No Plan By Us Airways To 'pack Up' And Leave Pit

[harleyrider]

:rant: Do you see this little guy at the left of the screen , He is every employee at U , except management , they are the only ones who are not bleeding. All I have to say is " HERE WE GO AGAIN " !! The question was what would I do as CEO of this airline. First , I would show the employees that I want to actually save this company not just fill my pockets. My pay would be no more than the top pay of one of our top rated pilots. Second , All management positions would take similar pay cuts as all labor groups have. But management would be the FIRST to take all pay cuts, NOT the labor groups. Third, any person in management that has a title like, Executive Vice President , Acting Base Manager , Asstantant Manager of whatever would be fired as these positions are made up just to give someone a middle management title. Fourth , revamp marketing, ticket prices and do away with the Frequent Flyer Program. Oh, I know I am going to hear an ear full from some of you, BUT let's take a look at this. Let's make the the whole world like the Airlines. Have you ever gone to your Dentist, and he says " This is your 5th filling your 6th one is free" or did your car insurance salesman say " Well, 10 years without an accident, we will pay for your 11th year premium." This is a business, so run it like one.........I bought a Harley, I got just the bike the dealer didn't give me a free T shirt or gloves or a leather jacket, when you buy a car has the dealer ever gave you a dinner. I'll bet every airline would follow, BUT that's what I would do if I were CEO. I'll bet that the morale of every employee would raise 400% and no other airline could match USAIRWAYS ever again. We would be unstoppable !!!

 

[4merresrat]

I don't mean to belabor the point but I would like somebody-one of you to seriosuly explain who, and what kind of leader you would like to take Siegel's place. It just seems to me that there is no one that would satisfy everyone, unless of course of of the union's reps or one of the pilots. It seems like everyone thinks they have the answer. I just can't believe ANYONE would satisfy the masses. It seems US is doomed. And IF there is an answer would someone please explain it.

 

[A319FA]

US Airways descending into bankruptcy?

"The advantage of going back into bankruptcy would be they could reopen more labor agreements and reject jet leases," said Robert Mann Jr., head of R.W. Mann & Co., an airline consultancy based on Long Island. Such costs amount to 45 percent of the airline's annual overhead.

:unsure: :down:

http://www.pittsburghlive.com/x/valleyinde...s/s_170888.html

 

[PITbull]

I don't mean to belabor the point but I would like somebody-one of you to seriosuly explain who, and what kind of leader you would like to take Siegel's place. It just seems to me that there is no one that would satisfy everyone, unless of course of of the union's reps or one of the pilots. It seems like everyone thinks they have the answer. I just can't believe ANYONE would satisfy the masses. It seems US is doomed. And IF there is an answer would someone please explain it.

I believe a leader like Herb Kelleher, or Jet Blue CEO, or any CEO that inspires and values their employees with respect and regard. Simple concept, simple philosophy.

That should not be too difficult to find. Other corporations in other industries don't have these kinds of employee relation problems.

If those who think that all corporations are like U, then business could never be conducted because no one could trust one another. I have been working for 23 years of my life, and I have never encountered such a group who call themselves management and behave so egretiously towards their workers.

 

[funguy2]

Thus, the 30 to 90-day problem, however, America West is in violation of this covenant and the ATSB has not taken action against the Phoenix-based airline.

Huh?

From AWA's 3Q press release (where they made a profit):

Liquidity

As of Sept. 30, 2003, the Company had $584.5 million in cash, of which $471.2 million was unrestricted. This represents an increase in total cash of $120.1 million vs. the end of the Company's second quarter 2003. During the third quarter 2003, the Company completed a private placement of 7.25 percent senior exchangeable notes due in 2023, which raised $86.8 million in proceeds. As a result of the offering, the Company placed $42.9 million in a cash collateral account, which is included in the airline's restricted cash on its balance sheet, to secure one of the scheduled principal payments of its Air Transportation Stabilization Board (ATSB) loan.

Looks to me as they were satisfying their ATSB loan... certainly no mention of a default or missing covenents...

If I recall correctly, AWA officials have been quoted as saying that their cash-on-hand is a company record. Furthermore, their loan was about $400mil, which means they could have paid it off and had a few bucks to spare, although I suspect that is a bad idea in a cash intensive business...

So exactly which covenent did AWA break?

Apparently, every airline except for US Airways is missing debt covenents in Chip's Bizzaro world.

And somehow, I doubt Chip will answer this question... I notice I get no answers when I ask the hard questions.

 

[curious]

Question: If Pollock got up and walked out of the meeting, supposedly missing the unveiling of "the plan" (all according to Bronner). What was the unveiling of "the plan" that he missed? Any comments from AFA or IAM? or anybody else that heard it?

Curious

 

[curious]

OOPS, meant to say AFA, IAM, CWA or anyone else attending the meeting!

 

[BoeingBoy]

To clarify a couple of points:

From ATSB loan guarantee documents...
SECTION 6.4. FINANCIAL COVENANTS.
(a) Prior to July 1, 2004, Group shall not permit the cash and Cash Equivalents of the Obligors taken as a whole to be less than $1,000,787,687

**Notice that this says "cash and Cash Equivalents", not "unrestricted cash" or "liquidity" or anything else.

From 3rd quarter report...
Cash and cash equivalents $1,076million

**That means cash & cash equivalents can only drop $76,212,312 between the end of the 3rd quarter and the end of the 2nd quarter 2004. For comparison, the company did not report "cash & cash equivalents" at the end of the 2nd quarter '03, but "cash, cash equivalents, & short-term investments" were $1,420 million while at the end of the 3rd quarter they were $1,383million, a decrease of $37 million.


SECTION 6.9. MERGER OR CONSOLIDATION. Neither Group nor the Borrower will consolidate with or merge with any other Person or convey, lease or transfer its properties and assets substantially as an entirety to any Person, unless: (i) (a) in the case of a consolidation or merger involving the Borrower, (I) the outstanding principal amount of the Loan at the time the transaction is consummated does not exceed $500,000,000 and (II) the Borrower is the surviving entity or if the Borrower is not the surviving entity, such surviving entity or the Person that acquires by conveyance, lease or transfer the properties and assets of the Borrower substantially as an entirety...

**No merger as long as the loan balance is over $500million (several years down the road)

Jim

 

[funguy2]

Boeing Boy:

Where did you find that information. I would be very interested, assuming its online.

Thanks.

 

[BoeingBoy]

All the info in available thru "Edgar Online". The ATSB agreement is an addendum to the "Final Restructuring...." filed in March (or maybe early April) 2003. The quarterly reports are there too.

I use Yahoo finance. Pull up the basic page on UAIR and on the left is a column of different things you can pull up. One is "SEC filings". You'll find these all listed there.

I would say "Happy reading" but the ATSB especially in filled with "lawyer talk".

Jim

 

[N628AU]

IIf those who think that all corporations are like U, then business could never be conducted because no one could trust one another. I have been working for 23 years of my life, and I have never encountered such a group who call themselves management and behave so egretiously towards their workers.

In sixteen years of working, I have always heard other employees compplain about management. It comes with the territory. Hell, 3 months into Wolf being here I saw some unflattering things written about him on the walls of a B757 foward cargo compartment.

 

[marco90821]

Mark,
You mean to say that you are still living in the days of W/G? How us union folk dwell on the past...it is sad.

 

[marco90821]

I hate to say it, but maybe Pitbull should be flying a kite and staying off airliners if he is so disgruntled. Well, we would have to teach him how to fly a kite...obviously we can fly an Airbus to 3000 and let the auto run the course. It is no longer rocket science to fly an airliner.

 

[700UW]

Marco, I sure hope you don't act on this board as you did on yahoo.

Folks, beware.

And marco, PITbull is a she who is very smart and educated, and stands up againts the injustices this company is putting on its employees.

 

[USA320Pilot]

I understand from high level ALPA sources any pension relief will not have a meaningful effect on the DB plans for all network carriers and there is real concern at ALPA International United may not be able to emerge from bankruptcy.

In regard to consolidation and the continued speculation regarding a corporate combination between US Airways and United, there are serious issues that must be met before there can be institutional investments to complete a deal. United’s pensions may have to be terminated, the DOJ investigation into potential United antitrust violations must be settled, the pending litigation over the UCT airport municipal bonds must settled, the EETC negotiations must be completed to determine United’s ultimate fleet composition, the Dulles mess must be resolved, and the company must find a NPC replacement.

In regard to US Airways, the company must first reach agreements with all parties to implement the Transformation Plan.

As I have said before, the ATSB loan guarantee does place limits on M&A activity as well as specific financial benchmarks, but it does not preclude a corporate combination.

In regard to Pittsburgh, I cannot emphasis enough how important it is to Western Pennsylvania to cut a deal now. In my opinion, the deal could include some facility rejection (potential targets are the Beaver Grade Road and Carnot Training facilities, the pilot simulator building, RIDC Park West offices, the Greentreee Reservation facility, and the maintenance hangars. In addition, there will be RJ capital improvements for concourse A jetways and possibly for concourse E. Finally, there must be meaningful debt reduction to lower the airport lease expense and landing fees, which could come from the state legalizing riverboat gambling.

There is considerable uncertainty surrounding United and its ability to obtain the loan guarantee and survive.

Links deleted by moderator- Please discuss United articles in their own forum.

Thus, it appears there is a very real possibility that United will not obtain the loan guarantee.

Therefore, to prevent a move of US Airways assets westward that are now a stronger possibility, presumably to Chicago and Denver, which apparently Mike Boyd believes as well, I strongly believe the ACAA should cut a deal now or David Bronner may elect to reject the Pittsburgh operation and fund the transfer of US Airways assets westward.

Again, it’s not US Airways who would pay for the move or acquire United assets, it’s RSA.

Do not be surprised if a deal proceeds that ends up in a merger, with the surviving business US Airways, where the US Airways paint scheme/stylized flag would be used, the corporate headquarters would remain in Arlington, and the name of the combined carrier would be United Airlines.

Regards,

Chip