FlyingHippie
Senior
- Jan 27, 2003
- 283
- 0
JetTrain
Nations Air
Need I mention more? I'll be hornswaggled if this pig flies.
Nations Air
Need I mention more? I'll be hornswaggled if this pig flies.
Pit Selected As Hub For New, Low-fare Airline
- Thread starter USFlyer
- Start date
USA320Pilot
Veteran
- May 18, 2003
- 8,175
- 1,539
I find the timing of Jim Roddey's announcement suspect.
Last week Rick Santorum wrote Dave Siegel a letter asking that US Airways extend its Pittsburgh operation and provide more time to negotiate an acceptable agreement to reduce US Airways' Pittsburgh operating costs.
Then shortly thereafter, during the final days of the election campaign, Roddey announces that a new low cost airline, without a name, without an operating certificate, and without announced financing, is going to ramp and begin operations in just 8 months.
Could this announcement be a political ploy during an election and/or a means to apply pressure on US Airways, one business day after the Allegheny County Airport Authority (ACAA) board met privately to review proposals that would reduce the annual costs US Airways pays at Pittsburgh International Airport?
Moreover, published reports indicate ACAA board members last Friday gave authority Executive Director Kent George the go-ahead to recommend options to Roddey and Ed Rendell as part of the ongoing negotiations between state and local political leaders and US Airways to lower airport costs.
I find the announcement suspect. If the proposed upstart airline was solid, then why not wait to announce the news when the company had a business plan, never mind a name.
Respectfully,
Chip
Last week Rick Santorum wrote Dave Siegel a letter asking that US Airways extend its Pittsburgh operation and provide more time to negotiate an acceptable agreement to reduce US Airways' Pittsburgh operating costs.
Then shortly thereafter, during the final days of the election campaign, Roddey announces that a new low cost airline, without a name, without an operating certificate, and without announced financing, is going to ramp and begin operations in just 8 months.
Could this announcement be a political ploy during an election and/or a means to apply pressure on US Airways, one business day after the Allegheny County Airport Authority (ACAA) board met privately to review proposals that would reduce the annual costs US Airways pays at Pittsburgh International Airport?
Moreover, published reports indicate ACAA board members last Friday gave authority Executive Director Kent George the go-ahead to recommend options to Roddey and Ed Rendell as part of the ongoing negotiations between state and local political leaders and US Airways to lower airport costs.
I find the announcement suspect. If the proposed upstart airline was solid, then why not wait to announce the news when the company had a business plan, never mind a name.
Respectfully,
Chip
ClueByFour
Veteran
- Aug 20, 2002
- 3,566
- 37
If Dave and Dave can spread FUD, I think it is in the best interests of the PA taxpayer for the state and county to fire back. Of course it's suspect--kind of like bailing on leases with less than an hour to go in bankruptcy, or publishing a BS study overstating the economic impact of the US presence at PIT.
Even if this thing never gets off the ground, it puts pressure back on US. Dave blinked once already, and now they have this.
Even if this thing never gets off the ground, it puts pressure back on US. Dave blinked once already, and now they have this.
Quoted from another post:
"In my opinion, Dave Siegel’s decision to keep the Pittsburgh hub operating at its current level for up to 11 months was due to one of two factors. Either US Airways has no intention of leaving Pittsburgh and is using its bankruptcy leverage to extract the best possible deal or the Company is not ready to move on the UCT.
If the reports that the Pittsburgh hub negotiations are being held hostage to United’s exit financing remain in play, then it makes sense for Siegel to buy some more time to allow United’s end game to unfold. United still must resolve the pension issue (which is likely being held hostage itself by Congress and a legislative solution), the Dulles/UAL/Mesa/ACA situation, resolve the UCT airport municipal bond litigation, EETC negotiations, finding exit financing/equity plan sponsor(s), and meeting the ATSB requirement for a projected 7% profit margin in 7 years.
These are all major issues for United to resolve, which will take time, therefore, I believe there is a valid argument that Siegel may be buying time to get the best possible deal for US Airways should United be forced to sell assets to survive.
Respectfully,
Chip "
The UCT/ICT is beginning to unfold. After Pit is done being held hostage by UAL, US will buy all of UAL’s assets which are beneficial to US. Then US, will in turn, be spun off to Ed Beauvais to form the new low cost airline hence the completion of the UCT/ICT. Isn't it great when a plan comes together! The only question is, will the employees transfer with the spin off and what are the new payscales?
Sorry, I couldn't resist.
"In my opinion, Dave Siegel’s decision to keep the Pittsburgh hub operating at its current level for up to 11 months was due to one of two factors. Either US Airways has no intention of leaving Pittsburgh and is using its bankruptcy leverage to extract the best possible deal or the Company is not ready to move on the UCT.
If the reports that the Pittsburgh hub negotiations are being held hostage to United’s exit financing remain in play, then it makes sense for Siegel to buy some more time to allow United’s end game to unfold. United still must resolve the pension issue (which is likely being held hostage itself by Congress and a legislative solution), the Dulles/UAL/Mesa/ACA situation, resolve the UCT airport municipal bond litigation, EETC negotiations, finding exit financing/equity plan sponsor(s), and meeting the ATSB requirement for a projected 7% profit margin in 7 years.
These are all major issues for United to resolve, which will take time, therefore, I believe there is a valid argument that Siegel may be buying time to get the best possible deal for US Airways should United be forced to sell assets to survive.
Respectfully,
Chip "
The UCT/ICT is beginning to unfold. After Pit is done being held hostage by UAL, US will buy all of UAL’s assets which are beneficial to US. Then US, will in turn, be spun off to Ed Beauvais to form the new low cost airline hence the completion of the UCT/ICT. Isn't it great when a plan comes together! The only question is, will the employees transfer with the spin off and what are the new payscales?
Sorry, I couldn't resist.
Another article on the start-up from Dow Jones Business News:
Dow Jones Business News
New Pittsburgh Airline: Funding Through Pvt Placement
Tuesday October 14, 2:41 pm ET
By Elizabeth Souder, Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--The former head of America West Holdings Corp. (NYSE:AWA - News) , Edward Beauvais, is starting a new low-cost airline out of Pittsburgh that's likely to give US Airways Group Inc. (NYSE:U - News) a run for its money.
Beauvais said in an interview with Dow Jones Newswires Tuesday his new project, which he currently refers to as Project Roam for lack of a proper name, will begin service out of Pittsburgh in June.
"It's going to be a low-fare, low-cost airline," he said.
The airline will be modeled after Southwest Airlines Co. (NYSE:LUV - News) and JetBlue Airways Corp. (NasdaqNM:JBLU - News) , and will offer coast-to-coast flights. Initially, the airline will serve Boston, New York, Washington, Philadelphia, Chicago, and four other destinations out of its Pittsburgh hub.
At first, Beauvais will operate three new Boeing 737-700s. In time, he expects to add enough planes to service 39 destinations.
Beauvais said he is currently finishing a private placement to fund the airline. He said an initial public offering is "always feasible," but not in the works right now.
Beauvias said he expects the new airline to grow for the next 10 years, doubling in size each year for the first couple of years.
He said expects the growth to be much like that of his former airline, America West, in Phoenix.
Beauvais wouldn't give details of the funding for the airline, neither the amount needed nor the timing of the private placement.
Allegheny County Chief Executive Jim Roddey, who negotiated with the new airline on behalf of the Pittsburgh airport, said the placement will likely be to an investor with a track record of investing in airlines.
Project Roam may give industry giant US Air a run for its money. The network carrier operates a hub in Pittsburgh, but has been considering reducing service from hub status since the carrier emerged from Chapter 11 protection.
David Castelveter, spokesman for US Air, said the airline seeks $500 million in debt reduction, or it will have to de-hub Pittsburgh, which would result in a dramatic reduction in daily flights for the city. He said the addition of a new airline doesn't change the issue of debt reduction.
"We compete with low-cost carriers every day," he said. "There is plenty of room in Pittsburgh for competition."
Discount airlines may not be able to offer service to as many markets out of Pittsburgh as a network carrier, Roddey said. Currently, 100 destinations are served out of Pittsburgh. But Roddey said he thinks as many as 80 destinations could be served out of Pittsburgh, even if US Air cuts some service.
Roddey said the new airline is considering eventually establishing partnerships with an international air carrier and a regional carrier to extend the airline's reach. Project Roam, however, only plans to fly the standard 737, which is the right size for servicing large domestic markets.
Further, Roddey said he expects the addition of discount airlines to stimulate demand among people who currently don't fly very often, or who drive to Cleveland to get better fares.
"We are losing between 600,000 and 700,000 passengers a year from people who drive to Cleveland to fly on Southwest," he said.
Around 15 million people fly to Pittsburgh each year, with 65% of those passengers connecting to other destinations, Roddey said. Roddey said the new airline's business plan assumes that US Air will continue operations in Pittsburgh.
Roddey said he is in talks with other discount airlines as well, including Southwest Airlines, about opening service in Pittsburgh.
- By Elizabeth Souder, Dow Jones Newswires; 201-938-4148; [email protected]
Dow Jones Business News
New Pittsburgh Airline: Funding Through Pvt Placement
Tuesday October 14, 2:41 pm ET
By Elizabeth Souder, Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--The former head of America West Holdings Corp. (NYSE:AWA - News) , Edward Beauvais, is starting a new low-cost airline out of Pittsburgh that's likely to give US Airways Group Inc. (NYSE:U - News) a run for its money.
Beauvais said in an interview with Dow Jones Newswires Tuesday his new project, which he currently refers to as Project Roam for lack of a proper name, will begin service out of Pittsburgh in June.
"It's going to be a low-fare, low-cost airline," he said.
The airline will be modeled after Southwest Airlines Co. (NYSE:LUV - News) and JetBlue Airways Corp. (NasdaqNM:JBLU - News) , and will offer coast-to-coast flights. Initially, the airline will serve Boston, New York, Washington, Philadelphia, Chicago, and four other destinations out of its Pittsburgh hub.
At first, Beauvais will operate three new Boeing 737-700s. In time, he expects to add enough planes to service 39 destinations.
Beauvais said he is currently finishing a private placement to fund the airline. He said an initial public offering is "always feasible," but not in the works right now.
Beauvias said he expects the new airline to grow for the next 10 years, doubling in size each year for the first couple of years.
He said expects the growth to be much like that of his former airline, America West, in Phoenix.
Beauvais wouldn't give details of the funding for the airline, neither the amount needed nor the timing of the private placement.
Allegheny County Chief Executive Jim Roddey, who negotiated with the new airline on behalf of the Pittsburgh airport, said the placement will likely be to an investor with a track record of investing in airlines.
Project Roam may give industry giant US Air a run for its money. The network carrier operates a hub in Pittsburgh, but has been considering reducing service from hub status since the carrier emerged from Chapter 11 protection.
David Castelveter, spokesman for US Air, said the airline seeks $500 million in debt reduction, or it will have to de-hub Pittsburgh, which would result in a dramatic reduction in daily flights for the city. He said the addition of a new airline doesn't change the issue of debt reduction.
"We compete with low-cost carriers every day," he said. "There is plenty of room in Pittsburgh for competition."
Discount airlines may not be able to offer service to as many markets out of Pittsburgh as a network carrier, Roddey said. Currently, 100 destinations are served out of Pittsburgh. But Roddey said he thinks as many as 80 destinations could be served out of Pittsburgh, even if US Air cuts some service.
Roddey said the new airline is considering eventually establishing partnerships with an international air carrier and a regional carrier to extend the airline's reach. Project Roam, however, only plans to fly the standard 737, which is the right size for servicing large domestic markets.
Further, Roddey said he expects the addition of discount airlines to stimulate demand among people who currently don't fly very often, or who drive to Cleveland to get better fares.
"We are losing between 600,000 and 700,000 passengers a year from people who drive to Cleveland to fly on Southwest," he said.
Around 15 million people fly to Pittsburgh each year, with 65% of those passengers connecting to other destinations, Roddey said. Roddey said the new airline's business plan assumes that US Air will continue operations in Pittsburgh.
Roddey said he is in talks with other discount airlines as well, including Southwest Airlines, about opening service in Pittsburgh.
- By Elizabeth Souder, Dow Jones Newswires; 201-938-4148; [email protected]
PITbull
Veteran
- Dec 29, 2002
- 7,784
- 456
With this announcement of a new carrier to be based in Pittsburgh. I can't get excited about another LCC who will provide poverty wages in our region.
As a PA taxpayer, its fine to come in and offer competitive prices on tickets for the community and offer jobs for those who just can't find any work, or supply some work for those who want to stay in the industry, until something better comes along. That is the extent of my positive feelings on a new LCC coming into Pittsburgh, who just happened to have the same founder go bankrupt with two other "jump starts".
I still maintain the position that the PA Delegation really needs to only give those airlines relief that offer livable wage jobs for our region and a "mainline Hub" big jet status. They go hand in hand.
As a PA taxpayer, its fine to come in and offer competitive prices on tickets for the community and offer jobs for those who just can't find any work, or supply some work for those who want to stay in the industry, until something better comes along. That is the extent of my positive feelings on a new LCC coming into Pittsburgh, who just happened to have the same founder go bankrupt with two other "jump starts".
I still maintain the position that the PA Delegation really needs to only give those airlines relief that offer livable wage jobs for our region and a "mainline Hub" big jet status. They go hand in hand.
USA320Pilot
Veteran
- May 18, 2003
- 8,175
- 1,539
UAL06:
You are absolutely right and in fact Jim Roddey has said the hub is gone, regardless of what ACAA provides for relief. I suspect Roddey's comments had some emotion, but US Airways does have the option if it desires to use Bronner's money to acquire United assets, now that the Chicago-based company has begun selling some assets like B747s, B767s, and LHR slots, although modest.
With ALPA president Duane Woerth echoing my comments that United cannot get exit-financing Siegel has even more leverage of ACAA. In my opinion, Dave Siegel may want his cake and be able to eat it too. In my opinion, Siegel wants to make MDA and the mainline in PIT like Comair and Delta in Cincinnati, as well as take over assets in Los Angeles, San Francisco, Denver, and Chicago.
However, David Bronner is likely looking for a windfall and wants to buy low so he can eventually sell high, which could be an objection by United's unsecured creditor's committee, who likely is trying to get a better deal.
I somewhat disagree with Woerth's comments and I believe United can emerge from bankruptcy. To do this the company may have to t terminate the defined benefit pensions, resolve the municipal bond litigation and begin paying its airport lease and landing fee debts, reject additional aircraft leases and return aircraft to the lessors, and solve the Dulles/Atlantic Coast problem. Once these issues are complete then the company may be able to meet the increasing ATSB demands for a business plan that provides a 7% profit margin within 7 years to get a loan guarantee.
Best regards,
Chip
You are absolutely right and in fact Jim Roddey has said the hub is gone, regardless of what ACAA provides for relief. I suspect Roddey's comments had some emotion, but US Airways does have the option if it desires to use Bronner's money to acquire United assets, now that the Chicago-based company has begun selling some assets like B747s, B767s, and LHR slots, although modest.
With ALPA president Duane Woerth echoing my comments that United cannot get exit-financing Siegel has even more leverage of ACAA. In my opinion, Dave Siegel may want his cake and be able to eat it too. In my opinion, Siegel wants to make MDA and the mainline in PIT like Comair and Delta in Cincinnati, as well as take over assets in Los Angeles, San Francisco, Denver, and Chicago.
However, David Bronner is likely looking for a windfall and wants to buy low so he can eventually sell high, which could be an objection by United's unsecured creditor's committee, who likely is trying to get a better deal.
I somewhat disagree with Woerth's comments and I believe United can emerge from bankruptcy. To do this the company may have to t terminate the defined benefit pensions, resolve the municipal bond litigation and begin paying its airport lease and landing fee debts, reject additional aircraft leases and return aircraft to the lessors, and solve the Dulles/Atlantic Coast problem. Once these issues are complete then the company may be able to meet the increasing ATSB demands for a business plan that provides a 7% profit margin within 7 years to get a loan guarantee.
Best regards,
Chip
Keep singing the song Chip:
ALL I HAVE
TO DO IS DREAM
by the Everly brothers
C ...Am...... Dm7..... G7...................
WHEN I WANT YOU IN MY ARMS
C...... Am...... Dm........ G7.......................................;.
WHEN I WANT YOU AND ALL YOUR CHARMS
C........ Am...........................
WHENEVER I WANT YOU
F........ G7 ....C... Am.... F ............G7...........................................
ALL I HAVE TO DO IS DREAM, DREAM, DREAM, DREAM.
C....... Am.... Dm..... G7.......................
WHEN I FEEL BLUE IN THE NIGHT
C....... Am.... Dm .......G7..............................
AND I NEED YOU TO HOLD ME TIGHT
C ........Am ..........................
WHENEVER I WANT YOU
F......... G7 .....C... F ...C ..C7......
ALL I HAVE TO DO IS DREAM
. F ....................Em................................................
..................
I CAN MAKE YOU MINE TASTE YOUR LIPS OF WINE
Dm.. G7........ C ......C7...........
ANYTIME NIGHT OR DAY.
F............ Em..................................
ONLY TROUBLE IS GEE WHIZ,
D7 ................................G7.........
I'M DREAMING MY LIFE AWAY.
C ......Am ....Dm .......G7.......................
I NEED YOU SO THAT I COULD DIE.
C ....Am ..Dm .........G7.........................
I LOVE YOU SO AND THAT IS WHY.
C ...........Am...... F ........G7 ....C ........F ....C................................
WHENEVER I WANT YOU ALL I HAVE TO DO IS DREAM.
ALL I HAVE
TO DO IS DREAM
by the Everly brothers
C ...Am...... Dm7..... G7...................
WHEN I WANT YOU IN MY ARMS
C...... Am...... Dm........ G7.......................................;.
WHEN I WANT YOU AND ALL YOUR CHARMS
C........ Am...........................
WHENEVER I WANT YOU
F........ G7 ....C... Am.... F ............G7...........................................
ALL I HAVE TO DO IS DREAM, DREAM, DREAM, DREAM.
C....... Am.... Dm..... G7.......................
WHEN I FEEL BLUE IN THE NIGHT
C....... Am.... Dm .......G7..............................
AND I NEED YOU TO HOLD ME TIGHT
C ........Am ..........................
WHENEVER I WANT YOU
F......... G7 .....C... F ...C ..C7......
ALL I HAVE TO DO IS DREAM
. F ....................Em................................................
..................
I CAN MAKE YOU MINE TASTE YOUR LIPS OF WINE
Dm.. G7........ C ......C7...........
ANYTIME NIGHT OR DAY.
F............ Em..................................
ONLY TROUBLE IS GEE WHIZ,
D7 ................................G7.........
I'M DREAMING MY LIFE AWAY.
C ......Am ....Dm .......G7.......................
I NEED YOU SO THAT I COULD DIE.
C ....Am ..Dm .........G7.........................
I LOVE YOU SO AND THAT IS WHY.
C ...........Am...... F ........G7 ....C ........F ....C................................
WHENEVER I WANT YOU ALL I HAVE TO DO IS DREAM.
ff:
Twicebaked
Veteran
- May 22, 2003
- 1,788
- 18
I must admit that I do have to agree with Chip!Chip Munn said:
The news showed a clip of the "meeting" with this guy and time lines don't seem like they will add up.
The start up is "supposed" to be in June, yet there are no investors and yet to get approval from the FAA or Federal Government.
MDA is a "new airline" within an already existing airline that has been in the works for over a year and it is still NOT up and running. (yes, our management is lacking, but...)
Something stinks in suburbia
