Ge A White Knight For Us Airways

[700UW]

GE a white knight for US Airways
Critics say giant is abetting airline industry's problems by propping up sick carriers
Tuesday, April 19, 2005

By Dan Fitzpatrick, Pittsburgh Post-Gazette

General Electric is doing all it can to keep the lights on at US Airways.

The $152 billion maker of light bulbs, refrigerators and the "We bring good things to life" ads, GE entered US Airways' second bankruptcy last fall as the airline's largest creditor. It holds the keys to more than half -- 150 -- of US Airways' fleet and $2.9 billion in leases and loans on aircraft and engines.

Click for Story

 

[delldude]

Discount giant Southwest Airlines lumped government and aircraft vendors together last week, saying in a letter to shareholders that such assistance works against "the free enterprise 'law' of supply and demand. ... Not allowing high-cost carriers to cease operations enables the continuing sale of ever more seat miles at less than the cost of producing them."

Or, as analyst Ashcroft said, "Had US Airways gone out of business by now, the rest of the airlines would likely be better off than they are."

looks like the sharks are circling and GE may be getting tired....oh my oh my.....
is time nearing for last rites?

 

[E-TRONS]

GE's investment into UAIR is peanuts when you look at their overall empire. I think they are trying to avoid having to find new homes for all their airplanes leased by UAIR?? $125 Million (?) is but a small price to pay to keep those birds in the air rather than parked on the Mojave ramp. Pure and simple economics.

 

[Rico]

IMO the Post Gazette should kick in some money to keep US Airways afloat as well.

If U folds, who will this rag have left to bash on and complain about afterall.

 

[700UW]

Sometimes the truth hurts, learn to accept it.

 

[Travelpro72]

I think that when there IS anything positive about US Airways, the Post Gazette reports that as well. The truth does hurt. What this co. has done to Pittsburgh was wrong and now US is the laughing stock. But back to the GE "The White Knights".......lol

 

[usfliboi]

I think that when there IS anything positive about US Airways, the Post Gazette reports that as well. The truth does hurt. What this co. has done to Pittsburgh was wrong and now US is the laughing stock. But back to the GE "The White Knights".......lol

[post="263027"][/post]​

just like you have 700 right?

 

[Whatnow?]

Gimme a break....they just don't give up do they! There is never anything positive to come out of the Post Gazette about USAirways at all. Even when things are starting to get a little quiet, they still have to BASH USAirways. Enough is enough, why don't they start reporting on all the other corruption going on in that city! That will keep them busy for a very long time! And as far as comments made by SWA, about the glut of seats in the market, sounds like they are starting to worry about business too. After all, they are a pretty good source of responsibility for what happening in the Airline Industry right now. All the LCC's are giving the public what they want and may ultimately being putting ALL of the Legacy Carriers out of business. US is only the beginning of problems like this to follow. As far as what US did to Pittsburgh, get over it, business decisions are hard to make but NEED to happen! It's the Airline Industry and it will always be a game of hardball, look at Dayton, Indianapolis, Kansas City, DFW for Delta....the list goes on and on!

 

[funguy2]

Companies largely make their own press positive and negative by how they handle the media folks.

With how well US Airways treats its employees, one can only imagine how they treat the P-G reporter requesting an interview, etc.

Furthermore, companies create their own press by the actions they take. Closing a hub, going BK twice all create news. If the airline sponsored something positive or made a positive action, chances are, in the right circumstances, that would get some press too.

In this case, I don't think the P-G is being unfair. Facts are facts, and as the article points out, US Airways is not the only benficiary.

 

[avek00]

"Local airline analyst Bill Lauer likens GE to a "drug dealer" who keeps his customers alive only so they will come back for more."

I couldn't have put it better myself.

 

[insp89]

"Local airline analyst Bill Lauer likens GE to a "drug dealer" who keeps his customers alive only so they will come back for more."

I couldn't have put it better myself.

[post="263048"][/post]​

I think that's called business as usual..."keeping customers alive only so they will come back for more.

...GE seems to think that Usairways has a good chance of making it as long as they can hold out long enough..[Until Southwest's stranglehold on the whole industry subsides due to Fuel Hedging]..

Sounds to me that ANALyst Lauer has his own self serving opinion..

 

[ClueByFour]

I think that's called business as usual..."keeping customers alive only so they will come back for more.

Risk management. If/when GE thinks it can do better with it's planes elsewhere, it'll pull the plug. Note that it took the Airbus products that are most marketable.

...GE seems to think that Usairways has a good chance of making it as long as they can hold out long enough..[Until Southwest's stranglehold on the whole industry subsides due to Fuel Hedging].

LUV's hedging position, while really good this year, continues in one form or another under $40/bbl thru 2008. It's not simply going to go away.

Sounds to me that ANALyst Lauer has his own self serving opinion..

[post="263070"][/post]​

No, he's honest. Reality is something that some are unwilling to accept. Spin is what you make of it.

 

[insp89]

Risk management. If/when GE thinks it can do better with it's planes elsewhere, it'll pull the plug. Note that it took the Airbus products that are most marketable.
LUV's hedging position, while really good this year, continues in one form or another under $40/bbl thru 2008. It's not simply going to go away.
No, he's honest. Reality is something that some are unwilling to accept. Spin is what you make of it.

[post="263073"][/post]​

Clue?ByFour, Risk Management, Evidently GE cannot do better with it's planes elsewhere.

Common sense would tell you that they would take the Airbus aircraft first. So What ?

It all depends what the price of oil will be in the future if it even makes sense TO hedge fuel..If you are a prophet, please let us in on what the price of oil will be 3 months from now...

Tell me a little about your "Reality" I do not know if Usairways will survive or not, But I do know a lot of people would like to see Usairways go away for their own self-serving interest..

 

[funguy2]

If oil falls below $40/bbl in 2008, LUV could have some problems...

But, if Boeing Boy asked the Magic Eight Ball if oil will still be over $40/bbl in 2008, the answer would be, "all signs point to yes".

If the non-USA demand for narrow-body aircraft surges right now, you can expect to see GECAS pull the plug on US Airways. Absent that, its probably in GE's best interests to allow US Airways to limp along.

There was a poster (sorry, forgot who!) who was pretty adamant that airlines are up-front money losers for fuel suppliers and aircraft lessors. If your world view is US Airways, Delta, and FlyI, this could be a correct assertion.

 

[Falco]

I think the best analysis of the situation I've hear was from Holly Hegeman (even though I usually disagre with her). She has noted that each time GE does a deal it reduces exposure to the effected airline. In USAir's case, they got some A/C back to lease elsewhere. Any further deal will accomplish the same thing until all GE's aircraft are placed with other companies.