Piecing Together The Us Airways Puzzle

[us0004us]

US Airways could become a mosaic of carriers as the airline seeks money, partners for post-bankruptcy world

Odds are good that US Airways will make it out of bankruptcy again this summer, defying predictions of its imminent demise

http://post-gazette.com/pg/05058/463176.stm



comments anyone?

 

[usairways_vote_NO]

Here comes the spin master and the who told you first bellow.

 

[USA320Pilot]

United Airlines

The industry's No. 2 carrier has been mired in bankruptcy the last two years but CEO Glenn Tilton got people talking on Feb. 17 when he said industry consolidation was inevitable and it would be best for United to participate in a merger. "Tilton put a for-sale sign up," said local airline analyst Bill Lauer.

United and US Airways tried to join operations in 2000, but antitrust regulators opposed the deal, leading to its collapse just a month before 9/11. A union between the two still "is the most compelling" of potential combinations, but given their weakened state, the pair may need a third-party investor to act as deal maker, Lauer said. One possibility, he said, was Texas Pacific Group, the San Francisco investment firm that bid for US Airways in 2003 but lost to an Alabama state pension fund.

Justification for a merger would not be increased market reach, as was the case made by the two carriers in 2000, but the opportunity to lower costs further. Such a deal would allow the combined company to compete more effectively against superefficient Southwest Airlines or JetBlue Airways, the only airlines to post consistent profits recently.

"I think developments along this line are likely," Mitchell said. "I think United is a good candidate."

USA320Pilot comments: The two carrier's are talking about a M&A again, but this time US Airways could be the surviving business enterprise with a venture capitalist or RSA funding the transaction. Prior to leaving US Airways, Ben Baldanza the former exeuctive vice president of marketing, told a colleague of mine that he thought US Airways to be the survivor, the US Airways management team would remain in place, the combined headquarters could be located in Crystal City, and the name of the combined business entity would changed to United Airlines.

The intent on using United's name would be to have greater worldwide identity. I was also recently told by a member of senior managment that he thought United cannot make it out of bankruptcy on its own.

Regards,

USA320Pilot

 

[USA320Pilot]

UVN:

It has nothing to do with who told whom first, it’s about what is occurring. Will a deal occur, maybe, maybe not, but it's being actively worked on within the exeuctive suite. There are multiple parties involved, but both US Airways and United are "in play" according to investment bankers who have been contacted.

Regards,

USA320Pilot

 

[usairways_vote_NO]

I know it doesn't have anything to do with who told who first. So why do you thump your chest it so many times?

Was "Untied" a typo or freudian slip. Should we call Usairways Undoneairways?

 

[USA320Pilot]

UVN:

UVN said: "I know it doesn't have anything to do with who told who first. So why do you thump your chest it so many times? Was "Untied" a typo or freudian slip. Should we call Usairways Undoneairways?"

USA320Pilot comments: I do not "thump my chest", but it gets a little old with the so called "naysayers" stating I am wrong, when I know I am not, and the information I provide is accurate. People like to "shoot the messenger" and I simply respond to those comments. With that said, will everything this company discusses occur and do things change from day to day? Absolutely, especially in volatile and fluid situations such as a reorganization or transformation.

In regard to typing United's name incorrectly, that is a typing mistake and I have made the same mistake before. It’s not intentional and I fixed the problem above. Unfortunately, I am not a perfect typist, actually, far from it.

Meanehile you have the right to call a company what you would like, but purposely calling something or a person something other than their name is an "insult".

In the column to start this topic, the single most important comment was made by US Airways spokesman David Castelveter when the newspaper reported he would only say that US Airways is talking to a number of "parties" interested in some type of investment but declined to provide details.

That’s true, thus, whether it’s a Untied deal or something else, there are multiple interested parties discussing exit financing and corporate transaction with US Airways and the Board will select the best deal it can for all of its stakeholders.

Throughout this ordeal, I have repeatedly said I do not want to merge with United and I want the best possible outcome for every US Airways employee.

Regards,

USA320Pilot

 

[usairways_vote_NO]

You say: I do not "thump my chest", but it gets a little old with the so called "naysayers" stating I am wrong, when I know I am not, and the information I provide is accurate.

I say: Yes you do thump your chest and don't you think it get real old you always saying you are the only one right (unless someone happens to one time agree with you on something) and act like you are the only one qualified to give an opinion on USAirways future especially when you are not close to being always right and/or accurate?

You ask: will everything this company discusses occur? and answer yes

I say: No I don't always believe everything I read

I wasn't really jumping on your typing I was just curious if it was intentional barb at United. Plus you did it again I think theres more to it.

So are you insulting me by calling me UNV? Its ok though I don't mind.

 

[TheDog2004]

But how would they make money?

Create Ted II with Seth Jr?

 

[usairways_vote_NO]

[post="251222"][/post]​

Thats cool piney you can call me whatever you like as you always have.

 

[Bear96]

USA320Pilot comments: The two carrier's are talking about a M&A again...

[post="251203"][/post]​

Really?

From what you posted, it appears "local airline analysts" are talking about it.

Care to post some evidence that the airlines themselves are having serious talks about it?

Or is that double secret info fit only for your ears ... <_<

 

[USA320Pilot]

Bear96:

Check with J.P. Morgan.

In regard to the two companies, they will not go public with any details per SEC guidelines until they have completed their work, if then. Will it occur? Maybe, maybe not.

But I can tell you this, I personally do not want to be involved with a company in a corporate transaction that continues to post enormous losses, even if Tilton reportedly has put the company up for a (fire) sale.

Regards,

USA320Pilot

 

[AAviator]

Bear96:

Check with J.P. Morgan.

In regard to the two companies, they will not go public with any details per SEC guidelines until they have completed their work, if then. Will it occur? Maybe, maybe not.

But I can tell you this, I personally do not want to be involved with a company in a corporate transaction that continues to post enormous losses, even if Tilton reportedly has put the company up for a (fire) sale.

Regards,

USA320Pilot

[post="251238"][/post]​

An analyst said that, as in "Tilton put a for-sale sign up," said local airline analyst Bill Lauer.

You are such a waste of time.......

 

[savyinvestor]

You will note in every one of his outcomes United is NOT the surviving entity. Why is that? Savy

 

[Bear96]

I personally do not want to be involved with a company in a corporate transaction that continues to post enormous losses

[post="251238"][/post]​

You don't, huh?

Isn't U still posting enormous losses?

Aren't you "involved with" U?

Looks like you are in an uncomfortable position indeed!

(BTW I am no longer "involved with" UA so I am now just enjoying the freak show from the sidelines. )

 

[USA320Pilot]

Bear96:

Former chief executive officer Dave Siegel and exeuctive vice president of marketing Ben Baldanza made the comment that UAL would not be the survivor too...

If there is a deal, who will end up the survivor, only time will tell.

Bear96 , US Airways expects to be profitable by the end of the year. Earlier his month at the Labor Advisory Council meeting, executive vice president of marketing Bruce Ashby and chief financial officer Ron Stanley discussed the company’s position in an industry plagued by high fuel prices and below-cost ticket prices due to overcapacity. They anticipated that US Airways will continue to lose money the first quarter but should see a modest profit by end of 2005.

See union update

By the way, I believe a UAL aset sale and fragmentation similar in socpe to what happend between UAL and Pan Am is the likely outcome, but we will see.

Regards,

USA320Pilot