Unprecedented Change…

[Fly]

Why would United sell off anything NOW? CCY can dream about any routes they'd like to acquire but it doesn't mean its available to sell. I can talk all I like about the beautiful house down the block I'd like to buy, but it's not like the owners plan to sell it to me.

 

[firstamendment]

Why would United sell off anything NOW? CCY can dream about any routes they'd like to acquire but it doesn't mean its available to sell. I can talk all I like about the beautiful house down the block I'd like to buy, but it's not like the owners plan to sell it to me.

[post="299485"][/post]​

Fly

CCY basically has no power. They are a lameduck headquarters. All the decisions are coming out of Tempe and CCY will be histry come Sept 29...pop the cork! 😀

 

[USA320Pilot]

Fly:

I have no "ill will" towards United and its great employees. In fact, I am glad our two companies did not merge and that US Airways & America West will combine later this month. The spirit of cooperation between the Arlington & Tempe-based companies is excellent, whether it's management or labor.

The reason I left United was for a "better deal" and the reason I did not want US Airways and United to merge was due to employee sentiment.

It's different between US Airways & America West.

Last Friday America West MEC chairman JR Baker wrote in his letter, "As we discussed the issue internally, we realized that the process (including the seniority integration portion of a merger) was charged with too much emotion, which was severely affecting what should otherwise be a business decision. We decided that we could continue to proceed down the path we were headed (and that history would dictate) that was wrought with failure and exposure should a second merger occur. Instead, we decided to use a little "west coast offense" and arranged a meeting with the combined MECs. We invited Mr. Parker to join us in our plenary session in order to discuss certain issues of importance to the combined pilot group. We thought that if we could put the decision-makers in a room together, absent of the politics and emotion, and reach conceptual agreements on how to proceed, then we would be more successful. It was a long shot, but the MEC decided that it was worth a try."

"I am happy to report to you that I believe the meeting was a success, and that we are well on our way to achieving our goals -- the main ones of which are protecting your pay, benefits and seniority. The transition agreement negotiations have been re-energized and hopefully (with the cooperation of the company), will reach a successful conclusion prior to September 16," he said.

United's problem is that its POR/Disclosure statement predicts annual energy prices over $800 million per year over current prices. That needs to be accounted for. It's my understanding the same thoughts that existed regarding the UCT of carving out a portion of United's domestic system and the Chicago-based airline focusing on long-haul exist today. If United divests of domestic assets, that other airlines desire, like TED, then the company could maintain the breath of its network with expanded domestic code sharing with the new US Airways and large RJ operators, thus preserving revenue and cutting costs.

This cost cutting idea is being executed by US Airways too with more facility, gate, and lease rejections about to be announced.

Thus, United could cut its costs and maintain some of the lost revenue due to asset sales by cutting a deal with Doug Parker and the new US Airways, if necessary.

There is a lot going on right now and it seems as if domestic capacity will come out of the system with GECAS, ILF, and others creating a systematic reduction of legacy carrier domestic flying through the bankruptcy code. That could accelerate in the not-soon-distant future with Delta reportedly filing for its "judicial reorganization" Thursday, Independence Air on the brink of collapse that could become a Chapter 7 liquidation, Northwest expected to file for bankruptcy before mid-October, and United's POR/Disclosure statement reportedly needs more work before it can be confirmed.

How will this unfold? It's to early to tell, but by this time next year the U.S. industry likely will be very different, which is why MEC chairman JR Baker said, "there is a real likelihood (not possibility) that as America West (soon to be US Airways) pilots, we must be prepared and ready to fight a second merger or fragmentation on the heels of this pending merger."

Regards,

USA320Pilot

 

[Fly]

Enjoy your new company and leave United out of your little "UTC" dreamscape.

When would NOW be a good time for you to get over the fact that you'll never fly a 747?

 

[700UW]

And one MEC Chairman from AWA does not speak for what will happen in the industry, no matter how many times you keep posting the samething over and over, does not make it anymore credible.

 

[RowUnderDCA]

and Parker can throw Bedford into the mix and maybe some 73's if UAL will have them. Then get Boeing and CAL and TPG and Polar involved and you've got one piece of the upcoming consolidation.

So, you gets airbuses in exchange for the 170s and their headache. Some MDA return to mainline, some go with Republic to fly 170s for UAL and some get recalled into 190s as they are delivered later.

Oh, I forgot my 😉

 

[USA320Pilot]

Fly:

According to the AWA MEC chairman JR Baker "there is a real likelihood (not possibility) that as America West (soon to be US Airways) pilots, we must be prepared and ready to fight a second merger or fragmentation on the heels of this pending merger."

In addition, two sources very close to US Airways and United have told me that United is shopping TED and its assets, to US Airways and others. The problem: the creditors do not believe United's business plan will produce a profit and the court is forcing the company to file its POR/Disclosure Statement because the company will not be offered another POR filing extension.

Not only could the company be forced to sell TED's assets to survive, the airline may have to divest of other aircraft, gates, routes, slots, and facilities too. United is not the only company in this boat, so is Delta, Northwest, and Independence Air, which is why Baker said, "Last week, we received two very enlightening presentations from our hired industry experts. Our investment bankers and ALPA financial analysts talked about the strengths and weaknesses of the merger with AAA and the status of the industry overall. This was followed by a presentation from our merger attorney and his industry analyst who reviewed the industry from a merger perspective. Needless to say, things remain chaotic for the domestic airlines financially, and we should expect more consolidation as a result of the expected bankruptcy filings from other U.S. carriers."

Regards,

USA320Pilot

P.S. I may not fly a B747, but if I do not retire early I will certainly fly an A350 as a senior captain.

 

[Fly]

Ok, I have to go to work now. You go ahead, dream, dream, dream. But just remember, when your UCT happens, and US Airways rules the world, and all employees you acquire get stapled to the bottom, and they call me out on reserve (because I'm now stapled) to your trip on the A350 (and you're #1 on the seniority list because you talked everyone else to death), you can't go out with us for drinks that night. You aren't invited. Cheers!

Besides, my insider information (let's call her Sybil) says that the M&A activity over there has this airline in mind.

 

[USA320Pilot]

Fly & 700UW:

Fly, I understand the emotion of current events, but it really serves no useful purpose. Union leaders and rank-and-file members need to find solutions to employee problems versus emotionally-charged sarcastic comments.

We are on the doorstep of unprecedented change, which is being driven by LCC's, the financial community, and market forces. Do I like this? No, of course not. I simply report what I believe to be true to the best of my knowledge, regardless of whether or not we like the information.

700UW, you're right, "one MEC Chairman from AWA does not speak for what will happen in the industry", but that is the only public information I can post. I will not expose the identities of other sources who provide me information and then destroy their trust and confidence in me.

Regards,

USA320Pilot

 

[TheLarkAscending]

I will not expose the identities of other sources who [sic] provide me information and then destroy their trust and confidence in me.

Aw shucks! Would you just share the super secret handshake with us then? 😉

 

[AAviator]

Aw shucks!  Would you just share the super secret handshake with us then? 😉

[post="299535"][/post]​

LOL,
This deleted by mod has been saying for years that U will buy UAL. Now, most likely in a few days "U" will no longer exist, but some of its planes and employees will be rolled (given, not sold) into a new company, with a smaller airline calling the shots. It amazes me that this guy actually believes what he's posting. If he's not the crystal pacace court jester I'll eat my hat. Former Moderaator, Holly is blowing sunshie up your skirt, its him without a doubt. 🙄

 

[Cosmo]

Baker then made the following points in a letter to the pilots: ...

-- "Also weighing on our minds is what the industry analysts are saying about a final domestic industry-wide consolidation. In other words, there is a real likelihood that as America West (soon to be US Airways) pilots, we must be prepared and ready to fight a second merger or fragmentation on the heels of this pending merger."

USA320Pilot:

I believe that you have a fundamental misunderstanding of the above quote. Is it just me or does this quote sound like the union expects the "new" US Airways to be on the receiving end of a merger or fragmentation proposal rather than being on the offering end, and thus the language about "be[ing] prepared and ready to fight a second merger or fragmentation on the heels of this pending merger"? Is this yet another case of you trying to "spin" a negative into a positive?

Meanwhile, I understand from sources outside the company that United's creditors believe the comapny's POR provides unrealistic fuel cost and revenue assumptions. The carriers POR projects a jet fuel price corresponding to Crude Oil prices of $50 per barrel, which is about $14 below Friday's closing price, and represents a $840 million per year difference.

Has it ever occurred to you that perhaps Tilton, United's current CEO and a former CEO of Chevron/Texaco (one of the world's largest oil companies), might know something about (or still be close to those that do) the future direction of oil prices? Moreover, I'd be willing to wager that he knows a great deal more about it than you do.

This could cause United to adjust its POR and Disclosure Statement requiring asset sales.

This is nothing more than your opinion, and worth all that we paid for it! 😛

I have heard from a well placed source outside of US Airways and United that one option being discussed by the parties is the sale of TED and its assets.

I would imagine that this is very sensitive insider information, and since the SEC has not had anyone (including you) do a "perp walk" on TV related to the divulging of this information, one can only conclude that it is false.

A key point to understand is that both ALPA contracts have a 15% fragmentation clause and TED represents less than 15% of the carrier's flying, thus if this deal if executed (which would boost the new US Airways' A320 family aircraft fleet), it would prevent management from having to deal with a thorny labor problem, like we are witnessing with MDA and LOA 91.

Yeah, those nasty United pilots keep messing with your fantasies, don't they? So much for pilot solidarity, right?

This is all JMHO, of course.

 

[Justaramper]

320...

As an outsider looking in, you are putting way too much into this, as it's mostly opinions/hearsay.

 

[EyeInTheSky]

Aw shucks! Would you just share the super secret handshake with us then? 😉

[post="299535"][/post]​

Actually, he got the idea sitting on the toilet. Speaking of toilet, USA320Pilot, I did see your name in effigy in the stall in PIT. Just goes to show what your comrades think of you or at least when they think about you.

 

[whatkindoffreshhell]

Jumpin-Jehose-afat --- this thread is on drugs!!

Re-regulate the airline industry? Sure, right after the unions organize Wal-mart because those workers are underpaid too....

And why in God's name would anybody, even the good doctor from Alabama, even DREAM of buying that pig-with-lipstick known as TED?