My view:
2. It has been done before, the "tail wagging the dog", in that Mesa itself made an investment into America West during their reorganization, that not only secured Mesa's position as an Express carrier for AWA, but made a decent return for them too.
3. There are only so many spots at the US Airways table, and with AWAC coming to dinner, that means that we do not need all of the Affiliates that we have now. Thus you get them to compete with one another to secure the remaining flying, or you replace them outright. Again, they might just jump ship to UAL or DAL, but it is better to take AWAC's $$$ and use them instead than to just leave things the way they are now.
4. Most importantly, this is an amount just enought to get us "over the hump" of the weak late winter months and into the spring. It gives us the boost we need financially to get past the most lean (read: dangerous) point in our reorganization. It also provides what investors call "risk sharing", meaning AWAC will serve as a partner in the financial rebirth of US Airways.
5.. People around here should start giving U management a little more credit, they are turning out to be a lot more clever, and surprising than many of the armchair CEO's on here are willing to admit.
1. This is just one part of a larger plan, yet a clever move on both AWAC and US Airways' part. We DID need 100 Million to satisy the GE deal, and allow that part of the overall plan to move forward.
2. It has been done before, the "tail wagging the dog", in that Mesa itself made an investment into America West during their reorganization, that not only secured Mesa's position as an Express carrier for AWA, but made a decent return for them too.
First, even IF AWAC planes were operated at the same cost as, and in place of Mesa, TSA, or CHQ, then we would still be money up, as the Company needs this cash infusion to move forward.
3. There are only so many spots at the US Airways table, and with AWAC coming to dinner, that means that we do not need all of the Affiliates that we have now. Thus you get them to compete with one another to secure the remaining flying, or you replace them outright. Again, they might just jump ship to UAL or DAL, but it is better to take AWAC's $$$ and use them instead than to just leave things the way they are now.
4. Most importantly, this is an amount just enought to get us "over the hump" of the weak late winter months and into the spring. It gives us the boost we need financially to get past the most lean (read: dangerous) point in our reorganization. It also provides what investors call "risk sharing", meaning AWAC will serve as a partner in the financial rebirth of US Airways.
5.. People around here should start giving U management a little more credit, they are turning out to be a lot more clever, and surprising than many of the armchair CEO's on here are willing to admit.
