767jetz
Veteran
- Aug 20, 2002
- 3,286
- 2,779
Some info regarding USAirways and it's business partner
I had an interesting and rather long conversation with several high level people within UA. Here are a few facts I came away with:
1- The article many people have read (I believe in the Washington Post) referring to a merger or other transaction (something to that effect) was not a news article at all. It was a column written by a journalist who has long been in the Washington area and has ties to Crystal City. The column is subject to the writer's opinion and speculation. USAirway's management is well aware that their employees would rather experience a merger than a liquidation, and could be using this misinformation as a tool to advance their agenda of further concessions from the employees.
2- There is no talk of any form of merger between US and UA. Let me repeat using a direct quote that comes from the highest source... "A Merger is NOT imminent."
3-UA's decision to reduce retiree's benefits is not a signal that ATSB approval is in question. It is simply another stone that will not be left unturned. In many public statements to employees and the court, UA reserved the right to change these benefits through the BK process. In fact, it bolsters UA's application because it shows that UA is continuing to search for was to reduce expenses where possible.
4- UA's ATSB application process is on track. There is a high level of confidence that approval is likely. The application is predicated on keeping pensions intact. There is no desire or intention to seek an equity investor such as RSA.
5- A default by USAirways will not jeopardize UA's application. A liquidation of USAirways could cause some complication due to the loss of codeshare revenue, however it would NOT be a fatal blow to the ATSB application.
It has been speculated by a few that UA's ATSB application will not be approved, therefore forcing UA and US into some type of merger in order for both companies to survive, with funding for said transaction coming from an equity investor like RSA or similar.
I hope this clarifies some of the speculation that has recenty been floating around this board. We are all watching carefully as USAirways' drama unfolds, and I sincerely wish the employees well. These are tough times, and I don't like to see hardship fall on anyone. Keep the faith...
767jetz
I had an interesting and rather long conversation with several high level people within UA. Here are a few facts I came away with:
1- The article many people have read (I believe in the Washington Post) referring to a merger or other transaction (something to that effect) was not a news article at all. It was a column written by a journalist who has long been in the Washington area and has ties to Crystal City. The column is subject to the writer's opinion and speculation. USAirway's management is well aware that their employees would rather experience a merger than a liquidation, and could be using this misinformation as a tool to advance their agenda of further concessions from the employees.
2- There is no talk of any form of merger between US and UA. Let me repeat using a direct quote that comes from the highest source... "A Merger is NOT imminent."
3-UA's decision to reduce retiree's benefits is not a signal that ATSB approval is in question. It is simply another stone that will not be left unturned. In many public statements to employees and the court, UA reserved the right to change these benefits through the BK process. In fact, it bolsters UA's application because it shows that UA is continuing to search for was to reduce expenses where possible.
4- UA's ATSB application process is on track. There is a high level of confidence that approval is likely. The application is predicated on keeping pensions intact. There is no desire or intention to seek an equity investor such as RSA.
5- A default by USAirways will not jeopardize UA's application. A liquidation of USAirways could cause some complication due to the loss of codeshare revenue, however it would NOT be a fatal blow to the ATSB application.
It has been speculated by a few that UA's ATSB application will not be approved, therefore forcing UA and US into some type of merger in order for both companies to survive, with funding for said transaction coming from an equity investor like RSA or similar.
I hope this clarifies some of the speculation that has recenty been floating around this board. We are all watching carefully as USAirways' drama unfolds, and I sincerely wish the employees well. These are tough times, and I don't like to see hardship fall on anyone. Keep the faith...
767jetz
