase the airline, keep a hub on the East Coast--Clt is okay--or INT for a res center then do what AA did to TWA--Are there any TWA people still working at AA???

 

[xoxo]

I beleive AW is AFA, so they have to slot in by seniority with the F/A's. No bumping to the bottom.

 

[Busdrvr]

iaske him how is united gonna buy us if they are hurting as well . he said they have a few tricks up their sleeves and he left it at that

Yes they do... Instead of pulling a USA320, I'll leave it at that and watch what happens

I don't disagree with anything either Winglet or Rob said, but I can see 1 possible rational for UA acquiring US - if it could be done cheap like via a stock swap.

Winglet and Rob don't run airlines.
I personally think UAL's likely target will be DAL if things continue to get worse. But rest assured, UAL WILL make a play for someone "shortly" after BK (or possibly IN BK), and they will NOT make a play for anyone that isn't BK themselves.

this industry is on the edge of massive changes. There is but one way to fight airlines without legacy costs. Get rid of your own. How does DAL compete when they are still paying debt they used to buy prematurely retired L1011's and MD-11's? They quit paying it. How does AMR compete when they still pay for F100's and MD-11's? They quit paying. It's not "right", it's sleazy, it sucks. But it's gonna happen. UAL will emerge with 6-8 billion in debt vs north of 20 at AMR and DAL. They will have big money behind them (not some hick with dellusions of granduer). Merger's WILL happen. One can only hope that they get a seat at the table (that goes for ALL of us). Good luck! It'll be much more fun to watch from the outside than from the inside.

 

[avek00]

Wishful thinking, IMHO:

1. If United has tricks up its sleeve, it's better off using them to emerge from bankruptcy and proving that United is a viable (i.e., able to generate a profit) enterprise rather than chasing after corpses of dead airlines.

2. With the limited exception of Southwest, no US airline has the money to acquire and INTEGRATE an entire airline into its system. While a stock swap can be done with no money changing hands, a full merger requires pissing away $2B+ in integration costs. No legacy has that kind of spare cash laying around, and even if one did, the prudent choice would be to conserve capital to survive the current crisis.

 

[Dilligas]

Perhaps a more careful reading of the original post in this thread would reveal your collective legs are being pulled. 😛

 

[jimntx]

I could see SWA throwing their hat in the race for the LGA slots, if only to force the price up. Just my thoughts...........

[post="258811"][/post]​

I seriously doubt that. SWA has remained successful by playing the game it knows, and playing it extremely well. They have never entered any market they didn't intend to serve or bid on an asset they didn't really want. They don't need or desire to enter "spite" bids for the LGA slots just to run up the cost for other airlines.

If SWA were to bid on available LGA slots, watch out. That means that Fun Fares are coming to the Big Apple!

 

[etops1]

listen you guys . i am not pulling anyones legs here . what i am saying is abosolutely true. i have no reason to lie. we are going through alot these days. i really was contemplating posting this because i knew many would not buy it. i was as surprised to what lakefeild said about ual as many of you are . he told me he had no reason to b/s me. what he sdaid was absolutely true i would swear it on my son. no reason to lie here guys . none. i really wish i had a tape recorder or something . i wish i could have asked him more questions but it wasn't like i was supposed to interview him. he wa juts sitting at the gate reading the newspaper and i spotted him and sat down and chatted . i asked what came to mind. i am not gonna ask about his pay or anything like that. i just wanted to know what was going on and is there releif in sight. he mentioned ual many times in our conversation . i asked if an aqquision was in the works he just looked at me and well just looked . he could not give me a yes or no but with the look he gave me i would take it as a big yes. i f you don't beleive me he was wearing a beige suit with a striped color tie. while i was tlaking with him terri pope the clt sation manger walked by . lakefeild intrdoduced me to her . seemed like a nice lady as well. he also told me that the nimber 1 enemy right now is not the lowcost carriers . the number one enemy for us is fuel. and its difficult because we can't control it. he said the our fule costs are much more than our labor costs. said that our labor costs are actually lower than wn's .( but i knew that already)

 

[avek00]

I'm not doubting that Lakefield said those things, only highlighting the impossibility of a merger taking place.

 

[jimntx]

Perhaps a more careful reading of the original post in this thread would reveal your collective legs are being pulled. 😛

[post="258831"][/post]​

I agree. In the first place, I have seen posts by etops1 before where he/she disagreed with A320pilot. Therefore, Lakefield would never give etops1 the time of day, much less divulge such important information. This can come only from the horse's mouth.

On UAL/U possible merger...

Do any of you think that the creditors would have nothing to say about this? It would be way easy for the creditors to demonstrate that the LGA&DCA slots could bring in a great deal of cash if sold on the courthouse steps. And, though to the employees, the U judge appears to be in the company's pocket, in truth, the creditors are his first concern.

Whose gonna mop up the unionized-work-group-merger bloodbaths? (Most of the utility people at both airlines have been laid off. 😛 ) I may be wrong, but I think that U has people on furlough that, based on DOH, are senior to UAL employees who are still working. This would make our little AA/TWA debacle look like a cakewalk.

 

[etops1]

I'm not doubting that Lakefield said those things, only highlighting the impossibility of a merger taking place.

[post="258836"][/post]​

well i have learned that in the airline industry nothing is impossible. heck it was impossible for airways to be here passed jan 15th. but i could aslo agree with you. it goes both ways.

 

[justaumechanic]

I'll admit I haven't looked at their annual report, but at the end of the 3rd quarter last year they had nearly $3 billion (that's with a B) in unrestricted cash.  By legacy carrier standards, that's pretty deep pockets.

Jim

ps - just looked....

At the end of the year, they had just under $3 billion in unrestricted cash.

[post="258802"][/post]​

I have to disagree with your statement.

Reading their Feb News Release on earnings.

The airline company, which has been under Chapter 11 bankruptcy protection since December 2002, ended February with a cash balance of $2.2 billion, up $183 million during the month on strong bookings. The cash balance included $870 million in restricted cash.

Keep in mind that most of that money belongs to the creditors.. So your saying that Tilton is going to go to the judge and say "Hey, I know we don't have any money but we want to buy this airline called US Airways, is that ok"

Dream on.

 

[Busdrvr]

http://www.airliners.net/discussions/profi...username=Avek00

If Avek were capable of rational thought with respect to UAL, he'd possibly hjave a little credibility... Then again maybe not. I try to to form economic judgements on the word of a anti-labor "liberal" (guess that's the party that gives him the most set asides so he can compete in the job market 🙄 ) Poli Sci major who has never had a real job...
🙄

 

[etops1]

I agree. In the first place, I have seen posts by etops1 before where he/she disagreed with A320pilot. Therefore, Lakefield would never give etops1 the time of day, much less divulge such important information. This can come only from the horse's mouth.

On UAL/U possible merger...

Do any of you think that the creditors would have nothing to say about this? It would be way easy for the creditors to demonstrate that the LGA&DCA slots could bring in a great deal of cash if sold on the courthouse steps. And, though to the employees, the U judge appears to be in the company's pocket, in truth, the creditors are his first concern.

Whose gonna mop up the unionized-work-group-merger bloodbaths? (Most of the utility people at both airlines have been laid off. 😛 ) I may be wrong, but I think that U has people on furlough that, based on DOH, are senior to UAL employees who are still working. This would make our little AA/TWA debacle look like a cakewalk.

[post="258837"][/post]​

listen dude . lakefeild does not know me as etops1. to him i was just a f/a who came up to him with some quest. i am sure if you did the same he would have talked to you too. like i said i am not lying here i have no reason too . i don't have too prove anthything to your sorry ass anyway. and it did come from the horse's mouth

 

[etops1]

and please do not associate me to a230 pilot. thnx

 

[usairways_vote_NO]

Winglet and Rob don't run airlines.

[post="258822"][/post]​

I was just curious since you offered your opinion too can you do a self-disclosure? Do you run a airline?