Mda Delay

[BoredToDeath]

DorkDriver:

PSA will be sold, however, there is a problem with the CRJ-700 delivery positions because the Mainline ALPA CBA requires the aircraft be flown by a participating wholly owned carrier. This issue is currently being discussed between the company and ALPA's Negotiating Committee because the PSA operation is to be merged into an affiliate airline.

In my opinion, Mesa will acquire PSA and the proceeds could be used to pay down the loan guarantee, which would permit the ATSB to relax the 3rd quarter EBITDAR requirements.

I understand that it's less likely Allegheny/Piedmont will be sold, however, the turboprop only wholly owned airline could be divested as well.

We could hear more about this after the February 4 board meeting.

Respectfully,

USA320Pilot

USA320PILOT,

Please allow me to correct you on a few items.

You said, "Mainline ALPA CBA requires the aircraft be flown by a participating wholly owned carrier"

BTD says, "You could not be further from the truth. YOUR CBA(to be specific, the Jets for Jobs protocal) says that the CRJ700 may be flown by a WO and/or affilliate(contract carrier) airlines. The major difference is that J4J is willing to let the contract carriers fly this aircraft with the 50/50 staffing ratio under J4J, but if the plane(CRJ700) is used at the WO's you guys wanted 100% of the seats.

And that is the hold up. See after PSA signed on for the original J4J protocals, you guys changed it during the second round of concessions. Problem is, you NEVER asked us to agree to it. Well quess what? We're still not gonna agree to it. It's 50/50 or nothing. Thats what we signed on for.

You said, "This issue is currently being discussed between the company and ALPA's Negotiating Committee because the PSA operation is to be merged into an affiliate airline."

BTD says, "The issue thats being discussed is to see why the mainline pilots were willing to give 50/50 to the contract carriers and not to the WO on the CRJ700. If the issue being discussed was the one you mentioned, there would be nothing to discuss since the j4j agreements in place at contract carriers already allow for the CRJ700.

Now as far as the selling of PSA, if I were you, I would not be praying for this. In the first three quarters of 2003 PSA enjoyed operating revenues of over 100 million dollars. Quess where most of that money goes. Thats right, to the Group. It would not be wise for Group to make such a move, as it would only indicate the very near death of Airways. As most people know, your only gonna sell off "assets" when the game is over. ie; PanAm, Eastern, TWA and how many others?

I think you should get it through your head that the contracting out of Group flying is not saving Airways anything. Its costing the Group. Any five year old could see that.

 

[fatburger]

I don't think anyone is "praying" that PSA is sold. UAIR may not have a choice in the matter. They need cash to meet the ATSB loan requirements. Business is business plain and simple.

Pray that you don't have to work for J.O.. Good luck.

One other thing: If PSA is sold and UAIR turns around does that mean that PSA pilots don't get to "flow through" to mainline?

-fatburger-

 

[airbiiguy]

Bored,

How can you determine how much PSA made last year when they dont even know?? The WOs dont report earnings seperate. All revenues go to US Air group which are then distributed to each WO. Even if they do know they wouldnt tell anyone . Trust me

 

[WSurf]

Now as far as the selling of PSA, if I were you, I would not be praying for this. In the first three quarters of 2003 PSA enjoyed operating revenues of over 100 million dollars.
----------------------------
Yea, I would like to see that! Comair made 42.0 million in 2003! 100 million seems really far fetched. They might be trying to make PSA look good on paper just in case they decide to sell them... but I can't believe 100 million in operating revenue..

 

[airbiiguy]

bored,
Where is your proof of 100 mill in revenue? I doubt any proof exsists.

 

[WSurf]

One other thing: If PSA is sold and UAIR turns around does that mean that PSA pilots don't get to "flow through" to mainline?
-------------------

Oh my god, I better not get sold or go to another airline. I would just hate to miss out on that flow through...... LOL, more like a flush thru... That flow through is so worthless...

 

[4lowed]

N628AU,
The person named to head the Aircraft Delivery Group is an Eastern SCAB. MAA/ALPA Scope language specifically states that all flying, training, and checking at MAA will be performed only by AAA members on the APL (Affected Pilots List).
4lowed

 

[dash8ter]

Wouldn't Chautauqua (or Republic...) also be a viable candidate for purchasing PSA, if it is actually to be sold? They were also interested in Midway assets when Midway went chapter 7. There could be some wheeling and dealing behind the scenes between Republic and Mesa as to who will pay more for PSA. As many people have stated, I don't feel selling PSA would be a wise move if PSA is profitable, but, it also seems the company is quite desperate for a cash infusion.

 

[flyin2low]

"Yea, I would like to see that! Comair made 42.0 million in 2003! 100 million seems really far fetched. "

The 108 mil is operating rev, not profit. Duh!

 

[flyin2low]

"There could be some wheeling and dealing behind the scenes between Republic and Mesa as to who will pay more for PSA"

Mesa can't even finance the 20 RJ 700,900's they just took options on. The news release said that only 11 were financed so far.

 

[flyin2low]

"One other thing: If PSA is sold and UAIR turns around does that mean that PSA pilots don't get to "flow through" to mainline?"

YES. In the end it won't matter because something like what LightYears said will probably happen. The thing about SwissAir going away, but their commuter (CrossAir) staying around and picking up where they left off.

 

[N628AU]

"There could be some wheeling and dealing behind the scenes between Republic and Mesa as to who will pay more for PSA"

Mesa can't even finance the 20 RJ 700,900's they just took options on. The news release said that only 11 were financed so far.

Mesa is close to finalizing financing on aircraft deliveries into 2005. They have not missed a delivery due to aircraft financing yet. Say what you want about them, but their finacial house is in much better orser than ours.

 

[N628AU]

Bored,

How can you determine how much PSA made last year when they dont even know?? The WOs dont report earnings seperate. All revenues go to US Air group which are then distributed to each WO. Even if they do know they wouldnt tell anyone . Trust me

Exactly my point. So many are quick to claim how profitable the W/Os are, but there is no way to really tell. How many expenses does Group pick up for them that are not broken down? Without seeing a separate accounting statement and SEC filing for each W/O, no one will ever know the truth, so can we stop claiming how profitable they are?

 

[airbiiguy]

If your gonna post make an attempt for it to be somewhat credible.

 

[fatburger]

I say sell PSA to J.O. for some much needed cash and let all the contract carriers continue to feed mainline. Then combine ALG and PDT and give them 50 and 70 seat jets and let them do small market point to point flying.

With 60 more AB (if it's true) and 50-60 RJ's doing nothing but point to point flying for UAIR, I think that would raise some eyebrows from the competitors.

-fatburger-