Eye On The Competition

[700UW]

The CLT Gate leases are exclusive between US and CLT aviation dept, no creditors are entitled to them.

 

[nycbusdriver]

As for the "shuttle", i think there is much to be concerned about when Jetblue comes in. They said it won't be for 18 months or something like that so lets see how we "usairways" handles this one.

[post="253935"][/post]​

I know how they'll handle it:

"They're coming to KILL us!"

"Now, what more can you employees give back?"

 

[mweiss]

The CLT Gate leases are exclusive between US and CLT aviation dept...

...only as long as US continues to remain current with payments.

...no creditors are entitled to them.

[post="253954"][/post]​

No, but the CLT aviation department is entitled to them as soon as US breaks the contract for any reason.

 

[usairways_vote_NO]

...only as long as US continues to remain current with payments.
No, but the CLT aviation department is entitled to them as soon as US breaks the contract for any reason.

[post="253987"][/post]​

Or buys them back from an airline desperately in need of money. How many times has USAirways done the wrong thing? Made the wrong choice?

 

[Capecod]

My guess is JO is thinking this might work if and only if U goes under and CLT is wide open. -Cape

 

[mweiss]

Or buys them back from an airline desperately in need of money.

[post="253992"][/post]​

I think that CLT is most likely pretty content with things the way they are, and sees little point in paying US to abandon gates. I could be wrong, of course.

 

[usairways_vote_NO]

I think that CLT is most likely pretty content with things the way they are, and sees little point in paying US to abandon gates. I could be wrong, of course.

[post="254001"][/post]​

I didn't mean CLT coming after the gates quite the contrary. And buying back wasn't really the correct words for me to use.

 

[mweiss]

Hmmm...are you thinking about some other airline paying US to abandon some gates at CLT? I hadn't considered that possibility. That'd be a different sort of stupidity than exhibited by US management to date, so I don't think it's likely.

 

[usairways_vote_NO]

Has USAirways ever surprized you before with their stupidity?

 

[mweiss]

Not at all. It's just that this particular flavor of stupid hasn't been on their menu before.

 

[usairways_vote_NO]

It think its on the back of the menu under surprize surprize surprize.

 

[usairways85]

BOS-ROC, IAD, SYR, and BUF are also likely once Jetblue receives the 190's. Sounds like an attack on US.

 

[Rico]

Guess time: America West

AWAC-ish kind of investment.

Would explain J Ornstiens strange comment

 

[sfb]

Rico-

This is a situation where I have to agree with you.

I think Ornstein is talking about contingency plans in the event that US Airways Group liquidates, and their ability to redeploy assets (possibly in conjunction with America West or United) to establish a hub at CLT to replace US's operation; it's also possible that they might deploy RJ's in certain other markets from PHL, PIT, or BOS which would be unserved in US Airways' absence. If America West were involved, you might see Texas Pacific Group help finance the acquisition of certain assets. Perhaps this is USA320's UCT/ICT?

To me, the explanation for J.O.'s comments most logically seems to have two purposes -- first, to reassure investors that Mesa has a contingency plan in case US goes Chapter 7; and second, to send a message to US Airways Group that threatening to liquidate unless Mesa does like AWAC still isn't going to get them to drop $125 million into the company.

It's possible, though, that Mesa could make good on this threat even with US Airways still operating. I suspect that the leases on most or all gates on the D and E Concourses at CLT are not exclusive-use given that DOT has frowned upon those arrangements in recent years. Consequently, it's plausible that Mesa could indeed start its own operation at CLT in competition with US -- and that would probably hurt US as much or more than it would hurt Mesa.

 

[Rico]

Well, I was thinking that for the small sum of 125Mill AWAC placed themselves near the front of the line when it came to U assets if things go sour, if AWA kicked in too, that might place them in line near the front too...

Certainily would be smarter than waiting until afterwards, and then having to get involved in some bidding war (ala ATA's MDW stuff)

If U does make it, they line themselves us a variety of options from partial ownership to domestic Code Share to future entrance into the Star Alliance... And so on.

Just my guess. Like I said, for what AWAC got for their investment, AWA could do pretty well for themselves doing nearly the same thing...