Psa Sold?

Once again, theres not an entity called US Airways Shuttle to be sold. Shuttle Inc (formerly Trump Shuttle) fully merged into US Airways in August 2000. There is no longer a dedicated Shuttle fleet (because that worked so well in Florida and California :rolleyes:), in fact, to my knowlege no a/c even wear Shuttle titles anymore or are configured with the Shuttle cabin (another mistake in my opinion.) Despite that, they still market it as "the US Airways Shuttle" and use the logo on marketing.

The only thing for sale would be the huge number of slots in the 3 corridor airports, that could be used for Shuttle flights or for whatever the acquirer wants to do with them (though they would still be held to the same silly perimeter rules US and everyone else is in New York and Washington). Not as valuable as they were a few short years ago, but still the most sought after rights in the country. If US was throwing in gates and terminal space that makes it all the better. But there's no carrier with a high enough offer to make a sale of such valuable assets worth it. And for US, the price is higher than finances- they are arguably what makes US Airways a serious airline and merger consideration.

These assets are much more important to US Airways than an Ohio based commuter airline with a few RJs. Without the major presence in the three business capitals of the east, US is left with an even more ridiculous route system with arguably the three lamest hubs in the nation. To do this weeks plan of point to point, they need to retain, and beef up the presence in these high O&D, important cities, and de-emphasize stuff like Pittsburgh. So giving away the Shuttle, or really the tools to have one, is pretty dumb- those Shuttle routes are precisely the high O&D point to point US wants. The loss of it would lose a huge percentage of US FF base, not to mention the negative public connotation- although not as lucrative at the moment as it once was, its still considered US's crown jewel. It'd be the equivalent of when Pan Am sold Heathrow.

As for PSA, no one would notice if the name by the door changes on the US Express RJ that serves thier hometown, nor would any of U's plans change, or the number of RJs flown under its colours. They have made it screamingly clear, even to its customers, that they dont give two hoots who actually does the flying of the plane or how good a job they do, as long as its cheap. If PSA can be sold to Mesa they get instant cash and get to outsource even more of that pesky business of running an airline. Since its a seperate subsidiary, they dont have to worry about labor and fragmentation stuff either.

I hope our PSA employees aren't sold to the devil, but if it came down to the assets we use for the Shuttle and the W/Os, its not hard to see what would go.
 
With the sale of PSA, USAir would limit its exposure to financing pressure and also secure the financing of the new airbus/ERJ-170 fleet.

PSA makes money on paper. Do they sell ticketts? Are they billed for the ticketts U sells on them? Who pays for parts and mx? PSA would serve USAir better as a W/O. However, it the sale of that small portion of U would limit debt exposure, provide return in prepayment, and pay down short term debt for the 2006 deadline.
 
APL Refugee said:
If you notice, my screen name indicates that I'm on the Affected Pilot List (APL), at least that's what I wanted to convey. In any case, I'm furloughed, not an Active Pilot, as those who still get to fly the big iron at US Airways like to refer to themselves as.
I thought you were the APL of your mother's eye! ;)
 
One of management's LOA 91 objectives was to permit the sale of the wholly owned airlines and MDA.

Management has indicated PSA will be sold and maybe MDA too.

Regards,

USA320Pilot
 

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IF PSA is sold I believe RSA will be the buyer. If you are Bronner why not give yourself the 8% premium. By engaging Morgan Stanley to solicit bids for assets they have established the fair market value for PSA as well as MDA. RSA could buy both and pay the fair market value resolving any conflict of interest. That said as long as Chip says we are being sold I feel confident it is unlikely given his track record. LOL.
 
USA320Pilot said:
One of management's LOA 91 objectives was to permit the sale of the wholly owned airlines and MDA.
Management has indicated PSA will be sold and maybe MDA too.
Regards,
USA320Pilot
MDA is not a seperate company it is part of mainline, operates off the mainline operating certificate, therefore it is sold it cant fly as no other US carrier is certified to fly the 170.

But hey don't let facts get in your way.
 
700UW said:
MDA is not a seperate company it is part of mainline, operates off the mainline operating certificate, therefore it is sold it cant fly as no other US carrier is certified to fly the 170.

But hey don't let facts get in your way.
Exactly. MidAtlantic Airways does not exist, its not an actual airline, just a shady sweatshop division of a struggling airline using the same people working the same jobs. Unless they spun it onto the Allegheny certificate, but that doesnt seem likely

The aircraft and options could be sold is about it, but I'm pretty sure Embraer/GECAS would rather have new customers ordering new aircraft, and if any airline wants EJets they are free to order them. Since the MAA division is a part of mainline, the employees currently in that division are covered by thier US contract in terms of mergers and aquisition. Some of the biggest airlines in the world and thier unions shiver at the thought of taking on US Airways notoriously senior and tough unions. I cant imagine some regional with a hard-on for EJets taking them on instead.

Anyone ever notice how the only people who ever suggest that "MidAtlantic will be sold" tend to be employees of the affiliate airlines or folks who dont understand the corporate structure? Or, then again, USA320 Captain.
 
SoldWholeSale said:
With the sale of PSA, USAir would limit its exposure to financing pressure and also secure the financing of the new airbus/ERJ-170 fleet.

PSA makes money on paper. Do they sell ticketts? Are they billed for the ticketts U sells on them? Who pays for parts and mx? PSA would serve USAir better as a W/O. However, it the sale of that small portion of U would limit debt exposure, provide return in prepayment, and pay down short term debt for the 2006 deadline.
The problem is that RJ flying is the future for US. You pay the premium to affiliates with the per-departure fees.

Selling PSA is not going to impact U's credit rating without a whole bunch of other things happening first.
 
LOA 91 provides specific language to create a MDA IPO and/or sell the unit in its entirety.

Moreover, if MDA goes public, is sold, or its assets are sold, the likely acquirer would be Chautauqua Airlines. I understand that US Airways and Chautauqua have held discussions on this subject.

Respectfully,

USA320Pilot
 

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Keep dodging the facts, MDA is sold there is NO OPERATING CERTIFICATE, it operates off of US Airways's certificate, if it is sold it is grounded.

But hey don't let the facts get in your way once again.

Still waiting on the "painful" clause!
 
700UW:

LOA 91 permits the sale of MDA and its assets, period.

Regards,

USA320Pilot
 

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The only assests it has is the EMB-170, no operating certificate NO FLYING!

But hey you ignore the facts all the time, why should you change now?
 
700UW:

I’m not going to argue with you because you’re wrong again. LOA 91 provides specific language to sell MDA and its assets or to create an IPO.

With all due respect, you do not need an operating certificate for an IPO or an asset sale. US Airways has been in discussions about the potential to sell MDA to Chautauqua and PSA to Mesa.

Regards,

USA320Pilot
 

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USA320

Please list the assets of MidAtlantic. We know one they dont have is AN OPERATING CERTIFICATE. The employees are US Airways employees. What else would be considered an asset that belongs solely to that division?

And what is MDA? The Muscular Dystrophy Asssociation? MidAtlantic division is referred to as MAA, or if your the FAA, US Airways Embraer Division. Thats also what all crew manuals say. The MidAtlantic name is a holdover of when they had grandiose plans of it being its own wholly-owned subsisiary.
 
700UW,

Republic (Part of CHQ) is currently getting certified for the 170. They have orders on record. They also start their first pilot training class this Monday. The first pilots for Republic will be trained by MDA using the MDA training program. It's happening in less than 5 days. I'm not sure when they are taking delivery of their first plane though. I would imagine since they are training pilots, they must have a plan to add the A/C to their certificate very soon, thus the argument that no other carrier has a certificate to put the 170's on is not valid. Or at least will become invalid very soon.
 

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