Industry Consolidation?

[USA320Pilot]

700UW:

That's not what you orignally said. My hyperlink links were for illustration as supporting documentation.

By the way, who first said on this website that US Airways was in discussion with other airlines, the ATSB, and the Bush Adminstration about M&A activity?

Respectfully,

USA320Pilot

 

[USA320Pilot]

UnitedChicago:

I believe you can be a little more creative with your post than blah, blah, etc. I guess you’re a little upset that the creditors committee seems to not have faith in your favorite airlines board. By the way, why do you think the creditors committee is asking the court to have an independent evaluation of the competency of United’s board?

Nonetheless, I have said I do not want US Airways to integrate with your favorite airline, but as I have repeatedly said, US Airways has and continues to be in corporate combination discussions. It’s important to note that the USA Today, not USA320Pilot, wrote today Federal officials have been lobbied more quietly on another sensitive topic: airline consolidation. Faced with the possibility of financial failure, US Airways has been building a case in Washington that an airline merger wouldn't be a bad thing. We've been very frank with regulators and legislators that consolidation is the inevitable next step," says US Airways executive Chris Chiames.

By the way, Chris is US Airways’ senior vice president of corporate affairs and always travels with the CEO.

Regards,

USA320Pilot

 

[Cosmo]

United’s troubles are deepening because the company asked the bankruptcy court to extend $1 billion in debtor-in-possession financing until the end of the year from mid-year, further indicating the company is having a challenge trying to emerge.

USA320Pilot:

It seems that everyone except you understands why United made this request -- the carrier is awaiting the ATSB's response to its loan guarantee application and needs continued access to its DIP financing until emerging from Chapter 11. Note the following statement contained in this Associated Press article, which you somehow managed to overlook as you were posting all of those other stories, which puts United's request into context.

United, a unit of UAL Corp. (UALAQ, news), said in a May 7 bankruptcy-court filing that it has agreed with its creditors to extend its debtor-in-possession financing from June 30 to Dec. 31. It will pay an additional $1.25 million for the associated financial changes, which require the court's approval.

But Jean Medina, a spokeswoman for the nation's No. 2 airline, said the filing doesn't alter United's plan to exit Chapter 11 sometime this summer.

It is also worth noting a few other items, according to the carrier's recently-filed first quarter 2004 SEC Form 10-Q:

1.) United achieved an operating profit of $3.4 million in March.

2.) United's outstanding balance of its original $1.5 billion DIP financing is now down to about $582 million.

3.) United made a total of $127 million in pension fund contributions during March and April, out of an anticipated total 2004 contribution of $725 million.

IMHO, the three items above are not indicative of the troubles you seem to hope that United is now facing. While United still clearly has a few challenges, it's likely to be around for a long while in some reasonably recognizable form. So instead of worrying about United, you really need to pay more attention to making sure that US Airways will be able to make a similar claim in the coming months.

 

[USA320Pilot]

Cosmo:

I find it interesting how you keep coming over to the US Airways board to plead you case.

Your information is not consistent with what I am hearing and its obvious United still does not qualify for the loan guarantee. Fuel prices are making it difficult to convince Fitch Rating that the company can make a 7% profit margin in 7 years and the creditors committee knows the problem.

United is trying to sugar coat the issues, just like US Airways management did in the past, to prevent a liquidation from becoming a self fulfilling prophecy.

Regardless, as I have repeatedly said, I do not want US Airways to be involved with United for obvious reasons and it’s been a blessing in disguise the two companies have not integrated.

Regards,

USA320Pilot

 

[Doc]

CUT AND PASTE CUT AND PASTE CUT AND PASRE CUT AND PASTE


GET A J.O.B.

 

[Busdrvr]

"Oh yeah, for those of you keeping score:"

You missed one!!! The "crystal city court jester" made the AMR-U merger case on "plane business"


"Fuel prices are making it difficult to convince Fitch Rating that the company can make a 7% profit margin in 7 years and the creditors committee knows the problem."

So what will fuel prices be in 7 years? do you have a clue? Whats the current hedge price for contracts that far in the future? Do you know?

"I find it interesting how you keep coming over to the US Airways board to plead you case."

When you use a faulkty argumnent to make your "case", you have to expect the underlying premise to be attacked.

BTW, had lunch with a 570 today. He's a 400 Capt. Guess you took the wrong fork in the road eh?


:bleh:

 

[UnitedChicago]

grasping at straws GRASPING AT STRAWS grasping at straws

 

[ISP]

I must say, I still LOL when I think about the post from about a month ago when there was the discussion of "gonads."

 

[RWerksman]

Hmmmm... kinda catchy I guess.

Doubtful about it's ability to happen though.

 

[USHenry]

These discussions would be truly fascinating if the participants could keep a level of discussion to that of USA320PILOT quickly descend into such high level, intelligent vocabulary words such as

"gonads"

"blah"

"CUT AND PASTE CUT AND PASTE CUT AND PASRE CUT AND PASTE" with poor spelling and the inability to make a complete sentence.

If USAir does go under and disintigrate into little pieces, if I ran another airline I'd be quickly looking up USA320PILOT and asking him to come to my company where I would hope he would be as loyal and care as much as to stir those he disagreed with into uttering foul, incomplete sentences without a subject and a verb - something that most individuals learn by 4th grade high school.

 

[RWerksman]

If USAir does go under and disintigrate into little pieces, if I ran another airline I'd be quickly looking up USA320PILOT and asking him to come to my company where I would hope he would be as loyal and care as much as to stir those he disagreed with into uttering foul, incomplete sentences without a subject and a verb - something that most individuals learn by 4th grade high school.

If US Airways does go the Eastern way, I would hope that you would hire USA320PILOT based more on his piloting skills and experiance rather than his "yes men" mentality.

You are right though...

Gonads and "blah blah blah" do nothing to rebuff any points that he is making, and may actually be causing damage to the anti-USA320PILOT point of view.

 

[USA320Pilot]

I am not here to shoot United Airlines or its employees, but the fact is the two companies have been trying to integrate since 1995. I do not like it any more than any body else, but it's true.

The point of this thread was to discuss US Airways and senior management's desire to enter into some form of M&A activity -- with the thought that US Airways and America West may extend their reach as the first business competition to restructure into a truly competitive network airline/LCC hybrid airline. But, whenever United is discussed, certain United employees come out of the woodwork disputing everything I say, regardless of the point.

For example, I have said repeatedly that United is going to have trouble with the loan guarantee and even mentioned it again today and guess what, so did the New York Times.

Earlier today the Times reported the chief executive of United Airlines, Glenn F. Tilton, is, meanwhile, conducting a dogged campaign to win public support for his company's application for $1.6 billion in loan guarantees from the government. United has been in bankruptcy protection since December 2002, after its first application, for a $1.8 billion package, was rejected by the Air Transportation Stabilization Board.

The board has no deadline for deciding on United's request, but the airline expects a ruling soon.

Rival airlines complain in particular about the case of United Airlines. One competitor circulated an analysis this week disputing United's claim in its second application that it had achieved $2.5 billion a year in labor-cost savings; the analysis says that United has fallen $800 million short, in part because it has not saved as much on pension contributions as it expected, despite legislation meant specifically to help it.

United said that it stood by its reckoning of the savings and that it would post an operating profit in 2005 (a goal pushed back from this year) and a net profit in 2006.

There is also the question of political influence. The Congressional district represented by J. Dennis Hastert, the speaker of the House, is in Illinois, United's home state, and Mr. Hastert has spent months lobbying tirelessly for United's application. United executives and employees donated $10,200 to Mr. Hastert's 2002 re-election campaign, according to Opensecrets.org, a Web site that tracks political contributions.

"There's an immense amount of political pressure being applied,'' said Senator Peter G. Fitzgerald of Illinois, who like Mr. Hastert is a Republican. Senator Fitzgerald cast the only vote against the bailout package in the Senate in 2001.

The political atmosphere surrounding the United application "is exactly why we don't want the government bailing out individual businesses," Mr. Reich said. "The politics take over." Instead, he said, "there is a perfectly logical and economically sound process that airlines can use, and that's reorganization under bankruptcy."

Similarly, there is no guarantee that United, which has so far kept its global route structure largely intact in bankruptcy, can escape having to make more cuts even if its application is approved.

United said recently that it expected its cost for jet fuel to be $450 million higher this year than it forecast in the business plan submitted to the loan board in December. Because it is in bankruptcy, the airline has been unable to hedge its fuel costs with futures contracts, and the pension-cost relief under the new law, considered crucial to its loan application, will be eaten into by the fuel bills.

See Story

USA320Pilot concludes: Who first wrote on this board many of the points listed in the New York Times column? Again, I take no special pleasure in bringing painful news to United supporters and simply report the news to the best of my knowledge, but I am tired of people "shooting the messenger". Thus, why is every US Airways M&A thread hijacked by United employees? The purpose of this thread was to discuss reports that US Airways and America West may integrate and boom -- the United employees hijack the thread with unprofessional comments and language. Again, I want nothing to do with United Airlines and I wish nothing negative to happen to the company, However, my principal concern is the well being of US Airways and all of its stakeholders.

Respectfully,

USA320Pilot

 

[ClueByFour]

Cosmo:

I find it interesting how you keep coming over to the US Airways board to plead you case.

Your information is not consistent with what I am hearing and its obvious United still does not qualify for the loan guarantee.

Two things:

1. If you did not constantly discuss (in less than accurate terms in most circumstances) the "Elk Grove Village based carrier" you would not see folks on the US board to correct you.

2. Cosmo is quoting published sources. As soon as you put a name to what you "hear," folks might believe you. As for the comment about whether UA "obviously" qualifying or not qualifying for the ATSB loan: there are three folks on the planet who decide that issue. I don't think you are one of them, nor do I really believe they've shared with you their thought process on the matter.

Moderator, can we please get this sent to the UA board where it really belongs?

 

[USA320Pilot]

Clue:

You're wrong and with all due respect, you have "no clue" to what's happening inside of CCY.

Regards,

USA320Pilot

 

[700UW]

Clue:

You're wrong and with all due respect, you have "no clue" to what's happening inside of CCY.

Regards,

USA320Pilot

And neither do you!