Psa Sold?

[USA320Pilot]

LOA 91, Attachement B, provides for a Change in Control of MDA (Not MAA or the Embraer Division) and Fragmentation.

I'm not going to go into detail and type all 38 pages of the LOA that are in PDF format, but in the education material ALPA MEC chairman and board member Captain Bill Pollock said, "If MDA is sold, 100% of its pilots (and their contract) will go with the sale."

Regards,

USA320Pilot

 

[nycbusdriver]

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.

Bronner will buy it, and control USAirways Group, and reinvigorate the Lorenzo "upstreaming" strategy. In this case it might then be termed "side-streaming" since PSA will no longer operate under the USAirways corporate group.

 

[Bluestreak]

I can't wait for the day when PSA is liberated from US Airways and mainline ALPA... As long as we're not bought by Mesa.

 

[SoldWholeSale]

MDA does not need an operating certificate to be sold. A new cert is not a big issue. All MDA emoloyees have PDT employee #'s which were assigned in place of their origional USAirways employee #'s within a week or so of the PDT/ALG merger announcement by mgmnt. IPO anyone? 60+ Dash-8's and 39 170's by year end....

PSA.... Mesa is going to step up, no way around it. They have the money, the buiness ties, and the relationship with GECAS to make it happen. That 8% isn't such a big deal and is based on too many factors to be constant. Opertating cost is nothing compared to the revenue generated by having those aircraft and being able to limit your exposure financially.

Sort of like having $10,000 in the bank but choosing to pay for $10,000 in schooling with student loans because their money with interest is cheaper than yours and has tax advantages.

MDA going to anyone, including Mesa or Republic would be a pay raise for those folks....

 

[Stick-n-Rudder]

Mesa buy's with stock because they do not have cash.(they continue to sell stock and give the proceeds to their BOD in bonuses) US needs or wants cash! Either way PSA is not worth much in CASH with twenty something CRJ's and some 328's! PSA has the LARGE JET DOT Cert. why combine the assets of MDA with ALG/PDT when US can have a pure jet operation within four months and then consider the combined entity PSA/MDA for IPO? Bronner buys and assumes control and makes money from the code share with US and possibly United? Bronner invested in US because of the potential payback long term not short term.

 

[SpinDoc]

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.

Light:

Does MDA not operate under the Potomac Air operating
certificate? If it does, it may be a division of US mainline,
but it is certainly another operating company under FAA
and DOT regulations. If not, then what the h-e-double hockey
sticks happened to the Potomac certificate? An operating
certificate is gold in this industry.

 

[WSurf]

Just picked up a current Airways Mag.(the one that has pictures of all the different airlines) which had a picture of MDA EMB-170 and under the picture it said Operated under the old Potomic Cert. so there you go.
Dont understand why they were given PDT Employee #'s, and then I heard they were grouped under our health care provider. Last time Potomic was flying, PDT had to babysit that airline, maybe we are going to babysit MDA also.

 

[700UW]

MDA does not operate on potomac's certificate, check with your FSDO is operates on Mainline's!

 

[SoldWholeSale]

MDA's call sign is "USAir", the planes say "An operating division of USAirways" on the side, and in fact does not have a certificate.

 

[APL Refugee]

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

You are wrong, USA320PILOT. I have looked into this, and in fact USAirways is not, and has not been, in discussions with CHQ about them purchasing MDA.

I submit, most respectfully, that you have been the one talking about this particular scenario and no one else (except for the people who reply to you on the Internet.....may I remind you that it is not real life, just bits and bytes flying through cyber space?)

Several sources inside of U Group have confirmed that while asset sales have certainly been discussed, selling PSA or MDA is very, very last resort stuff, and would probably spell the end of the enitre enterprise. USA320PILOT's notion that it would be a quick fix for liquidity (one of his top ten favorite businessman words) is pure nonsense. Sure, it would raise a little cash, but what then? Dave S. refered to it as "burning the furniture to stay warm." That's not quite the current situation, no matter how much USA320PILOT wants you all to think it so.

Prediction: USA320PILOT will post at least 1200 words of canned text that he has saved on his computer in a attempt to discredit me.
So, yeah, it's been discussed, but not in the way His Postyness is painting it. Like so many other things he blabs about here, it just ain't gonna happen. B)

 

[APL Refugee]

A headline from a USA320PILOT post on another thread:

"US Airways execs say cost-cutting necessary, but not asset sale"


Gee, USA320PILOT, did you miss that, too? Heck, you posted it.


Yeah, so much for the "whole truth." Clearly, USA320PILOT only posts what he knows will further his little agenda.

 

[funguy2]

A headline from a USA320PILOT post on another thread:

"US Airways execs say cost-cutting necessary, but not asset sale"


Gee, USA320PILOT, did you miss that, too? Heck, you posted it.


Yeah, so much for the "whole truth." Clearly, USA320PILOT only posts what he knows will further his little agenda.

I'm with you APL... Sometimes it seems that USA320Pilot doesn't read his own posts...

As for the sale to Mesa bit... As Stick-n-Rudder pointed out, Mesa uses stock for acquisitions. In fact, when Mesa offered an all-stock tranaction for Atlantic Coast, many folks were theorizing that at least part of the reason for the offer was that Atlantic Coast had a large stash of cash and that would help Mesa finance its aggressive growth for America West, UAL, and US Airways, because Mesa was supposedly having trouble with that at the time.

 

[N628AU]

I guess this proves that once again, a certain Captain's well-placed sources have led him astray?

I wonder if they tell him this stuff to watch him expound on them.

http://www.thestate.com/mld/thestate/8709327.htm

 

[Capecod]

Had a chance to talk to a Sr. V.P at Mesa this week and was told (face to face) this:

1. Mesa has no intrest in PDT or ALG at all. According to him they have "zero value".

2. Mesa is at this time not intrested in buying PSA. Way to much risk with the state U is in. If U can turn it around he said that Mesa could just as easly get more rj growth with out the huge upfront expense of buying the PSA. (BTW: Mesa has over 250 mil in the bank in cash and could easly buy PSA in cash if they wanted.)

3. As soon as PSA and MDA can handle the load in PHL, Mesa will be moving most if not all the CRJ's to CLT. U wants PSA in PHL and DCA, Mesa in CLT, TSA in PIT. CHQ would continue to do a little bit of everything.

4. He feels that U will only sell PSA and/or MDA (especally MDA) as a last resort.

Again, this is stright from the top at Mesa (not JO thank god, I wouldn't bother posting anything that jacK a$$ would tell me). Sorry USA320. -Cape

BTW, A while back I said that Mesa had no more growth for U and I was wrong. We still have 10 CRJ 200's that we are going to be putting on line starting with 2 a month in Sept. That would be the last of the growth at this time.

 

[funguy2]

Capecod:

Interesting report. On one hand, its easy to see why Mesa might feel they are over-exposed to BK and near BK majors.

On the otherhand, lots of folks think that Mesa (and Orenstein) have ambitions to be/run a major... One way for Mesa to do that is to become as big a US Airways Express carrier as possible, and be in a position to keep operating the CLT hub. Then throw in a few 737's for longer-haul or higher density markets, and you have an instant new major airlines where the "new Mesa" would replace US Airways in a CH 7 scenario. While this would be EXTREMELY RISKY, lots of people seem to think if anyone would try such a thing, it would be Mesa/Orenstein. I personally would think its way to risky, but Orenstein seems to have a habit of going out on a limb... Bid for HA... Pre-BK investment in US Airways... ACAI merger attempt... A potential CVG hub when Comair was on strike... Now supposedly a 737 operation... I don't know how much of this is/was feasible, but no other regional has publicly tried any of these types of things (except maybe ACAI).