Us Airways Searches For Cash

[FWAAA]

Where would the money come from for this alleged merger?

[post="261461"][/post]​

From one of the many private lenders lining up to lend money to bankrupt airlines; the winner will probably be whoever loses the bid to bankroll UAL's Ch 11 exit. Gotta do something with all that cash burning a hole in their pockets.

 

[Whatnow?]

FWIW, I was on the hotel shuttle bus this am with some HP f/as and an HP pilot. They were talking about the company's notice to the employee groups that they were returning [some or all, it wasn't clear to me] the 737s to the lessor because they could no longer afford the leases.

The HP employees on the bus were thinking that furloughs might follow. Where would the money come from for this alleged merger?

[post="261461"][/post]​

[/quote

Maybe they are streamlining AWA for a possible merger down the road? HMMM :huh:

 

[avek00]

HP lacks the money to acquire and integrate a lemonade stand, let alone an airline larger than itself. As the article noted, HP is facing a CASH CRISIS later this year, and might find itself forced to seek bankruptcy protection. No one inside the industry has the spare cash to front for a deal, and the labor chaos that would ensue from merging the seniormost employees in the airline industry with some of the more junior ones would sink it all.

 

[justaumechanic]

Sorry, won't happen that way. Can't take assets without taking the folks. It's in ALL the labor contracts, both sides. Bankruptcy has nothing to do with it. That may be why UAIR has been so motivated to get rid of the employees before any sort of merger could happen.

[post="261450"][/post]​

All you need to do is read you own post to come up with "Makes no sense".

They can take assets without taking people.. What do you think AirWis and
Republic are doing!! The get slots and Airplanes with no requirement to take
any people.

TWA was a prepackaged deal. US is not.. If US folds it will be an asset sale
to the 10th degree. While in Chapter 11 they can pretty much do whatever
they want.. There are no protections.. It is a piece of paper with words on it.

Remember the piece of paper you had that said you got a pension? My my how
that changed huh.

If Amwest were to take on this hog it would be a self inflicted gunshot to the head. The smart move is to sit back and wait for the fire sale.. Its coming.

Your contracts and all you fancy talk mean nothing when there is a shut down. ALPA, AFA, IAM can do nothing to stop Lakewipe and Bonehead from pulling the plug..

 

[LGA / 037]

Where would the money come from for this alleged merger?

[post="261461"][/post]​

[/quote]


Would the "Leveraged buyout " work in this situation ? BoeingBoy or USA320Pilot any opinions ?

 

[ClueByFour]

Sorry, won't happen that way. Can't take assets without taking the folks. It's in ALL the labor contracts, both sides. Bankruptcy has nothing to do with it. That may be why UAIR has been so motivated to get rid of the employees before any sort of merger could happen.

[post="261450"][/post]​

Can you say 1113, kids?

Failing that, they'll go Chapter 7. Same result.

Nobody is going to do another airline merger with people involved for a long time. Nobody wants another AA/TWA on their hands.

 

[Bear96]

In regard to the two companies, both pilot groups are represented by ALPA. If there was corporate combination between America West and US Airways ALPA Merger Policy is required by the ALPA constitution and by-laws. Furthermore, the current US Airways ALPA contract still has Allegheny-Mohawk LPPs for seniority integration protocol.

[post="261455"][/post]​

Get real. If a carrier on its last legs (like U) were about to be merged / acquired / whatever by someone else, the acquring carrier would simply pull an AA/TW. Remember that? The U unions would be told to sign on the dotted line and waive any claims to any type of seniority or the deal is off.

Hmmm ... A) sign on the dotted line and hope for the best in the future, or B ) refuse to and be out of jobs / pensions / insurance (remember, there is not even any COBRA if your employer ceases to exist) / passes ... tomorrow.

I think the U employees (especially the pilots) have made it clear which one they would choose, based on past concession agreements. And everyone knows it.

 

[Winglet]

Even if the pilots said no, the company would take it back to court and the judge would abrogate the pilots contract in the interest of everyone else. The "contract" and $2.50 will get you a gallon of gas.

 

[CapnCockroach]

The TWA case was a prepackaged bankruptcy where the employees of TWA agreed to new contracts that took out Labor Protection Provisions, which let the TWU have their way with seniority.

I doubt you will ever see employees at US give up their LPPs.

[post="261459"][/post]​

You're partly right. It just depends on how badly this acquisition is wanted by both party's. In TWA's case there was a 22 revolver at the heads of the workers which is why even ALPA recommended giving up scope. Either give it up or we don't take the rest of your contract. Turned out TWA labor should have given AA the single finger salute - but that is hindsight. You folks have just seen what backruptcy can do to your contracts. Don't take anything for granted.

 

[whlinder]

I would like to see US Airways remain independent, but if the company does merge, I would like to see it dump its domestic code share with United and team up with Northwest or America West. Why? Both of these companies are financially stronger than United.

[post="261455"][/post]​

I can't figure out what you are trying to say here; Do you want US to codeshare with NW and/or HP instead of UA, or do you want US to merge with HP or NW and as a result of that merger dump the UA codeshare?

 

[USA320Pilot]

I believe United is weaker than America West or Northwest. Furthermore, I would like to see US remain independent.

Right now I would not upset the code share apple cart durng a time when every penny counts.

IfUS Airways merges, I would rather see the company mege with Northwest then America West in that order because the combined business entity would be stronger than with United, unless the Chicago-based carrier can get its costs down further.

In regard to US Airways survivability, the new version of the business plan has been built for oil in the mid-50s with the further cost cuts and 5 fare increases in the last 1.5 months, the company has a projected CASM below Southwest adjusted for fuel, March numbers will be much better than February, cash projections are ahead of plan, and May and June bookings are much stronger than anticipated.

I have no idea what is on Doug Parker's mind, but if industry M&A activity occurs I believe it will happen with private equity or a financial fund providing the monies, just like David Bronner indicated when he publicly spoke of buying United assets for US Airways with RSA funds.

Interestingly, former US Airways CEO Dave Siegel and now Glenn Tilton and Doug Parker are both lobbying for consolidation; therefore, it's on their minds.

Regards,

USA320Pilot

 

[Fly]

It's on their mnds all right but not with a weak, almost ch7 airline. That's why you see Tilton lobbying for foreign ownership laws to be changed.

Fyi - United has an international presence, US does not have nearly the name recognition. Who would a foreign carrier more likely fund? I wish UAL would dump the US alliance too......it's going to cost us when US files 7.

I can assure you, there will be no white (or red) knights to save us. This we will have to do alone.

 

[justaumechanic]

What are you talking about? In your previous posts you quoted the company as saying the revised business plan accounted for fuel in the 45 range.. Now you are saying its quoted for the 50 range.. Your full of yourself. I think you make this stuff up as you go!!

This place can't merge with anyone.. It would be corporate suicide.. US Airways offers nothing.. Absolutely nothing with the exception of gates and slots at certain airports.. Thats it. An unhappy workforce, tired old planes. (not including the Airbus) Work Rules that are still to tight compared to the airlines US wants to be like. (jetblue and Southwest)

Adjusted cost per seat mile below Southwest!! Your dreaming.. Right now US is what, in the 9.50 to 9.85 casm.. Southwest is what, 7.45.. How to you arrive at your conclusion.. Taking out Fuel for example.. Whats the point in doing that? You still have to pay for fuel so why take it out? Duh. JetBlue and AirTran are in the low 7 casm or high 6 casm. So how do you plan on getting into that range? You can't.. Not without even more pain that you have accepted already.

Lets ask the all important question here.. Are you willing as a group or a company to accept the work rules of the LCC's? Its as simple as that.

How do you expect US to get to 7.50 casm? You know there is only one way.

More Pain, More Layoffs. The workforce must be reduced to 18k to 19k. You need to get your headcount down to 85 per plane. The 737's must go along with the 757/767.. To many fleet types..

And your leadership.. They all need to go.

I believe United is weaker than America West or Northwest. Furthermore, I would like to see US remain independent.

Right now I would not upset the code share apple cart durng a time when every penny counts.

IfUS Airways merges, I would rather see the company mege with Northwest then America West in that order because the combined business entity would be stronger than with United, unless the Chicago-based carrier can get its costs down further.

In regard to US Airways survivability, the new version of the business plan has been built for oil in the mid-50s with the further cost cuts and 5 fare increases in the last 1.5 months, the company has a projected CASM below Southwest adjusted for fuel, March numbers will be much better than February, cash projections are ahead of plan, and May and June bookings are much stronger than anticipated.

I have no idea what is on Doug Parker's mind, but if industry M&A activity occurs I believe it will happen with private equity or a financial fund providing the monies, just like David Bronner indicated when he publicly spoke of buying United assets for US Airways with RSA funds.

Interestingly, former US Airways CEO Dave Siegel and now Glenn Tilton and Doug Parker are both lobbying for consolidation; therefore, it's on their minds.

Regards,

USA320Pilot

[post="261558"][/post]​

 

[Walmartgreeter]

Lets ask the all important question here.. Are you willing as a group or a company to accept the work rules of the LCC's? Its as simple as that.

Uh....I think the answer to that question was a resounding yes. Subtract fuel, if you can for a moment...and U has the lowest labor cost of ANY major airline in this country. U has a snowballs chance of making it...but do not discount that it is now a turn-key, low labor cost Northeast franchise. I am no Pollyanna, but the chance is there for U to be the model of things to come. Timing and fuel will probabably kill U soon...but if it does not...well, we will all see soon. Best. Greeter.

 

[EyeInTheSky]

Oil prices are not expected to stabilize... and you think they'll be a merger? What did you all get off the happy flight from MOBAY or what?