Industry Consolidation?

[oldiebutgoody]

Looks like a possible scenario to me. Maybe they're really after the fragmentation protection, so that they can sell the company off in chunks without the employees. No matter how you figure it, it's a screwjob. I'll tell you what. I won't vote for ANYTHING that gives up ANY of these protections (assuming that we even get a vote).

 

[767jetz]

Funguy2:

Guess what, the company told ALPA representatives that it intends to be involved in M&A activity because it's the next logical step.

Regards,

USA320Pilot

That's what TWA management told ALPA also. You see, as you've pointed out, one way around any anti-trust issues is to convince the gov't that letting a merger happen is better than letting the company disappear. (ie: TWA) So maybe that is why US management is floating the idea of M&A activity. It doesn't mean there is an interested buyer, but Lakefield has few options at this point.

In the mean time, why not get as many concessions as possible, dispose of any successorship language, and shrink the work force as much as possible too?

Then with the stroke of a pen, (just like TWA/AA) remaining labor groups agree not to dispute any integration handed to them, in an effort to save a few senior jobs. (As you preach to everyone else, better keep what you can before there's nothing left to keep. No sense in fighting a losing battle, especially for the junior guys, no matter how righteous the fight is.) Before you know it, US will be a distant memory, and very few US employees will remain at the aquiring airline. (Again, just like TWA.)

The only M&A activity in USAirways future will include a CH7 filing and lots of legal papers to avoid future litigation and integration problems. Any other arrangement would be suicide for for the surviving airline.

As other's have said, the best option for US employees is keeping US a viable entity. IMO, it can't get much worse than what the company is asking for, so leaving it up to a judge in CH11 may not be a bad option this time around.

US may be telling ALPA that M&A activity is the next logical step, but I don't think it will take the form that you hope it will.

 

[USA320Pilot]

In regard to M&A activity, Bloomberg News released the following story:

Aid for UAL won't fly?

Senator says carrier can't meet criteria for loan guarantee

CHICAGO (Bloomberg News) - U.S. courts probably would block a federal loan guarantee for United Airlines because the carrier is ineligible for the assistance, said Republican Sen. Peter Fitzgerald of Illinois, the carrier's home state.

Complete Story

Respectfully,

USA320Pilot

 

[700UW]

Are you obsessed with UAL? This is a US AIRWAYS BOARD, NOT UAL,
Give it up all ready

 

[USA320Pilot]

700UW:

If UAL's loan guarantee application is rejected the only other avenue for the company to emerge from bankruptcy would be for an equity investor and/or asset sales. This could be very germane to US Airways.

By the way, who first reported on this message board, before the news became public, that UAL may not qualify for the loan guarantee?

Regards,

USA320Pilot

 

[Jetlaagd]

Oh one more thingy FLY posted her article at 1227 am. US320 pilot,what time was your supposed hot off the presses article posted? Just curious on how you spin the answer to that question?

 

[Todd B]

This thread is drifting.

 

[Jetlaagd]

UAL Qualified to apply for the loan,They do not qualify for getting a loan! It is either they get the loan or they don't get the loan........Whop is the fisrts on here to notice some people are ignorant ?

 

[RWerksman]

If UAL's loan guarantee application is rejected the only other avenue for the company to emerge from bankruptcy would be for an equity investor and/or asset sales. This could be very germane to US Airways.

He has a posiblity of being right you know....

and it would make things very interesting.

I could see RSA dumping more money in to sure up it's investment. And in 10 years, IF things get turned around, this could look like a fantastic decision. (or catastropihc if it fails)

 

[jwp767]

"Guess what, the company told ALPA representatives that it intends to be involved in M&A activity because it's the next logical step.

Regards,

USA320Pilot"

They were telling the truth.......BUT.......there's no rational or logical interest in "M" to be found anywhere and the "A" means only asset sales WITHOUT any employees.

 

[USA320Pilot]

Jwp767:

Jwp767 said: They were telling the truth.......BUT.......there's no rational or logical interest in "M" to be found anywhere and the "A" means only asset sales WITHOUT any employees.

USA320Pilot comments: That's not what US Airways management is saying. Management has publicly said US Airways is headed for a merger, they have told ALPA this, as well as other employees.

US Airways ALPA has a lot of faith in the new management team and MEC Chairman Captain Bill Pollock said Bruce Lakefield's one month as president had been encouraging. "I believe very highly in him," Pollock told the AP.

As I have said before, I hope the M&A deal is not with United and I would like to see US Airways management terminate the United code share agreement and move on to another partner.

Regards,

USA320Pilot

 

[Walmartgreeter]

Are you obsessed with UAL? This is a US AIRWAYS BOARD, NOT UAL,
Give it up all ready

Although I have SERIOUS issues with 320.....If you do not think UAL has anything to do with U you are..well, leave it at that. Three (3) previous CEOs at U have made terrible decisions or taken terrible paths in the shadow of possible UAL mergers, the last being Dave who came out of BK WAY too early hoping he would be the first of 3 to finally clinch the deal. Did not happen. Anything that happens at UAL will directly affect U, and I did not hear that from an unnamed source. Best. Greeter.

 

[Fly]

BUT you have forgotten about the people who already work at UAL. Do you honestly believe they'll allow a merger??? Not from "this perch", so I've heard.

 

[767jetz]

In regard to M&A activity, Bloomberg News released the following story:

Aid for UAL won't fly?

Senator says carrier can't meet criteria for loan guarantee

As usual, usa320pilot, you only quote a single blurb that supports your wild speculations, thereby twisting the facts and misleading those casual observers who don't bother clicking on the article and reading the particulars.

Did you miss the following quote? :

"A United spokeswoman said Fitzgerald's comments are at odds with all other Illinois representatives, who support the Dec. 18 application to help the airline raise $2 billion to exit the industry's largest bankruptcy."

Or how about this? :

"Fitzgerald, 43, who will not seek a second Senate term this fall, said he had refrained from lobbying the board on any United application "

Or maybe this? :

"The Air Transportation Stabilization Board is "evaluating the United application on its merits based on the statutory criteria," spokeswoman Anne Womack Kolton said.
-------------------------------------------------------------------------------------
Your characterization of this article supporting your claims about UAL is simply wrong. :down: It is one single dissenting voice among many supporters. The ATSB will decide on UA application based on it's merits and statutory limits, not the political manuvering of UA's competition.

No amount of hoping and praying will change that fact. I promise you one thing... by the end of this year you will be eating alot of crow. Of course no one expects you to ever admit when you're wrong. So don't worry, we won't hold our breath. <_<

 

[USFlyer]

I would like to see US Airways management terminate the United code share agreement and move on to another partner.

From a passenger's standpoint, this is the worst advice I've seen anyone post in a long time. The partnership has benefited me and other FFs in so many ways. If US terminates its partnership with UA and we have to wait another 1-2 years for a new one to come to fruition ... well, let's not even go there. The networks complement each other nicely, and, while I'm a US customer mainly, I've definitely thrown business -- business that US was never in competition to get, such as HNL and intra west coast -- to UA as a result of the partnership. I've also definitely seen UA customers flying on US more.

And, the Star alliance is by far the best alliance out there. While I was standing in SEA baggage claim Tuesday night, I made a point of looking at luggage tags. I saw several bags that originated on LH flights and connected to US. Without the Star connection, I wonder how many of those passengers would have ended up on non-Star routings. Perhaps none, perhaps all.