Mike Boyd Interview

[chipmunn]

Eric Bird of USaviation.com conducted an online interview with airline consultant Mike Boyd. The interview discusses the industry in crisis, the US Airways restructuring, and sheds some additional light on the failed United - US Airways merger.[BR][BR]The interview can be read at [A href=http://www.usaviation.com/nm/anmviewer.asp?a=602&z=8]http://www.usaviation.com/nm/anmviewer.asp?a=602&z=8[/A][BR][BR]Chip[BR][BR]

 

[Oliver Stone''s Apprentice]

Boyd comes up with great sound bytes, but most of the time he overlooks the obvious.

Technically, DOJ didn't reject the merger, but how could they expect UAL not to back off after finding out that the sham known as DC Air wouldn't fly, and further slot/route/facility divestitures would have been required.

 

[Pacemaker]

[blockquote]
----------------
On 9/12/2002 4:35:59 PM chipmunn wrote:


Mike Boyd's comment on this issue is accurate.


----------------
[/blockquote]

As are his comments about no more mergers.

 

[chipmunn]

Eolsen:

Eolsen said: Technically, DOJ didn't reject the merger, but how could they expect UAL not to back off after finding out that the sham known as DC Air wouldn't fly, and further slot/route/facility divestitures would have been required.

Chip comments: On July 23, four days before the parties mutually terminated the acquisition MOU; Hewitt Pate held a meeting in DCA at Justice headquarters. At that meeting Pate brokered a deal that would have required the parties to sell the DCA gates & slots to AMR, eliminate the joint shuttle venture, eliminate UA's ability to recapture assets if AA's market share grew past the agreed amount, and for AA to acquire at least 13 PHL gates.

Jim Goodwin and Stephen Wolf agreed to the proposal, provided the UA unions would not prove to be an obstacle. When the UA AFA filed their lawsuit over the scope issue, that earlier this year where the flight attendant's won a System Board Grievance (over the Air Willy case), UA pulled out of the deal and I understand the US Executive Suite was quit somber over the event.

Mike Boyd's comment on this issue is accurate.

Chip

 

[motnot]

Chip wrote: On July 23, four days before the parties mutually terminated the acquisition MOU; Hewitt Pate held a meeting in DCA at Justice headquarters. ...

Mike Boyd's comment on this issue is accurate.

motnot's comments: Chip, how can you say the merger was mutually terminated and yet say Boyd is accurate? Boyd clearly says UAL ended the deal. And if it was mutual, why did U threaten to sue UAL for breach of contract?

 

[UAL777flyer]

Goodwin went whichever way Wolf was pulling on the puppet strings. He was in over his head. DEEPLY. And it showed. Wolf took advantage of him on that deal and nearly pulled it off.

 

[MrMarky]

[P]
[BLOCKQUOTE][BR]
[P][STRONG]UA pulled out of the deal and I understand the US Executive Suite was quit somber over the event.[BR][BR]Chip[/STRONG][BR][/P][/BLOCKQUOTE]
[P]At $60 bucks a share I'll bet they were![/P]

 

[chipmunn]

Hi Motnot & UAL777flyer:

Motnot asked: Chip, how can you say the merger was mutually terminated and yet say Boyd is accurate? Boyd clearly says UAL ended the deal. And if it was mutual, why did U threaten to sue UAL for breach of contract?

Chip answered: One of the reasons UA may have gone to DCA for the July 23, 2001 meeting with Arlen Specter and Hewitt Pate, was to avoid the breach of contract suit as well as see if their was a way to meet Justice concerns. Nobody knows for sure what went through Jim Goodwn's mind during that week.

I understand after the UA AFA filed their suit on July 25, 2001, Goodwin pulled the final plug on the deal. Once this was done, the parties agreed to the termination clause where UA paid US the $50 million termination fee.

UAL777flyer said: Wolf took advantage of him on that deal and nearly pulled it off.

Chip comments: I agree.

Chip

 

[gogogadget]

Mike Boyd also said that people would get over RJ's and that they would not be an issue. Just sign the TA and everything will be fine!

He says what people want to hear, no more, no less, as long as people pay him.

Tried at APA and Failed, nice video tape though.

 

[Kevinpilot]

[BR][SPAN][EM][STRONG]Given that USAviation.Com is largely run by US Airways employees, I find it no coincidence that he was giving the answer people here want to hear[?xml:namespace prefix = o ns = urn:schemas-microsoft-comfficeffice /][o][/o][/STRONG][/EM][/SPAN][BR][BR][SPAN style=FONT-SIZE: 9pt; FONT-FAMILY: Tahoma]Actually, none of the founders or administrators of USaviation.com work for US Airways. We have a volunteer moderator who is a reservationist. That's it. Please be aware that your statement is inaccurate eolesen.[o][/o][/SPAN][BR][BR]

 

[Oliver Stone''s Apprentice]

[blockquote]
Jim Goodwin and Stephen Wolf agreed to the proposal
[snip]
Mike Boyd's comment on this issue is accurate.
[/blockquote]

Either Jim Goodwin was an idiot, or he agreed to the deal knowing that the unions would kill it off for him. I'm not willing to give him that much credit.

I never said Boyd's comment wasn't technically accurate. It just oversimplified the situation.

But I will echo the comment above, and take it a step further -- Boyd is the least objective of the talking heads, but is so good at giving one-liners that the media loves getting quotes from him. As an analyst, well...

Given that USAviation.Com is largely run by US Airways employees, I find it no coincidence that he was giving the answer people here want to hear.

 

[Oliver Stone''s Apprentice]

Fine. You have one moderator and Chip (Kyle, Bill, and Kevin being the others) which seem to make up USAviation.com.

It doesn't change the fact that Boyd is a hired gun who says what's expected. He's certainly no Sam Buttrick or Daryl Jenkins. Even Bob Mann is more credible than Boyd...