Here more on Bronner's BOY
Tuesday April 01, 2003
US Airways Group emerged from Chapter 11 bankruptcy protection March 31 on schedule with $1.24 billion in fresh liquidity, including a $240 million equity investment from Retirement Systems of Alabama and a $1 billion loan--$900 million of which is guaranteed by the Air Transportation Stabilization Board.
The remaining $100 million of at-risk funds are provided by RSA ($75 million) and Bank of America ($25 million). In exchange for its investment, RSA holds a 36.6% stake in the reorganized airline. The remaining stock will be divided as follows: Air Line Pilots Assn. 19.3%, other work groups 10.8%, unsecured creditors 10.5%, ATSB 10%, management 7.8% and General Electric 5.0%.
"Securing the $1.24 billion of added capital funds was critical to boosting our liquidity, executing our business plan and weathering the very difficult operating environment that airlines face due to the Iraq war and general economic weakness," said President and CEO David Siegel.
US Airways continues to negotiate with both Embraer and Bombardier for regional jets and anticipates placing a "significant order in the near future," Siegel stated. Its new Regional airline division, MidAtlantic Airways, should start taking delivery of RJs in the fall and begin operations in the fourth quarter.
The company also informed Allegheny County authorities that it has set an effective rejection date of Jan. 5, 2004, to complete renegotiation of leases at Pittsburgh International Airport and related facilities. "As the industry continues to restructure and the focus of our operations at Pittsburgh shifts to accommodate more RJs, we need the flexibility of renegotiating our leases," Siegel said.
In addition, the airline announced that it entered into a 5.5-year agreement with Bank of America to process its credit card transactions effective May 15 upon termination of its current agreement with National Processing Corp.
TRIBUNE-REVIEW
Thursday, May 29, 2003
US Airways Chief Executive Officer David N. Siegel went looking for love Wednesday among business leaders in the Washington, D.C., area -- and suggested the airline could move its headquarters if it doesn't find it.
Among the places that US Airways could land, Siegel said in remarks to a Greater Washington regional economic development organization, are Pittsburgh, Montgomery, Ala., and Charlotte, N.C.
"So after years of being the geeky kid at the school dance, things are looking up. We got the braces off our teeth, and the acne has cleared up. We've got a new hairstyle and wardrobe. We're starting to look pretty good to people," he said. "I admit that I like the fact that people are actually vying for our attention," Siegel said.
When Gov. Ed Rendell suggested last month that having US Airways move its headquarters to Pittsburgh would make sense, airline Chairman David Bronner said that such a relocation would not be not likely. He said US Airways executives want to remain in the Washington, D.C., area. Bronner could not be reached for comment last night.
US Airways SEC Filing Shows CEO Was Paid $1.45M
Dow Jones Business News Friday March 28, 1:25 am ET
NEW YORK (Dow Jones)--US Airways , which entered bankruptcy in August, brought in new executives at higher salaries while it was cutting the pay of other employees, according to filings the airline made with the Securities and Exchange Commission, The Washington Post reports in its Friday edition.
The airline paid chief executive David N. Siegel about $1.45 million in salary and bonuses in his first year at the airline, almost double the $734,561 in compensation that his predecessor, Rakesh Gangwal, received in 2001, the Post said.
The carrier also increased Chief Financial Officer Neal S. Cohen's pay and bonus by 69%, according to the Post.
During bankruptcy reorganization, the Arlington-based carrier secured more than $1.9 billion in pay and contract concessions from its employees, leaseholders and aircraft suppliers. The airline is also preparing to receive $ 900 million in federal loan guarantees when it exits from bankruptcy, the Post reported.
CEO Dave Siegel says res salaries are a problem and he claims JetBlue has it right paying $9 per hour...
Dave Siegel's February 25 speech outlined his claim that US Airways is "burdened by high labor costs."
He gave only one example of excessive hourly pay - that was the US Airways Res Sales Reps. He said:
"Even with pay cuts secured during the restructuring process, we pay our telephone reservations agents a base pay of about $21 per hour, plus a very generous benefits package…But JetBlue is paying their telephone agents $9 per hour with modest benefits."
Mr. Siegel's figure for US Airways Reservations Sales Representatives is inaccurate (top base rate is $20.05, not $21), so we assume his figure for JetBlue is also inaccurate.
To focus on some of the most highly productive revenue producers working in one of the most stressful environments in the company is unacceptable. We call on Mr. Siegel to apologize for his off-hand remarks.
The second major point of Dave Siegel's speech is that he wants lower employee costs so that US Airways will be easier to sell when the inevitable consolidation comes.
Full Text of the Speech>
http://web.archive.org/web/20040401184336/http://cwa.net/jumppages/SIEGELSPEECHjump.asp
Tuesday April 01, 2003
US Airways Group emerged from Chapter 11 bankruptcy protection March 31 on schedule with $1.24 billion in fresh liquidity, including a $240 million equity investment from Retirement Systems of Alabama and a $1 billion loan--$900 million of which is guaranteed by the Air Transportation Stabilization Board.
The remaining $100 million of at-risk funds are provided by RSA ($75 million) and Bank of America ($25 million). In exchange for its investment, RSA holds a 36.6% stake in the reorganized airline. The remaining stock will be divided as follows: Air Line Pilots Assn. 19.3%, other work groups 10.8%, unsecured creditors 10.5%, ATSB 10%, management 7.8% and General Electric 5.0%.
"Securing the $1.24 billion of added capital funds was critical to boosting our liquidity, executing our business plan and weathering the very difficult operating environment that airlines face due to the Iraq war and general economic weakness," said President and CEO David Siegel.
US Airways continues to negotiate with both Embraer and Bombardier for regional jets and anticipates placing a "significant order in the near future," Siegel stated. Its new Regional airline division, MidAtlantic Airways, should start taking delivery of RJs in the fall and begin operations in the fourth quarter.
The company also informed Allegheny County authorities that it has set an effective rejection date of Jan. 5, 2004, to complete renegotiation of leases at Pittsburgh International Airport and related facilities. "As the industry continues to restructure and the focus of our operations at Pittsburgh shifts to accommodate more RJs, we need the flexibility of renegotiating our leases," Siegel said.
In addition, the airline announced that it entered into a 5.5-year agreement with Bank of America to process its credit card transactions effective May 15 upon termination of its current agreement with National Processing Corp.
TRIBUNE-REVIEW
Thursday, May 29, 2003
US Airways Chief Executive Officer David N. Siegel went looking for love Wednesday among business leaders in the Washington, D.C., area -- and suggested the airline could move its headquarters if it doesn't find it.
Among the places that US Airways could land, Siegel said in remarks to a Greater Washington regional economic development organization, are Pittsburgh, Montgomery, Ala., and Charlotte, N.C.
"So after years of being the geeky kid at the school dance, things are looking up. We got the braces off our teeth, and the acne has cleared up. We've got a new hairstyle and wardrobe. We're starting to look pretty good to people," he said. "I admit that I like the fact that people are actually vying for our attention," Siegel said.
When Gov. Ed Rendell suggested last month that having US Airways move its headquarters to Pittsburgh would make sense, airline Chairman David Bronner said that such a relocation would not be not likely. He said US Airways executives want to remain in the Washington, D.C., area. Bronner could not be reached for comment last night.
US Airways SEC Filing Shows CEO Was Paid $1.45M
Dow Jones Business News Friday March 28, 1:25 am ET
NEW YORK (Dow Jones)--US Airways , which entered bankruptcy in August, brought in new executives at higher salaries while it was cutting the pay of other employees, according to filings the airline made with the Securities and Exchange Commission, The Washington Post reports in its Friday edition.
The airline paid chief executive David N. Siegel about $1.45 million in salary and bonuses in his first year at the airline, almost double the $734,561 in compensation that his predecessor, Rakesh Gangwal, received in 2001, the Post said.
The carrier also increased Chief Financial Officer Neal S. Cohen's pay and bonus by 69%, according to the Post.
During bankruptcy reorganization, the Arlington-based carrier secured more than $1.9 billion in pay and contract concessions from its employees, leaseholders and aircraft suppliers. The airline is also preparing to receive $ 900 million in federal loan guarantees when it exits from bankruptcy, the Post reported.
CEO Dave Siegel says res salaries are a problem and he claims JetBlue has it right paying $9 per hour...
Dave Siegel's February 25 speech outlined his claim that US Airways is "burdened by high labor costs."
He gave only one example of excessive hourly pay - that was the US Airways Res Sales Reps. He said:
"Even with pay cuts secured during the restructuring process, we pay our telephone reservations agents a base pay of about $21 per hour, plus a very generous benefits package…But JetBlue is paying their telephone agents $9 per hour with modest benefits."
Mr. Siegel's figure for US Airways Reservations Sales Representatives is inaccurate (top base rate is $20.05, not $21), so we assume his figure for JetBlue is also inaccurate.
To focus on some of the most highly productive revenue producers working in one of the most stressful environments in the company is unacceptable. We call on Mr. Siegel to apologize for his off-hand remarks.
The second major point of Dave Siegel's speech is that he wants lower employee costs so that US Airways will be easier to sell when the inevitable consolidation comes.
Full Text of the Speech>
http://web.archive.org/web/20040401184336/http://cwa.net/jumppages/SIEGELSPEECHjump.asp
