USA320Pilot
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- May 18, 2003
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Us Airways Deals To Get To Its Cash
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Tim Nelson
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While it is encouraging that the US Govt doesn't want to be the final nail in the coffin and will wash their hands of any liquidation, Michael Boyd and other industry experts have already declared in unmistakenly absolute terms, "stick a fork in it".
The only question within the ranks of the industry experts is to exactly when liquidation will occur. I believe I read where Boyd didn't put it past February but others said it could survive to about March.
If liquidation comes, history tells us it will come abruptly, and employees will come into work only to find management has left town. No nothing. I certainly hope that US AIRWAYS management has a tad bit more decency than that. Is that asking too much?
Personally, I am advocating that the Chicago Cubby manual scoreboard operator come over to US AIRWAYS and change the scoreboard so the company can get back into the game. Maybe he would do it...heck it's worth a try?
regards,
The only question within the ranks of the industry experts is to exactly when liquidation will occur. I believe I read where Boyd didn't put it past February but others said it could survive to about March.
If liquidation comes, history tells us it will come abruptly, and employees will come into work only to find management has left town. No nothing. I certainly hope that US AIRWAYS management has a tad bit more decency than that. Is that asking too much?
Personally, I am advocating that the Chicago Cubby manual scoreboard operator come over to US AIRWAYS and change the scoreboard so the company can get back into the game. Maybe he would do it...heck it's worth a try?
regards,
OP
USA320Pilot
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Tim:
It appears the ATSB, GE, Citigroup, Bombardier, and Embraer do not share your pessimism. These financiers, unlike Mike Boyd, have access to the company's finances and they're willing to provide US Airways with funding during bankruptcy.
Why would that be? Moreover, what do you and Mike Boyd know that the financial community is missing?
Regards,
USA320Pilot
It appears the ATSB, GE, Citigroup, Bombardier, and Embraer do not share your pessimism. These financiers, unlike Mike Boyd, have access to the company's finances and they're willing to provide US Airways with funding during bankruptcy.
Why would that be? Moreover, what do you and Mike Boyd know that the financial community is missing?
Regards,
USA320Pilot
USA320Pilot said:
Maybe they have investments in other carriers also and by keeping USAIR in business they can keep the concessions train going, if you guys vote this in you just set it on track till 2011!
The little bit of money they lose by liqiudating USAIR a year or so from now will be more than made up elsewhere. In the maentime they will enjoy dirt cheap labor rates from 2003 till 2011.
Then, since the airlines will have labor locked into concessionary contracts until far into the future companies like GE, Citigroup etc can jack up their rates, then come 2011 when our contracts are due the airlines can still cry poverty and claim that we are being unreasonable when we ask for the 50% increases that we will need simply to get us back to where we were.
Tim Nelson
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USA320Pilot said:
USA320Pilot,
I do not believe my post was pessimistic, you should reread it. Quite the contrary, unlike Boyd and other 'Top analyst' who placed no condition on liquidation ['stick a fork in it'] I did by putting liquidation in a conditional phrase primarily because I unlike Boyd I am no expert.
At any rate, difficult situation indeed.
regards,
WestCoastGuy
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Tim Nelson said:
You're in dreamland if you think management wont drop this place like a hot potato! With the likes of the group running the show now, they'll be the first to hit the door, carrying as much cash with them as possible! Almost 3 weeks after the PHL fiasco, Crellin is still scratching his head and has done NOTHING.
OP
USA320Pilot
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firstamendment
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phl2 said:
I know I will get blasted for saying this, but did it EVER occur to any of you that the govt...screwed up as she may be at times..understands the effects that one legacy after the other failing could have to very small communities? Many have been left away from the rails, buses, and now airlines? I know it may be far reaching, but maybe, when you look at the small communities US serves alone, the govt realizes a infrastructure crisis for small town America may be on the horizon? Sorry, but SWA can't serve ALL these communitied. I know this is thinking in a more liberal mind, but do we as a country not owe something to the transportation system of this country, making sure communities are served?
BoeingBoy
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first,
I think you'll find that most of those small communities where U is the only service are part of the EAS program - presumably another carrier (or even the same one as now with a different paint job) would pick up those markets flying to someone else's hub.
For the rest where we aren't the only service, they'll still have service from the other carriers serving them now - with a better chance of being profitable since the traffic won't be split up.
Jim
I think you'll find that most of those small communities where U is the only service are part of the EAS program - presumably another carrier (or even the same one as now with a different paint job) would pick up those markets flying to someone else's hub.
For the rest where we aren't the only service, they'll still have service from the other carriers serving them now - with a better chance of being profitable since the traffic won't be split up.
Jim
RowUnderDCA
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- Oct 6, 2002
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Actually, I think that First is on to something. Some of the reluctance in the mindset of CCY may well be in the presumption that small town interest (hinterlands congressman) are part of the iron triangle that U has used to dominate its market niche. This is why U has for so long appeared to be more BTV's and SYR's hometown airline as opposed to LGA's and BOS's. It's a mindset that will have to fade and I wonder if there will be some political fall out when the new airline industry structure starts becoming apparent.
WestCoastGuy said:
WestCoast:
Are you surprised that Cremlin hasn't made
any changes? The cost cuts haven't been
fully analyzed yet to give him the authority
to make any changes. That is, if he is around
long enough to make the changes.
It is likely that a wholesale change up is
going to occur in Senior VP levels and above.
The likes of Cremlin, Glass, and even
Lakefiled will probably be replaced by a
team of specialists who can take the cost
savings that have been attained and
maximize the benefit across the system.
This will probably occur after the final
Capital, and the IAM.
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